In this podcast episode, Tim Bauer, Senior Vice President at Allied Restoration Services, discusses the challenges faced by brokers, insurance companies, and family offices when it comes to insuring high-net-worth homes in California. The insurance market has become very hard due to major wildfires in recent years, resulting in increased premiums and non-renewals for homeowners. Some homeowners are choosing to self-insure with risk mitigation, while others are turning to the California Fair Plan, which offers reduced limits and exclusions that limit recovery for rebuilding homes. One significant exclusion is smoke mitigation, which is essential after a fire, as every property affected by a wildfire is also impacted by ash and soot.

The conversation discusses the challenges of obtaining wildfire insurance coverage in California, particularly with the increasing prevalence of wildfires. The use of non-admitted carriers is explored, and while these carriers offer more coverage options, they can be more expensive and have limitations. Homeowners must take steps to reduce their risk and make their homes more insurable, and brokers must ensure that clients understand what they are purchasing. The episode concludes with the importance of taking measures to prevent a claim from occurring and the traumatic impact of experiencing a house fire.