Wildfire (statewide WUI)
From the Sierra foothills to coastal canyons, wildfire is now a structural pricing factor on every California policy. Defensible space and Class A roof rating matter.
California homeowners
California homeowners insurance, decoded.
Wildfire risk, carrier non-renewals, and FAIR Plan coverage caps are reshaping every California homeowners policy. Upload your dec page and we'll show you exactly what your coverage does after the next fire — and whether you're underinsured for rebuild.
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#1
U.S. wildfire-loss state
By insured dollars over the last decade
$3M
FAIR Plan dwelling cap (post-2024)
Up from $1.5M — still capped for high-value homes
60%+
of CA carriers tightened underwriting since 2022
CA Department of Insurance
Local perils
The perils that shape every California policy.
These are the risks California carriers price into your premium — and the ones that decide most claims.
Earthquake (separate)
Standard homeowners excludes earthquake. CEA (California Earthquake Authority) policies are sold separately, with their own deductible structure.
Flood / mudflow
Excluded from homeowners. NFIP available. Post-fire mudflow is the gap that hit Montecito and many burn-scar communities.
Wind & landslide
Wind is covered. Landslide and earth movement typically excluded — important for hillside homes.
Why California is different.
California's market is mid-crisis. State Farm, Allstate, Farmers, and Liberty Mutual have all paused or pulled back from new business in wildfire-exposed ZIPs. Many homeowners can only get coverage through the FAIR Plan, which carries serious limitations on coverage breadth.
Proposition 103 (1988) requires carriers to file rates for state approval, which has historically held premiums down — but also slowed the carrier response to wildfire losses. The 2024 Sustainable Insurance Strategy is rewriting how rates and wildfire risk are factored.
If you're on the FAIR Plan, you're getting basic fire coverage — but not liability, theft, or many of the endorsements a normal HO-3 carries. Most FAIR Plan policyholders pair it with a 'difference in conditions' (DIC) wrap policy to fill the gap.
California audit
The 4 things we check on every California policy.
These line items quietly cost California homeowners the most after a claim. Our AI reviewer flags each one against your declarations page.
Underinsured for rebuild cost
California construction costs run $350–$600+/sq ft. Many policies are 20–40% under today's rebuild cost.
FAIR Plan + no wrap policy
Basic fire only. No liability, theft, or water damage. A DIC policy is almost always required to be functionally insured.
No earthquake coverage
Excluded from homeowners. CEA is separate and carries a 5–25% deductible.
Wildfire deductible / WUI surcharge
Many CA policies now apply a separate, often percentage-based wildfire deductible in high-WUI ZIPs.
California homeowners insurance: FAQ
Does California homeowners insurance cover wildfire?
Yes — wildfire is a covered peril on standard HO-3 policies and on the FAIR Plan. The question is whether your dwelling limit is high enough to actually rebuild and whether a wildfire-specific deductible applies.
What is the California FAIR Plan?
The state's insurer of last resort for fire coverage. Available to homeowners who can't get a standard policy. Coverage is narrower — typically fire, lightning, smoke, and internal explosion only. Most homeowners pair it with a private 'difference in conditions' policy.
Why won't insurers write new policies in California?
A combination of wildfire losses, reinsurance costs, and rate-filing constraints under Prop 103. The 2024 Sustainable Insurance Strategy is intended to bring carriers back by allowing wildfire risk to be priced more directly.
Do I need separate earthquake insurance in California?
Yes if you want earthquake coverage — it's excluded from every standard homeowners policy. CEA policies are the most common, sold through participating carriers.
General information, not legal or financial advice. Coverage, carriers and discounts vary by California jurisdiction.