Insurance Information
Navigating Wildfire Insurance Challenges in California
As wildfires become more frequent and intense in California, securing and maintaining affordable insurance coverage has become a significant concern for homeowners. Rising premiums, reduced coverage, and policy cancellations are increasingly common. This page is designed to provide robust guidance, actionable resources, and up-to-date information to help Californians protect their homes and navigate the complex wildfire insurance landscape.
Understanding Wildfire Insurance in California
Why Are Rates Increasing?
Wildfire insurance rates in California have risen sharply due to the increasing frequency and intensity of wildfires. These record-breaking wildfire seasons have led to significant financial losses for insurance companies, which must adjust premiums to cover escalating claims costs. The growing risk of wildfires, fueled by extreme weather, prolonged droughts, and dense vegetation, has made insuring homes in high-risk areas more expensive and less appealing for many insurers. As a result, some major companies have reduced or stopped offering new policies in wildfire-prone regions, leaving homeowners with fewer options. This has led to greater reliance on the California FAIR Plan, the state's insurer of last resort, which provides limited coverage and often requires supplemental policies for comprehensive protection. The combination of rising claims, market withdrawals, and the need for increased reinsurance costs has created a challenging landscape for homeowners seeking affordable coverage in wildfire-affected areas.
What Is the California FAIR Plan?
The California FAIR Plan is a safety net for homeowners unable to secure coverage through traditional means:
Covers fire damage but excludes liability, theft, or personal property coverage.
Can be supplemented with a “Difference in Conditions” (DIC) policy for comprehensive protection.
Learn More About the FAIR Plan →
State-Mandated Insurance Protections
California laws provide safeguards for residents in wildfire-prone areas:
SB 824: Requires insurers to offer at least one year of coverage following a wildfire disaster.
SB 872: Mandates discounts for wildfire risk reduction efforts, such as defensible space and home hardening.
Understand Your Rights →
Help for Homeowners Facing Insurance Challenges
Denied Coverage or High Premiums?
If you’re struggling to find coverage or afford increasing costs, consider:
Regional Insurers: Look for specialized providers serving high-risk areas.
Mitigation Discounts: Hardening your home and maintaining defensible space can lead to premium reductions.
Appealing Non-Renewals: File a complaint with the California Department of Insurance (CDI) for assistance.
Contact CDI for Assistance →
Mitigation Discounts and Inspections
Many insurers offer lower premiums for homes with:
Class A roofing and fire-resistant siding.
Ember-resistant vents and dual-pane windows.
Properly maintained defensible space.
Request a Free Inspection →
Additional Resources
United Policyholders
United Policyholders
A nonprofit organization dedicated to helping insurance consumers navigate the complexities of homeowner and wildfire insurance. They provide resources on policy coverage, claim assistance, and consumer advocacy, particularly for those in wildfire-prone areas.
California Department of Insurance
Visit CDI Website
The California Department of Insurance (CDI) oversees the insurance industry, ensuring consumer protections and fair practices. They offer guidance on homeowners insurance, wildfire-related policies, and support for disputes with insurers.
California FAIR Plan Association
Visit California FAIR Plan
The FAIR Plan is California’s insurer of last resort for homeowners unable to secure insurance through traditional means. It provides basic fire coverage and resources for understanding policy options.
Safer from Wildfires Initiative
Learn More About Safer from Wildfires
The Safer from Wildfires Initiative, led by the California Department of Insurance, promotes wildfire resilience by offering opportunities for insurance discounts. Eligible actions include home hardening, creating defensible space, and participating in programs like Firewise USA. These actions not only reduce risks but also provide financial benefits to homeowners.
San Bernardino County Fire Protection District
Visit SBC Fire Website
Offers wildfire preparedness tools and insurance-related advice specific to San Bernardino County residents.
Riverside County Fire Department
Visit RivCo Fire Website
Provides resources for homeowners in Riverside County, focusing on wildfire risk reduction and emergency preparedness.
Insurance Informational Videos
Take Action Today
By hardening your home, maintaining defensible space, and participating in community programs, you not only protect your property but also qualify for meaningful insurance savings. Explore your options and start building wildfire resilience today.