Wildfires are increasingly influencing buyer behavior in today’s real estate market, especially in high-risk areas. As devastating fires become more frequent and intense, the ripple effects are undeniable—one of the most significant being astronomical insurance premiums.

How Wildfires Affects Real Estate Transactions:

Potential buyers are reconsidering or outright walking away from deals due to the surge in property insurance costs. According to recent reports, homeowners in wildfire-prone areas have seen premiums rise by as much as 300% over the last few years.

The Data Behind the Decision:
CoreLogic found that 4.5 million U.S. homes are at high risk for wildfires, many of which are in California, where home insurance costs have surged by 200%-300% in some areas since 2017.

In a Redfin survey, 45% of real estate agents reported that clients backed out of deals after learning about insurance costs in high-risk fire zones.

💡 Shifting Focus: From Staging to Hardening: Realtors may need to rethink their strategy in this environment. Instead of “staging the property” to entice buyers, the priority should be “hardening the home”—improving insurability by mitigating fire risks. Fire-resistant materials, defensible space, and wildfire-prevention upgrades can enhance the home’s appeal and ensure the deal sticks.

At Allied Disaster Defense, we work with communities to mitigate wildfire risks, but the hard truth is that fire risk remains a significant barrier to homeownership. Sellers who invest in wildfire prevention measures are not just protecting their property—they’re making it more insurable and attractive to buyers.

Real estate professionals must help clients navigate this new reality as wildfires and insurance premiums rise. The question isn’t just whether the home is staged well but whether it can be insured at all.

Have you seen the effects of high insurance premiums in your market?