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Wildfire insurance in California: What homeowners should know

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Key takeaways

More than 2.6 million homes in California are at moderate to high risk for wildfire damage according to a 2024 report from CoreLogic.
Most standard homeowners insurance policies will cover fire damages, including those caused by wildfires. However, several major carriers have dropped fire coverage in high-risk areas.
California residents who live in high-risk areas may apply for the state’s FAIR Plan if they cannot secure coverage elsewhere.
The cost of fire insurance in California will largely depend on your home’s location and its historic wildfire risk.

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 And a study found that human-influenced climate change was a major contributor to a 172 percent increase in California land burned by wildfires.

The harm caused by the fires — both economic and health-related — is increasing, as well. A 2025 Stanford Institute for Economic Policy Research forum noted the high toll that increasing fire activity in the state has on government budgets and insurance companies, as well as on state residents facing a diminished insurance market as well as soaring premium rates.

It's also true that the wildfire season is expanding. A 2025 study suggested that both the area at risk of fires and the seasons when fires are common have both increased. Anthropogenic warming — climate change — is likely to be the primary reason behind the increases.

California areas with the most wildfire risk

Not all areas of California are equally affected by wildfires. Of the 58 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.

California counties with very high fire risk	California counties with relatively high fire risk
Los Angeles	Amador
Riverside	Butte
San Bernardino	Calaveras
San Diego	El Dorado
	Fresno
	Kern
	Lake
	Madera
	Mariposa
	Mendocino
	Monterey
	Nevada
	Orange
	Placer
	Plumas
	San Luis Obispo
	Santa Clara
	Santa Barbara
	Santa Cruz
	Shasta
	Siskiyou
	Sonoma
	Tehama
	Trinity
	Tuolumne
	Tulare
	Ventura

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.

California county	Number of homes at risk	Estimated reconstruction costs (in billions)
Los Angeles	245,670	$186.6
Riverside	210,859	$112.8
San Diego	138,600	$87.9
Sacramento	100,814	$61.1
San Francisco	93,452	$66.4

What causes California wildfires?

According to Penn State researcher Manzhu Yu, about 84 percent of wildfires in the U.S. are caused by human activities. Climate change also plays a role, with warmer temperatures and reduced precipitation creating an environment that is more likely to go up in smoke with even the slightest provocation. California's prolonged drought has also caused a significant increase in dry vegetation, which ignites easily.

Wildfires can stem from:

Burning debris
Carelessly discarded cigarettes
Equipment malfunctions
Unattended campfires
Vehicles
Power line failures

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 lightning 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 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 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

scheduling your personal property in an endorsement.

Loss-of-use coverage

This is also referred to as 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, 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. An HOA master policy will not cover your personal property, even if it is an all-in policy.

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.

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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 limitations:

State Farm: Paused writing new home and business 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; although the number of policies increased to 9,500 a month in December 2024.
Allstate: Paused writing new home insurance policies in November 2022, although it is considering a return to the market.
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. Nationwide Private Client, a subsidiary of Nationwide, stopped renewing California policies as of June 2025.
Chubb: Restricted high-value coverage in high-risk wildfire areas.

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:

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 on its website.

New

What’s new with the California FAIR Plan?

With fewer home insurance options, an increasing number of California homeowners have been forced to rely on the FAIR Plan. As of June 2025, there are more than stated that the program “[doesn’t] have the money on hand [to pay every claim] and we have a lot of exposure.” According to Roach, the plan is “one event away from a large assessment.”

In the wake of the 2025 wildfires, the plan $76 billion and $131 billion, with insured losses estimated at $45 billion.

Surplus or excess lines carrier

In addition to the California FAIR Plan, residents may be able to obtain homeowners insurance through an 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.

Bankrate tip: Cast a wide net — but don’t forget to think small

If you’re struggling to find a company that will write you a home insurance policy, consider contacting insurance brokers in different cities. Southern California homeowners may want to contact brokers in the northern part of the state and the other way around for homeowners in northern California. Home insurance brokers may be more familiar with the smaller, more regional carriers that could be willing to insure your home.

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-resistant 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

Yes, you can be dropped or face nonrenewal in some circumstances. Insurers determine who they will insure and the rates they will charge by assessing the risk that your policy will require them to pay out on a pricey claim. The higher that risk, the more likely that you will either pay a high premium or face being dropped. In California, if you live in an area that is likely to experience wildfires, your company could find you too high a risk to cover. One bit of good news: there is a one-year moratorium, issued in January 2025, on insurers restricting them from dropping coverage for homes in the area impacted by the 2025 Los Angeles wildfires. If you are in a high-risk area, you may want to talk to your licensed agent about possible mitigation efforts that could lower your risk, like installing a fire-resistant roof.
Some insurance providers offer policyholders incentives for installing specific fire safety equipment in or around their homes. Ask your insurance agent if your smoke detectors, fire alarms and fire extinguishers qualify you for special savings on your policy premium.
Section Sustainable Insurance Strategy also pledges more discounts for fire mitigation efforts, but it is yet to be seen how the plan will affect homeowners across the state.
Home insurance is largely a calculation of risk: the higher risk you present to your home insurance company, the higher your rate will most likely be. Home insurance will likely cost more in areas with a higher wildfire risk, but determining rates is not that simple.

California has complex regulations surrounding how insurance companies are able to price rates, which is part of what spurred the home insurance crisis in the first place. Currently, California home insurers are only permitted to look at historical fire data to determine rates, not future-predicting models. However, the Sustainable Insurance Strategy proposes a new approach to rate-setting that permits catastrophe modeling to more accurately price rates and help prevent massive rate hikes when policies renew.

Written by

Natalie Todoroff

Personal Finance Reporter

Wildfire insurance in California: What homeowners should know

Key takeaways

How prevalent are wildfires in California?

California areas with the most wildfire risk

What causes California wildfires?

Does home insurance cover wildfires?

Dwelling coverage

Other structures coverage

Personal property coverage

Loss-of-use coverage

Does condo insurance cover wildfires?

Interior walls coverage

Personal property coverage

Additional living expenses coverage

Compare home insurance rates

How do you get insurance in common wildfire areas?

Property & casualty insurers

The FAIR Plan

Surplus or excess lines carrier

How to help prevent wildfire damage

Frequently asked questions

Can I get dropped from my homeowners insurance policy if my home is in a wildfire-prone area?

Can I get homeowners insurance discounts if I use fire safety equipment?

How can I qualify for wildfire insurance discounts?

Does my wildfire risk affect my rate?