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Home > Es-Us > Blog > Wildfire Season Prep: Protecting Commercial Properties in High-Risk Areas
TUESDAY, JULY 22, 2025

Wildfire Season Prep: Protecting Commercial Properties in High-Risk Areas

Each summer, wildfires cause major damage across the western United States. These fires spread fast, are hard to control, and can put businesses in danger—especially those located near dry grass, forests, or open land.

Wildfires can damage or destroy commercial buildings like offices, warehouses, gas stations, and stores. Even if flames don’t reach your building, smoke, heat, and ash can still cause harm. In many cases, businesses also have to close during fire alerts or evacuation orders, which can lead to lost income.

The good news? You can take steps now to prepare for wildfire season. Having the right insurance and taking safety measures can help protect your building, your team, and your business operations.

This article explains what wildfire insurance covers, how to check your policy, and what you can do to get your commercial property ready for wildfire season.

Need help reviewing your wildfire insurance? Visit kelstarinsurance.com/contact or call 307-316-8240 to speak with a Kelstar Insurance advisor.

Key Takeaways

  1. Wildfires Are a Growing Threat
    Businesses near dry vegetation, forests, or hillsides face increased wildfire risk each summer, especially in the Western U.S.

  2. Wildfire Insurance Can Help—If Your Policy Is Updated
    Most commercial property policies cover wildfire damage, but coverage limits, deductibles, and exclusions vary. Check to ensure buildings, equipment, and business income are properly protected.

  3. Some Coverage Needs to Be Added Separately
    Policies may not include key protections like debris removal, ordinance/code upgrades, or civil authority (evacuation-related loss) unless specifically added.

  4. Property Protection Reduces Risk and Premiums
    Clearing brush, installing fire-resistant materials, adding sprinklers, and maintaining defensible space can improve your building’s safety and insurance options.

  5. Insurers Look at Fire Risk Factors
    Carriers consider distance to brush, construction materials, fire safety systems, and local fire response when setting rates or offering coverage.

  6. Make a Wildfire Plan for Your Business
    Create an emergency response plan that includes evacuation steps, insurance contact information, photo documentation, and backup records stored off-site or in the cloud.

  7. Prepare Before Fire Season Begins
    Start policy reviews, safety upgrades, and staff planning early. Don’t wait until a fire is nearby to act.

  8. Policy Non-Renewals Are Increasing
    If your insurer cancels or won’t renew your policy, work with an independent agent like Kelstar to explore alternative markets, including surplus lines and state fire programs.

  9. Documentation Is Critical for Claims
    Take photos of property, inventory, and equipment in advance. Keep receipts and track lost income after a fire event or evacuation.

  10. Professional Help Is Available
    Kelstar Insurance works with over 50 carriers and specializes in protecting commercial properties in high-risk wildfire zones.

Why Wildfire Season Is a Big Deal for Businesses

Wildfires are now more common and more intense than in the past. Many businesses are located in areas with dry plants, nearby trees, or brush. These areas are often called the “wildland-urban interface”—where developed buildings meet wild landscapes.

Properties at higher risk include:

  • Buildings near fields, brush, or wooded areas

  • Businesses located outside city centers with slower emergency response

  • Facilities with outdoor materials or storage

Wildfires often start from:

  • Lightning strikes

  • Downed power lines

  • Outdoor tools, grills, or sparks from equipment

Example: A print shop near a dry hillside avoids direct flames, but flying embers land on the roof and cause a small fire. Inside, smoke damages paper inventory and electronics. The business shuts down for repairs, losing nearly a week of work.

 


 

What Does Wildfire Insurance Cover for Businesses?

Most commercial property insurance policies include wildfire damage—but the details matter. Some policies list specific covered risks (“named perils”), while others cover most types of damage unless they’re excluded (“special form”).

Common wildfire coverage includes:

  • Buildings – Repairs to the main structure

  • Other structures – Like storage sheds, garages, or mechanical rooms

  • Business contents – Inventory, computers, furniture, equipment

  • Lost income – Covers income if the business must close after a fire

Additional options you may need:

  • Debris removal – Cleaning up fire-damaged materials

  • Ordinance or law – Pays for upgrades to meet new building codes

  • Civil authority – Covers income loss due to evacuation or area shutdown

  • Smoke and ash cleanup – Even if fire doesn’t directly reach your property

Things to review in your policy:

  • Are your building values current?

