In this guide

Standard homeowners insurance generally covers fire, including wildfire, but in areas with high wildfire risk some insurers have limited new policies, raised prices or declined to renew existing ones. If you live in a wildfire-prone area, your priorities are to understand what your policy covers, know your fallback options if you lose coverage, and take documented steps to make your home harder to ignite.

Key takeaways

  • Fire is a standard covered peril, so wildfire damage is typically covered by a homeowners policy. Smoke damage and loss of use are often included too.
  • The challenge in high-risk areas is availability and price, not an exclusion for wildfire itself.
  • Many states have a state-backed "FAIR Plan" or similar insurer of last resort, which usually offers more limited coverage than a standard policy.
  • Home hardening and defensible space can reduce risk, and in some states, insurers must or do offer discounts for documented mitigation.
  • Rebuilding costs, extended replacement cost and a home inventory matter a great deal after a total loss.

Is wildfire damage covered?

Yes, in most cases. Fire is among the perils listed or covered in a standard homeowners policy, which is why homeowners insurance typically pays for fire damage to your house, other structures and belongings, subject to limits and your deductible. If the home becomes unlivable, Coverage D (loss of use) may pay additional living expenses, up to the policy's limits.

Policies can include conditions or exclusions that matter in a wildfire, such as vacancy rules, limits on outbuildings, and caps on certain belongings. Some insurers also write wildfire-specific deductibles or restrictions in high-risk areas, so read your declarations page and endorsements.

Why coverage has become harder in some areas

Wildfire losses can be large and can hit many homes at once. Insurers respond by changing underwriting, which can include declining new business in certain zip codes, restricting policy features, raising rates or not renewing policies. Regulators in several states, including California, have been actively involved. The California Department of Insurance, for example, has used moratoriums on nonrenewals in areas affected by declared wildfire emergencies. Rules differ by state, change often and may have been updated since this article was published, so check your state insurance department's website for the current position. Our article on why home insurance is going up explains more of the pricing pressure.

Good to know: A nonrenewal is not the same as a cancellation. Insurers must usually give written notice before nonrenewing, and the notice period is set by state law. Look at the notice date and ask your state insurance department how much time you have.

If you cannot find standard coverage

Your options generally progress like this:

  1. Talk to an independent agent or broker. They can approach several insurers, including smaller or specialty carriers, on your behalf.
  2. Ask about mitigation. Some insurers will reconsider or price differently if you make documented improvements.
  3. Check your state's insurer of last resort. Many states have a FAIR Plan, which provides basic property coverage when you cannot get it in the regular market. In California, the FAIR Plan is run by the state's insurers and is a fallback, not a full homeowners policy. The California Department of Insurance's guidance describes it as basic fire coverage, and policies like it commonly do not include liability coverage. Terms differ by state.
  4. Add a "difference in conditions" policy. If you use a FAIR Plan for the property, you may be able to buy a separate policy that adds liability, theft, water damage and other protection the FAIR Plan lacks. Ask an agent whether this is available in your state.
  5. Contact your state insurance department. They can explain rules, point you to resources and take complaints.

Watch out: If your mortgage lender requires homeowners insurance, a gap in coverage can lead the lender to buy its own policy for you, called force-placed insurance, which is usually more expensive and covers less. See our guide to escrow and homeowners insurance for how lender requirements work.

Home hardening and defensible space

Many homes ignite from embers rather than a wall of flame, which is why guidance from fire agencies focuses on both the surroundings and the house itself. Common steps include:

  • Roof and vents: fire-rated roofing and ember-resistant vents.
  • Eaves and siding: enclosed eaves and noncombustible materials where walls meet the ground.
  • Near-home zone: clearing a zone around the house of dry leaves, mulch and other fuels, and moving woodpiles away.
  • Vegetation management: thinning and trimming plants according to local defensible space rules.
  • Gutters and decks: removing debris that can catch embers.

Some programs certify these steps. For example, the Insurance Institute for Business and Home Safety (IBHS) runs a Wildfire Prepared Home program, and community programs such as Firewise USA exist, though insurers differ in how they treat them. California's "Safer from Wildfires" regulation requires insurers there to offer discounts for qualifying mitigation, and the Department of Insurance advises homeowners to notify their insurer after completing a measure, since an inspection may be needed. Outside states with such rules, discounts, if offered, are up to the insurer and are not guaranteed.

Getting your limits right

After a major wildfire, rebuilding costs can jump because many homes are being rebuilt at once and labor and materials are in short supply. Three policy features deserve attention:

  • Dwelling limit: set to the cost to rebuild, not market value. See how much homeowners insurance you need.
  • Extended replacement cost or ordinance and law coverage: these can help if costs run over the limit or rebuilding must meet newer building codes. Availability and amounts vary.
  • Loss of use limits: a long rebuild can outlast a small living-expense limit. Ask what the dollar and time limits are.

Replacement cost coverage also matters for belongings. Our article on replacement cost vs. actual cash value explains why.

Prepare your paperwork

If you ever have to evacuate, you may not get back to your home for days. Keep digital copies of your policy, declarations page and agent's number somewhere you can reach from your phone. Build a home inventory now and keep a copy off-site or in the cloud. After a loss, keep receipts for emergency expenses and document damage before cleanup where it is safe.

When you shop or renew, compare quotes from several insurers, since underwriting in wildfire-prone areas can vary widely, and ask each how it treats mitigation.

Frequently asked questions

Does homeowners insurance cover wildfire damage?

Generally yes, because fire is a standard covered peril. Coverage is subject to limits, deductibles and any policy conditions or endorsements.

Can my insurer drop me because of wildfire risk?

In many states an insurer can decline to renew a policy, usually with advance written notice. Some states limit this after declared emergencies. Check with your state insurance department.

What is a FAIR Plan?

A FAIR Plan is a state-mandated pool that offers basic property coverage to people who cannot get it elsewhere. Coverage is typically more limited than a standard homeowners policy and may exclude liability. Terms vary by state.

Will home hardening lower my premium?

It might, but there is no guarantee. Some states require insurers to recognize qualifying mitigation, while elsewhere it depends on the insurer.

Does insurance cover smoke damage if my house did not burn?

Smoke damage from a covered fire is commonly covered, but details vary. Ask your insurer and document the damage.

Sources

General information only. This guide explains general concepts and is not insurance, legal or financial advice. Rules and prices vary by state and insurer. Check your policy documents and speak to a licensed insurance professional or your state insurance department about your situation.