Here's something most people don't realize about living in Agoura Hills: you're nestled in one of Southern California's most beautiful landscapes—the Santa Monica Mountains—but that natural beauty comes with serious insurance considerations. If you're shopping for home insurance here, you're probably discovering that it's not as straightforward as it is in other parts of the country. Between wildfire risks, earthquake zones, and a rapidly changing insurance market, finding the right coverage requires understanding what makes this area unique.
The 2018 Woolsey Fire burned that reality into the collective memory of every Agoura Hills resident. The fire consumed nearly 97,000 acres, destroyed 1,643 structures, and forced the complete evacuation of the city. While the main areas of Agoura Hills fared better than some neighboring communities, sections like the canyon areas sustained losses. That event didn't just change the landscape—it fundamentally reshaped the home insurance market for everyone living here.
The Wildfire Risk Reality
Living near natural areas in California isn't a question of if wildfires will happen, but when. Your home insurance needs to reflect that reality. Standard homeowners policies do cover fire damage, including wildfires, but here's the catch: getting that policy in the first place has become increasingly difficult in high-risk areas like Agoura Hills.
Between 2023 and 2024, several major insurance carriers pulled back from California's market or severely restricted new policies. Allstate paused writing new home insurance policies in November 2022. Farmers now only writes a limited number of new policies per month. USAA restricts coverage to lower-risk wildfire areas. The result? Many Agoura Hills homeowners are finding themselves without traditional insurance options.
The good news is that California law provides some protection. After the Palisades Fire, Agoura's 91301 ZIP code was included in a mandatory one-year moratorium on insurance cancellations and non-renewals. This consumer protection law kicks in after declared states of emergency, giving residents within or adjacent to fire perimeters breathing room to find alternative coverage.
Understanding the California FAIR Plan
When traditional insurers say no, the California FAIR Plan becomes your safety net. It's an insurance program of last resort for homeowners unable to obtain fire coverage in the private market. Despite what many people think, it's not government-backed—it's financially supported by California's private home insurance companies, not taxpayers.
The FAIR Plan has exploded in recent years. Policies skyrocketed 164% between September 2019 and June 2024, jumping from roughly 127,000 to over 334,000. By March 2025, that number reached more than 555,000 residential policies—a 23% increase from September 2024 alone. You're not alone if you end up needing it.
Here's what you should know about FAIR Plan coverage: it provides basic fire insurance but doesn't include liability coverage, theft protection, or coverage for other perils that standard homeowners policies include. You'll need to purchase a separate policy—called a differences in conditions policy—to fill those gaps. Also, FAIR Plan premiums average about $3,200 per year, more than twice the state average, because they're specifically covering high-risk properties.
Earthquake Insurance: The Other Risk You Can't Ignore
While wildfires get most of the attention in Agoura Hills, you're also living in earthquake country. Los Angeles County sits on the San Andreas tectonic zone with hundreds of smaller active faults running through the area. Experts estimate a 60% chance of an earthquake with a magnitude of at least 6.7 in the next three decades. Those aren't comforting odds.
Here's the critical thing: standard homeowners insurance policies do not cover earthquake damage. Not at all. If your home is damaged in an earthquake, regular homeowner's insurance won't cover anything. You need a separate earthquake insurance policy.
Earthquake insurance isn't legally required, even if you have a mortgage, but California law requires that your homeowners insurance company offer to sell you earthquake coverage. Most earthquake insurance in California comes from the California Earthquake Authority (CEA). You must have a residential property insurance policy in place first, and you must purchase your CEA policy from the same company providing your homeowners coverage.
The deductibles are high—typically 5%, 10%, 15%, 20%, or 25% of your coverage amount. This means earthquake insurance usually only pays out when there's major damage. For example, with a $500,000 policy and a 10% deductible, you'd pay the first $50,000 of damage yourself. But if a major earthquake causes $200,000 in damage, having that policy would be the difference between financial recovery and potential ruin.
Recent Market Changes and What They Mean for You
California's insurance crisis prompted significant regulatory changes in 2024 that could improve options for Agoura Hills homeowners. In November 2024, the California Insurance Commissioner approved regulations allowing insurers to use forward-looking catastrophe modeling. In December 2024, the final major step allowed reinsurance costs to be considered in rate setting.
Here's why this matters: insurers can now price policies based on actual wildfire risk projections rather than just historical data, and they can recoup their reinsurance costs. In exchange, they must increase coverage in high-risk areas and offer discounts for wildfire mitigation efforts. This could mean more insurers returning to markets like Agoura Hills—and discounts if you've invested in fire-resistant roofing, defensible space, or other protective measures.
How to Protect Your Home and Lower Your Insurance Costs
The best insurance strategy combines adequate coverage with risk reduction. Start by creating defensible space around your home—clear vegetation at least 100 feet from structures. Use fire-resistant materials for your roof, siding, and decking. Install ember-resistant vents. These measures don't just protect your home; under new California regulations, they can qualify you for insurance discounts.
For earthquake preparedness, bolt your home to its foundation, secure your water heater, and install automatic gas shutoff valves. These retrofits make your home safer and can sometimes reduce insurance costs.
When shopping for coverage, get quotes from multiple sources. Work with independent insurance agents familiar with high-risk California properties—they often have access to specialty insurers you won't find online. Review your coverage limits annually, especially your dwelling coverage, as reconstruction costs have increased significantly in recent years. The median annual insurance premium among California mortgage-payers reached $1,700 in 2024, 28% higher than in 2014 after adjusting for inflation, and costs continue rising.
Getting proper home insurance in Agoura Hills takes more effort than it does in most places, but it's absolutely essential. The combination of wildfire risk, earthquake potential, and a challenging insurance market means you need to be proactive, informed, and prepared to explore multiple options. Start by assessing your current coverage, understanding your risks, and reaching out to insurance professionals who specialize in California's high-risk areas. Your home in the Santa Monica Mountains is worth protecting—make sure your insurance actually does that.
