Wildfire insurance: What it covers, how much it costs, and how to get it

Wildfire insurance isn’t a standalone policy but part of your broader coverage under a standard home insurance policy.

According to data from the United Nations Office for Disaster Risk Reduction, the 2025 Los Angeles wildfire was the single costliest event that year. The resulting damage amounted to more than $53 billion, but only $40 billion was insured. 

Such events have made one thing clear to many homeowners: Home insurance doesn’t always fully protect you from the financial risks of wildfires. Factors such as coverage limits, exclusions, and rising rebuilding costs all play a role in determining your homeowners insurance payout following a fire.

Does homeowners insurance cover wildfires?

In most cases, home insurance covers wildfire damage. Standard homeowners policies — the most common being an HO-3 policy — include coverage for fire losses from flames, heat, and smoke.

There are important exceptions to be aware of, however. Homeowners insurance in California and certain other high-risk areas sometimes limits or excludes wildfire coverage. Some insurers may also apply a separate wildfire deductible, which can be higher than the standard deductible that applies to other types of claims. A deductible is the portion of a covered loss that you agree to pay yourself. As opposed to paying your insurer, this amount gets subtracted from the claim payout you receive. 

What does wildfire insurance cover? 

What’s covered and how will depend on which part of your policy applies if wildfire damage occurs. Standard homeowners policies typically include the following coverage types:

• Dwelling coverage (Coverage A): Helps pay to repair or rebuild your home and any attached structures, like an attached garage.

• Other structures coverage (Coverage B): Helps pay to repair or replace detached structures, such as fences, sheds, or gazebos.

• Personal property coverage (Coverage C): Covers belongings damaged by fire or smoke. Typically, personal property payouts are based on the actual cash value (ACV) of your items, which factors in depreciation, unless you add replacement cost value (RCV) coverage to your policy.

• Loss of use coverage (Coverage D): Also called additional living expenses coverage (ALE), this helps reimburse you for hotel stays, meals, and other costs if your home is uninhabitable while being repaired in the event of covered loss, such as a wildfire.

Although you are less likely to need them following a wildfire, your policy also likely includes personal liability (Coverage E), which helps pay legal expenses if you or a household member is responsible for someone else’s injury or property damage, and medical payments coverage (Coverage F) to help pay for minor medical costs if guests are injured while visiting your home.

Review your declarations page carefully or speak to your insurer to find out how your policy covers wildfire damage. Doing so can help you identify where there may be gaps in your coverage.

Are smoke and soot damage covered by insurance?

Notably, smoke, soot, and ash can damage surfaces, air systems, and belongings, even if flames never reach your home. Cleanup and remediation can be costly, averaging $200 to $1,200 per room for smoke damage restoration — though the cost may be higher depending on the extent of the damage and any additional remediation required (such as cleaning HVAC systems). 

Cleanup and remediation are typically covered and are a common source of wildfire insurance claims.

What’s not covered by standard wildfire insurance?

Common policy gaps include:

• Land value: Although insurance helps pay to repair your home, it generally does not cover work needed to restore your land to its previous condition.

• Landscaping: Replacing trees, shrubs, or other vegetation destroyed in a wildfire may be covered, but payouts are often capped at a relatively low amount.

• Post-fire flooding or mudslides: Damage from debris flows or flooding after a wildfire is generally not covered under a standard homeowners policy. You would need to carry flood coverage and/or earth movement coverage. 

• Wildfire exclusions: In some high-risk ZIP codes, policies exclude wildfire coverage altogether or cap how much they’ll pay out. 

How much wildfire insurance do I need?

Since wildfire coverage is built into most standard homeowners policies, the foundation of your protection is your dwelling coverage — the part of your policy that pays to repair or rebuild your home's physical structure. If a wildfire completely destroys your home, dwelling coverage is what will fund the rebuild.

That means your dwelling coverage limit is the key number to get right. It should match the cost to rebuild your home — not its market value. Market value includes land, location, and the current real estate market, which aren't part of an insurance payout.

It's especially important to get your dwelling coverage policy limit right in areas where wildfires are common. Keep in mind that after a fire, rebuilding costs could rise quickly due to high demand for contractors and materials. To protect your finances, consider one of two options that many insurers offer:

1. Extended replacement cost coverage: If rebuilding costs exceed your policy limit, extended replacement cost coverage gives you a buffer above your dwelling limit, often by 20% to 25%.

2. Guaranteed replacement cost coverage: Less commonly available but worth considering if it is, guaranteed replacement cost will cover the full cost of your rebuild, minus any deductibles, even if costs exceed your policy limit. 

A licensed agent, contractor, or appraiser can help you calculate an accurate rebuild cost to determine an appropriate dwelling coverage limit. Also, be sure to review your coverage regularly — especially following home improvements — to make sure you continue to have the coverage you need.

