???? Key Points & Market Context
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In January 2025, devastating wildfires swept across Altadena, Pacific Palisades, and parts of Malibu, consuming over 40,000 acres, destroying or damaging more than 15,000 buildings, and tragically killing at least 28 people Art Newspaper.
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Insurers project total insured losses from these fires to reach between $20 billion and $30 billion, potentially making it the costliest wildfire event in U.S. history Art Newspaper.
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Fine art collectors, galleries, and insurers are now grappling with how to adjust underwriting, premiums, and risk mitigation in light of this scale of loss Art Newspaper.
Insurance Market Response
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Many homeowners attach fine art riders to their policies. While rate increases are frozen in 2025, substantial premium hikes and stricter underwriting are expected in 2026 for both home and fine art policies Art Newspaper.
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Simon de Burgh Codrington, managing director at Risk Strategies, predicts a hardening of premiums, especially for properties in high-risk zones—but says increases won’t be “massively decimal point” adjustments and will depend on individual risk factors like location and protective measures Art Newspaper.
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Jack Siebert, a Los Angeles-based curator and collector, warns that some people may simply stop living with high-value art due to the increased risk—even with insurance Art Newspaper.
Operational & Community Challenges
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Evacuation and emergency art logistics became urgent. Firms like Gander & White rapidly activated contingency plans, preparing crates in advance and executing timed, high-pressure extractions of prioritized artworks Art Newspaper.
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Access to fine art insurance also varies regionally: one collector in a fire-prone canyon has been unable to secure a policy unless he essentially fortified his home like a bunker Art Newspaper.
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Anne Rappa, at Marsh McLennan, underscores the effort involved in maintaining an art collection. She emphasizes coordination among stakeholders and preparedness as crucial to preservation Art Newspaper.
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Meanwhile, Kinsey Robb of the Art Dealers Association of America notes that the industry is now focusing on helping affected artists and galleries navigate claims—but is also starting to shape longer-term adaptations toward tailored insurance solutions for different types of artists, galleries, and institutions Art Newspaper.
Market Outlook
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Despite the sharp recalibration in underwriting and expected premium increases, the fine art insurance market is not retreating. As per Simon de Burgh Codrington, underwriters continue to insure California clients—though with more scrutiny and underwriting conditions Art Newspaper.
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According to experts, robust catastrophe modeling, document-driven valuation, dedicated evacuation protocols, and high-tech safeguards are no longer optional—they are becoming industry standard.
???? Key Quote from Muys Snijders on High-Tech Risk mitigation & Infrastructure:
"Going forward, risk mitigation requirements could take into account building, use of fire-resistant stone, concrete and protected steel, and analysis of surrounding buildings, as well as landscaping and a location’s access to bodies of water. She also suggests implementation of high-tech measures used by art storage facilities and museums like the Getty, such as automatic fire doors, windows and air-conditioning systems. “Many new technologies have been introduced in recent years to support these mitigation efforts,” she writes, including on-site hypoxic storage areas where collections can be secured in low-oxygen environments, making it difficult for fires to ignite or spread."