How the California Wildfires Are Impacting Insurance and Mortgages

How the California Wildfires Are Impacting Insurance and Mortgages – And How Ballesteros Real Estate Group Is Here to Help

The wildfires sweeping through California are causing unprecedented devastation, leaving thousands of homes destroyed and communities struggling to rebuild. As these fires continue to spread, two industries—insurance and mortgages—are under intense pressure, and residents in affected areas are facing new challenges.

At Ballesteros Real Estate Group, we are dedicated to helping our neighbors navigate these difficult times. Whether you're dealing with the loss of a home or need guidance on securing the right insurance or mortgage options during the recovery process, we’re here for you. If you’ve been displaced by the fires, we’re ready to offer expert advice and support to help you find a path forward.

Here’s a closer look at how these industries are being shaken up by the ongoing crisis and what it means for homeowners and buyers in California.

California's Insurance Crisis: What Homeowners Need to Know

As the fires rage on, California’s Insurance Commissioner, Ricardo Lara, has implemented a critical moratorium on policy cancellations in areas hardest hit by the fires, including places like Pacific Palisades and areas around the Eaton Fire. This ban, which remains in effect until January 7, 2026, protects homeowners from having their policies non-renewed as they work to recover.

Key Details of the Moratorium:

• The ban applies to homeowners within wildfire perimeters and adjacent ZIP codes, even if they didn’t experience direct damage.
• Insurers must offer continued coverage, but the increased risk in high-fire zones may mean higher premiums for homeowners.
• This move follows a state law that mandates private insurers to offer policies in high-risk areas if they wish to continue doing business in California.

While this policy provides some relief, many homeowners are finding that their insurance coverage isn’t enough to rebuild their homes, particularly in upscale areas like Pacific Palisades. With over 36,000 acres burned and more than 12,000 structures destroyed, this is shaping up to be one of the costliest wildfire disasters in U.S. history, with losses potentially reaching up to $150 billion.

If you’re struggling to navigate insurance claims or need advice on your coverage, our team at Ballesteros Real Estate Group can help you understand your options and connect you with trusted professionals to ensure you’re getting the support you need.

Reverse Mortgages: What Borrowers Should Know

In addition to insurance, the reverse mortgage industry is also feeling the heat as thousands of borrowers in Southern California face uncertainty. With the highest concentration of reverse mortgages in Los Angeles County, many residents are facing disruptions in their payment schedules and loan servicing.

The National Reverse Mortgage Lenders Association (NRMLA) has urged borrowers affected by the fires to reach out to their loan servicers and insurance companies as soon as possible. Several reverse mortgage lenders, including HighTechLending and Finance of America, are offering emergency forbearance options to help borrowers postpone payments for up to six months, with the possibility of extensions.

Steps to Take if You Have a Reverse Mortgage:

• Reach out to your servicer: Let them know if your property has been damaged or if you need assistance with your loan.
• Contact FEMA: Many homeowners will need to coordinate with FEMA to access federal relief and navigate claims.
• Explore loan modifications: If necessary, loan servicers may offer repayment plans or other modifications to help ease financial pressure.

The large number of Home Equity Conversion Mortgages (HECMs) in the region means the reverse mortgage sector is working hard to provide relief, though delays may occur due to FEMA's involvement and the sheer volume of claims.

If you're a reverse mortgage borrower impacted by the fires, we can guide you through the process of contacting your lender, understanding your options, and working toward a solution.

How Ballesteros Real Estate Group Can Help You Rebuild

Whether you’re facing insurance issues, mortgage challenges, or the need to find a new home after the destruction, we are here to help you through every step of the process. The team at Ballesteros Real Estate Group specializes in assisting homeowners and buyers in Southern California, especially those affected by the wildfires.

If you’ve been displaced or are dealing with insurance or mortgage difficulties, our local expertise and personalized service can help you make informed decisions as you rebuild your life and home. We’ll connect you with trusted partners in the insurance and mortgage industries, so you can rest easy knowing that you have a team of professionals supporting you through this difficult time.

We understand how overwhelming it can be to face the aftermath of such a disaster, but you don’t have to go through it alone. Contact Ballesteros Real Estate Group today, and let us help you find solutions that work for you. Together, we’ll rebuild, recover, and move forward.

Stay connected with Ballesteros Real Estate Group for updates and resources to help you navigate the current crisis. We’re here for you, no matter what.