Question 1

How much does home insurance cost in Chico, California?

Accepted Answer

Most Chico homeowners pay between $1,200 and $1,500 per year for home insurance, though rates vary significantly based on your property's wildfire risk, age, construction type, and location. Homes in higher-risk areas near open space or foothills may pay considerably more, while newer homes in central Chico with good wildfire mitigation can sometimes secure lower rates.

Question 2

Is Chico considered a high fire risk area for insurance?

Accepted Answer

Yes, Chico sits in the wildland-urban interface where developed areas meet grasslands and oak-studded foothills, and it's close to the Sierra Nevada foothills. The devastating 2018 Camp Fire in nearby Paradise significantly impacted how insurers view the entire North Valley region, leading to stricter underwriting and higher premiums for many properties.

Question 3

What is the California FAIR Plan and do I need it?

Accepted Answer

The California FAIR Plan is the state's insurer of last resort for homeowners who cannot obtain coverage in the standard market due to high wildfire risk. You only need it if traditional carriers have denied you coverage or non-renewed your policy. FAIR Plan policies typically cost 2 to 3 times more than standard insurance and require a separate liability policy, but they ensure you can meet mortgage requirements and maintain coverage.

Question 4

What is defensible space and how much do I need in Chico?

Accepted Answer

Defensible space is the buffer zone between your home and potential wildfire fuel sources like grass, brush, and trees. California law requires 100 feet of defensible space around homes in fire-prone areas, which includes most of Chico. This breaks into three zones: Zone 0 (0-5 feet, ember-resistant), Zone 1 (5-30 feet, vegetation management), and Zone 2 (30-100 feet, fuel breaks and spacing).

Question 5

Will creating defensible space actually lower my insurance premium?

Accepted Answer

Creating defensible space may help lower your premium with some carriers, but more importantly, it can make the difference between getting coverage or being denied entirely. Insurers increasingly use wildfire risk models that factor in vegetation management, and some offer discounts for homes meeting Firewise USA standards. Document your mitigation work with photos and share it with your agent.

Question 6

Are insurance companies returning to Butte County after the Camp Fire?

Accepted Answer

Yes, there are early signs of improvement. In late 2024, Mercury Insurance became the first major carrier to return to Paradise since the Camp Fire, specifically citing the town's wildfire mitigation efforts. Additionally, new California regulations will require insurers to gradually increase coverage in high-risk areas, which could bring more competition back to Chico and surrounding communities over the next several years.

Insurance Agents in Chico, California (CA)

Insurance agencies serving Chico

Community Action Agency Of Butte County, Inc.

Dayton Sayer Insurance Agency, Inc.

Insurance Agents in Chico, California (CA)

Insurance agencies serving Chico

Community Action Agency Of Butte County, Inc.

Dayton Sayer Insurance Agency, Inc.

Diligence Agencies

Esponde Insurance Services, Inc.

Firm Foundations Insurance & Benefits Center

GCI Health Insurance Services

Gig7 Crop Insurance Services

Insure-Fi

Interwest Insurance Services

Leftout Capital: Aflac Insurance

Insurance Guides for Chico

Home Insurance in Chico

Auto Insurance in Chico

Car Insurance Costs in Chico

Insurance Guide for Chico

Frequently asked questions