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10+ years writing on personal finance topics
Host of the Mental Health and Wealth podcast
Melanie is a blogger, author, and speaker specializing in personal finance and debt management. She’s also the author of the blog and book “Dear Debt.”
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Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves yoga and knitting.
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If you live in wildfire-prone areas like California or Colorado, finding an affordable homeowners insurance policy is becoming harder. In 2025, 77,850 wildfires burned more than five million acres in the U.S., according to the National Interagency Fire Center. Homeowners in high-risk areas face surging home insurance premiums or difficulties obtaining coverage.
But coverage options are available through private insurance companies and state-based FAIR Plans. Here’s what you should know about how wildfire risks affect home insurance rates, average costs for high-risk homes, types of coverage, and steps to buy home insurance in high fire-risk areas.
Some insurance companies, like State Farm, offer California policyholders wildfire mitigation discounts if they fire-proof their homes, resulting in lower premiums.
Non-renewals of home insurance in high fire-risk areas are typically market-driven and not the homeowner’s fault.
If you can’t secure coverage through a traditional insurer, you can get coverage through your state’s FAIR Plan, which is an insurer of last resort.
A high-risk fire area is typically part of the wildland-urban interface, where homes are near wildland vegetation and landscaping that creates a potential fire hazard.[1] Additionally, some government agencies, like CAL FIRE, classify specific areas as Fire Hazard Severity Zones with ratings of Moderate, High, or Very High.
Other states may have their own wildfire risk ratings. Several factors determine whether an area is high-risk, including:[2]
Environment
Vegetation
Fire history
Weather
Terrain
Building materials
Proximity to fire services
Home insurance companies take these factors into account and create a wildfire risk score to assess the likelihood of a potential fire. Some states with high fire risk include Arizona, California, Colorado, Oregon, and Washington. Policyholders in these states may face higher premiums, certain restrictions, a separate deductible, or even non-renewals.
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Climate change is making severe weather events and natural disasters, like windstorms, hurricanes, and wildfires, more common.[3] Unfortunately, these events can drive up home insurance costs. Here are some ways that wildfire risks affect your property insurance.
Eligibility: Living in a high fire-risk area may make it challenging to get a home insurance policy. Some insurance companies may deny coverage, while others have exited the market altogether in certain states.
Insurance premiums: Many factors affect home insurance rates, including wildfire risk. Being in a high-risk area could make premiums unaffordable. Average home insurance premiums increased nearly three times as fast as inflation since 2021, according to a recent Insurify report. People in climate-risk areas paid much more for homeowners insurance.
Deductibles: Some insurance companies may require a separate deductible for policyholders in high fire-risk areas. The deductible may be a set amount or a specific percentage of your dwelling coverage limit.
Coverage limits: Insurance companies may have more coverage restrictions on home insurance in high fire-risk areas. Some may have sublimits on what they’re willing to pay out for wildfire damage.
Unfortunately, policy non-renewals are becoming more frequent as some insurers leave the market. Even if an insurance company continues to insure existing policyholders, it may stop writing new home insurance policies because of various risk factors, even without recent fire activity.
If you get a standard homeowners insurance policy, it’ll generally cover wildfire damage. But it’s important to check your specific insurance coverage, as some high-risk areas may have particular restrictions for wildfire damage. Home insurance typically covers the following in high fire-risk areas:
If a wildfire damages or burns down your home, your dwelling insurance can cover the cost of repairing or rebuilding it, based on the specific limits and terms of your policy.
Your home contains your personal belongings, furniture, clothing, and valuables. A standard home insurance policy may cover your personal property if it’s no longer usable or damaged due to a covered peril like a wildfire. There may be some exclusions and limitations.
A home insurance policy doesn’t just cover your home if there’s a wildfire. It may also cover other structures, like your garage or a shed.
If a wildfire makes your home uninhabitable, your homeowners insurance typically covers additional living expenses, sometimes called loss of use coverage.
If you have replacement cost coverage, the insurance company will cover costs to rebuild or replace your home and belongings so they match the quality of what you lost. If you have actual cash value coverage, the insurance company considers depreciation, so it may not fully cover items at today’s prices.
Your home insurance policy may cover smoke damage, but be sure to review your policy, especially if you have to have a wildfire-specific endorsement.
Home insurance companies may drop coverage in high fire-risk areas for several reasons, including:
Catastrophic loss: Insurance companies work hard to evaluate risk and determine the likelihood of policyholders filing insurance claims. If there’s been a catastrophic loss in a high fire-risk area, the company may drop coverage or pull out of the market. For example, the LA wildfires caused billions of dollars in damages. But California had a one-year moratorium preventing cancellations or non-renewals after the disaster.
Increasing reinsurance costs: Insurance companies often need their own insurance, or reinsurance, to help manage potential risks. With wildfires and other disasters becoming more frequent, reinsurance costs are rising as well.
New wildfire risk models: As wildfires become more severe and occur more frequently, new wildfire risk models may enter the market and shift how insurers evaluate risk.
If you’re in a fire-prone state and facing a non-renewal, it can feel frustrating and overwhelming. But it’s typically not your fault. Unfortunately, it’s more often a result of severe weather events and insurance companies focusing on their bottom line.
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If you’re shopping around for home insurance in high fire-risk areas, whether due to rising premiums or a non-renewal, you have several options:
Private insurance companies: Though some insurers are leaving certain markets, not all are. For example, Mercury Insurance took over many of Safeco’s property insurance customers after the company decided to wind down policies in California. Working with an independent agent can help you find all the options available to you.
