Finding affordable homeowners insurance in a fire zone

As of August 2025, nearly four million acres have already been burned by wildfires, and there have been a total of 44,470 known wildfires this year to date. While those numbers are below last year’s total, the damage caused this year in California alone already exceeds previous years. Wildfires are becoming increasingly problematic, and so too is insuring properties against this threat. One-third of the U.S. population lives in counties with high wildfire risk, but California has seen some of the most prominent insurance market convulsions around fire risk and home insurance. Carriers are limiting coverage due to this threat in sections of other states as well, like in rural Oklahoma. With wildfires becoming increasingly dangerous to homeowners and coverage becoming more complicated to find, it’s vital to understand the fire risks to your home and the insurance options available. 

How fire risk affects homeowners insurance costs

According to the National Interagency Fire Center (NIFC), 64,897 wildfires affected over 8.9 million acres in the U.S. in 2024. These numbers, together, are the highest since 2017, when 71,499 fires affected 10 million acres. In 2025, the LA wildfires alone are estimated to have caused between $28 to $53 billion in property damage. Areas prone to this type of wildfire risk create a challenging insurance landscape.

When determining home insurance rates, most insurance companies will review the home’s location and the surrounding area’s features. Neighborhoods close to wildfire zones or in wildland urban interface locations are more at risk of damage or total loss. The higher the disaster risk, the higher the home insurance premium typically is, often making homeowners insurance in fire-prone areas relatively expensive. As rising temperatures and more frequent droughts spread across the U.S., areas that were once unaffected by wildfires are becoming at risk for this type of natural disaster.

Due to the cost of disaster payouts, higher premiums passed down from reinsurance companies and uncontrollable future wildfire losses, some of the biggest insurance companies are pausing new home insurance policies, increasing rates and restricting eligibility and coverage caps. State Farm and Allstate have paused accepting new home insurance policies in California, while Farmers, USAA, Travelers and Chubb have limited new policies and increased requirements. With fewer companies sharing the risk, the remaining insurers may increasingly limit availability to certain ZIP codes and increase premiums to maintain financial solvency.

How to get home insurance in high-fire-risk areas

While it may be more difficult to find home insurance in high-fire-risk areas, these tips may help:

• Ask your neighbors. It may be helpful to ask neighbors for the names of the companies that insure their homes. By doing this, you can build a list of potential carriers that may also be willing to insure your home. Plus, you can generally assume the insurer offers policies in your ZIP code, although you won’t know for certain until you request a quote.
• Shop around with more than one carrier. Experts often recommend shopping around between multiple carriers to get competitive rates, but doing this can also help you find which providers will offer home insurance for your property. It can help to start with a list of insurance companies that operate in the region and which have not made statements about pausing or restricting home insurance coverage in the area. Many insurers who have reduced coverage options due to fire risks have made public statements to that effect.
• Take advantage of discount opportunities. While this may not help directly with high-fire-risk homeowners insurance, finding ways to lower your premiums can help make out-of-reach insurers more affordable. If the carriers that offer coverage in your high-fire-risk area are too expensive, look at their websites to see if they offer discounts or other ways to reduce your costs. With many carriers, discounts can be stacked to create a significant reduction in policyholder costs.
• Consider a FAIR Plan. While in many cases a temporary solution, purchasing homeowners insurance coverage via your state’s FAIR Plan may be one way to obtain coverage while you search for a permanent option. However, FAIR Plan coverage may not be as robust as a private insurer policy and may also be more expensive than private coverage.
• Reduce your home’s burn risk. Installing fire prevention features may help you find more affordable coverage by reducing your home’s fire risk. Some updates can be simple, like swapping the mulch in your garden for gravel, or more expensive, such as updating your siding to a fire-resistant material.

How to reduce the risk to your home in a fire-prone area

In addition to helping you secure lower home insurance rates, reducing your home’s fire exposure may also help reduce your losses in the event of a fire. Some strategies for reducing your home’s burn risk include:

• Installing a fire-resistant roof: Fire-resistant roofs could help with mitigating fire damage to your home. Materials that typically qualify for Class A roof coverings include concrete or clay tiles, fiberglass asphalt shingles or metal roofs.
• Retrofit your home: CalFire, California’s Department of Forestry and Fire Protection, has a list of ways you can retrofit your home to protect against wildfire. You may be able to retrofit vents, windows, walls and even rain gutters and fences to reduce your fire exposure risk.
• Create a defensible area around your home: The key to this strategy is to remove any vegetation that might be flammable away from your home. This could include clearing away plants and shrubs from windows, decks, balconies and stairs as well as removing other potential hazards near the exterior of the home that might catch on fire, including mulch, pine straw, firewood or debris.
• Plan for water access: When preparing to evacuate your home, fill tubs with water and place buckets of water in different areas of the house. For the exterior, connect long garden hoses or sprinklers to water spigots for firefighters to immediately access additional water.

Your fire prevention strategy will look different based on your home type and location. Speaking with your local fire department may help you find other ways to protect your home, such as making sure your address is clearly marked and visible from the street. There may also be local or state grants available to help with the costs of fire-prevention measures.

Frequently asked questions

• What are the best home insurance carriers for high-risk fire zones?
  

  The best home insurance carrier for homes in high-risk fire zones is likely one that will offer the coverage types you need at a cost you can afford. Finding cheap coverage may be more difficult if you live in a high-risk area, but comparing quotes from carriers may help you identify which company could offer you coverage at a reasonable price. Speaking with a local insurance broker or your neighbors may give you a place to start when looking for the best companies writing policies in your region.

• Is my home at risk for wildfire damage?
  

  California, Colorado and Texas are some of the most at-risk states for wildfires. However, as climate change exacerbates droughts and heat waves, wildfire risk is becoming a more pressing issue in parts of nearly every state. Within states, homes located near wildland urban interface areas, or areas where houses are located near wilderness areas, may be especially at risk for wildfire damage. The U.S. Department of Agriculture and Forest Service created this tool to allow homeowners to evaluate wildfire exposure in their region.

• Is there a separate wildfire homeowners insurance policy?
  

  Fire is one of the covered perils in a standard homeowners insurance policy, and this usually includes wildland fires. However, many insurance companies exclude loss from wildfires for homes located in high-risk areas. This means that while your home may have coverage from electrical and other types of fires, you may need a separate wildfire policy. You may want to check with your insurance agent for clarification regarding fire coverage if you live in a state prone to wildfires.

• What happens if my homeowners insurance policy is not renewed?
  

  Homeowners insurance companies are required to send out nonrenewal notices before your policy term ends and explain why they are not renewing your coverage. The actual timeframe in which this notice is required may differ depending on your state regulations. Also, depending on the reason for the nonrenewal, you may be able to resolve any concerns the insurer has in order to continue your coverage. If not, you can use the time between receiving the nonrenewal notice and the termination date of your current policy to shop around for new home insurance coverage.