How much does wildfire insurance cost?

Wildfire insurance is usually included in your home insurance policy cost. On average, homeowners insurance costs $275 per month, or $3,303 a year, for a standard policy with $350,000 in dwelling coverage, according to the latest data available from the Consumer Federation of America.

Your actual rate will vary since policy costs are calculated based on several factors specific to you and your home. These include:

• Location: Insurers can consider your proximity to brush, heavily forested areas, and recent fire activity when setting rates. Homes in higher-exposure environments typically face higher costs due to increased ignition and spread risk.

• Fire risk score: This score is based on your home’s location, building materials, vegetation, and historical fire data. You can learn more about your fire risk score on the U.S. Climate Resilience Toolkit website.

• Home characteristics: Home characteristics, such as roof type, exterior building materials, construction design, and vulnerability to windblown embers, can significantly affect wildfire risk and insurance rates. Homes built with fire-resistant materials and defensible design features generally cost less to insure.

• Local fire protection: Your distance from a fire station, the availability of hydrants or water sources, and emergency response capacity affect how quickly fires can be controlled and contained, which influences your policy cost.   

In high-risk areas, especially in California, rates have increased significantly in recent years. Some homeowners have also experienced nonrenewal or reduced coverage options as insurers pull back from covering wildfire-prone regions. 

What if you can’t get wildfire coverage in your area?

If you have been turned down for coverage, there are usually still options for high-risk areas, although coverage may differ from standard policies. 

Shop the surplus or nonadmitted market

Surplus lines insurers, also known as nonadmitted carriers, specialize in insuring high-risk properties that have been denied coverage by standard insurance companies. They feature:

• Flexible eligibility: Risk is assessed on a case-by-case basis, and insurers may be willing to work with you even if you’ve been turned down for coverage elsewhere.

• Higher premiums: Nonadmitted carriers may charge more because they insure higher-risk properties that standard insurers choose not to cover.

• Fewer regulatory constraints: Nonadmitted carriers are not bound by state-filed policy forms or rates, allowing for greater flexibility to tailor coverage to higher-risk or nonstandard properties. However, this can also mean less standardized policy terms and fewer regulatory guarantees compared to admitted market coverage.

Look into your state’s FAIR Plan

Fair Access to Insurance Requirements (FAIR) Plans are administered by state-authorized insurance associations and overseen by each state’s insurance department. Rules and coverage vary by state, but FAIR Plans generally offer the following:

• Basic protection: FAIR Plans primarily provide dwelling coverage for properties in high-risk areas, such as those prone to wildfires, tornadoes, and hurricanes. Most FAIR Plans do not offer coverage outside of basic dwelling insurance. That’s in contrast to standard home insurance policies, which offer more broad coverage, including coverage for personal property and personal liability. 

• Limited scope: FAIR Plans are typically named-peril plans, meaning coverage is limited to losses specifically outlined in the policy, such as fire and lightning, internal explosions, and smoke. That’s in contrast to standard policies, which generally cover structural losses from all causes except those specifically excluded by the policy (such as flooding). 

• High costs: Because FAIR Plans are for high-risk properties, policy costs are generally higher, though rates vary depending on where you are located and how much coverage you need. 

California FAIR Plan

California wildfire insurance is available through the state’s FAIR Plan. In California, the FAIR Plan covers damage caused by fire and lightning, internal explosions, and smoke. Homeowners may need a separate policy to cover liability, theft, and other risks. 

Colorado FAIR Plan

Like California, home insurance in fire-risk areas can be challenging to find in Colorado. The state’s FAIR Plan provides basic property coverage (including wildfire-related losses), but typically, homeowners will need to purchase additional coverage to be fully protected.  

Other wildfire-prone state FAIR Plans

Several other states, mostly in the Western U.S., offer FAIR Plans, including:

• Texas

• Oregon

• Washington

• New Mexico

Availability, coverage details, and eligibility rules vary by state, so it’s important to check your local program for details.

Difference in conditions (DIC) policies

A difference in conditions policy is designed to “wrap around” a FAIR Plan and provide additional coverage to fill in what’s missing from the FAIR Plan policy. For instance, DIC policies may include protection for risks beyond the limited causes of loss (called perils) covered by FAIR Plans.

DIC policies are often more flexible and can be tailored to the homeowner’s specific needs, depending on the insurer. In high-risk areas, many homeowners opt for a dual FAIR Plan/DIC policy approach to achieve broader and more complete insurance protection than can be provided by a FAIR Plan alone. 

