California Wildfires & Your Insurance:
What Every Homeowner Needs to Know in 2026

California wildfires aren't just a news story anymore — they're a financial reality for millions of homeowners. Whether you're in the hills above Glendale, the canyons of Malibu, or anywhere in the LA basin, understanding how fire insurance works before you need it is one of the most important things you can do.

The 2025 Palisades and Eaton fires destroyed over 16,000 structures across Los Angeles County.

Does your insurance actually cover wildfire?

Yes — fire is a standard covered peril in a California homeowners policy (HO-3). If a wildfire burns your home down, your dwelling coverage pays to rebuild it. But there are important nuances:

• Are you insured to value? If your home would cost $800,000 to rebuild but your dwelling limit is $500,000, you'll be $300,000 short. Construction costs have jumped dramatically since 2020.
• Do you have extended replacement cost? This endorsement adds 20–50% above your dwelling limit if rebuild costs spike after a disaster (which they always do when contractors are flooded with work).
• What's your wildfire deductible? Some California policies now have a separate wildfire deductible — often 1–5% of your dwelling value. On a $700K home, that's $7,000–$35,000 out of pocket before insurance pays a dime.

What to do immediately after a wildfire

If a wildfire threatens or damages your home, here's the order of operations:

1. Get safe first. Follow evacuation orders. Your policy covers additional living expenses (ALE) while you're displaced — use them.
2. Document everything before cleanup. Take hundreds of photos and videos. Walk through every room. Don't throw anything away until your adjuster has seen it.
3. Call your insurance company within 24–48 hours. Report the loss immediately. Ask for your ALE to start — this covers your hotel, meals, and temporary rental while your home is unusable.
4. Keep every receipt. Hotel, food, storage, temporary clothing — save it all. Your ALE coverage reimburses reasonable living expenses.
5. Get your own estimate. Don't just accept the insurance company's rebuild estimate. Hire an independent contractor to give you a competing bid.

Filing a fire insurance claim — step by step

• Call your insurer's claims line (it's 24/7) — get a claim number immediately
• Ask for an advance on your ALE — most carriers can issue an emergency check quickly
• Request a complete copy of your policy so you know exactly what you're entitled to
• Create an itemized list of lost belongings — room by room, with estimated replacement values
• Consider hiring a public adjuster if the loss is large — they work for you, not the insurance company

What to do if your insurer drops you

California law requires insurers to give you 75 days notice of non-renewal. Don't wait until the last week — start shopping immediately. Your options include:

• Other admitted California carriers (we shop 20+ for you)
• Surplus and non-admitted carriers that specialize in high-risk homes
• The California FAIR Plan as a last resort (paired with a companion DIC policy)

How to prepare before fire season

• Review your dwelling limit and get a replacement cost estimate — free from your agent
• Add extended replacement cost and ordinance/law coverage to your policy
• Create a home inventory (photos, video, serial numbers) stored in the cloud
• Clear defensible space — 100 feet around your home is required by CA law
• Install ember-resistant vents and a Class A rated roof if you're in WUI zones
• Know your evacuation routes and keep important documents in a go-bag