This article was produced in partnership with Victor Insurance
For decades, property insurers have relied on established indicators to assess risk. A strong ISO Protection Class, a low wildfire hazard score, and proximity to fire services traditionally signaled a property was well-protected—insurable, and predictable.
But recent catastrophic wildfire events are forcing a critical reassessment. In Los Angeles County, communities that boasted excellent PPC ratings and low wildfire scores were among those devastated. “We were looking at Protection Class 2 areas—about as good as it gets—and we saw total losses,” says Jeffrey Benson, Builders Risk Program Leader at Victor. “It’s shaken a lot of long-standing assumptions in property underwriting.”
For brokers on the frontline of these risks, the challenge is immediate and complex. “You have to find viable markets that will write the risk, and that becomes kind of difficult in today’s world,” Benson explains. “From a broker standpoint, finding solid insurance companies that will write good coverages at competitive rates for the capacities they need is a challenge. These catastrophic events are growing.”
Yet amid these challenges lies opportunity. As the industry recalibrates its models and coverage strategies, brokers are stepping into critical roles as risk advisors and educators.
Wildfires are no longer regional events
Wildfires were once a California story. Not anymore. Flames are crossing state lines and rewriting risk maps. In places where wildfires were once unthinkable, they’re now impossible to ignore.
“This isn’t a localized problem anymore,” says Benson. “Wildfires and other catastrophic events are becoming more frequent and severe, and they’re hitting regions where carriers - and clients - haven’t historically expected them.”
The expanding risk profile has led many standard insurers to tighten underwriting criteria, limit capacity, or withdraw from certain areas altogether. Brokers are turning to non-admitted excess and surplus lines carriers to secure coverage, often at higher premiums and with more restrictive terms.
Understanding ISO Public Protection Classes - And their role in resilient planning
A key part of the underwriting process—and a major factor in determining property eligibility and pricing—is a community’s ISO Public Protection Class (PPC). The PPC program, developed by ISO, evaluates a community’s fire protection capabilities, including emergency communications, fire department readiness, water supply, and community risk reduction efforts.
Each community receives a classification ranging from 1 (best) to 10 (least protected). Most insurers consider properties in Classes 1 through 8 as “protected” and typically offer more favorable coverage options for them. Properties in Classes 9 and 10 are often deemed "unprotected," facing significantly higher premiums and limited coverage options.
Communities with stronger protection capabilities often see greater investment and more favorable insurance rates. Conversely, areas without adequate firefighting resources can face barriers to development and insurance availability.
“The PPC score tells us about a community’s ability to respond to fires, but it doesn’t always reflect the true wildfire risk,” Benson notes. “Even in Protection Class 2 areas, we’ve seen catastrophic losses from wildfires.”
For brokers, this reinforces the importance of looking beyond traditional metrics and advising clients on comprehensive risk management strategies—including the consideration of wildfire hazard scores, terrain, vegetation management, and building materials.
In some areas, PPC ratings include split classifications, these distinctions can have a significant impact on eligibility and premium costs.
“As brokers, understanding these split classifications can make a big difference,” says Benson. “They’re an important tool when advising developers or property owners on site selection and planning.”
As urban sprawl pushes development into more remote areas and mountainous terrain, these classifications become more critical. Properties located beyond the optimal range for emergency services and water supply may find themselves categorized as "unprotected," with all the cost and capacity challenges that classification entails.
With these complexities in mind, Victor has developed Builders Risk QuickCover, a tool designed to simplify the process of securing coverage for ground-up residential construction projects valued up to $1.5 million. The tool is available through Victor’s V² online portal, giving brokers the ability to quickly quote, bind, and issue policies—in a matter of minutes.
By streamlining underwriting to five key questions, Builders Risk QuickCover eliminates unnecessary delays. “Speed and simplicity are key,” Benson explains. “But we’ve made sure we’re maintaining underwriting integrity. It’s not about cutting corners - it’s about helping brokers navigate a more complex environment efficiently.”
Industry experts, including Benson, point to the evolution of stronger building codes and improved materials following past disasters, such as Hurricane Andrew in Florida, as proof that communities can emerge stronger after catastrophe.
“Stricter codes, better materials, smarter site selection - these are the tools we have to build safer, more resilient developments,” Benson says. “It’s happening in Florida, and I believe we’ll see it happen in wildfire-prone areas as well.”
One example is the growing use of Class 5 impact-resistant shingles and fire-resistant construction materials, particularly in high-risk areas. While these improvements can increase upfront construction costs, they also make properties more resilient—and ultimately more insurable.
“Better construction practices reduce risk,” Benson explains. “And reduced risk makes insurance more available and affordable.”
This new reality is also prompting more developers to consult with brokers early in the planning process. Fire protection infrastructure—such as the location of nearby fire stations, the quality of water supply, and hydrant availability—is becoming a critical consideration in deciding where and how to build.
“We’re starting to see developers factor fire protection into site selection and design,” Benson notes. “Because in some cases, it could mean the difference between insurability and not getting coverage at all.”
For now, the focus remains on recovery and claims management. California’s state-run FAIR Plan has already paid significant claims to homeowners who lost everything in the recent fires - one bright spot in an otherwise grim scenario.
“In our business, we’re evaluated by how we handle claims,” Benson says. “It’s not just about selling policies; it’s about making sure people can rebuild.”
As traditional underwriting models struggle to keep up, brokers are stepping into expanded roles as frontline risk managers and advisors. Developers are increasingly consulting with brokers early in the planning and site selection process - seeking guidance on where and how to build in order to secure coverage.
Brokers are also tasked with ensuring that clients fully understand the terms of their coverage—an often-overlooked responsibility. As policies evolve to include exclusions, higher deductibles, and more restrictive terms, brokers are becoming essential educators
