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Wondering does home insurance cover wildfires? Home insurance will cover wildfires unless wildfires are listed as an excluded peril on your policy.
Wildfires are commonly exluded in high-risk states like California, so it is important to check your policy. While safety is of the utmost importance when it comes to wildfires, but it's also critical to ensure you're properly covered in the event your home and belongings are damaged by a wildfire.
Looking for home coverage from the best and cheapest homeowners insurance companies? Find wildfire insurance coverage for your home today by using our free quote tool.
What You Should Know
- Most losses from wildfire will be covered under a standard home policy
- It may be hard to find home coverage in high-risk wildfire states
- Double-check that wildfire is not an excluded peril on your home policy
Home Insurance Coverages That Cover Wildfire Damages and Losses
Your home will be covered for wildfires if you have the right coverages, so it is important to check your homeowners insurance policy. Below are some common types of home insurance that will help pay for wildfire losses and repairs.
| Coverage | Description |
|---|---|
| Additional Living Expenses (ALE) | Reimburses costs for temporary living arrangements if your home is uninhabitable due to wildfire |
| Dwelling Coverage | Covers the repair or rebuilding of your home and any attached structures This is based on the replacement cost of your home |
| Liability Coverage | Covers legal and medical expenses if someone is injured on your property during a wildfire |
| Other Structures | Provides coverage for structures on your property not attached to the house, like sheds and fences |
| Personal Property | Covers belongings inside the home such as furniture, electronics, and clothing May be at actual cash value or replacement cost |
If you do experience a loss due to a wildfire, your homeowners insurance policy will most likely cover the cost of repairing your damaged home or rebuilding it, up to the limits outlined in your policy. It will also likely cover the cost of your belongings inside your house.
However, you may want to make some adjustments to your home insurance coverage for the guarantee that you will be properly reimbursed. Some adjustments to consider are below.
| Coverage | Inclusions | Adjustments |
|---|---|---|
| Additional Living Expenses (ALE) | Covers temporary living costs if home is uninhabitable | Increase coverage limit to accommodate prolonged displacements |
| Dwelling Coverage | Replacement cost for home structures | Consider higher limits or a separate fire policy |
| Liability | Covers legal costs for injuries on property | Ensure adequate coverage for increased risks |
| Other Structures | Typically covers up to 10% of dwelling coverage | May need increased coverage for outbuildings |
| Personal Property | Covers actual cash value or replacement cost | Opt for replacement cost to fully cover belongings |
If you live in an area or state that is at a higher risk for wildfires, it’s important to make sure that your home inventory is kept up to date, and is stored in a safe location — consider keeping a copy in a secure digital location “in the cloud” so that even if your computer or laptop are damaged, you’ll still be able to access a copy.
A safe deposit box or a fire-resistant safe are two options for physical copies.
Your homeowners insurance policy might also help pay for temporary housing or living expenses if you need to live elsewhere while your home is being repaired or rebuilt. Check your policy or talk to your agent to learn about any possible coverage limits and exclusions.
Losing a home to a wildfire can be a frightening and emotional experience. Knowing what your homeowners insurance policy covers and being prepared with a home inventory can help with your peace of mind, particularly if you live in an area that is at a higher risk.
Ensuring That Wildfires are a Covered Peril
Some insurers might not include wildfires as a “covered peril” in areas that are prone to repeated wildfires. It is important to check the declarations page of your insurance policy carefully to see if wildfire is a covered peril.
If you live in a state where wildfires are more common, you may still be able to get fire insurance, but your homeowners premium will most likely reflect that increased risk.
Below is a table showing the states with the most homes at risk of being damaged by a wildfire, based on data from the Insurance Information Institute. In the top 10 states combined, there's more than 4 million homes at risk.
| Rank | State | Estimated Number of Properties at Risk |
|---|---|---|
| 1 | California | 2,048,800 |
| 2 | Texas | 715,300 |
| 3 | Colorado | 366,200 |
| 4 | Arizona | 234,600 |
| 5 | Idaho | 171,200 |
| 6 | Washington | 154,900 |
| 7 | Oklahoma | 152,900 |
| 8 | Oregon | 148,800 |
| 9 | Utah | 133,100 |
| 10 | Montana | 133,000 |
In California alone, there are more than 2 million homes at high or extreme risk of wildfires, the highest amount in the U.S. While California is notorious for wildfires, especially in recent years, there are many other areas in the United States also at high risk for wildfires, such as Texas, Colorado, and Idaho.
If you haven't shopped for homeowners insurance recently or are looking for a new company that covers high-risk wildfire areas, see which insurers other homeowners have had the best experieces with by checking out the top-ranked homeowners insurance companies.
Wildfire Statistics
Although some wildfires are caused by nature, such as lightning strikes, the National Park Service estimates that 90 percent of the wildfires in the United States are caused by humans.
These wildfires have a huge economic cost on insurance companies, which is why some companies refuse to cover homes in wildfire states.
In 2018, there were 58,083 wildfires in the United States, resulting in losses of 3.1 billion. The fires in 2018 resulted in a total of 8,767,492 homes being burned.The November 2018 wildfires in California (the Camp Fire in Paradise and Butte County and the Woolsey and Hill Fires in Los Angeles and Ventura Counties) resulted in more than $11 billion in insured losses.
These wildfire losses have increased over the years, with 5.5 billion lost in properties in 2024 alone.
While wildfires generally occur in forested areas or grasslands, and homeowners who live in the mountains or foothills are particularly at risk. Drought conditions and high temperatures contribute significantly to increased risk of wildfires.
The content on this site is offered only as a public service to the web community and does not constitute solicitation or provision of legal advice. This site should not be used as a substitute for obtaining legal advice from an insurance company or an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter. The comments and opinions expressed on this site are of the individual author and may not reflect the opinions of the insurance company or any individual attorney.