Wildfire insurance in California: What you need to know

California’s wildfire insurance market has changed dramatically in recent years, largely due to the increase in wildfires driven by climate change. Wildfire losses and rising costs have reduced coverage availability and increased policy costs in some areas. 

Understanding how the insurance system works in the Golden State is essential for anyone navigating California wildfire insurance or looking for California home insurance in high-fire-risk areas.

The nonrenewal wave

Some major insurers reduced their risk exposure in California by pausing new business and choosing to nonrenew policies in the state. California has attempted to address this by offering some protections. For example, in certain areas affected by a declared state of emergency, insurers may be subject to a one-year moratorium on nonrenewals and cancellations, providing homeowners with temporary protection after a major disaster. 

California FAIR Plan

California’s FAIR Plan is the state’s insurer of last resort, designed to provide basic coverage for those locked out of the private market. Here’s how it works:

• Fire-focused coverage: Policies typically cover fire, smoke, soot, and related damage.

• Limited protection: Liability, loss of use, and other common coverage options are not included.

• Supplemental insurance may be needed: Many homeowners pair a FAIR Plan policy with separate coverage to provide broader protection when possible.

• Growing reliance: Enrollment in the program has surged as private insurers have pulled back. In fact, from September 2022 to June 2026, enrollment increased by 257%.

Recent updates to California’s FAIR Plan, however, have increased coverage limits, introduced discounts for wildfire mitigation, and improved payment options. 

Proposition 103 and the Sustainable Insurance Strategy

California’s insurance market is heavily regulated. One long-standing law, Proposition 103, requires insurers to obtain state approval before raising rates. This helps limit sudden rate hikes but has led to a diminishing private market, as some insurers find the regulated rates insufficient to offset the multibillion-dollar risks of modern wildfire seasons.

To stabilize the volatile insurance market, the state has implemented the Sustainable Insurance Strategy. This allows insurers to modernize rate-setting tools and strengthen rules around insurer obligations in high-risk areas. Changes like this may encourage insurers to return to the California market in the future.  

IBHS Wildfire Prepared Home

One promising development for homeowners is the Insurance Institute for Business & Home Safety (IBHS) Wildfire Prepared Home designation. The IBHS program recognizes homes that meet specific wildfire resilience standards, including those with: 

• Flame- and ember-resistant vents

• Fire-resistant roofing materials

• Cleared defensible space around all buildings

Meeting these standards can improve your chances of finding coverage, reduce wildfire risk, and even qualify you for insurance discounts. 

The program is available in several states, including Arizona, Florida, Texas, and California. A similar program is California’s Safer from Wildfires initiative, which also encourages mitigation tactics. 

How to reduce your wildfire risk (and potentially your insurance costs)

Reducing wildfire risk can lower insurance costs. Here are a few effective ways to reduce your risk:

• Create defensible space: Clear vegetation and debris around your home to create a buffer and slow the spread of fire. 

• Harden your home against embers: Install ember-resistant vents, a Class A roof, and tempered glass windows, which are more heat- and breakage-resistant. 

• Consider the IBHS Wildfire Prepared Home designation: Earning this credential demonstrates a lowered wildfire risk profile and may improve insurability.

• Ask about mitigation discounts: Homes that meet specific safety standards, such as IBHS-certified homes or local mitigation programs, may earn insurance discounts.

• Understand your risk: Use online tools to determine your home’s wildfire risk level, such as the U.S. Forest Service’s WildfireRisk.org, climate-hazard monitoring site FirstStreet.org, or, in California, CAL FIRE’s fire hazard severity zone maps.  

Understand wildfire defense services

Some insurers offer wildfire defense services as an endorsement to your policy in certain states. This offers an additional layer of protection, such as private fire crews, to supplement existing emergency response services — before, during, and after a wildfire.

Before a fire, wildfire defense services might remove brush, dry grass, fallen leaves, stacked firewood, or other sources of fuel from around your home. As a wildfire threat draws nearer, they may upgrade the level of protection, such as by covering your home with a fire-resistant foam or gel or installing temporary home fire sprinklers. After the fire has passed, wildfire defense services may return to help contain any remaining hot spots.

How to file a wildfire insurance claim

If you are dealing with the aftermath of a wildfire, you may be overwhelmed or distressed. It’s helpful to know the steps for filing a home insurance claim in advance so you can file promptly and keep your recovery moving forward as quickly as possible. 

1. Contact your insurer. Once you, your family, and your pets are safe, contact your insurer, even if you don’t know the full extent of the damage. They will walk you through the process and outline what emergency expenses are covered in your policy.

2. Document all damage. Take photos and videos of damage before you begin any cleanup. Make a written list of damaged and destroyed items, including estimated values. If you have previously created a home inventory, this step is much easier. 

3. Hold onto all damaged items. Keep damaged items until your insurer says otherwise. They might need to inspect them as part of your claim. 

