Wildfire Risk Drives Up Insurance, Forces Jungle Stays to Adapt

As wildfires become more frequent and severe, insurers are now assessing property resilience, pushing operators of jungle stays and other nature-adjacent properties to prepare.

Wildfire risk is growing, prompting a change in how insurers evaluate properties, especially those near natural environments like jungle stays. Insurers are now assessing a property's resilience in addition to its location when setting rates, according to Skift.

Recent wildfires have affected areas across the U.S. and Europe, with successive heatwaves leaving land dry. Properties designed to be close to nature, such as resorts and national park lodges, face the highest risk. Smoke and embers can travel with wind, impacting properties far from active fire zones. For example, smoke from a Canadian blaze recently filled cities across the U.S. Midwest, Great Lakes, and East Coast, Skift reported.

Increased exposure to wildfires can lead to lower occupancy rates, higher operational costs due to disruptions, and rising insurance bills for hotels. In 2023, Maui’s wildfires cut tourism spending by 61% year-on-year. Operators report average property insurance increases of 17 to 26 percent, with high-risk assets seeing hikes of 50 percent or more. Some insurers are withdrawing from certain markets entirely, according to Skift.

Major hospitality groups like Hilton, Hyatt, IHG, and Marriott have acknowledged wildfire risk in their climate disclosures. They cite potential capital damage, forced operational shutdowns, and lost franchise fees. The industry is responding with a combination of traditional preparedness and new technologies. Measures include vegetation management, creating defensible space, using resilient building materials, and developing emergency plans. Some properties are also installing automated external sprinkler defense systems designed to activate before approaching embers, with the aim of linking these investments to insurance discounts.

For jungle stay hosts, this means evaluating property resilience is no longer optional but a financial imperative; for travelers, it signals a growing industry focus on safety and property hardening in susceptible areas.