Does home insurance cover wildfire damage?

When a wildfire damages your home, here’s what home insurance will cover

+1 more
Author picture
Edited by: Joanna Broder
House damaged by on-going wildfire

Between 1983 and 2022, the U.S. saw an average of 70,000 wildfires per year, according to the Environmental Protection Agency (EPA). The burned areas have increased since the data started getting recorded.

Home insurance tends to cover damage to your home from a fire, including a wildfire. But your policy might differ based on where you live and if it's a high-risk area. If you're worried about your home insurance covering wildfire damage, check your policy to see if you're adequately covered.

Key insights

Most standard home insurance policies cover fire damage, including wildfire damage.

Jump to insight

You're usually covered for your home, belongings and any related costs if you temporarily relocate.

Jump to insight

If your policy doesn’t offer wildfire coverage, it’s worth inquiring about whether your state has options.

Jump to insight

What is home insurance?

Home insurance is a type of insurance that covers your home, your possessions and liability in certain events. These “perils,” as they’re called in the industry, include storms, theft, vandalism and fire damage. Mortgage lenders require borrowers to have a home insurance policy if they have a home loan.

Wildfire damage home insurance will cover

Standard homeowners insurance policies cover damage from fires, including:

  • Your home: In the case of a wildfire, your insurance covers the cost of repairing or rebuilding your home if it's a total loss. It also covers other areas on your property, like a detached garage, shed or similar structures.
  • Your things: For assets and belongings damaged from a wildfire, your insurance company will cover the costs of your things, including your furniture, car(s), clothes and other belongings. You may have actual cash value coverage, where your insurance company pays the cost of what something is worth at the time of damage or loss, taking into account depreciation. Or you may have replacement cost coverage, where your insurance company pays the cost to completely replace your belongings with new ones.
  • Additional living expenses: If you need to temporarily live somewhere else while your home is getting repaired, your insurance company will reimburse you the cost for reasonable living expenses. This includes a place to stay, like a hotel or rental, meals, and more.

Wildfire damage not covered by home insurance

While most homeowners insurance policies cover fire and wildfire damage, some limit the amount they cover or when coverage kicks in.

Some insurance policies might not include wildfire damage, depending on where you live. Those living in high-risk areas may need to get extra wildfire coverage. If you need clarification on whether you're in a high-risk area, visit the federal Wildfire Risk to Communities website, and talk to your insurance agent or a representative of your insurance company.

If your policy doesn’t offer wildfire coverage, look into state-run wildfire plans. Call your state insurance department and ask what options you have if you don’t have wildfire coverage (and your homeowners insurance doesn’t offer it). Ask about Fair Access to Insurance Requirements (FAIR) plans and if you’re eligible. FAIR plans are state plans that offer coverage to certain businesses and individuals who cannot otherwise obtain insurance.

Should I file a claim for wildfire damage?

If your home has been damaged by wildfires, contact your insurance company as soon as possible. Start taking photos to document the damage so that when you complete a "proof of loss" form, you have the pictures to back up your claims.

You might need to hold onto things such as destroyed furniture or personal items longer than you’d like until an insurance adjuster visits your home to assess the damage. Don’t wait too long to file a claim because your company might require claims to be filed within a certain number of days from when the damage occurred. For this reason, call your insurance and find out how long you have to file a claim.

FAQ

Will my insurance cover temporary housing if my home is uninhabitable?

Yes, most insurance policies cover temporary housing, like a hotel or stay at a vacation rental, if you can’t physically stay in your home immediately after a fire or during repairs.

What should I do first after a wildfire damages my home?

First, make sure everyone is safe and OK. If your home is not habitable, secure housing for your family. Then start taking photos and contacting your insurance company to open a claim.

Can my insurance company deny my wildfire damage claim?

You might get denied wildfire coverage if you don't submit your claim promptly and according to the requirements of your home insurance policy. In some instances, you might only get some of your losses covered by your insurance, depending on the limits outlined in your policy.

Bottom line

Home insurance usually covers wildfire damage. But some homeowners, especially those in high-risk areas, might face more challenges getting wildfire coverage. It’s important to check your policy to see what’s covered and what you’re responsible for paying out of pocket in case of a wildfire.


Article sources

ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:

  1. U.S. Environmental Protection Agency, “Climate Change Indicators: Wildfires.” Accessed June 27, 2024.
  2. Insurance Information Institute, “Insurance for wildfires.” Accessed June 27, 2024.
  3. Insurance Information Institute, “Facts about wildfires.” Accessed June 27, 2024.
  4. Consumer Financial Protection Bureau, “What is homeowner's insurance? Why is homeowner's insurance required?” Accessed June 27, 2024.
  5. Insurance Information Institute, “What if I can't get coverage?” Accessed June 27, 2024.
Did you find this article helpful? |
Share this article