How to Make Sure You're Properly Insured Before the Next Wildfire
Wildfire survivors have also gotten smaller insurance payouts than expected, and other Los Angeles County residents who were spared from the fires may not realize they're underinsured.
But there are proactive steps you can take now to make sure you're protected in the next blaze. Use this guide to learn how to prepare the proper documentation, choose the right amount of coverage, and know your rights.
Standard homeowners' policies usually cover wildfire damage, but in high-risk zones, coverage may be reduced, excluded, or even canceled.
'Your insurance company is not on your side or your good neighbor. They're a for-profit business,' Amy Bach, Executive Director of United Policyholders, warned homeowners.
Review these key components of your policy:
If your insurer has dropped your policy or won't renew, compare policies through a broker, shop regional carriers, or seek help through the FAIR Plan.
Many major insurers, including State Farm and Allstate, have limited or paused new policies in wildfire-prone regions, but you're not out of options.
Alternatives include:
Ask brokers about bundling options and ensure you're comparing policies based on replacement cost coverage, not just price.
Know Your Rights
Wildfire survivors in California are protected by a growing set of regulations and state laws enforced by the California Department of Insurance.
If you believe your insurer has acted unfairly, file an online complaint with the California Department of Insurance or call 1-800-927-4357.
'They owe to replace what you had with like kind and quality up to your policy limits,' Bach said. 'Stick for stick, board for boards, the exact same house that you had.'
California law requires insurance companies to offer discounts to homeowners who make their homes more fire-resistant. These discounts can range from 5% to 20%, depending on the insurer and the upgrades you make.
Don't wait for disaster to strike. Take these documentation steps today so that the evidence can speed up your claim and reduce disputes over what was lost.
'The insurance company is not always going to take your word for things,' Bach said. Documentation can 'make or break your case.'
Annual check-ins with your insurance agent allow your coverage to keep pace with your home's value and fire risk.
Bach also recommends checking your dwelling coverage with some simple math to be sure it's realistic for California's current costs.
'If you know how many square feet of living space is in your home, and you know what your current dwelling limit is on the house,' Bach said, 'you want to divide that dwelling limit by the amount of square footage and see how much money you would have available to you to pay a contractor.'
Bach said the amount can vary based on your home, but it should be somewhere between $300 and $400 a square foot at a minimum.
Other experts estimate that rebuilding after the wildfires can average $600 per square foot, factoring in tariffs, labor shortages and increased demand. Custom homes or properties built with high-end, fire-resistant materials can reach over $1,000 per square foot.
If you're not sure where to start, visit United Policyholders for more wildfire recovery and insurance resources. You can also try the insurance finder tool from the California Department of Insurance or read more insurance tips from CAL Fire.
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