  • How much income protection do you have?

  • Does your policy have a waiting period for income loss payments?

  • Are there limits on debris removal or code upgrades?

Tip: If your policy uses “named perils,” ask your agent if wildfire is listed as a covered cause of loss.

 


 

Wildfire Policy Review: What to Check Before the Season Starts

Every year, before wildfire season, take time to review your policy. Use this checklist to help you prepare:

✅ 1. Are your property values accurate?

If your building is underinsured, your payout may not be enough to rebuild.

✅ 2. Is your income coverage based on current numbers?

Update your business income worksheet yearly. If your revenue has grown, you may need more coverage.

✅ 3. Do you understand your deductible?

Some policies use percentage-based deductibles for wildfires. That means you could pay tens of thousands out of pocket before insurance pays anything.

✅ 4. Are improvements and upgrades covered?

If you’ve renovated or upgraded a leased space, confirm that coverage applies to those changes.

✅ 5. Is wildfire listed in your policy?

For named peril policies, wildfire needs to be named directly.

✅ 6. Do you have cleanup and code compliance coverage?

Fires often leave debris, and rebuilding usually requires upgrades. These may not be automatically covered.

Example: A restaurant has fire damage to its roof and HVAC system. Cleanup is needed, and local code now requires upgraded ventilation. Without ordinance or debris coverage, the owner may pay thousands of dollars out of pocket.

 


 

Steps to Make Your Property Safer Before Wildfire Season

Insurance helps after a fire—but taking steps to lower your risk can help protect your business in the first place.

🔥 Wildfire prevention tips for commercial properties:

  • Clear brush and debris – Maintain 30–100 feet of open space around the building

  • Use fire-resistant materials – Roofs, siding, vents, and windows can be upgraded to slow fire spread

  • Change your landscaping – Avoid wood mulch; use gravel or stone instead

  • Install safety systems – Fire sprinklers, alarms, hose access, and water tanks

  • Maintain regularly – Clean gutters, check for leaks, fix vents and roof coverings

  • Store documents safely – Back up important files online or off-site

 


 

How Insurance Companies Look at Fire Risk

Insurance pricing and approval depend partly on how much wildfire risk your property has. Insurers will consider your location, the building itself, and what safety measures are in place.

What they look for:

  • Proximity to brush, trees, or undeveloped land

  • Distance to the nearest fire station or hydrant

  • Building materials (metal roofs are better than wood)

  • On-site safety systems like alarms or sprinklers

  • Brush clearance and defensible space

How to lower your risk in the eyes of insurers:

  • Share photos or documentation of safety upgrades

  • Request a risk review or inspection

  • Ask for recommendations and follow through

  • Consider adding backup systems like a generator or extra water supply

Optional insurance to consider:

  • Parametric wildfire insurance – Pays a set amount if a wildfire occurs near your property

  • Excess or surplus insurance – Provides extra coverage if your property is high-value or hard to insure

 


 

Before and After a Wildfire: What to Do

Having a response plan in place helps your business respond quickly and reduces stress if a wildfire occurs nearby.

Before a fire happens:

  • Take photos and videos of your property, both inside and out

  • Make a list of equipment, inventory, and furniture with estimated values

  • Store backups of insurance, payroll, and vendor files in the cloud

  • Set up an emergency communication plan with your team

If a wildfire affects your area:

  • Contact your insurer as soon as it’s safe

  • Take photos of any damage before cleanup

  • Save all receipts for repairs, temporary storage, and relocation

  • Track your lost income during the closure period

Example: A gift shop is not burned, but smoke and ash fill the air, and the store closes for five days due to evacuation orders. With civil authority and income coverage in place, the business receives payment for lost income.

 


 

What to Do If Your Policy Isn’t Renewed

In high-risk wildfire zones, some insurance companies may cancel or not renew policies. This is becoming more common in parts of the western U.S.

If this happens to you:

  • Start looking for new coverage at least 60–90 days before your policy ends

  • Work with a broker who has access to multiple insurance carriers

  • Ask about state-run fire plans or the surplus insurance market

  • Document safety improvements—these can help get you better terms

At Kelstar Insurance, we help business owners in high-risk zones find protection even when other carriers pull out.

