ROCHESTER, N.Y. — Many Californians who lost their homes in the wildfires are dealing with insurance issues. It’s possible the rest of the country could be seeing some rate hikes triggered by the fires there.

You don’t have to live in California for the fires there to impact you in New York.

What You Need To Know

  • The fires may be in California, but New Yorkers may feel them hit their bottom line

  • Economists predict insurance rate hikes across the country triggered by Californians fires

  • Losses estimated at nearly $250 billion with insured losses estimated to top $20 billion, and growing as fires rage on

“Over time, as these natural disasters continue to happen and the payouts and the billions lost, the insurance companies have to spread out the premium increases across the country," said the vice president of Morgenstern Insurance, Matthew Harding. "So do I think it's going to be, you know, overnight [that] we're going to see our rates go up. No, but I think gradually over time they're not going to ever go down."

Harding predicts people can generally expect to see a 10% year-over-year increase on their personal insurance costs.

As people who’d been in the line of fire in California assess the damages and losses, many wonder how they will rebuild and if they will recoup enough funds, if any, to rebuild.

Economists are estimating losses of nearly $250 billion with insured losses estimated to top $20 billion. Those numbers are expected to grow should the fires continue to burn.

This comes as there have already been recent insurance premium increases due to inflation and other natural disasters.

“So I don't want people of New York to be necessarily frightened from the fires in California," Harding said. "But honestly, a fire can happen to anyone in any part of the country. A total loss is a total loss, whether it's hitting a whole neighborhood or just your house. So, understanding what you're buying, not buying the cheapest policy on the block because you're probably not going to be covered correctly and work with someone you trust."

Harding adds that people shouldn't assume everything they think is covered will be covered if they have a claim. Insurance companies have exclusions and not every policy is the same.

He also suggests avoiding submitting smaller claims, you don’t want to get dropped by your insurance company. The policies are meant for large, catastrophic losses. He says residents should take steps to protect their home to minimize loss and save money with things like alarm systems and water sensors. And be sure to talk with your broker or agent at least once a year to make sure nothing has changed that can be helpful.