In addition to the tragic loss of lives in the Maui wildfire, residents and insurance companies are assessing property losses which are currently coming in at about $3.2 billion. But it won’t just be Maui residents paying for this fire. Insurance companies will be raising rates for everyone to help cover their losses.   Hi, I'm Kathy Fettke and this is Real Estate News for Investors. If you like our podcast, please subscribe and leave us a review.   As reported by Barron’s, insurance companies won’t have any problem paying claims for fire losses in Maui. The U.S. property and casualty industry is well-capitalized with about $980 billion at the end of last year. That’s according to the Insurance Information Institute. The Institute’s Janet Ruiz told Barron’s: “The Hawaii insurance market is stable. Insurance companies are prepared to handle catastrophes.”   Property Insurance Rates    But analysts and industry experts say insurance companies are already raising rates as natural disasters cause more and more damage across the U.S. and the Maui wildfire will only reinforce this trend. Insurance companies will raise rates based on what they expect to pay out in the next few years.   The National Interagency Fire Center says an average of 4.4 million acres have been burned by wildfires in the U.S. each year for the past decade. Currently, the average cost of homeowners’ insurance is about $1,700 a year or about 10% more than it was just one year ago.   Scaling Back Insurance Coverage   In addition to raising rates, insurance companies have also been scaling back coverage in areas they see as the riskiest. State Farm and Allstate have stopped selling new policies in California. Farmers Insurance is also restricting coverage in California and Florida.   Analyst Adam Klauber at William Blair told Barron’s: “We’ll continue to see more geographic restrictions and nonrenewals.” That’s expected to push those consumers into the surplus market for coverage, which will cost more and cover less.   Families Without Property Insurance   There’s also another side to the devastating impact of the Maui fire. Many of the residents live in homes that have been in their families for generations. If they are fully paid for without a mortgage, there’s no home insurance requirement. News reports say that many of the victims are working class families who may not have splurged on home insurance, and for people without any insurance, rebuilding could be difficult or even impossible.   What was already a difficult housing shortage before the fire, it is now much worse. Demand has increased for homes in Maui as remote workers expand their horizons, and pay cash for homes on the island paradise. Short-term rentals have also reduced the supply of affordable homes. That’s left many working class families renting homes or sharing homes with extended family members. And it’s these folks who are crucial to Maui’s tourism industry.   High Cost of Living   It’s not cheap to live in Hawaii. Many products like food and building materials need to be imported, and that makes them more expensive. And there will be a huge need for rebuilding. Maui officials say the fire damaged or destroyed almost 3,000 structures.   But before that happens, displaced residents need to find a place to stay. The Washington Post reports that a local Realtors association is hoping to get many of those people into vacation homes that are currently vacant.    Investors and realtors are also reportedly contacting victims with offers to buy their scorched land. That’s triggered some amount of outrage and a warning on Instagram by an organization dedicated to the preservation of land and native species in Hawaii. The message begins: “I am so frustrated with investors and realtors calling the families who lost their home, offering to buy their land. How dare you do that to our community right now.”   Realtors Donating $1.5 Million   On a brighter note, the National Association of Realtors also an