Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
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In the last few years, more than 240,000 wildfires burned 27.5 million acres across the U.S., according to the National Interagency Fire Center.[1] And since 1993, the number of houses burned in wildfires has doubled.
Climate change is increasing the frequency and magnitude of wildfires, causing significant challenges for homeowners insurance markets in fire-prone states. Many residents need help finding affordable coverage as insurers raise premiums or refuse to issue or renew policies.
Learn about the effects of living in a fire-prone region and how to find homeowners insurance in fire-prone areas.
Quick Facts
The U.S. averages nearly 70,000 wildfires per year.
Most home insurance policies protect your home and belongings from wildfire damage.
Taking steps to lower your wildfire risk can decrease your premiums.
How wildfire risks affect homeowners insurance
The higher the wildfire risk in an area, the more expensive insurance premiums tend to be. Insurance companies charge more to insure homes in fire-prone regions because the location increases the chance they’ll have to pay out claims for wildfire damage. Claims can be costly, as wildfires destroy about 11% of the homes in their path.
Since the 1990s, the number of homes in wildfire zones has doubled, putting more homes and people at risk. The increasing frequency and severity of wildfires have led some insurance companies to limit coverage, exclude wildfire damage altogether, or even refuse to write new policies in areas with a high risk of wildfire.
For example, State Farm, Allstate, The Hartford, and Farmers Insurance are limiting or no longer offering new policies for California residents. Meanwhile, 76% of insurance companies cut back their coverage in Colorado’s home insurance market in 2022.[2]
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4.8/5
Cost of homeowners insurance in fire-prone areas
Insuring a home in western states prone to wildfires, like Arizona, California, Colorado, Oregon, and Texas, can be pricey. The average yearly cost for coverage varies quite a bit from one insurance company to another, and even from one neighborhood to the next.
Generally, you’ll pay anywhere from a few hundred bucks to well over $10,000 per year. Your ZIP code, the insurer you choose, your claims history, coverage choices, and the specific characteristics of your home are some things insurers typically consider to evaluate the risk that you’ll file a claim.
5 best home insurance companies for fire-prone areas
Comparison shopping can help you find the most affordable home insurance if you live in a fire-prone area. Insurify researched the best homeowners insurance companies for people living in areas with high wildfire risk.
State
▲▼
Insurance Company
▲▼
Average Annual Rate
▲▼
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
▲▼
Arizona
Auto-Owners
$1,401
7.4
California
Encompass
$4,867
N/A
Colorado
Allstate
$2,089
8.2
Oregon
Farmers
$1,378
8.4
Texas
Mercury
$3,555
7.6
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.
We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.
Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
Customer satisfaction: To calculate this score, Insurify analyzed more than 55,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.5/10
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$112/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$172/mo
Auto-Owners is Insurify’s top pick for Arizona property owners. It combines competitive rates, high customer satisfaction, and financial stability. While not the cheapest option, Auto-Owners premiums are below the state average. Optional guaranteed home replacement cost and ordinance or law coverage protect against rising construction costs and changing building codes.
Pros
Above-average claims satisfaction score from J.D. Power
AM Best financial strength rating of A++ (Superior)
Customized coverage for more protection after a wildfire
Cons
More expensive than other Arizona home insurance options
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
NR
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$404/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$657/mo
As more major insurers pull out of California’s high-risk wildfire areas, Encompass remains a solid choice for homeowners looking for coverage. The company maintains a good reputation among customers and has a low complaint ratio with the National Association of Insurance Commissioners (NAIC).
Pros
Can insure homes for up to 200% of their value
Protects you from higher interest rates if you need a new mortgage after a total loss
Fewer complaints compared to other insurance companies
Cons
Premiums may be higher than other California insurers
No option for filing insurance claims online
Online quotes not available; must work with an agent
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.9/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
824
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$173/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$221/mo
Allstate stands out in Colorado for its affordable rates, which rank well below the state average for home insurance premiums. The company has a strong financial foundation and offers unique add-on coverages, including upgrading damaged or destroyed items with more energy-efficient options and higher coverage limits for trees, landscaping, and riding lawn mowers.
Pros
One of the cheapest home insurance companies in Colorado
AM Best financial strength rating of A+ (Superior)
Local agents available for in-person customer service
Cons
Below-average claims satisfaction score from J.D. Power
Online quotes not available
Extended and guaranteed replacement cost coverage not available
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.3/10
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
802
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$103/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$168/mo
While Farmers has slightly higher rates for home insurance compared to Oregon’s average, the company offers discounts for homeowners who take steps to reduce wildfire risk. Its favorable claims satisfaction and financial stability rating, combined with optional guaranteed replacement cost coverage, make it one of the best policies for many Oregonians.
Pros
Discounts for implementing Firewise fire-reduction measures
Customized coverage for more protection after a wildfire
Above-average claims satisfaction score from J.D. Power
Cons
May have more expensive premiums than other Oregon insurers
Some optional coverages may increase premiums further
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.0/10
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A
$300,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$305/mo
$500,000 Dwelling
A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others.
