Wildfire insurance in California: What homeowners should know

How prevalent are wildfires in California?

Wildfires have always been a natural part of California’s forest ecosystems. In fact, a low-intensity fire can actually be beneficial for the environment. Low-burning fires, where flames don’t reach the tops of trees, can help remove thicker, more flammable vegetation and allow more sunlight and moisture to reach the forest floor. The ashes left behind can also help to enrich the soil, allowing trees and other flora to flourish.

Now, however, California wildfires are a detriment to the environment and homeowners across the state. Of the top 20 most destructive wildfires on record, more than half have occurred within the last decade. And a study found that human-influenced climate change was a major contributor to a 172 percent increase in California land burned by wildfires.

According to data from the California Department of Forestry and Fire Protection, the cost to contain California’s wildfires has spiraled in recent decades. The World Economic Forum reported in 2020 that over the last decade, the cost to suppress fires had spiked by 16 times over what it cost in the 1980s.

While wildfire season was once contained to four months a year, it can now last for between six and eight months, according to the U.S. Department of Agriculture. As further evidenced by the 2025 season, destructive fires can occur under the right conditions during any month.

California areas with the most wildfire risk

Not all areas of California are equally affected by wildfires. Of the 58 California counties, four are considered “very high risk” for wildfires and 25 are designated “relatively high risk” by the Federal Emergency Management Agency (FEMA). The highest-risk counties are clustered toward the southern end of the state, partially because of their proximity to wooded areas.

CoreLogic’s 2024 Wildfire Risk Report shows that, of the 15 metropolitan areas in the U.S. with the highest wildfire risk concentration, 10 of them are in California. Estimated reconstruction costs after a fire are also higher in California than in any other state.

What causes California wildfires?

People are largely responsible for California wildfires. Almost 90 percent of wildfires that burned from 2018 to 2022 were caused by humans, according to the Congressional Research Service. But, not all human-caused fires are intentional. In fact, most are not, according to the Western Fire Chiefs Association. 

Wildfires can stem from:

• Burning debris
• Carelessly discarded cigarettes
• Equipment malfunctions
• Unattended campfires
• Vehicles

In addition to human causes, lightning bolts have the potential to ignite wildfires. According to the National Interagency Fire Center, hundreds of California wildfires are started by lighting each year. The Congressional Research Service study reports that lightning-caused fires burn about 53 percent more acreage than human-caused fires.

Does home insurance cover wildfires?

Fire damage is listed as a covered peril on most home insurance policies. Wildfire damage is typically included. However, that may not be the case if you live in a high-risk wildfire area. In this instance, your insurance company could limit or exclude wildfire protection from your policy. In 2023 and 2024, several major carriers announced they would be pulling out of the California homeowners insurance market due to state insurance regulations, inflation and the increased risk of wildfires. In 2025, the California governor issued a one-year moratorium on insurers canceling or nonrenewing coverage around the areas impacted by the January 2025 Los Angeles fires to protect affected homeowners.

If your home insurance policy includes financial protection from wildfires, it’s important to understand how the different parts of your policy can help you recover.

Dwelling coverage

In a wildfire event, dwelling coverage pays for the cost of rebuilding or replacing the physical structure of your home and any other structures attached to it, including decking or attached garages. Because rebuilding your home after a wildfire can be very expensive, it’s important that you have enough dwelling coverage and that you check your policy limits each year. CoreLogic found that, over the past five years, rebuild costs in California have increased by more than 33 percent, which could potentially leave homeowners who haven’t touched their policies in several years underinsured. 

To be sure that you have enough coverage to potentially rebuild your home, you could purchase an inflation guard or extended replacement cost endorsement or work with an agent to raise your coverage limits. Your dwelling limit is one of the most important parts of your home insurance policy, as other coverage limits (like other structures, personal property and additional living expenses) are likely to be calculated as a percentage of your dwelling limit.

