Destroyed homes at the Pacific Palisades Bowl Mobile Estates after the Palisades Fire in the Pacific Palisades area of Los Angeles, California, US, on Thursday, Jan. 30, 2025. The EPA has been tasked with removing toxic waste from over 16,000 homes and businesses destroyed in the Los Angeles wildfires within 30 days, a challenge that is testing the government's wildfire playbook. Photo: Roger Kisby/Bloomberg
Most real-estate agents say they’re worried about their properties in fire-prone areas, according to a recent survey by REsimpli.
Roughly 90% of the industry is concerned, the data showed, with 50.27% believing the insurance sector will be most affected.
U.S. homeowners now pay 17.4% more for new insurance policies, while the average homeowner who bought their policy in 2021 paid nearly 69% more at their 2024 renewal, or an extra $865 annually.
In 2025, the national average cost of home insurance for a policy with a $300,000 dwelling limit is about $2,304 per year, or roughly $192 per month, with details like location, age and square footage, deductibles, policy limits and the cost of building materials factored into the cost.
Meanwhile, “The intensity of the LA fire tragedy will have a lasting impact on real estate in LA’s and other fire-prone areas,” REsimpli said in the survey. “People who might be inclined to buy homes in 2025 might want to give it a second thought and see if their chosen areas are fire-prone or not.”
Other key survey takeaways…
- Roughly 56% of rea-estate professionals believe high insurance premiums will drive people to risk-prone areas, as a consequence of the LA wildfire.
- About 62% of real estate professionals are very concerned about the rising insurance premiums in wildfire-prone areas.
- Only 6.33% of real-estate professionals believe that people will absorb the cost of living in desired locations and 1.81% believe insurance premiums will have minimal impact on living decisions.
- Around 91% of real estate professionals believe that wildfire-related insurance premiums will dictate people’s choice to live in LA or other similar areas.
- Just over 91% are concerned about rising insurance premiums overall, with 66% being very concerned.
- Nearly 92% of real estate professionals believe insurance premiums will influence living patterns.
“Luxury properties are probably the only exception with the ability to rise in value,” REsimpli said.
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