The California real estate market is suffering from the rising cost of fire insurance

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<p class = "Canvas-Atom-Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "California's forest fires cool the state Freehold Market as insurer Attempting to withdraw from areas at risk of fire and costs for potential buyers are high. "data-reactid =" 11 "> California's forest fires cool the state's real estate market as insurers try to withdraw from areas at risk of fire and prospects face high costs for plans.

<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The situation makes it difficult for buyers to find insurance and then cancel their purchases or lower their offers, The Wall Street Journal reported on Sunday citing real estate agents and homeowners. "data-reactid =" 12 "> The situation makes it difficult for buyers to find insurance and then withdraw their purchases or lower their offers, the Wall Street Journal said on Sunday, citing real estate agents and homeowners.

California has seen numerous wildfires in recent years. Last October alone was 16. Last month, government officials added protection to homeowners and prevented insurance companies from allowing them to serve as customers for a year after a devastating fire broke out near their homes.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "CALIFORNIA TO PROTECT INSURANCE POLICY IN THE WILDFIRE AREAS"data-reactid =" 14 ">CALIFORNIA TO PROTECT INSURANCE POLICY IN THE WILDFIRE AREAS

State officials added the rule after saying insurers reduced fire coverage for more than 350,000 residents after devastating wildfires in 2018.

The new protection applies to more than 1 million California households, according to the report. However, they do not cover home buyers or owners in areas where wildfire did not occur in 2019.

<p class = "Canvas Atomic Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The damage caused by forest fires in California has increased in the dramatic in recent years: Forest fires caused USD 719 million damage in 2008 The Associated Press reported. In 2015, wildfires in California caused $ 1.1 billion in damage. The total loss for 2017 and 18 was $ 25.3 billion, according to the report citing the California Department of Insurance. "Data-reactid =" 17 "> The damage caused by forest fires in California has increased dramatically in recent years. Forest fires caused damage of $ 719 million in 2008, The Associated Press reported. In 2015, forest fires in California caused damage $ 1.1 billion.

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<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "WILDFIRES TORCH CALIFORNIA'S PROPERTY INSURANCE MARKET"data-reactid =" 19 ">WILDFIRES TORCH CALIFORNIA'S PROPERTY INSURANCE MARKET

For homeowners who cannot find any other insurer, California offers insurance through its FAIR plan. However, insurance policies have coverage limits of $ 1.5 million, do not cover other standard items such as theft, and can cost thousands of dollars a year, according to the journal.

"If the financial requirements for home ownership are even higher, some people will lose prices," Jordan Levine, deputy chief economist for the California Association of Realtors, told the journal.

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<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Related articles"data-reactid =" 23 ">Related articles