Other structures coverage

Similar to dwelling coverage, other structures coverage would provide financial support for the rebuilding or replacing unattached structures on your property affected by wildfires, including sheds, detached garages, fencing and pool houses. If you have multiple detached structures on your property, like a garage or a gazebo, make sure to purchase enough coverage to rebuild them in the event of a wildfire. Usually, the amount of other structures covered is 10 percent of your total dwelling limit.

Personal property coverage

Personal property coverage can pay to repair or replace your personal items that get damaged in a wildfire. This applies to most things you own, including appliances, clothing, furniture and electronics. When choosing personal property coverage limits, it’s a good idea to create an inventory of your belongings to ensure sufficient coverage. Even if a wildfire does not burn everything inside your home, many items may need to be replaced due to smoke damage. With an HO-3 home insurance policy, the personal property coverage amount is usually 50 to 70 percent of the total dwelling limit. If you have valuable items that require higher coverage limits, consider scheduling your personal property in an endorsement.

Loss-of-use coverage

This is also referred to as additional living expenses coverage and covers the cost of hotel stays, meals and other expenses incurred due to your home being uninhabitable after a loss such as a wildfire. If you live in California, having loss of use coverage can be critical. If a wildfire destroys your home, you will need to live somewhere else while your house is being rebuilt. Loss of use policy limits are usually between 20 and 30 percent of the dwelling limit.

Does condo insurance cover wildfires?

In most cases, condo insurance policies will cover wildfire damage caused to the interior walls of your living space. The exterior of the condo should be covered by your homeowners association’s master policy. Each condo insurance policy has different coverage options that can help policyholders afford to replace, repair or rebuild personal property damaged in a wildfire event. But, like home insurance, wildfire coverage could be limited if you live in a high-risk zone.

Interior walls coverage

Depending on the type of master policy your HOA has in place, coverage may be provided for specific items inside your condo if they get damaged in a wildfire. An “all-in” master policy provides coverage for things like appliances, carpets, electrical and plumbing, while with a “bare walls” policy, nothing inside the unit’s walls will be covered. With interior walls coverage, you will likely be able to use your policy to pay for the cost to repair or replace damaged items within the walls of your condo that would not be covered through the HOA master policy.

Personal property coverage

Just like with a homeowners insurance policy, personal property coverage allows condo owners to recover the cost for replacing or repairing personal items like electronics, furniture, appliances and jewelry if they get damaged in a wildfire. Your HOA’s master policy will not cover your personal property, even if it is an all-in policy or a wildfire destroys the entire building.

Additional living expenses coverage

As with homeowners insurance, this option covers any expenses incurred as a result of being displaced from your condo due to a wildfire event. Hotel stays, food expenses, pet boarding and laundry services may be covered by your insurance provider if you have additional living expenses coverage. Californians who have been asked to evacuate can submit a claim, even if the wildfire never reaches their condo.

How do you get insurance in common wildfire areas?

It’s arguably never been harder to get homeowners insurance for a home in a California wildfire area. California is looking down the barrel of a statewide home insurance crisis due to some of the largest insurance companies limiting — or completely halting — the writing of new policies.

Many home insurance companies still write insurance throughout the state, and some still serve high-fire-risk areas. If you’re struggling to secure fire insurance in California, other viable options may be the FAIR Plan or choosing an excess or surplus lines insurer, depending on your circumstances.

Property & casualty insurers

Seven of the 12 largest home insurance companies in California have either completely paused or drastically limited the number of new policies they’re able to take on. If you’re shopping for a California home insurance policy, you might want to know which companies have placed limitations:

• State Farm: Paused writing new home policies in May 2023 and announced plans for nonrenewal on thousands of policies in 2024.
• Farmers: Only writing a limited number of new home insurance policies per month
• Allstate: Paused writing new home insurance policies in November 2022
• USAA: Only writing home insurance policies in lower-risk wildfire areas
• Travelers: Writing fewer new home insurance policies, the extent to which is yet to be seen
• Nationwide: Scaled back the volume of new policies
• Chubb: Restricted high-value coverage in high-risk wildfire areas
• Kin: No longer issuing new policies

However, there are other companies in the state that are worth looking into before delving into last-resort options. Coverage isn’t guaranteed, but if you’re having trouble getting quotes, consider:

• AAA
• Mercury
• Encompass

The FAIR Plan

The California Fair Access to Insurance Requirements (FAIR) Plan is an insurance program of last resort for California homeowners unable to get home insurance in the private market. Contrary to common belief, the FAIR Plan is not state-backed or supported by California taxpayers. Rather, it is financially supported by the private insurance companies licensed to write home insurance in the state.

