Wildfire Risk is Increasing. Rising Insurance Costs Are Pushing Hotels to Prepare

Skift Take As wildfires grow more frequent and severe, insurers are no longer pricing risk by location alone — they’re underwriting based on how resilient a property is, pushing operators to firm up their hotels. Wildfires have ripped through the U.S. and Europe in recent weeks, the latter of which has faced three successive heatwaves that have left land tinder-dry. Many resorts, summer camps, wineries, ski areas and national park lodges are designed to be close to nature — where wildfire risk can be highest. Even for those further afield, smoke and embers travel with wind. For hotels facing increased exposure, that could mean lower occupancy, increased costs amid disrupted operations, and rising insurance bills. More than 10,000 tourists and residents in southwestern France were evacuated in the past week, and the effects of wildfire are no longer restricted to traditional hotspots. Smoke from a Canadian blaze recently filled cities across the U.S. Midwest, Great Lakes, and East Coast, and flames burned in Spain, Greece, and the UK. Maui’s wildfires in 2023 cut tourism spending by 61% year-on-year, the LA fires destroyed n