4. Understand your loss of use (also called additional living expenses) coverage. If your home is uninhabitable, loss of use coverage may help you cover the cost of temporarily living elsewhere, up to your policy limits. Save all receipts and ask your insurer to clarify which expenses are covered.

5. Track and meet deadlines. Create a folder for emails, letters, receipts, and other claims-related communications to keep a clear record of every step. Missed deadlines can lead to costly delays or claim disruptions. 

Renters and condo insurance for wildfires

Homeowners insurance isn't the only way to protect where you live in the event of fire. Condo owners are also covered for fire damage to their unit's interior and personal belongings under a standard condo insurance policy, along with additional living expenses (ALE) if you need to stay elsewhere during repairs. Your condo association's master policy typically covers the building's exterior and shared structures, so it's worth understanding how the two policies work together.

Similarly, as a renter, your personal belongings and ALE costs are typically covered against wildfire damage under a standard renters insurance policy. The building itself is your landlord's responsibility, covered under their own policy.

Frequently asked questions about wildfire insurance

What is a wildfire insurance policy?

Wildfire insurance isn’t a separate policy. It’s part of a standard homeowners, condo, or renters insurance policy. In most cases, this means your policy will cover wildfire damage, but coverage details can vary. If you’re in a high-risk area where traditional coverage is difficult or impossible to secure, you may need to purchase wildfire insurance through an alternate insurer, such as a FAIR Plan. 

Is wildfire insurance required?

Wildfire insurance is not required by law in the U.S. If you have a mortgage, however, your lender may require you to carry home insurance that covers wildfires, among other causes of loss. If you own your home, coverage is optional, but going without it leaves you financially exposed to significant out-of-pocket costs if your home is damaged by a wildfire.

Is wildfire damage covered under home insurance in California?

Standard homeowners insurance in California may cover wildfire damage, but it depends on your insurance company and location. In some high-risk areas, insurers have stopped writing new policies or placed restrictions on wildfire coverage. This has made California wildfire insurance harder to purchase in certain ZIP codes. 

What should I do if my insurance is nonrenewed due to fire risk?

1. Ask your insurer why the policy was nonrenewed. Request specific risk factors, such as vegetation near the home, roof condition, or lack of defensible space.

2. Learn which mitigation measures would improve insurability. Some insurers may tell you what changes could help, such as clearing brush or making upgrades to vents or roofing. Take any necessary steps to make your home more resilient.

3. Shop around. Insurers evaluate wildfire risk differently. So even if you are denied coverage by one company, another insurance provider may be willing to offer it.

4. Explore insurance options for high-risk areas. If traditional options aren’t available to you, explore the surplus lines market or your state’s FAIR Plan.

5. Act quickly. A lapse in coverage can create problems with your mortgage lender or leave you financially vulnerable.

Does auto insurance cover wildfire damage to my car?

Auto insurance may cover wildfire damage to your car — but only if you have comprehensive coverage. This type of car insurance covers losses from fire, falling trees, or smoke (among other things). However, if you only have your state’s minimum-required liability coverage, you will not be covered. 

Does renters insurance cover wildfire damage?

Renters insurance typically covers wildfire damage to your personal belongings and helps pay for temporary living expenses if you need to relocate while your rental is being repaired. Damage to the building itself is your landlord’s responsibility and is covered under their insurance policy.

What's the difference between fire insurance and homeowners insurance?

Fire insurance and homeowners insurance aren't actually different types of insurance. Fire is simply one part of a larger homeowners policy. A standard homeowners policy covers a wide range of risks like theft, wind damage, and personal liability (which protects you if someone gets hurt on your property). And fire coverage is a core component of these standard policies.

However, if you live in a high-risk area where standard coverage is hard to find, you might have to buy a "fire-only" policy, often called a dwelling property (DP) policy. Because this basic plan doesn't cover things like theft or lawsuits, when available, many people add a difference in conditions (DIC) policy. This second policy is designed to fill in the gaps so you have the same full protection as a standard homeowners policy.

What are the four types of fire insurance?

Most often, fire insurance comes from standard homeowners insurance, called an HO-3 policy within the industry. But there are three other policy types you might come across: DP1, DP2, and DP3 — typically used for rental properties, vacant homes, or properties under renovation.

DP1 and DP2 are both "named-peril" policies, meaning they only cover the specific causes of damage — called perils — that are listed by name in the policy, rather than everything except what's excluded (like a standard home insurance policy does). DP1 covers nine named perils, including fire. DP2 expands that list to 18 perils, also including fire. DP3 works more like a standard homeowners policy, covering the home’s structure against a broader range of causes, including fire, and is typically used for rental homes and vacation properties.