- Risk assessment in California is driving up insurance premiums and costs due to natural disaster risks.
- California fires are a major regional risk factor, leading to market data on property value decline, involving Zillow and Realtor.com.
- Wildfire risk in the Malibu/Southern California region affects luxury property values.
- The Insurance Institute for Business & Home Safety is providing data regarding wildfire risk in the region, which includes Malibu and Los Angeles.
IBHS Standards Inform Insurance Underwriting in Los Angeles Area
What happened
State Farm filed new underwriting guidelines with the California Department of Insurance on September 16, 2026. These guidelines allow the company to consider new property policies for homes that meet various designations from the Insurance Institute for Business & Home Safety (IBHS). IBHS has two levels of designation: Base or Essential (lower) and Plus or Enhanced (higher). State Farm is proposing to use the higher standard when evaluating older homes with high fire risk.
From citywatchla.com
Why it matters
The guidelines outline how IBHS standards are being applied to property risk assessment in the Los Angeles area. This adoption of the standards by a major insurer influences how property risk is evaluated and priced in high-risk markets.
The Insurance Institute for Business & Home Safety collects and provides data regarding wildfire risk in the region, which includes Los Angeles.
From citywatchla.com
Who's involved
- Insurance Institute for Business & Home SafetyProvides specialized standards regarding wildfire risk that are being adopted by major insurance companies.
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The entities involved
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Insurance Institute for Business & Home Safety
American nonprofit organization
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Los Angeles
seat of Los Angeles County, and largest city in California, United States