$525/mo
Mercury provides Texas homeowners with below-average rates and distinctive discount opportunities. You can lower your premiums by taking steps to protect your home against wildfires and installing burglar alarms and water leak detectors. While Mercury has an above-average complaint index from the NAIC, it has an AM Best financial strength rating of A (Excellent) for financial strength.
Pros
One of the cheapest home insurance companies in Texas
Discounts for wildfire mitigation and home safety devices
Optional service line coverage for repairs to underground utility lines
Cons
High number of complaints compared to the insurance industry average
Not part of the J.D. Power home insurance rankings
Just 1.7 stars on Trustpilot, with many complaints about the claims process
Insurify considered availability, rates, industry ratings, and consumer reviews for homeowners insurance companies operating in the five states with the highest wildfire risks according to CoreLogic’s 2023 Wildfire Risk Report: California, Colorado, Texas, Oregon, and Arizona. Company averages are based on a policy with $300,000 in dwelling coverage and a $1,000 deductible.
How to get affordable home insurance in fire-prone areas
Living with the threat of natural disasters doesn’t mean you have to push your financial limits on homeowners insurance. Here are some tips to help you find affordable wildfire insurance:
Reduce your fire risk. Simple steps like clearing brush and debris away from your home, installing smoke detectors, and using fire-resistant landscaping could lower your premiums.
Take advantage of discounts. Many insurers offer discounts to help you save. Consider bundling home and car insurance, setting up automatic payments, and installing smart-home tech.
Raise your deductible. If you’re willing to pay more out of pocket to file a claim, you could save on your monthly premiums.
Consider a FAIR Plan. If you can’t find coverage from a standard insurer, your state’s Fair Access to Insurance Requirements (FAIR) Plan could be a good last resort. Keep in mind that FAIR Plan rates may be higher than those from standard insurers.
Get quotes from more than one company. Take the time to check prices from a few different companies to see which offers the best rates and coverage for your needs.
What homeowners insurance covers in fire-prone areas
Most homeowners insurance policies in high-risk wildfire areas offer the same basic protection. This generally includes your house and personal property coverage if a wildfire damages your property. But there’s a catch: Some insurers limit new policies or flat-out refuse to cover wildfire damage in certain areas due to climate risk.
If your insurer won’t cover wildfire damage or increases your rates, one option to look into is your state’s FAIR plan. While FAIR plans can be a lifesaver, they’re not always the best value. You’ll typically pay higher premiums and have less protection than a standard homeowners insurance policy.[3]
Coverage limits and insurance policy terms also vary depending on where you live. For example, Colorado’s FAIR Plan maxes out at $750,000 in coverage, while a California homeowner can get up to $3 million.
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What to do if your insurer drops your coverage
As wildfires become more frequent and severe, some insurance companies are abandoning high-risk areas. But an important distinction exists between an insurer canceling your policy and refusing to renew coverage.
Insurance companies can’t cancel a policy if it’s been more than 60 days since its issue date unless you don’t pay the premium, commit fraud, or lie on your application. In a non-renewal, the insurance company can decide not to renew coverage once your policy expires.
Address any concerns. Ask why the company canceled or refused to renew your policy and try to resolve any issues, like clearing brush around your home, to reduce fire risk.
Talk to your insurance agent. It’s a good idea to discuss your options with your current insurance agent. They can help you find specialized coverage for homes in wildfire-prone areas.
Explore your options. Start shopping for a new policy right away to avoid a lapse in coverage. Compare quotes from at least three companies to make sure you get the best deal.
Apply for a new policy. Fill out the application form or connect with an agent to secure new coverage. If you can’t find a standard policy, consider your state’s FAIR Plan, which offers last-resort insurance for high-risk properties.
Homeowners insurance in fire-prone areas FAQs
Finding affordable homeowners insurance can feel impossible if you live in a fire-prone area. Here’s some additional information about insuring your home in high-risk wildfire zones.
How common are wildfires?
The U.S. averages 69,654 wildfires per year, according to the National Interagency Fire Center. Most wildfires occur in the southern part of the country and ignite on private lands or other areas under state or local protection.
Does homeowners insurance cover everything in a fire?
Homeowners insurance coverage in a fire depends on your policy. The most common home insurance policy is an HO-3, which covers your house and personal belongings in the event of a fire.[4] But dwelling fire form policies only cover your dwelling (your house) and not personal property after a fire.
Can homeowners insurance companies in California exclude wildfires?
Yes. Some insurance companies in California are refusing to issue new policies or renew existing customers living in fire-prone areas. The California FAIR Plan can offer basic fire insurance if you’re in a high-risk area and can’t find coverage.
How much does fire zone insurance cost in Colorado?
Colorado fire insurance can range from $150 per month to more than $1,000, depending on factors like home value and wildfire risk level. Some homeowners could be eligible for discounts to lower costs. For instance, USAA members can get discounts for homes in Firewise USA communities.
Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.
Amy has been a contributor at Insurify since September 2023.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
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Auto-Owners
Encompass
Allstate
Farmers
Mercury)
