Wednesday, February 5, 2025
Utah homeowners see higher fees and cancelled insurance policies after L.A. fires and other natural disasters.
Urban Living
Posted By Babs De Lay on February 5, 2025, 4:00 AM
I was as shocked and grieved as anyone when the Maui, Hawaii town of Lahaina was virtually burned off the map in 2023. Up until then, it ranked as one of the top 10 deadliest U.S. wildfires on record since 1871, and considered the deadliest natural disaster in Hawaii's history, with just over 100 confirmed victims and still people unaccounted for after the disaster.
I love the islands, and I sincerely can't imagine the heartbreak of losing family, friends and homes to this sort of thing. But now, just after the New Year, we saw again in horror as California was hit with not just massive wildfires, but even more damage than what Hawaii saw, with roughly 12,000 homes destroyed between the Palisades and Eaton fires.
What we also learned from the California tragedies was that thousands of homeowners had their home insurance cancelled months before the yearly Santa Ana winds, or their rates were raised by massive amounts that many could not afford, making them unable to renew their policies.
Cancelling insurance is now a common news item. I read that property owners are fleeing from the state of Florida because home insurance companies are also cancelling policies around the state in hurricane-prone areas, or raising rates that are unaffordable to many. Frequent hurricanes and the threat of severe weather events are becoming worse and worse around the Gulf and Treasure Coasts, and literally hundreds of thousands of residents are and have been leaving the state in the past few years, due to the result of insurance costs and HOA fees.
You may recall a condo building in Surfside, Florida collapsing in 2021. Since then, HOA fees around the state have increased astronomically and people are being forced to sell their condos and mobile/manufactured homes at huge losses because insurance companies are requiring massive guarantees and inspections from HOAs around the state.
Policies that might have cost $800 per year are now $8,000 a year or more, if you can find a carrier.
Could you get a notice in the mail that your home insurance carrier is going to drop your coverage? Sure. And it is happening here already. Folks living up against Forest Service lands with heavy brush and trees have been getting kicked out of their policies, and I know of people in the hills above Draper getting axed because they are close to fire risks.
Here's what to do next: 1. Shop around, as there are many carriers out there; 2. Negotiate with your insurance carrier to re-establish your policy if you can make/keep and prove you have a defensible space outside and around your home from fires.
Firefighters recommend you clear flammable vegetation within 30 feet around your home and clean your roof and gutters from leaves. Sadly, Mother Nature is angry at us and these intense weather events are not going to stop.
About The Author
Babs De Lay
A full-time broker/owner of Urban Utah Homes and Estates, Babs De Lay serves on the Salt Lake City Historic Landmark Commission. A writer and golfer, you'll find them working as a staff guardian at the Temple at Burning Man each year.
More by Babs De Lay
-
Latest home decor trends say barn doors and gray flooring is out, natural tones and fireproofing are in.
Urban Living
- Mar 12, 2025
-
Utah home prices keep climbing, and economists warn that a housing bubble is ready to burst in Florida.
Urban Living
- Mar 5, 2025
-
NIMBY opposition lining up against Salt Lake City's proposed changes to residential zoning.
Urban Living
- Feb 26, 2025
- More »
Latest in Urban Living
