Home Insurance for Homes in Wildfire Zones

The Scale of the Problem

Wildfire losses have transformed the insurance landscape in fire-prone states. The combined insured losses from the 2017-2021 California wildfire seasons exceeded $30 billion, prompting carriers including State Farm, Allstate, and Farmers to pause or limit new policy issuance in high-fire-severity areas. The Palisades and Eaton fires in January 2025 alone caused an estimated $30 to $50 billion in insured losses, further accelerating the retreat of private capital from fire-risk markets.

The impact extends beyond California. Colorado, Oregon, Washington, Montana, Idaho, and New Mexico have all seen private carriers reduce their exposure in wildfire interface areas. Nationwide, the Insurance Information Institute estimates that more than 4.5 million properties are in high or very high wildfire risk zones, and the number of policies in state residual markets has grown year over year since 2020.

Older homes in wildfire zones are especially vulnerable because they often have construction features that increase fire vulnerability: wood shake roofing, wood siding without fire-resistant treatment, single-pane windows, unscreened eave vents, and combustible decking. These features, combined with the property's location in a fire-prone area, make the risk profile too high for most private carriers regardless of the home's other qualities.

Defensible Space and Home Hardening

The most effective strategy for maintaining or regaining insurance in a wildfire zone is to reduce the property's fire vulnerability through defensible space and home hardening measures. These measures directly address the factors that insurers evaluate, and in several states, they qualify for premium credits or improved access to coverage.

Zone 0 (0 to 5 feet from the structure): This immediate zone should contain only non-combustible materials. Replace wood mulch with gravel or decomposed granite. Remove all vegetation, stored firewood, and combustible patio furniture from directly adjacent to the home. Use non-combustible or ignition-resistant materials for fencing, trellises, and other attachments to the structure.

Zone 1 (5 to 30 feet): This lean, clean, and green zone should feature fire-resistant landscaping with appropriate spacing between plants and trees. Maintain lawns at 4 inches or less, space shrubs at least twice their height apart, and remove dead vegetation regularly. Keep tree branches trimmed to at least 6 feet above ground to prevent ground fires from climbing into the canopy.

Zone 2 (30 to 100 feet): This reduced fuel zone should have thinned trees (10 feet of spacing between canopies for flat ground, wider for slopes), removed dead wood and debris, and mowed grassland. The goal is to reduce the fire intensity before it reaches the inner zones.

Structural hardening addresses the home itself. Replace wood shake roofing with Class A fire-rated materials (asphalt shingles, metal, or tile). Install 1/8-inch mesh screening over all attic, soffit, and foundation vents to prevent ember intrusion. Replace single-pane windows with dual-pane tempered glass. Enclose eaves and soffits with non-combustible materials. Replace wood decking with composite or concrete alternatives.

Coverage Options for Wildfire Zone Properties

Private carriers with wildfire expertise: A small number of private carriers specialize in wildfire-risk properties and continue to write coverage in areas where mainstream carriers have withdrawn. These carriers, which include USAA (for military members), Mutual of Enumclaw, and several regional mutual companies, typically require documented defensible space and home hardening as a condition of coverage. Their premiums are higher than standard rates but often lower than FAIR Plan plus DIC combinations.

Surplus lines carriers: The E&S market provides coverage for wildfire-zone properties through carriers like Lloyd's of London syndicates, Scottsdale Insurance, and specialty programs. Surplus lines premiums for fire-prone properties range from $3,000 to $15,000 per year depending on the fire severity zone, construction type, and defensible space measures in place.

State FAIR Plans: California's FAIR Plan is the primary safety net for wildfire-zone properties in that state, with enrollment growing dramatically. Other states with wildfire risk, including Colorado (which launched its FAIR Plan in 2025), Oregon, and Washington, offer similar programs. FAIR Plan coverage is basic (fire only) and must be supplemented with DIC policies for comprehensive protection.

Community wildfire defense programs: Some communities in wildfire zones have organized collective defense programs that negotiate group coverage rates with carriers. Firewise USA communities, recognized by the National Fire Protection Association, have documented lower fire losses and some insurance carriers offer preferential rates or guaranteed renewals for properties within Firewise-recognized communities.

California's Safer from Wildfires Program

California's Safer from Wildfires initiative, expanding since its launch, creates a framework for homeowners to earn insurance discounts and improved access to coverage by meeting specific wildfire mitigation criteria. Properties that meet the program's hardening and defensible space standards receive a rating that carriers can use to adjust premiums downward or to justify writing coverage in areas they might otherwise decline.

The program evaluates the home's roof material, vent protection, exterior wall material, window glazing, deck and patio construction, defensible space zones, and access for fire apparatus. Homes that meet all criteria receive the highest rating and the largest premium discount, while homes that meet partial criteria receive proportional benefits.

For older homes, the Safer from Wildfires criteria provide a clear roadmap of specific upgrades that improve both fire safety and insurance availability. Replacing a wood shake roof with Class A material, screening vents, and establishing proper defensible space can move a property from uninsurable to insurable, even in high-severity fire zones.

The Older Home Compound Problem

Older homes in wildfire zones face a compounded challenge because two sets of risk factors overlap. The location risk (wildfire exposure) combines with the condition risk (outdated systems, aging materials) to create an overall risk profile that is beyond the tolerance of most carriers. A 1960s home with a wood shake roof, aluminum wiring, and galvanized plumbing in a high-fire-severity zone is essentially the most difficult residential property to insure in the United States.

The solution requires addressing both sets of risk factors simultaneously. Structural hardening and defensible space address the wildfire risk. System upgrades (electrical, plumbing, roof) address the age-related risk. Neither approach alone is sufficient, but together they can bring the property back within the range that surplus lines carriers, specialty programs, or even some standard carriers will accept.

The priority order for upgrades in a wildfire zone differs from the standard priority order. Roofing (replacing wood shake with fire-rated material) should come first because it addresses both the wildfire risk and the age-related insurance concern simultaneously. Defensible space measures come next because they are relatively inexpensive ($500 to $3,000 for most properties) and produce the largest impact on wildfire-specific insurability. Then follow the standard priority order for electrical, plumbing, and HVAC upgrades.