When wildfires swept through Los Angeles in early 2025, alarmist headlines claimed homeowners can’t get insurance anymore. The truth is more nuanced, and more reassuring for most homeowners. Yes, insurance is more expensive. Yes, some insurers paused issuing new policies. But coverage remains widely available, backed by strong state protections and last-resort options. Here's what you need to know about getting home insurance in L.A. post-fire:
1. Insurance is pricier, but still accessible
- Premiums have climbed 20–50% in high-risk zones like Palisades and Eaton Fire areas due to increased wildfire exposure.
- Even state-run FAIR Plan coverage is expanding (but at higher cost) averaging around $2,800 annually, and sometimes much more in specific ZIPs.
- Private insurers are still underwriting policies; State Farm and others requested emergency rate hikes (e.g., 22% from State Farm) but are still writing and renewing policies in most of L.A.
2. State protections ease the transition
- Insurance Commissioner Lara has imposed a 1-year moratorium on cancellations and non-renewals in zip codes affected by multiple fires (Palisades, Eaton, Hughes, etc.).
- Insurers must fully investigate smoke damage claims: no more sweeping denials under “sight and smell” standards.
- The FAIR Plan now must collect a $1 billion assessment to remain solvent, sharing the cost among insurers and policyholders; no outright cancellations.
3. Alternatives if your insurer pulls out
- The FAIR Plan is always there as a last resort, covering fire risk (plus wind/hail enhancements). It’s more expensive but crucial safety net.
- Surplus-lines insurers (non-admitted) provide another option—but coverage lacks state-backed guarantee protections.
4. What homebuyers need to do now
- Compare quotes: from private insurers, the FAIR Plan, and surplus lines brokers.
- Fortify your property: many insurers now reward fire-resistant upgrades like ember-resistant vents, roof retrofits, and defensible space
- Document everything: take photos of all smoke damage, landscaping improvements, and fire-hardy upgrades for claims or renewals.
- Ask about moratorium protections: if you’re in impacted zip codes, you're protected from non-renewal for a full year.
5. Why maintaining coverage matters
- Lenders require insured homes—even more so after wildfires.
- Mortgage delinquency risk rises when insurance costs significantly increase.
- Rebuilding delays (only ~200/800 permits approved post-fire) make uninterrupted insurance key to lenders and contractors.
Bottom Line
Despite sensational press, home insurance in L.A. remains available—just more costly and with greater scrutiny. But smart homeowners can navigate the post-fire landscape by comparing buyers’ sources, actively mitigating wildfire risks, and leveraging state protections.
If you're in the market now or renewing soon: don't panic, prepare:
- Budget for a 20–50% premium increase.
- Prioritize fire-hardening and documentation.
- Explore all provider options, including FAIR and surplus plans.
- Use the one-year non-renewal moratorium as a cushion.
Coverage isn’t gone, it just requires proactive planning.