If you own a home in Woodland Hills, you've probably noticed something unsettling: getting home insurance isn't as simple as it used to be. Maybe your carrier sent you a non-renewal notice. Maybe your premium doubled. Or maybe you're house-hunting and discovering that insurance costs are making you rethink your budget entirely.
You're not alone. Woodland Hills sits in one of California's highest wildfire risk zones, and insurance companies have been pulling back dramatically. The 2018 Woolsey Fire—which burned nearly 100,000 acres and destroyed over 1,500 structures across the area—showed just how vulnerable hillside and valley homes are to fast-moving fires. Since then, major carriers have restricted new policies, and many longtime customers have been dropped entirely.
Here's what you need to know about protecting your Woodland Hills home, navigating the insurance crisis, and keeping your coverage affordable.
Why Woodland Hills Home Insurance Has Become So Difficult
The Woolsey Fire created $4.2 billion in insured losses, and insurance companies took notice. When a single fire can destroy thousands of homes in a matter of hours, carriers start looking at the math differently. In 2024, State Farm alone canceled 30,000 policies across California, with most of those non-renewals concentrated in high-risk areas like Woodland Hills, Pacific Palisades, and Bel-Air.
The problem isn't just one company. Several major insurers announced between 2023 and 2024 that they would be limiting or stopping new policies in California altogether. The combination of rising wildfire risk, inflation in construction costs, and state regulations on rate increases created a perfect storm that made it unprofitable for carriers to write policies in fire zones.
For Woodland Hills specifically, the geography makes things worse. Your neighborhood sits in the Santa Monica Mountains' foothills, surrounded by brush-covered slopes and canyons. When Santa Ana winds kick up in fall, they can turn a small brush fire into a catastrophic event in minutes. Insurance companies use sophisticated fire modeling now, and those models don't look favorably on hillside communities with limited evacuation routes and abundant vegetation.
The California FAIR Plan: Your Likely Option
When traditional insurers won't cover you, California's FAIR Plan becomes your backstop. It's the state's insurer of last resort, created specifically for situations like this. As of mid-2025, more than 610,000 California homes were covered by the FAIR Plan—up from just over 200,000 in late 2020. That's a 164% increase in policy count since 2019.
Here's what you need to understand about FAIR Plan coverage: it provides basic fire insurance, but it's not comprehensive homeowners coverage. You'll need to purchase a separate policy (called a "wraparound" or "difference in conditions" policy) to cover things like theft, liability, and water damage. Together, a FAIR Plan policy plus wraparound coverage typically costs between $3,000 and $4,000 annually for Woodland Hills homes, though costs can climb higher depending on your home's value and location.
The statewide average FAIR Plan premium is around $2,800 per year according to 2025 reports, but premiums have been climbing as more high-value homes join the plan. If you're in an area with particularly severe fire risk or your home has a higher replacement value, expect to pay toward the upper end of that range or beyond.
Defensible Space: Not Optional, Absolutely Critical
California law requires 100 feet of defensible space around your home, and insurers are increasingly serious about enforcing this requirement. If you get dropped by your carrier, one of the first things they'll mention is defensible space—or your lack of it.
Defensible space is divided into zones. Zone 0 covers the first 5 feet from your home and requires removing all dead vegetation, dry leaves, and combustible materials. This zone should be ember-resistant—think gravel, pavers, or well-watered succulents, not wood chips or dry grass. Zone 1 extends from 5 to 30 feet and requires spacing between plants, removing dead branches, and keeping vegetation low. Zone 2 goes from 30 to 100 feet and focuses on creating fuel breaks and maintaining vertical spacing between grass, shrubs, and tree canopies.
Insurance companies have started using aerial imagery and satellite data to verify compliance, so you can't fake it. Homes with proper defensible space have a much better chance of surviving wildfires and qualifying for affordable insurance. Homeowners who invest in clearing brush and creating non-combustible zones have received the reward of insurability and peace of mind, while those who neglect these measures often face non-renewal.
Don't Forget Earthquake Coverage
While wildfire dominates the insurance conversation in Woodland Hills, earthquake risk is just as real. Your standard homeowners policy—whether from a traditional carrier or the FAIR Plan—does not include earthquake coverage. None. If the ground shakes and your foundation cracks or your chimney collapses, you're paying out of pocket unless you purchased separate earthquake insurance.
Most California homeowners get earthquake coverage through the California Earthquake Authority (CEA), a state-sponsored program similar to the FAIR Plan. Premiums vary widely based on your home's age, construction type, and proximity to fault lines. For a typical Woodland Hills home, expect earthquake insurance to add another $800 to $2,000 per year to your total insurance costs. It's an expense many homeowners skip, but given Southern California's seismic activity, it's worth serious consideration.
New Regulations May Help—Eventually
There's a bit of good news on the horizon. In December 2024, California implemented sweeping insurance reforms called the Sustainable Insurance Strategy. These new regulations allow insurers to use modern, forward-looking wildfire risk models when setting rates and to factor in reinsurance costs—two changes insurers had been demanding for years. In exchange, carriers must commit to writing more policies in high-risk areas.
Starting in 2025, insurers are required to increase their coverage in wildfire-prone ZIP codes by 5% every two years until they reach 85% of their market share. For Woodland Hills residents, this could mean more options beyond the FAIR Plan—but don't expect immediate relief. The regulations are new, and it will take time for insurers to expand coverage. Some experts predict meaningful improvements won't arrive until 2026 or later.
How to Get Coverage and Keep It Affordable
Start by shopping around. Even in tough markets, some insurers are more willing to write policies in Woodland Hills than others. Work with an independent insurance agent who knows the local market and has relationships with multiple carriers. They can tell you which companies are currently writing new business in your ZIP code and which are worth applying to.
If you're relegated to the FAIR Plan, don't just accept the first wraparound policy you're offered. Shop those too. Different insurers offer wraparound coverage at very different prices, and the coverage terms can vary significantly. Make sure you understand what's covered under your FAIR Plan policy versus your wraparound, and look for gaps.
Invest in home hardening. Replace wood shake roofs with Class A fire-rated materials. Install dual-pane windows. Use fire-resistant vents. Enclose eaves and soffits. These improvements reduce your fire risk and make you more attractive to insurers. Some carriers offer discounts of 10-20% for homes with proper hardening measures, and the California FAIR Plan is beginning to recognize these improvements in their underwriting.
Maintain your defensible space religiously. Take photos every season showing your cleared zones, trimmed trees, and maintained landscaping. If an insurer questions your compliance, you'll have documentation. Better yet, some insurers are starting to offer lower rates for homes with documented fire-safe landscaping.
Getting home insurance in Woodland Hills isn't easy right now, but it's not impossible. The landscape is changing, new regulations are taking effect, and insurers are slowly returning to the market. In the meantime, focus on what you can control: maintain defensible space, harden your home against fire, and work with knowledgeable agents who understand the local market. Your home is likely your biggest investment—protecting it is worth the effort.
