Wildfire has reshaped the property insurance market in several states. Understanding how insurers assess it explains both why premiums moved and what, if anything, a homeowner can influence.
How exposure is assessed
Insurers use wildfire risk models that score individual addresses. The inputs typically include:
- Vegetation density and type around the property.
- Slope and terrain. Fire moves faster uphill, so properties above steep slopes score worse.
- Distance to wildland and to previous fire perimeters.
- Access. Road width and whether there is more than one route out.
- Fire protection. Distance to a responding station and water availability.
- Construction. Roof material, siding, decking, vents, and windows.
These scores are generated by third-party models, and homeowners frequently cannot see the score assigned to their address. Several states have introduced requirements around disclosure and around recognising mitigation. Your Department of Insurance can tell you what applies where you live.
Mitigation that is commonly recognised
Not everything a homeowner can do affects the score, but several things are increasingly recognised in states that have addressed this by regulation.
- Defensible space in zones around the structure, with clearance requirements that differ by distance.
- Ember-resistant construction in the first few feet around the building — no combustible mulch, no stored firewood against walls.
- Class A roofing and ember-resistant vents.
- Enclosed eaves and non-combustible siding and decking.
- Multi-pane tempered windows.
- Community-level certification under recognised programs, which some insurers credit.
Where a state mandates recognition of specific measures, documentation matters — inspections, photographs, and receipts.
What happens when insurers withdraw
The sequence in affected areas has been consistent: premium increases, then non-renewals, then reduced new business writing, and finally growth in the state's FAIR plan.
If you receive a non-renewal, the practical steps are the same as any other: check the notice period, ask what would change the decision, start shopping immediately through an independent agent, and ask about the FAIR plan if the standard market is unavailable. Never let coverage lapse while deciding.
Moratoriums
Several states have adopted rules that restrict non-renewal for a period after a declared wildfire emergency in affected areas. These are time-limited and geographically defined, and they do not apply everywhere.
If you receive a non-renewal shortly after a declared event, it is worth asking your Department of Insurance whether a moratorium applies to your address.
What coverage looks like
Fire is a covered peril under standard homeowners policies, including wildfire. What tends to change in high-risk areas is availability and price rather than whether fire itself is covered.
Two things worth checking on a policy in a wildfire area: whether the dwelling limit reflects current rebuild costs, which rise sharply after a widespread event, and whether ordinance or law coverage is present, since rebuilding to current codes after a total loss frequently costs more than the original construction standard.
What we are not saying
We are not telling you what mitigation to undertake or that it will keep your coverage. Insurers make their own decisions and mitigation does not guarantee an outcome.
What we are saying is that address-level risk scores are driving these decisions, that several states now require insurers to recognise specific mitigation measures, and that documentation is what makes mitigation count.
Where to verify this yourself
- Your state Department of Insurance — mitigation discount requirements, moratorium rules, and FAIR plan access.
- Your insurer — which mitigation measures they recognise and what documentation they need.
- Your declarations page — dwelling limit and whether ordinance or law coverage is present.
This is general education, not advice. Insurance law and claim rules vary by state and change over time. Nothing here is legal, financial, or insurance advice for your situation, and reading it does not create any professional relationship. For your specific case, consult a licensed professional in your state or contact your state Department of Insurance.