Does Homeowners Insurance Cover Wildfires?
A standard homeowners insurance policy will typically cover losses due to fire, including wildfires, but you’ll need to check your policy for exclusions.
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Most home insurance policies cover fire damage, including damage from wildfires. But if you live in a wildfire-prone area, your home insurance policy might not cover wildfires. Or, your policy may have a separate wildfire deductible.
And some home insurance companies have stopped offering insurance in these areas altogether.
Learn about some situations when your home insurance policy may not cover a wildfire, what you can do to reduce your risk, and how to file a claim if a wildfire damages your home or belongings.
How home insurance covers wildfires
Most standard homeowners insurance policies cover fire damage, whether the flames start within or outside your home, as long as the fire is accidental.2 But if you live in a fire-prone area, you might have difficulty getting a policy, or your insurer may exclude wildfires from coverage under your policy. You can use this tool from Risk Factor to check your wildfire risk.
Here’s how home insurance policies typically cover damage to your property after a wildfire:
How wildfire deductibles work
If you live in an area with a high risk of wildfires, your home insurance policy may have a separate wildfire deductible. Your deductible is the amount you have to pay out of pocket each time you file a home insurance claim.
Depending on your policy, your wildfire deductible could be a flat dollar amount or a percentage of your home’s insured value — often between 1% and 5%. Wildfire deductibles are often higher than standard home insurance deductible amounts.
When homeowners insurance won’t cover wildfire damage
Homeowners insurance won’t cover wildfire damage if your policy specifically excludes it. Read your policy thoroughly to identify the exclusion, which will likely be in the definition sections of your homeowners insurance agreement.
If your policy is a named-perils policy rather than an all-risk policy, read the list of covered perils to ensure it covers wildfires.
Home insurance policies also don’t cover arson or other intentional fire damage.
How to get home insurance if you live in a wildfire-prone area
Home insurance companies often limit wildfire coverage in high-risk areas, or won’t sell policies there at all, because of the higher risk that they’ll have to pay out on a claim. If you live in an area with a high wildfire risk, these tips can help you get home insurance coverage for wildfires:
Lower your fire risk. It might be easier to find a policy that covers wildfires if you take steps to reduce your home’s fire risk. For example, clear brush away from your home and use fire-resistant landscaping.
Read your policy carefully. If you have an open-peril policy, make sure it doesn’t name wildfires as an exclusion anywhere in the policy. If you have a named-peril policy, make sure it lists wildfires as a covered peril.
Consider supplemental coverage. If your insurer won’t cover wildfires, you can purchase a separate wildfire policy for added protection.
Look into your state’s FAIR Plan. If your policy excludes wildfire damage, or if your insurer cancels your coverage because you live in a high-risk area, one option is to purchase your state’s Fair Access to Insurance Requirements (FAIR) Plan. Note that these plans provide only basic coverage, tend to be expensive, and you’re only supposed to apply for one as a last resort. And, not every state has one.4
You should shop around for standard home insurance policies from private companies that offer wildfire coverage before choosing a state-mandated FAIR Plan.
Average cost to insure a home in a high wildfire risk zone
Grange is the cheapest homeowners insurance company in the U.S. But it may not be the right carrier for your coverage needs.
The table below shows sample quotes for a homeowner in Los Angeles, CA.
How to file a homeowners insurance claim for wildfire damage
Follow these steps to file a home insurance claim after a wildfire:
Assess the damage. Make a list of every item damaged during the wildfire and take photos and videos to share with the adjuster.
Contact your agent. Call your insurance company or contact your insurance agent directly. You’ll need your policy number and other identifying information on hand.
Schedule an appointment with the adjuster. Your insurer will send an insurance adjuster to look at the damage and determine your settlement amount.
Understand your policy. Your insurance company will either pay the replacement cost for your damaged property or determine the actual cash value (ACV) based on depreciation, depending on your policy. If you have an ACV policy, it won’t provide the funding you need to rebuild your home or replace your personal belongings. Replacement cost coverage is more robust.
Make sure you agree with the settlement. If you don’t think your insurance company offered enough money based on your policy, you may want to get an independent appraisal or hire an attorney to help you dispute the settlement.
Begin repairs. If you have a mortgage, your insurance company will likely write a check to both you and your lender or servicer. Your lender or servicer will release the funds as you complete the work to repair or rebuild, providing a portion of the funds before you hire a contractor.
How to reduce wildfire risk
These tips can help you protect your home and reduce your wildfire risk:5
Use fire-resistant building materials. If you’re building or updating your home, make sure your roof has a Class A fire rating and opt for fire-resistant siding and other materials.
Screen with metal mesh. Cover the vents in your attic, foundation, and eaves with one-eighth-inch metal mesh, screen decks, and stilt foundations.
Replace your windows. Install tempered glass windows with at least two panes.
Replace combustible gates and fences. Make sure that your fencing is noncombustible, especially within five feet of your property.
Maintain defensible space. Remove flammable vegetation and debris within five feet of your home, including cleaning your roofs and gutters. Ensure 10 feet of space between tree crowns and prune tree branches close to the ground within five to 30 feet of your home. Follow other suggestions in the home ignition zone checklist from the National Fire Protection Association.
Wildfire insurance FAQs
If you still have questions about wildfire home insurance coverage, this additional information may help as you research your coverage options.
Does home insurance cover smoke damage from a wildfire?
Usually. Most basic homeowners insurance policies cover smoke damage from a fire, including a wildfire, even if the fire didn’t reach your home. But you should check your home insurance documents for exclusions.
What types of wildfire damages does homeowners insurance typically cover?
In most cases, your homeowners policy will cover damage from fire and smoke to the structure of your home, including outbuildings, and your personal belongings. Home insurance also generally covers water damage from extinguishing a fire. Your insurance company will also pay for you to live somewhere else during the repairs, if necessary.
What insurance options do homeowners in wildfire-prone areas have?
It’s a good idea to get multiple quotes from home insurance companies that serve the area. If you reside in a high-risk fire zone and can’t find an insurer that will write you a policy, you can access your state’s FAIR Plan. Be aware that state-mandated FAIR Plans come with limited coverage.
Do homeowners insurance policies limit or exclude wildfire coverage?
Homeowners insurance won’t cover a fire intentionally caused by the homeowner. Some policies may also exclude insurance coverage for wildfires altogether. If your policy covers wildfires, the coverage will be subject to the policy limits and terms. That’s why it’s important to choose a replacement cost policy with adequate limits.
How do insurance companies assess the risk of wildfires when determining coverage and premiums?
Insurance companies determine premiums and coverage limits based on wildfire risk modeling, which considers several factors that affect the likelihood of a wildfire and the cost to rebuild.
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