 


 

Create a Wildfire Safety Plan for Your Business

Every commercial property in a fire zone should have a basic wildfire safety plan. It doesn’t need to be long or complicated—just clear and easy to follow.

Your plan should include:

  • Emergency contacts, including your insurance agent

  • Staff evacuation procedures

  • Shutdown steps for gas, electricity, and alarms

  • Where to find safety gear or first aid

  • Where to access digital backups of your business data

Review this plan at least once a year. Post it in break rooms or vehicles where employees can easily find it.

 


 

Conclusion: Get Ready Before the Wildfire Season Starts

Wildfires are a serious threat to commercial property—and they’re becoming more common in dry, fire-prone areas. One fire can cause long business shutdowns, smoke damage, equipment loss, and high repair costs.

But there’s a lot you can do ahead of time to protect your business.

Review your insurance policy now. Update your property values and income limits. Make safety improvements to your building and landscaping. Train your staff and keep digital records in a safe place.

Even one small change—like adding sprinklers or updating your insurance details—can make a big difference in how fast your business recovers after a wildfire.

Kelstar Insurance is here to help. We work with more than 50 insurance carriers and understand the challenges businesses face in wildfire zones. Let’s make sure your property and your income are protected.

Visit kelstarinsurance.com/contact
Or call 307-316-8240 to schedule your wildfire insurance review with a Kelstar advisor today.

Frequently Asked Questions (FAQs)

 


 

Q1: Does my commercial property insurance cover wildfire damage?

A: Most commercial property policies include wildfire as a covered cause of loss, but it depends on your specific policy. If you have “named perils” coverage, wildfire must be listed. If your policy uses “special causes of loss,” wildfire is usually included unless specifically excluded.

 


 

Q2: What types of damage does wildfire insurance cover?

A: Wildfire insurance typically covers damage to your building, contents (like furniture, equipment, and inventory), and lost income if your business must shut down. You may also need to add extra coverage for things like smoke damage, debris removal, and rebuilding to new code requirements.

 


 

Q3: What is “civil authority” coverage, and do I need it?

A: Civil authority coverage pays for lost income if government orders force your business to close—even if your property isn’t directly damaged. This can happen during evacuations or road closures. It's highly recommended for businesses in high-risk wildfire zones.

 


 

Q4: How do I know if my business is in a wildfire risk area?

A: Your business may be in a high-risk area if it’s near hills, dry brush, forests, or undeveloped land. You can also check wildfire risk maps for your state or ask your insurance agent for a wildfire risk assessment.

 


 

Q5: Can I lower my insurance cost by improving my property’s safety?

A: Yes. Fire-resistant materials, brush clearance, sprinklers, alarms, and backup water sources can reduce your fire risk and may help lower your premium or qualify you for better coverage options.

 


 

Q6: What is a wildfire deductible, and how is it different?

A: Some wildfire deductibles are a percentage of your insured value, not a flat amount. For example, a 5% deductible on a $1 million building would mean you pay $50,000 before insurance coverage starts.

 


 

Q7: What should I do to prepare before wildfire season?

A:

  • Review and update your insurance policy

  • Take photos and videos of your property and inventory

  • Store business records and backups in the cloud

  • Clear brush and dry plants around your building

  • Train your staff and create an emergency plan

 


 

Q8: What should I do after a wildfire or evacuation?

A:

  • Contact your insurance company immediately

  • Take photos of any damage before cleaning

  • Save receipts for repairs or temporary expenses

  • Track income lost during the closure

  • Follow your insurance company’s instructions for filing a claim

 


 

Q9: What happens if my insurance company won’t renew my policy?

A: If your insurer cancels or won’t renew due to wildfire risk, start shopping early. An independent agency like Kelstar Insurance can help you access multiple carriers, including those that specialize in high-risk properties or use the surplus lines market.

 


 

Q10: Can I still get wildfire coverage if I’ve been denied before?

A: Yes, but options may be limited. Kelstar works with over 50 carriers and can help you explore alternatives such as state-assigned risk pools, parametric coverage, or custom wildfire protection plans based on your location and business type.

This article has been a collaboration between Kelstar Insurance and OpenAI’s ChatGPT. Created on July 22, 2025, it combines AI-generated draft material with Kelstar Insurance's expert revision and oversight, ensuring accuracy and relevance while addressing any AI limitations.


Posted 4:26 AM

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NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
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