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The January 2025 fires changed the conversation about wildfire risk in Los Angeles permanently. What was once a concern limited to hillside and canyon properties is now a reality that every LA landlord must reckon with—whether their property is in a high-risk zone or not.
Insurance costs have risen dramatically, coverage options have narrowed, and new landlord obligations around post-disaster remediation have added another layer of responsibility. Here’s what you need to know.

The Insurance Crisis

Major insurers have been pulling back from California’s wildfire-prone areas for several years, but the 2025 fires accelerated the trend. Many property owners in the San Fernando Valley—particularly those in hillside areas of Encino, Sherman Oaks, Woodland Hills, and Tarzana—have seen premium increases of 30% to 100% or more. Some have had policies non-renewed entirely.
When traditional carriers decline coverage, landlords are often forced to turn to the California FAIR Plan, the state’s insurer of last resort. The FAIR Plan provides basic fire coverage but has significant limitations: lower coverage limits, no liability coverage, and gaps in protection that need to be filled with supplemental policies.

What Landlords Should Do

Audit Your Current Coverage

Review your policy now—don’t wait for renewal. Make sure you have adequate coverage for the building’s replacement cost (not just market value), loss of rental income during repairs, liability protection, and any additional risks specific to your property’s location.

Shop Aggressively

Work with an insurance broker who specializes in California rental properties. They’ll have access to carriers and surplus lines insurers that you won’t find through general agents. Get multiple quotes every year.
Mitigate Risk
Properties with documented wildfire mitigation measures may qualify for better rates. This includes maintaining defensible space around the property (clearing brush, trimming trees), using fire-resistant roofing and building materials, installing ember-resistant vents, and having an accessible water supply for fire suppression. Even if you’re not in a designated fire zone, these measures can help with insurance.

Understand Your Post-Disaster Obligations

Under SB 610, effective in 2026, landlords are responsible for debris removal and hazard mitigation following natural disasters. This includes mold, smoke, ash, asbestos, and water damage. Having insurance that covers these remediation costs is essential—without it, you’re on the hook personally.

Impact on Property Values and Investment Strategy

Rising insurance costs directly affect net operating income and, by extension, property values. When evaluating a potential purchase, factor in current and projected insurance costs—not just the asking price and rent. For existing properties, explore every option to control insurance expense while maintaining adequate coverage.

How King George Helps

At King George Property Management, we help property owners navigate the insurance landscape as part of our management services. We monitor coverage, coordinate with brokers, ensure properties meet fire safety requirements, and manage vendor relationships for wildfire mitigation work. Insurance is a critical part of protecting your investment, and we treat it accordingly.

Concerned about your property’s insurance situation? Contact us for a consultation.

• Phone: (818) 739-1105
• Address: 4645 Van Nuys Blvd, Suite 201, Sherman Oaks, CA 91403
• Web: kgpm.com