Will my homeowners insurance cover losses caused by a wildfire?

Homeowners insurance MAY help cover damage to your home and belongings resulting from a wildfire. Given the high risk of wildfires in some areas, some insurance carriers may not be able to offer coverage for fires. In this case they may offer you a separate policy through the state. Check your policy carefully and double-check that you have the coverage you need.

If your home is in an area with a high risk of wildfire, you may need two insurance policies – one that covers fire and one that covers other perils such as theft, water damage, and liabilities. Together these two policies should provide complementary coverage against most perils covered in a standard homeowner’s policy.

• Policy 1: The state of California has a FAIR (Fair Access to Insurance Requirements) program to provide fire insurance to homeowners who have trouble getting coverage from insurance companies. It will cover fire, but not other perils like theft, water damage, or liabilities.
• Policy 2: If you have a FAIR plan policy to cover fire, your insurance company can offer you a DIC (Difference in Conditions) policy that covers perils that are not covered in the FAIR plan. This includes coverage for perils such as theft, water damage, and liability.