Dan Seiffert SVP, Accounting | realtors.com
A wildfire in Malibu, California, has led to the evacuation of thousands as it threatens 2,000 structures. The eastern part of the city is under mandatory evacuation orders affecting 6,000 residents. Pepperdine University students and faculty have been instructed to shelter in place, and all local schools are closed.
The fire, named the Franklin Fire, began late Monday evening under dry conditions. Its cause remains unknown. Santa Ana winds between 50 and 80 miles per hour are complicating efforts to control the blaze that endangers over 2,000 structures.
Malibu is home to about 11,000 people, including celebrities such as Beyoncé, Jay Z, Nicolas Cage, and Karlie Kloss. Residents from neighborhoods like Sweetwater Canyon and Serra Retreat described chaotic scenes as they evacuated.
“Flames are everywhere,” said Malibu resident Alp Toygar to the L.A. Times early Tuesday morning. “People are running away in vehicles from Malibu both directions on the coastal highway.”
By dawn at 3 a.m., the fire had consumed more than 1,822 acres with no containment reported. Flames jumped across Pacific Coast Highway at several points threatening areas near Malibu Pier and Malibu Colony Plaza.
“I think I’m in shock right now,” stated Bruce Silverstein, a Malibu city councilmember in an interview with the L.A. Times.
The Weather Service has issued a red flag warning indicating high fire risk through Tuesday afternoon due to what they describe as a "particularly dangerous situation."
According to Realtor.com data, nearly half of U.S homes face severe environmental threats like wildfires or flooding. In California alone this year, wildfires have burned over a million acres impacting real estate transactions due to insurance challenges.
Farmers Insurance along with Allstate USAA and Hartford have paused issuing new policies for homeowners in California while State Farm stopped selling new home insurance last summer pursuing rate increases up to 52% for some policies.
Cara Ameer from Coldwell Banker notes that obtaining insurance in fire-prone areas is increasingly difficult affecting property values due to buyer hesitancy.
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