Fire coverage in California: What’s covered & how to get covered

In 2025 alone, nearly 7,500 wildfires have burned more than 522,000 acres across the Golden State. If you own a home in California, wildfires are a real concern, and you need to be sure your insurance will pay to rebuild your home if it burns down. For most Americans, a standard homeowners insurance policy includes coverage for fire, which includes wildfires. However, in high-risk states like California, insurers are increasingly non-renewing policies or adding specific exclusions for wildfire damage, creating a coverage gap.

What does fire insurance cover? 

While “fire coverage” and “fire insurance” are often used interchangeably, they can mean two very different products.

Fire coverage is one component of a standard homeowners insurance policy (like an HO-3). This comprehensive policy protects you against many different types of perils, such as fire, theft, wind, hail, and liability. When your home policy is active and does not have a specific wildfire exclusion, you are covered for wildfire damage.

A standalone fire insurance policy is a much more limited, separate product that you buy only if you cannot get a standard homeowners policy. This type of policy, like the California FAIR Plan, typically only covers damage from fire and a few other related perils.

Because California is prone to wildfires, insurers may non-renew your standard homeowners insurance policy or add a specific, costly deductible or exclusion for wildfire-related losses. In places where wildfire home insurance claims are the most common, like the Santa Ana Mountains, insurers may refuse to offer a traditional homeowners policy at all.

That leaves a big coverage gap for homeowners who live in the highest-risk areas. To get the protection you need against wildfires, you can first try to purchase a new comprehensive home insurance policy that includes wildfire coverage, or as a last resort, look for a separate, dedicated fire insurance policy (though this is often more expensive and more complicated).

Here’s what is typically covered under a standalone fire insurance policy in California. (Note: This coverage is also included in a standard home policy, which just covers more perils in addition to fire.)

• Dwelling: The policy will pay to repair or rebuild your dwelling after a wildfire, up to a maximum coverage limit.

• Attached structures: Most policies cover structures that are attached to your house, like a garage, deck, or porch, if they get burned in a fire.

• Personal items: A fire insurance policy will cover the contents inside your house that get damaged in a wildfire.

• Additional living expenses: This pays for necessary expenses, like a hotel stay and restaurant meals, if you have to move out while your home is repaired after a fire.

Fire insurance has two reimbursement options — actual cash value (ACV) or replacement cost value (RCV). ACV covers your dwelling at its depreciated value, so your settlement is affected by the age and condition of your home. RCV covers your dwelling at its current value, without subtracting anything for depreciation. 

What doesn’t fire insurance cover?

Like all insurance policies, coverage for the peril of fire has some exclusions. Here are a few examples of losses that aren’t usually covered:

• War and unrest: Typically, fire insurance doesn’t cover losses related to civil unrest or war, including nuclear explosions. 

• Cars: Fire insurance doesn’t cover vehicles. If your car is damaged in a wildfire, it would be covered under your comprehensive car insurance policy.

Crucially, a standalone fire insurance policy has a massive exclusion: it covers only fire-related perils. It provides no coverage for the most common homeowner claims, such as:

• Theft

• Water damage from a burst pipe

• Personal liability (if someone is injured on your property and sues you)

• Wind or hail damage

This is why a standalone fire policy is not a replacement for a homeowners policy and should only be used as a last resort.

Private home insurance vs. California FAIR Plan

California homeowners generally have two options for fire insurance — a standard home insurance policy from a private insurance carrier, or, as a last resort, a FAIR Plan policy. 

A comprehensive California homeowners policy from a private insurance company covers your home for many different perils, including fire, theft, wind, and liability. This is the best and most complete option. However, due to high wildfire risk, many private insurers are non-renewing policies in high-risk areas, making this option unavailable for some Californians.

On the other hand, the California Fair Access to Insurance Requirements (FAIR) Plan is a last-resort, “fire-only” policy program. It covers properties that don’t qualify for traditional underwriting on the private insurance market due to high-risk factors.

The California FAIR Plan covers your dwelling and personal items against specific perils like fire, lightning, explosions, and smoke, with optional coverage for vandalism and malicious mischief.

The FAIR Plan is not a complete solution. Because it doesn't cover theft, liability, or water damage, homeowners who use the FAIR Plan must also purchase a second policy, called a "Difference in Conditions" (DIC) policy, to cover those gaps. This two-policy solution is often more expensive and complicated than a single private insurance policy.

FAIR Plan insurance is available for a variety of properties, including single-family homes, condos, rental units, and seasonal properties. To qualify, you must prove that you’ve been denied homeowners insurance by at least two private insurance companies.

While a FAIR Plan policy (by itself) may seem cheaper than a private homeowners policy, it’s because it provides drastically less coverage. Once you add the cost of the required DIC policy, the total price is often higher than a traditional plan. If you can qualify for private homeowners coverage, it’s a good idea to compare quotes from multiple insurers.

How to get fire insurance in California

If you own a home in an area that’s been affected by wildfires in the past, getting fire insurance can be somewhat complicated. You might need to contact a few insurance companies to find one that’s willing to insure you. Here are the general steps you should follow to purchase fire insurance in California:

• Consider your coverage needs: Figure out how much it would cost to rebuild your dwelling and attached structures after a fire. An easy way to calculate this is to multiply the square footage of your home by the local building cost per square foot. 

• Attempt to find private insurance first: Research and contact private insurance companies (or an independent broker) to see if you can qualify for a standard, comprehensive homeowners (HO-3 or HO-5) policy that includes wildfire coverage. Get quotes from multiple insurers.

• Get a home inspection (if needed): Many home insurance companies require a home inspection as part of the underwriting process. This helps the insurance company determine the risks of insuring your home, and how much your premium will be.

• If you are denied by private insurers: If you can prove you’ve been denied comprehensive homeowners insurance by at least two private companies, you become eligible for the California FAIR Plan.

• Purchase the FAIR Plan and a DIC policy: If you must use the FAIR Plan, remember it only covers fire-related perils. You must also contact an insurer or broker to purchase a separate “Difference in Conditions” (DIC) policy to cover critical risks like personal liability and theft. Do not assume you are fully covered with only the FAIR Plan.

How to reduce the risk of fire claims

Fire losses aren’t always preventable in a wildfire-prone state like California. But there are ways to lower the risk of fire claims, or at least reduce the chance of significant damage. Here are some strategies you can use to lessen the likelihood of a fire insurance claim:

• Install fire alarms in every room of your house.

• Clear leaves and sticks from your gutters and roof.

• Replace your roof using fire-resistant materials, like metal or asphalt shingles.

• Place fire extinguishers near every exit in your house.

• Plant trees and shrubs at least 30 feet away from your home. 

• Keep your grass trimmed and remove dead plants from your yard.