If you own a home in Westlake Village, you've probably noticed something troubling: getting home insurance isn't as simple as it used to be. This beautiful Ventura County community, with its tree-lined streets and proximity to open space, faces a harsh reality in 2025. Major insurers are pulling back from the California market, and those stunning hillside views come with serious wildfire risk. Here's what you need to know to protect your home and your investment.
Why Westlake Village Home Insurance Is Getting Harder to Find
Let's talk about the elephant in the room: California's insurance crisis hit Westlake Village hard. Between 2023 and 2024, major carriers like Farmers, Chubb, Liberty Mutual, and AIG announced they would stop writing new policies or non-renewing existing customers in high-risk areas. Westlake Village, with neighborhoods backing up to open space on multiple sides, falls squarely in that category.
The numbers tell the story. As of June 2024, more than 610,000 California homes were on the FAIR Plan—the state's insurer of last resort—up from just over 200,000 in late 2020. That's a threefold increase in less than four years. Premium increases haven't been subtle either, with rates jumping 42% in California's highest-risk areas and FAIR Plan policies seeing increases of more than 15% in 2024 alone.
Your proximity to the 2018 Woolsey Fire and the 2021 blaze that scorched 28 acres behind Westlake High School aren't distant memories for insurers—they're actuarial data points that directly impact your ability to get coverage.
Understanding Your Coverage Options
Even in today's challenging market, you have options. The key is understanding what each one offers and what trade-offs you're making.
Standard admitted carriers remain the gold standard when you can get them. They offer the best pricing and most comprehensive coverage, but they're increasingly selective about properties near open space or on hillsides. Valley floor areas in nearby Camarillo, Oxnard, and Simi Valley tend to have better carrier availability, but underwriting has become extremely address-specific. Even homes on the same street can receive different treatment based on their exact location and risk factors.
The California FAIR Plan provides your safety net when traditional insurers won't cover you. Think of it as basic fire coverage—it'll protect your dwelling up to $3 million for residential properties, but that's about it. You won't get liability coverage, protection for your belongings, or coverage for water damage, theft, or most other perils you'd expect from a standard homeowners policy. That's where a wrap policy comes in. Also called a difference-in-conditions policy, it fills the gaps left by the FAIR Plan, covering everything your basic policy doesn't. Together, the FAIR Plan plus wrap combination can approximate the protection of a traditional policy, though usually at a higher cost.
Surplus lines carriers offer another path forward, especially for properties that standard insurers won't touch. These non-admitted carriers have more flexibility in how they underwrite and price policies, which means they can take on tougher risks. The trade-off? Typically higher premiums and potentially less regulatory protection than admitted carriers provide.
Why Extended Replacement Cost Is Non-Negotiable for Custom Homes
Here's something that surprises many Westlake Village homeowners: your home's market value and its replacement cost are two completely different numbers. If you bought your house for $2 million, you might assume that's how much coverage you need. But if your home has slate roofing, plaster walls, custom cabinetry, or intricate architectural details, rebuilding it could cost significantly more than you paid.
Extended replacement cost coverage extends your dwelling coverage by 10% to 50% beyond your policy limit. So if your home is insured for $500,000 and you have 25% extended replacement cost, your insurer could pay up to $625,000 to rebuild after a total loss. This cushion becomes critical when construction costs spike after a major disaster—and in California, that happens regularly. After wildfires, earthquakes, or supply chain disruptions, the cost of materials and labor can skyrocket as contractors get overwhelmed with demand.
For high-value homes worth $1 million or more, specialized insurers like PURE and Chubb often include extended replacement cost as a standard feature. These carriers understand that matching original materials and craftsmanship in custom homes costs more than standard construction, and they price their policies accordingly.
Meeting Brush Clearance Requirements
Maintaining defensible space around your home isn't optional in Westlake Village—it's the law. California requires 100 feet of defensible space around all structures, and the Los Angeles County Fire Department conducts annual inspections starting around June 1st for coastal communities like yours.
What does compliance look like? All trees and shrubs must be free of deadwood and litter. You need at least three feet of clearance around fire hydrants. Fire access roads require unobstructed vertical clearance, with overhanging trees trimmed appropriately. If you fail to comply within 30 days of receiving an official inspection report, you're looking at a $500 administrative fine plus an additional $1,199 direct assessment added to your annual tax bill.
Beyond legal compliance, maintaining defensible space can directly impact your ability to get insurance. Many carriers now require proof of proper vegetation management before they'll even quote your property. It's one of the few risk factors you can actually control.
Don't Forget Earthquake Coverage
While everyone focuses on wildfire risk, Westlake Village sits in earthquake country too. Your standard homeowners policy doesn't cover earthquake damage—you need a separate policy for that. California law requires your home insurance company to offer earthquake coverage every other year, though you're not obligated to buy it.
The California Earthquake Authority (CEA) provides about two-thirds of residential earthquake policies in the state. You can add coverage anytime—you don't need to wait for your homeowners policy renewal. There's one important exception to know about: California law requires that both homeowners and renters insurance must cover fire damage caused by or following an earthquake, even if you don't have separate earthquake coverage.
How to Get Started
Get your property ready for underwriting by ensuring your defensible space is up to code, documenting any fire-resistant features like Class A roofing or ember-resistant vents, and having a recent home inventory ready. If you've made improvements that reduce wildfire risk, make sure your insurer knows about them—they could make the difference between getting coverage and being declined.
Budget for higher premiums than you might have paid in the past. Annual costs typically range from $3,500 to $5,000 or more depending on your home's value, exact location, and risk profile. For high-value custom homes, expect to pay even more—but remember, that coverage protects what's likely your largest financial asset. The peace of mind is worth the investment.
