Fire Insurance in California: What Every Homeowner and Buyer Should Know
If you've tried shopping for fire insurance in California recently, you already know—it feels almost impossible. Over the past several years, insurance companies have stopped underwriting new policies in large portions of the state. Why? Because insurers see much of California as too risky due to the increasing frequency and intensity of wildfires.
State Insurance Commissioner Ricardo Lara, along with consumer groups, has been sounding the alarm: the system is breaking down. And for homeowners, both current and future, this reality is frustrating, confusing, and stressful.
So, what does this mean for you—and what can you do about it?
The Insurance Roadblocks Homeowners Face
Non-renewals are on the rise. Even if you've had the same insurer for years, you may get a letter saying they won't be renewing your policy.
New buyers face challenges. People in escrow are sometimes shocked when their lender refuses to close without proof of insurance—and no traditional carrier will accept them.
Policies are more expensive and limited. Premiums are going through the roof, coverage is shrinking, and exclusions are piling up.
When fire risk is high, insurers become very selective about everything: the condition of your home, your location, even the age of your systems.
Filing a Claim? Think Twice
Here's something most homeowners don’t realize: filing a claim can make it even harder to stay insured.
Weigh the cost of repairs against the potential impact on your future premiums.
Make sure you understand what your policy does (and doesn’t) cover before filing.
Keep thorough documentation—photos, receipts, and records of all conversations.
When in doubt, consult an insurance agent or broker to help you navigate the process.
Sometimes, paying out of pocket for repairs may be the best option long-term move.
Options If You’re Dropped
If your current insurer refuses to cover you, you’re not completely stuck. The California FAIR Plan, the state’s last-resort insurance program, is designed for situations where traditional coverage isn’t available. While it’s typically more expensive and provides only basic fire coverage, it’s still better than nothing—and it can keep you compliant with your lender.
What New and Prospective Homeowners Should Know
If you’re buying in California right now, do your homework. Insurance isn’t just about cost—it’s about availability.
Before you fall in love with a property:
Ask whether the current owner has fire insurance and with which company.
Check if the home is in a high-risk fire zone.
Factor potential insurance costs into your budget.
For older homes, insurers are even more cautious. If the house has outdated systems, expect higher premiums—or outright denials—unless major upgrades have been made recently.
Proactive Homeowner Checklist
Want to give yourself the best shot at getting and keeping coverage? Start here:
✅ Roof – Replace or repair roofs over 15–20 years old. Insurers look closely at roof condition.
✅ Plumbing – Swap out old galvanized or lead pipes with modern, safer materials.
✅ Electrical – Upgrade outdated systems (knob-and-tube, aluminum wiring) to current codes.
✅ Heating & Cooling – Replace older HVAC systems that may pose fire or safety risks.
✅ Defensible Space – Maintain a fire-safe perimeter by clearing brush, trimming trees, and keeping gutters clean.
✅ Documentation – Keep records of all upgrades, inspections, and maintenance—you’ll need them when insurers ask.
Being proactive not only helps you get insured but may also reduce your premiums.
How Imagineer Remodeling Can Help
At Imagineer Remodeling, we understand the double challenge California homeowners face: protecting their home and navigating the maze of insurance.
When disaster strikes, we advocate for you during the claims process, helping with inspections, documentation, and communication with your insurance company. If you’re underpaid, denied, or overwhelmed, we’re in your corner.
Before disaster hits: We help homeowners upgrade roofs, plumbing, electrical, and HVAC systems—these improvements will make your home safer, more efficient, and insurable.
Whether you are trying to hang on to your insurance, looking to buy a new home, or dealing with damage after a fire or water loss, Imagineer Remodeling is here to help.
If you’re unsure about what to do next, please don't hesitate to give us a call. We will walk you through the insurance maze and take care of the repairs or upgrades your home needs so you can feel safe and confident moving forward.