Question 1

Is wildfire damage covered by my homeowners insurance?

Accepted Answer

Standard homeowners policies (HO-3, HO-5) cover wildfire damage as a named/open peril event. The problem: in California and other high-risk states, getting AND keeping a standard homeowners policy is increasingly difficult. Major carriers have pulled back: Allstate stopped writing new CA homeowners in November 2022; State Farm announced major non-renewals in 2023–2024. If you're already insured, your existing policy likely covers wildfire — but renewing it may require a new carrier.

Question 2

What is the California FAIR Plan?

Accepted Answer

The California FAIR Plan is the state's insurer of last resort — created in 1968 for properties unable to obtain coverage in the voluntary admitted market. It covers ONLY Fire and Smoke (not theft, water damage, liability, or personal property). To get full homeowners coverage equivalent, pair the FAIR Plan policy with a Difference in Conditions (DIC) policy from a private carrier. The combination is more expensive than a single admitted-market policy and harder to administer (two policies, two claims processes), but it's often the only available option in fire-prone areas.

Question 3

How much does FAIR Plan + DIC cost?

Accepted Answer

Highly variable. FAIR Plan policies typically range from $2,000 to $7,000+ per year for $500K dwelling coverage in moderate-to-high fire risk zones, with extreme-risk zones running into 5 figures. DIC policies add $1,000–$3,000+ on top. Total for the combination often runs 2–4x what an equivalent admitted-market HO-3 would have cost before non-renewal. Surplus lines wildfire-specialty carriers may write a single policy at premium prices similar to or above the FAIR + DIC stack.

Question 4

What states besides California have wildfire insurance crises?

Accepted Answer

Colorado, Oregon, Washington, New Mexico, Arizona, Idaho, Montana, and Utah all have growing wildfire insurance availability problems. Colorado's market has tightened sharply since the 2021 Marshall Fire. Oregon and Washington face increasing non-renewals in eastern and southern regions. New Mexico had widespread non-renewals after the 2022 Hermits Peak/Calf Canyon fires. Most western states have versions of a FAIR Plan or insurer-of-last-resort program, though structures and coverage differ.

Question 5

Can I be dropped by my insurance after a wildfire?

Accepted Answer

Yes, but California has the strongest protections. Under CA Insurance Code §675.1, after a declared state of emergency in your zip code, your insurer cannot non-renew you for 1 year (extended to 2 years in some declarations). The 2026 California reform broadened these protections to also include commercial policies, HOAs, condos, affordable housing, and non-profits. Outside California, protections vary — many states allow non-renewal at the next policy term regardless of recent events.

Question 6

What home hardening steps actually qualify for discounts?

Accepted Answer

California's Safer from Wildfires program defines 8 mitigation measures that qualify for premium discounts: Class A roofing, ember-resistant vents, cleared 0–5 feet from structure (Zone 0), cleared 5–30 feet (Zone 1), enclosed eaves, screened gutters, fire-resistant siding, and double-pane windows. Carriers offering Safer from Wildfires discounts apply 5–15% off depending on combinations. Get a Wildfire Mitigation inspection (often $100–$300) — the report is what unlocks the discounts at the policy renewal.

Question 7

Is wildfire insurance required by my mortgage lender?

Accepted Answer

Yes, in two senses. First, your mortgage requires homeowners insurance, which standardly includes wildfire coverage in admitted-market policies. Second, in high-risk fire zones, your lender may require a specific minimum coverage limit and proof of continuing coverage. If you go on the FAIR Plan + DIC, you'll need to send both certificates to the lender. Lenders typically force-place insurance at much higher premiums if your coverage lapses — get into the FAIR Plan immediately if non-renewed rather than waiting for the lapse.

Carrier	CA new business	Notable action
Allstate	Closed (since Nov 2022)	Stopped accepting new CA homeowners applications without public announcement
State Farm	Major non-renewals 2023–2024	34.1% rate increase approved Dec 2024 — largest by a major insurer in 3 years
Farmers	Capped CA new business (2023)	Capped at limited monthly volume; not technically closed but functionally restricted
USAA	Open (military eligible)	Continues writing in CA for eligible military/veteran/family households
Mercury	Open (selective)	CA-headquartered; still writing but with elevated underwriting scrutiny in high-risk zones
Liberty Mutual / Safeco	Selective	Still writing in many CA areas with mitigation discounts available

Wildfire Insurance (May 2026)

California's admitted homeowners market is contracting

Quick Answer

The 4 Coverage Tiers (When Standard Won't Work)

Tier 1: Admitted-market HO-3 (when available)

Tier 2: Non-admitted / surplus lines wildfire specialty

Tier 3: California FAIR Plan + DIC pairing

Tier 4: Lender force-placed (avoid)

Major Carrier Status (California, May 2026)

What to do based on your situation

If You Qualify for USAA, Quote Them First

Frequently Asked Questions