Wildfire at Your Door: Do You Have a Plan?

Prepare for the unthinkable 

Unlike hurricanes where weather forecasters can predict strength, path, and storm surge, wildfires emerge without warning and spread indiscriminately and quickly.  

If you live in an area with high wildfire risk, you need a long-term fire prevention strategy. You also want granular contingency plans if a fire occurs. If you’re fortunate, you may have hours to collect important belongings and evacuate. But many victims of the recent Marshall and Lahaina Fires had flames on their property without any advance warning.  

If you receive an evacuation order, what steps will you take to safeguard your family, pets, and property? 

Discuss wildfire scenarios with your family 

In the day-to-day hustle of life, it’s human nature to postpone talking about unpleasant topics. However, wildfire preparation can make a difference between life and death — and possibly saving your property. You need to plan with your family and household staff for a variety of contingencies. Start by listing scenarios applicable to your family, unique location, and property characteristics. What do you need to plan for? Here are examples to consider: 

1. You only have two hours before the mandatory evacuation order goes into effect 
2. The fire has already arrived, and you have just a few moments to prepare 
3. Fire blocks your path when you are evacuating 
4. Your kids are at school, and you can’t retrieve them because of road closures 
5. A mobility-impaired parent lives with you 
6. Horses or other large animals on your property also need evacuation 
7. Your favorite family pet decides to hide when it’s time to leave 
8. You’re at the office and can’t return home to collect belongings or pets 
9. A nearby neighbor needs help 
10. Cellular service, internet, and electricity are all out 

Review your property insurance as part of wildfire planning 

With climate change, wildfire frequency and severity have increased. Blazes are occurring in more regions around the world; heat and drought have turned green landscapes into crisp fire fuel.

Many high-net-worth (HNW) individuals build homes in secluded, wooded areas, chosen for beauty and privacy. Unfortunately, these picturesque locales often face high wildfire risk. Insurance companies, reeling from recent losses, are restricting capacity in many of these locations. This is resulting in both non-renewals and limited options for coverage. Insurance companies are becoming more reluctant to write policies for luxury homes in the forested areas of California, Colorado, and other wildfire-prone regions.

This current insurance environment calls for talking with your insurance broker about these questions, so you can identify coverage gaps and explore options for getting the protection you need and want.  

• Has your insurer changed your policy to restrict or exclude wildfire coverage?  
• Suppose your home or estate burns to the ground. Could you absorb 100% of that loss and pay 100% of the rebuilding costs? If not, what percentage could you fund comfortably from your own resources?  
• Do you have adequate insurance to protect against the remainder of the risk?  
• Are there other ways to finance wildfire risk? 

Update your replacement cost values 

The 2021 Marshall Fire destroyed 1,084 homes, including those of HNW families. Fewer than 10% of homeowners in these areas “had insurance guaranteeing coverage for the entire cost to rebuild.”

Over time, prices change for building materials and labor. The pandemic affected supply chains globally, causing shortages and delays. Demand outstripped supply, driving up prices. When you add inflation to the mix, construction in 2023 costs much more than it did five years ago. The appraisal to determine a sales price isn’t the same thing as a replacement cost appraisal. You want a current estimate of how much it would cost to rebuild your home. This is the number you need for accurate insurance planning. 

Mitigate fire risks on your property 

Properties that fare best in wildfires have these fire mitigation strategies in place: 

• Fire-resistant building materials, especially for the roof and exterior features 
• A “buffer” around the property that is free of flammable material 
• Flame-resistant landscaping (e.g., plants with higher moisture content) 
• Mesh screens to prevent embers from entering openings (attic, porch, etc.) 
• Regular gutter cleaning to remove dead leaves and pine needles 
• Reliable access to a water source to wet the structures and landscaping 

Invite a fire prevention specialist to evaluate your property once a year. This expert can spot opportunities to make your home more resilient. Getting this evaluation and implementing the recommendations can help you in your insurance negotiations. Insurers want to see evidence of proactive risk mitigation. 

Enroll in your community’s emergency notification program 

Some geographic regions have robust, reliable emergency notification procedures. Other do not. Learn what’s available in your area. You may need to opt in to receive emergency alerts. Do not assume the police or fire department will automatically reach out. Some older “reverse 9-1-1” systems only contact landlines automatically. Homeowners must enroll their cellular and satellite phones to get notifications. 

High-net-worth families and wildfire risk 

Dramatic landscapes have long attracted real estate investment. Unfortunately, wildfire does not spare exclusive zip codes. The opening scenario in this article could happen to you. Planning is key for safeguarding your family and giving your property the best chance of surviving a fire.