Navigating California's Home Insurance Market

California homeowners face an increasing threat from wildfires, making proper insurance coverage more essential than ever. Yet, many are unaware of their policy’s limitations or how to secure adequate protection in high-risk areas.
 

Is Fire Insurance Required?

While fire insurance is not legally mandated, mortgage lenders typically require it to safeguard their investment. Even if not required, having fire coverage is a smart move, especially with wildfire seasons now lasting up to eight months each year.
 

Does Your Home Insurance Cover Wildfires?

Most standard homeowners insurance policies include wildfire coverage, but in high-risk areas, there may be limitations or exclusions. To ensure you have adequate protection, review your policy carefully. If your insurer does not cover wildfires, consider options like surplus lines insurers or the California FAIR Plan.
 

California’s Evolving Home Insurance Market

The state’s insurance landscape is shifting due to rising wildfire risks:

• Major Insurers Withdrawing: Some large insurance providers have paused or stopped offering policies in wildfire-prone regions, making coverage harder to find.
• Rising Premiums: Insurers are increasing rates, with some requesting hikes of over 20%.
• Surplus Lines Growth: Non-traditional insurers are stepping in, with policies increasing by over 1,500% in cities like Bakersfield and San Jose.
• New Regulations: California now allows insurers to use advanced catastrophe models to set rates, which may encourage more companies to return by mid-2025.

What to Do If You Can’t Find Coverage

If traditional insurers won’t cover your home, you still have options:

• Surplus Lines Insurers: These providers offer policies for high-risk properties. While they are not state-licensed, they operate legally and provide essential coverage in wildfire-prone areas.
• California FAIR Plan: This last-resort option provides basic fire coverage for homeowners unable to obtain standard insurance. Since it offers limited protection, many homeowners pair it with supplemental coverage for greater security.

How to Protect Your Home from Wildfires

Taking proactive steps to reduce wildfire risk can help you secure insurance and potentially lower premiums:

• Create Defensible Space: Maintain a 30-foot buffer around your home by clearing vegetation and trimming tree branches.
• Use Fire-Resistant Materials: Upgrade to fire-resistant roofing, siding, and windows.
• Secure Openings: Cover vents and other entry points with mesh wire to prevent embers from entering your home.
• Relocate Combustibles: Keep firewood, propane tanks, and other flammable materials at a safe distance from your home.

Navigating the Claims Process

If a wildfire damages your home, follow these steps for a smooth claims process:

• Document Everything: Take photos and videos of all damages.
• Make Temporary Repairs: Prevent further damage, but keep receipts for reimbursement.
• File Your Claim Promptly: Contact your insurer as soon as possible to initiate the process.
• Work with the Adjuster: Provide all necessary documentation to ensure fair compensation.

Let Us Help You Find Coverage

Navigating California’s home insurance market can be challenging, but you don’t have to do it alone. Provident+ Insurance Agency partners with multiple carriers, including Surplus Lines providers and the California FAIR Plan, to help you find the right coverage.

Call us today at (800) 310-0395 to speak with an insurance professional—we’re here to help protect what matters most to you.