Not every homeowner will qualify for a FAIR Plan policy. To get coverage, not only must a homeowner prove they have been denied in the private insurance market, but their home must also meet other criteria. Additionally, coverage is much less than you’d find with a traditional home insurance company. Your dwelling and personal property are financially protected from four named perils — fire, lightning, internal explosions and smoke — and liability protection is not available. Homeowners looking for coverage beyond what the plan offers may purchase a Difference in Conditions (DIC) policy to help fill in the gaps. The California Department of Insurance lists which providers currently sell DIC policies on its website.

Surplus or excess lines carrier

In addition to the California FAIR Plan, residents may be able to obtain homeowners insurance through an excess or surplus lines carrier. These insurers provide coverage for homes that carriers through the standard marketplace won’t take on as clients. California has strict guidelines for insurers when setting and raising home insurance costs, but surplus line carriers are exempt from these guidelines. As such, excess and surplus lines carriers may have stricter eligibility requirements than traditional insurers and be able to charge higher rates. For example, PURE only considers homes insured for at least $1 million, excluding many California homeowners from its coverage. You’ll likely pay more for coverage from this kind of carrier, but it may be worth looking into if you don’t have any other options.

How to help prevent wildfire damage

California homeowners can take some steps to prevent wildfire damage in their homes. The following homeowners’ checklist illustrates the points of top concern that residents should address during the wildfire season:

• Know your risk: Be aware of droughts affecting your area. Consider having a professional inspect your property and understand your community’s wildfire response strategy.
• Remove excess vegetation: Leafy greens are fuel for wildfires in California. FEMA recommends that homeowners create a 30-foot safety zone around their residences to keep the volume of vegetation to a minimum. Remove any vines from walls, move shrubs away from the structure, prune branches/shrubs within 15 feet of chimneys and stove pipes, remove tree limbs within 15 feet of the ground and replace highly flammable plants with lower growing, less fire-prone species.
• Keep combustibles away: Keep all firewood stacked at least 100 feet and uphill from your home. Additionally, ensure your grill gas and propane tank are at least 15 feet from the house. Be sure a 15-foot clearing exists around your grilling equipment as well. Be sure all gutters are clear of leaves and other flammable debris.
• Do not leave exposed space: Decks, porches and balconies with exposed space beneath are fuel for California wildfires. Remove combustibles from underneath decks and porches, and extend a ½-inch mesh screen from all overhangs to the ground. Use fire-retardant patio furniture and materials when building any new structures to your home.
• Cover openings to the home: Attic vents, soffit vents and louvers are prime areas of the home where floating embers and burning debris can easily enter and ignite. Be sure all openings are covered with ¼-inch mesh wire to keep burning materials outside.
• Have fire-resistant roofing and siding: Replace any wood, shake or shingle roofing materials with fire-resistant alternatives such as single-ply membranes, fiberglass shingles, slate, metal, clay or concrete tile. Ensure your home’s siding is created from non-flammable materials such as stucco, metal, brick, cement shingles, concrete or rock. Wood siding may be treated with UL-approved fire retardant chemicals; however, this is not a permanent solution.
• Spray down your home's exterior: Spray down your home and roof using a garden hose with fire-resistent gel, if available, ahead of an immediate fire risk.
• Treat your windows: Large windows can increase your risk of combustible materials igniting within your home. Dual- and triple-pane thermal glass and fire-resistant shutters may help reduce the risk of a wildfire event affecting your home or personal property.

By taking the time to prepare your home’s interior and exterior features before the wildfire season, you can reduce your risk of incurring damage and submitting a claim to your insurance provider.

Frequently asked questions