If you live anywhere near wildfire country, you've probably noticed something unsettling: fire season doesn't really end anymore. Those catastrophic wildfires that used to be once-in-a-lifetime events? They're happening every few years now. And insurance companies have definitely noticed. Since 2018, more than 30,000 California homeowners have received non-renewal notices, and the trend is spreading to other Western states. If you're trying to understand what's happening with wildfire insurance in 2026—and what you can do about it—you're in the right place.
Why Wildfire Insurance Is Changing So Dramatically
The numbers tell a stark story. Fire events that scientists predicted would happen once every 100 years are now occurring every 5 years in many regions. Climate change has extended fire seasons—what used to run from summer through early fall now stretches year-round in some areas. Hotter temperatures, prolonged droughts, and accumulated forest fuel have created perfect conditions for massive, fast-moving fires.
For insurance companies, this means wildfire risk has fundamentally changed. Their pricing models were built on historical data that no longer reflects current reality. When the Camp Fire destroyed Paradise, California in 2018, it caused over $10 billion in insured losses. The Maui fires in 2023 added another $5.5 billion. These aren't outliers anymore—they're the new pattern. And insurers are responding by either raising premiums dramatically, adding strict requirements for coverage, or simply leaving high-risk markets altogether.
The Non-Renewal Crisis and What It Means for You
Here's what's happening on the ground: major insurers like State Farm, Allstate, and Farmers have stopped writing new homeowners policies in California and parts of Colorado, Utah, and other Western states. If you already have coverage, you might keep it for now—but thousands of homeowners are receiving non-renewal notices when their policies come up for renewal. This doesn't mean you did anything wrong. It means your home is in an area the insurer has decided is too risky to cover at any price they can charge under state regulations.
When this happens, most homeowners end up in the FAIR Plan—a state-mandated insurance program that serves as a last resort. Every state with significant wildfire risk has one. But FAIR Plans weren't designed to be your primary insurance. They typically offer only bare-bones coverage (often just fire coverage, not full homeowners protection), and they cost significantly more than traditional policies. In California, FAIR Plan premiums can run 2-3 times higher than what you'd pay with a standard insurer, and you'll still need a separate policy to cover theft, liability, and other standard homeowners risks.
Home Hardening: Your Best Tool for Getting Coverage
There's actually good news buried in this challenging situation: you have more control over your insurability than you might think. Home hardening—making your property more resistant to fire—has become the single most important factor in getting coverage and keeping costs down. And insurers are putting their money where their mouth is, offering discounts of 10-40% for homes that meet specific fire-resistance standards.
The most critical upgrades focus on embers, which cause the majority of home ignitions during wildfires. Installing ember-resistant vents, using fire-resistant roofing materials (Class A-rated roofing like asphalt shingles, metal, or tile), replacing vinyl siding with fire-resistant materials, and upgrading to dual-pane windows can dramatically reduce your risk. Many insurers now require these features in high-risk areas—they won't even quote you without them. But even if they're not required yet where you live, making these upgrades proactively can help you maintain coverage as requirements tighten.
Defensible space is the other major factor. This means clearing vegetation, dead leaves, and flammable materials within specific distances from your home—typically 100 feet, divided into zones. In Zone 0 (0-5 feet from your home), you'll need to remove all dead vegetation and use hardscaping or well-watered plants. Zone 1 (5-30 feet) requires spacing out trees and shrubs and removing ladder fuels. Zone 2 (30-100 feet) focuses on creating fuel breaks and managing larger vegetation. Many states now require defensible space by law, and insurance companies are increasingly sending inspectors to verify compliance before issuing or renewing policies.
What to Do If You're Shopping for Wildfire Coverage in 2026
First, start early. Don't wait until your current policy is about to expire. The market is tight, and finding coverage can take weeks or even months in high-risk areas. Get quotes from multiple insurers—some companies are still writing policies in wildfire zones, especially if your home meets their mitigation requirements. Regional and specialty insurers may have more flexibility than the big national companies that have pulled back.
Document everything you've done to protect your property. Take photos of your ember-resistant vents, your Class A roof, your defensible space. Some insurers offer formal inspection programs or use satellite imagery to assess properties, but having your own documentation helps. If you've invested in upgrades, make sure your agent knows about them—they directly impact your premium and coverage availability.
Consider your coverage limits carefully. With rebuilding costs up 30-40% over pre-pandemic levels and supply chain issues still affecting construction, make sure you have enough coverage to fully rebuild if the worst happens. Extended replacement cost coverage (which pays above your policy limit if rebuilding costs exceed estimates) is worth considering if you can get it. And don't forget about additional living expenses coverage—if your home burns down, you'll need somewhere to live while it's rebuilt, potentially for 1-2 years or more.
If you can't find traditional coverage, explore the FAIR Plan but understand its limitations. You'll likely need a wrap policy (also called a difference in conditions policy) to get full homeowners coverage. Some insurers that won't write full policies will still write wrap coverage on top of a FAIR Plan. Yes, having two policies is more expensive and more complicated, but it's better than being underinsured.
Looking Ahead: What's Coming for Wildfire Insurance
The wildfire insurance market will continue evolving in 2026 and beyond. Several states are working on reforms to stabilize the market—California recently approved regulations allowing insurers to use catastrophe modeling and charge premiums that better reflect actual risk, which may entice some companies back to the market. Other states are expanding their FAIR Plans and creating reinsurance pools to help spread risk.
Technology is also changing the game. Insurers are using satellite imagery, aerial photos, and AI to assess properties remotely, which means your home hardening efforts will be easier to verify (but also harder to fudge). Some companies are even offering real-time wildfire tracking and alert systems to policyholders. And there's growing interest in parametric insurance—policies that pay out automatically when certain fire conditions are met, rather than requiring you to file a claim and prove damages.
The bottom line? Wildfire insurance isn't going to get easier or cheaper anytime soon, but it's not hopeless either. The homeowners who'll fare best are those who take mitigation seriously, stay informed about changing requirements, and work proactively with their insurance agents. If you live in wildfire country, the time to act is now—before fire season, before your policy expires, and before requirements get even stricter. Your home and your financial security are worth the effort.