Excess and surplus lines insurers: You may not be able to get homeowners insurance in wildfire zones because of the higher risk. Another option to look into is excess and surplus lines insurers, which typically provide insurance for things that standard companies may not cover. It’s a specialty market that consumers can look into if private insurance companies aren’t a viable option.
FAIR Plans: Homeowners who can’t obtain home or fire insurance from a private company can look into Fair Access to Insurance Requirements (FAIR) Plans provided in their state. While FAIR Plans can help you secure a policy, it’s important to note that they’re typically only good as a last resort. In general, FAIR Plans can be more costly with fewer protections.
If you’re considering a FAIR Plan as your last resort for home insurance coverage, here are some pros and cons.
Provides basic home insurance coverage
Good last-resort option
Can connect you with a pool of insurers willing to offer you coverage
Much more expensive than a standard homeowners policy
Limited coverage
May only include dwelling coverage
The cost of home insurance in high-risk fire areas tends to be much higher than state and national averages.[4] Various factors, like environmental risk, frequency of claims, catastrophic losses, and reinsurance costs, are driving up home insurance premiums.
Though exact rates will depend on your property, insurance company, and unique risk factors, here are some potential estimates, based on Insurify data.
State  | Estimated Home Insurance Costs (based on $300,000 dwelling coverage and $1,000 deductible) |
|---|---|
| California | $2,000+ per year |
| Colorado | $2,500+ per year |
| Nevada | $1,200+ per year |
While these can provide a benchmark, some key factors that affect home insurance costs include:
Location: The location of your property is important because of its proximity to a fire station and its unique environmental risk factors.
Rebuilding costs: If there is a covered loss, a home insurance policy will pay to rebuild your home. So, the cost of rebuilding materials can affect premiums.
Mitigation steps: If you’re proactive and take steps to mitigate your wildfire risk, such as removing shrubs and debris, that may help lower premiums and earn you discounts.
Insurer availability: After some insurance companies dropped out of certain markets, the pool of insurers is smaller in high fire-risk areas. Each company has different criteria, discounts, and rates.
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If you’re looking for home insurance in high fire-risk areas, here’s how to get the coverage you need:
Shop early. Review your existing policy’s renewal date and shop around well in advance. Compare quotes from a range of insurance companies and look at customer reviews about the claims process.
Work with an insurance agent. For additional support, you can work with an insurance agent. The key is to look for an independent agent who can check various companies and not limit your options.
Have property details ready. Before getting home insurance quotes, make sure you have all the information you need about your property. The insurance company may ask about the home’s age, square footage, building materials, roof, fireplaces, who lives at the home, and if you have safety devices.
Document wildfire mitigation efforts. If you’ve taken any steps to mitigate wildfires, such as clearing debris, flammable materials, or vegetation near your home, have documentation ready. One of the best things you can do is to harden your home with fire-resistant materials and create a defensible space.
Check standard insurers. After doing your research and comparing several home insurance quotes, apply with standard insurers first.
Check surplus lines insurers. If traditional insurance companies in your area won’t cover you, check for policies with surplus lines insurers.
Use a FAIR Plan as a last resort. If surplus lines insurers aren’t an option or a good fit, you can look into your state’s FAIR Plan options as a last resort to ensure you get coverage.
Find more information about home insurance in high fire-risk areas with these answers to frequently asked questions.
Yes. It’s possible to get home insurance in a high fire-risk area, though insurance premiums will likely be higher. If you can’t find coverage through standard insurance companies, you can look into excess and surplus lines insurers and your state’s FAIR Plan.
A standard homeowners insurance policy will typically cover any wildfire damage to your home. It’s important to review your policy because if you live in a high-risk area, it could have limitations or a separate deductible.
A FAIR Plan, which is a state-based program called Fair Access to Insurance Requirements, is a type of last-resort home insurance coverage for homebuyers who can’t secure traditional coverage due to higher risks such as wildfires. You’ll need a FAIR Plan if traditional, private insurers won’t cover your home due to its risk.
You can reduce wildfire insurance risks by creating a defensible space around your property. Removing vegetation, trees, and shrubs, and using fire-resistant materials, can also help.
A home insurance company may not renew your policy and drop you due to wildfire risks for various reasons, including significant risk of financial losses, reinsurance costs in your area, and environmental factors. It’s never typically the homeowner’s fault, as it’s due to factors outside of your control.
Yes. It’s possible for a home insurance company to deny coverage solely because of wildfire risk. Companies review wildfire risk scores that can affect whether the company will or won’t write a policy.
It can. The California FAIR Plan does satisfy mortgage lenders’ requirements for dwelling coverage for home insurance. But because the coverage has limitations, you may need to secure a supplemental policy to cover liability and water damage. In this case, you’d need to get an additional difference in conditions policy.[5] A broker can help you navigate all your coverage needs.
Insurify data scientists analyzed rates from more than 180 home insurance companies sourced directly from Insurify’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.
Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:
Default Coverage Assumptions
Additional data points beyond these default values are sourced from Insurify’s proprietary database. Rates are updated monthly.
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10+ years writing on personal finance topics
Host of the Mental Health and Wealth podcast
Melanie is a blogger, author, and speaker specializing in personal finance and debt management. She’s also the author of the blog and book “Dear Debt.”
Featured in
Melanie is a blogger, author, and speaker specializing in personal finance and debt management. She’s also the author of the blog and book “Dear Debt.”
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves yoga and knitting.