Fire insurance in California: how it works now
The rules changed when insurers started leaving. Here's the current map: what covers fire, what to do if you're dropped, and how to stay in the regular market.
By the TMRW Team · Published September 2, 2026
The short answer
- In California, fire — including wildfire — is covered by a standard home insurance policy. There is no separate "wildfire insurance" product; the crisis is about *keeping* that standard policy.
- If you're dropped, the ladder is: re-shop the regular market through an independent broker → specialty insurers → the FAIR Plan (fire-only, plus a gap policy) as the last resort.
- The way back up the ladder is reducing your home's documented fire risk — California requires insurers to reward specific upgrades with discounts.
Who covers fire in California
A standard homeowners policy covers fire and smoke damage, including wildfire — that has not changed. What changed is who can get one: as wildfire losses mounted, insurers non-renewed hundreds of thousands of policies in fire-exposed ZIP codes, and homeowners discovered that "fire insurance in California" is really a question about staying insurable.
So the market now has three tiers: the regular market (full coverage, regulated prices — if a company will take you), specialty insurers (the industry calls them "surplus lines": broader appetite, unregulated prices, no state safety-net fund), and the [California FAIR Plan](/fair-plan/california) — the state-organized last resort that must take you, but covers only fire and costs more.
Dropped? Work the ladder in this order
- 1.
Re-shop the regular market first
An independent broker who works with many companies can canvass the whole regular market at once. Appetite changes fast under California's newer insurance rules — being dropped by one company says little about the other fifty.
- 2.
Price the specialty market against the true FAIR Plan total
A specialty policy is often broader than the FAIR Plan's fire-only coverage. Compare its price against the FAIR Plan plus the gap policy you'd also need — not against the fire-only quote.
- 3.
Take the FAIR Plan as a bridge, not a home
It must accept you, it satisfies your lender, and it pays claims. It also costs $5,000–$32,000 a year in high-risk areas for fire-only coverage. Add the gap (DIC) policy, and plan your exit from day one.
- 4.
Fix the risk that got you dropped
California's Safer from Wildfires program lists the upgrades — roof, vents, the five feet around your walls, defensible space — that insurers are required to reward. Documented risk reduction is what reopens the regular market. The full exit path is here.
What it costs in 2026
~$3,100/yr
Average California FAIR Plan premium — fire-only coverage
As of 2026-09 · source [2]
$5,000–$32,000
What high-fire-risk homes pay on the FAIR Plan per year, fire-only
As of 2026-09 · source [2]
+20–40%
The gap policy most FAIR Plan households add on top
As of 2026-09 · source [3]
Common questions
TMRW is an independent wildfire-mitigation company. We are not affiliated with, endorsed by, or connected to the California FAIR Plan Association or any state FAIR Plan, wind pool, or insurance program.
This page is educational. TMRW is not an insurance agent, broker, or producer, and nothing here is insurance advice, a coverage recommendation, or an offer of insurance. Talk to a licensed agent or broker about your coverage.
Sources
- California FAIR Plan consumer overview (last-resort role, fire-only coverage) — California Department of Insurance, accessed 2026-09-02
- FAIR Plan premiums by ZIP code (average and high-risk ranges) — San Francisco Chronicle, accessed 2026-09-02
- The gap (DIC) policy and the 20–40% combined-cost band — Coverage Cat, accessed 2026-09-02
Keep reading
The California FAIR Plan, explained
What the California FAIR Plan is, what it really costs with the second policy you'll need, what happens if it runs out of money — and how homeowners get back to real insurance.
How to get off the California FAIR Plan
The step-by-step path off the California FAIR Plan: reduce your home's documented fire risk with the upgrades insurers must reward, prove it, and re-shop the regular market.
The gap policy: Difference in Conditions (DIC) insurance, explained
A DIC policy is the gap-filler that turns bare-bones FAIR Plan coverage back into something like normal home insurance. What it covers, what it costs, and how to buy one.