... "What's clearly going to happen is, as various places in California experience greater risk over time, you'd expect that to be reflected in higher prices," said Gary Painter, director of research for the University of Southern California's Lusk Center for Real Estate. "And you'd have some cases where insurance companies will determine the risk to be so high they'd no longer want to provide insurance."
That's already the case in areas regularly hit by hurricanes or landslides, where premiums for flood or landslide insurance are either not available or are too high for most parties. California development has moved away from the coast to take advantage of lower land costs. Now, Painter said, business owners in risky seaside communities may start making changes if they determine their current locations aren't in the best interest of the business or employees in terms of cost, safety and other factors...