If you own a home in Woodland Hills, you've probably noticed something alarming in your mailbox lately: either a non-renewal notice from your insurance carrier or a renewal premium that's doubled—or tripled—from what you paid last year. You're not imagining things, and you're definitely not alone. Woodland Hills sits squarely in what insurers consider a Very High Fire Hazard Severity Zone, and the insurance market here has fundamentally changed.
Here's what's happening: major insurance companies are pulling back from California's high-risk areas. State Farm non-renewed about 30,000 homeowners policies in 2024. Farmers and Allstate have also stopped writing new business or dropped existing customers. For many Woodland Hills homeowners, the California FAIR Plan has become the only option—and it comes with higher costs and less coverage than traditional policies. Let's break down what you need to know about insuring your home in this challenging market.
Why Woodland Hills Insurance Costs Are Skyrocketing
The 2025 CalFire Fire Hazard Severity Zone maps confirmed what many residents already knew: large portions of Woodland Hills, particularly areas south of Ventura Boulevard, fall into Very High Fire Hazard Severity Zones. This isn't just a technicality on a government map—it's a risk assessment that insurance companies take very seriously.
While California regulators emphasize that CalFire hazard maps don't directly determine insurance rates, carriers use their own sophisticated wildfire risk models. These models look at terrain, vegetation, historical fire patterns, and climate data. For Woodland Hills, all those factors point to elevated risk. When you combine that with rising construction costs and the increasing frequency of catastrophic wildfires across California, you get a perfect storm that's driving insurers out of the market.
The numbers tell the story: while California's statewide average homeowners insurance premium sits around $2,800 per year, homeowners in Very High Fire Hazard Severity Zones like Woodland Hills are paying $5,000 to $12,000 annually—and sometimes more for larger or higher-value properties. That's not just an increase; it's a fundamental reshaping of what it costs to own a home in these areas.
Understanding the California FAIR Plan
The California FAIR Plan has become the default option for many Woodland Hills homeowners who've been non-renewed by traditional carriers. Between September 2019 and June 2024, FAIR Plan policies jumped 164%—from about 127,000 to over 334,000. By March 2025, that number had climbed to more than 555,000 policies statewide.
But here's what catches most homeowners off guard: the FAIR Plan isn't really insurance in the traditional sense. It's California's insurer of last resort, and it only covers fire and smoke damage. That's it. No theft protection. No liability coverage if someone gets hurt on your property. No coverage for water damage, falling objects, or freezing pipes. It's a bare-bones policy designed to meet your mortgage lender's requirement for fire coverage—nothing more.
To get the full protection most homeowners expect, you need to purchase a Difference in Conditions (DIC) policy alongside your FAIR Plan coverage. The DIC policy fills in the gaps, adding liability protection, theft coverage, and all the other perils that a standard homeowners policy would cover. Combined, your FAIR Plan plus DIC coverage will typically cost more than a traditional HO-3 policy would have cost before the market disruption—assuming you could still get one.
Fire Hardening: Your Best Tool for Lower Premiums
California became the first state to mandate that insurers offer discounts for wildfire mitigation efforts, and the FAIR Plan now provides the most significant savings available. You can earn up to 24.5% off your FAIR Plan premium by implementing specific fire-hardening measures. For a $10,000 annual premium, that's a potential savings of $2,450—real money that makes the investment in home improvements worthwhile.
The most impactful improvements include installing fire-resistant roofing materials, upgrading to multi-pane windows that resist heat and embers, enclosing your eaves to prevent ember intrusion, and creating defensible space around your home. That last one is critical in Woodland Hills: you need to maintain at least 30 feet of clearance from your home, removing brush, trimming trees, and eliminating combustible materials. Some homeowners have also removed wooden sheds and outbuildings from the immediate area around their homes.
The reality check: completely retrofitting a home for adequate wildfire resistance can cost $23,000 to $40,000. That's a significant investment. But if you're planning to stay in Woodland Hills long-term, the combination of premium savings and actual fire protection makes these improvements a practical necessity rather than an optional upgrade. After completing the work, contact your insurance company with documentation—some carriers require an inspection to verify the improvements before applying discounts.
The Earthquake Question
Woodland Hills doesn't just face wildfire risk—you're also in an earthquake-prone area. Standard homeowners policies don't cover earthquake damage, and in January 2025, the California Earthquake Authority raised rates by 6.8% for all policies. For a home with $500,000 in replacement cost coverage, you're looking at roughly $1,200 to $2,800 per year in additional premium.
Here's the kicker: earthquake insurance comes with much higher deductibles than regular homeowners coverage—typically 10% to 25% of your dwelling coverage limit. On a $500,000 home, a 15% deductible means you'd pay the first $75,000 of earthquake damage out of pocket. That's substantial. But when you consider that a major earthquake could cause total structural failure, and rebuilding costs in Los Angeles County continue to climb, many Woodland Hills homeowners decide the coverage is worth the cost and deductible.
What You Can Do Right Now
If you still have traditional homeowners insurance, don't assume it's going to renew. Review your policy carefully and start researching alternatives before you receive a non-renewal notice. If you're already on the FAIR Plan, make sure you've added a DIC policy—don't leave yourself exposed to liability claims or theft losses.
Get serious about fire hardening. Start with the most cost-effective improvements: clearing defensible space costs mainly time and effort, and it's one of the factors insurers care most about. Document everything with photos and receipts. Consider getting a Wildfire Prepared Home evaluation—if your home meets the program's fire safety requirements, you'll receive a certificate that most carriers recognize for additional discounts.
Work with an independent insurance agent who understands the Woodland Hills market. They can shop multiple carriers, including excess and surplus lines insurers that specialize in high-risk properties. These E&S carriers currently charge an average of $5,500 annually in California, but they often provide more comprehensive coverage than the FAIR Plan with a DIC policy. It's worth comparing all your options.
The homeowners insurance market in Woodland Hills has fundamentally changed, and it's not going back to how things were five years ago. High premiums and limited options are the new reality in Very High Fire Hazard Severity Zones. But by understanding your options, investing in fire hardening, and working with experienced insurance professionals, you can protect your home and your financial security—even in this challenging market.
