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Wildfire season seems to get deadlier and more expensive every year.

In the 1970s, the typical wildfire season lasted five months, according to the U.S. Department of Agriculture (USDA). Now, fire season runs for more than seven months of the year. What’s more, the USDA says the average burn time of fires has jumped from six days in the ’70s to 52 days from 2003 to 2012.

In 2025, the danger of wildfires became especially apparent as several large blazes spread through highly populated areas of Los Angeles. By the third week of January, more than 1,150 fires had been recorded nationwide, according to the National Interagency Fire Center.

Homeowners insurance can provide the funds needed to rebuild after a fire, but only if you have the appropriate coverage. Keep reading to learn what homeowners insurance covers for wildfire damage, the basics of filing a claim and how to fireproof your home.

Does homeowners insurance cover wildfire damage?

Coverage for fire damage is a standard provision of homeowners insurance policies, and insurers will cover wildfire damage in the same way they cover a loss from any other fire. Depending on your carrier and coverage levels, that may include paying to repair or rebuild your home, restore accessory buildings and cover the cost of living elsewhere while work is being completed.

However, the situation may be different if you live in an area at high risk for wildfires. Your insurer may expressly exclude damages caused by a wildfire. If exclusions aren’t allowed by law – such as in California – insurers may simply decline to insure your home.

What home insurance typically covers in wildfire scenarios

Assuming your policy does not have a wildfire exclusion, it should pay the cost of restoring your home to its original state.

“The insurance company’s job is to put you back to where you were before,” says Mike McDonough, owner of McDonough Insurance Services, which is based in California but serves clients in more than 25 states.

A policy typically will include the following components:

  • Dwelling coverage: This will cover the cost of rebuilding or repairing a home after a wildfire. Your policy may also apply to accessory buildings, such as a detached garage or shed, with coverage set as a percentage of your dwelling coverage amount.
  • Personal property coverage: Homeowners insurance will also pay to replace items inside your home, such as furniture, clothing and electronics. However, if you have high-value items such as fine art or jewelry, those may need a separate endorsement for coverage.
  • Additional living expenses: After a wildfire, a home will likely be uninhabitable until repairs or reconstruction is complete. The additional living expenses portion of a homeowners policy will pay for temporary housing. Many policies limit the amount of this coverage, and they may not cover the total length of time a family is displaced from their home, McDonough says.

Coverage gaps and supplemental policies

Limitations on additional living expenses are only one coverage gap people may encounter in their homeowners policy. They may also have limited coverage for demolition of what remains of their home or discover that their dwelling coverage is inadequate to pay for the full cost of reconstruction.

New building codes, plus higher labor and material costs, may mean the cost of rebuilding exceeds a policy’s limits. For instance, new homes in California are required to have sprinkler systems installed, McDonough says, and more expensive copper must replace galvanized steel pipes.

Fortunately, endorsements and additional coverages can be purchased to cover these gaps.

  • Extended dwelling coverage: This will increase your dwelling coverage up to a certain percentage if needed.
  • Guaranteed replacement cost: This endorsement will pay the full price of restoring your home, regardless of your policy limits.
  • Inflation guard coverage: This endorsement will increase policy limits each year to match the inflation rate.
  • Building code insurance: Some home insurance policies include a certain amount of coverage to bring a property up to the current building code, while others may offer it as a separate endorsement.

Not all home insurance companies will offer all these options.

Insurance companies may refuse to write policies for some homeowners who live in areas at high risk for wildfires. In that case, insurance may be available through the state. Thirty-three states have what are known as Fair Access to Insurance Requirements (FAIR) plans, according to the National Association of Insurance Commissioners. These plans can be purchased by property owners who can’t buy coverage on the regular market.   

Estimating rebuilding costs after a wildfire

Insurance companies use various factors to determine the amount of dwelling coverage to include in a homeowner policy. These may include the size of the home, the year it was built, the type of roof and foundation, and its internal features.

When it comes time to rebuild your home, the insurance company will pay for constructing a comparable home with similar features, up to coverage limits and minus any deductible you may have.

“The problem is that people can’t prove what upgrades they had in their house,” McDonough says. If you don’t have receipts or other documentation, he suggests searching through social media for photos from inside your home, which may show fixtures, flooring and other home features.

While dwelling coverage is intended to provide enough money to rebuild a home, actual costs can vary. For example, after a wildfire, many homeowners may be trying to rebuild, leading to a surge in demand and increased labor prices.

Filing a wildfire claim: a step-by-step guide

Follow these steps to file a claim on your homeowners insurance after a wildfire:

  1. Contact your insurer or broker to begin the claims process: Depending on your carrier, this may be done over the phone, online or via an app.
  2. Document your loss: Once it is safe to return home, take photographs or video of your property.
  3. Speak with your claims adjustor: Your insurance company will assign a claims adjustor to your case. They may visit the property to assess the damage themselves. Whether you meet with them in person or speak on the phone, ask about the timeline for filing the claim and any deadlines.
  4. Get bids from several contractors: These should be detailed estimates listing the materials and prices. “They are usually going to want you to get two or three bids,” McDonough says. “If the homeowner can’t find (contractors), the insurance company will recommend three or four.”
  5. Submit documentation: Send the bids, photos, receipts and other documentation to your claims adjuster, keeping copies for yourself.
  6. Review and accept a settlement: The insurance company will review the information and provide a settlement amount of how much they will pay for your claim. If you disagree with this amount, you can negotiate with the insurance company or bring in a third party, such as an attorney.

McDonough advises against bringing in a third party early in the process. Depending on how your insurance contract is written, you may be cut out of conversations and your adjuster will only speak to the third party. Moreover, while attorneys may promise to get their clients a larger settlement, they typically take a significant commission from that amount.

As you go through the claims process, you should also do the following:

  • Set up a P.O. box if mail can no longer be delivered to your home.
  • Save all receipts, including those for additional living expenses, if you need to relocate.
  • Save copies of all communication and record the date and time of phone calls.
  • Contact utility companies to cancel services as needed.

Building back better: insurance coverage for upgrades

When your home is rebuilt, it must meet current building standards. And even if not mandated by law, insurance companies may require homeowners to incorporate certain features to help fireproof a home.

These may include:

  • Fire-resistant roofing materials
  • Enclosed eaves
  • Fire-resistant vents
  • Multi-pane windows

As you rebuild, consider incorporating energy-efficient features. Some companies offer a “green upgrades” endorsement to pay for these. If your policy doesn’t have this feature, you may need to cover the additional cost of sustainable or energy-efficient materials yourself.      

Real-life examples: how home insurance helped post-wildfire

Wildfires have long been considered a secondary peril, according to the Harvard Business Review, meaning that they don’t cause the type of insurance losses seen with hurricanes and earthquakes.

That changed less than a decade ago. In 2017, California wildfires caused $14.6 billion in losses. The following year, the state’s Camp Fire alone resulted in $12.5 billion in insured losses. Overall, since 2017, insurance companies have paid out $67 billion to property owners affected by wildfires.

“A lot of these people who suffered a total loss may decide, ‘I don’t want to be here anymore,’ ” McDonough says.

In that case, they may be able to utilize a cash-out option from their insurance company. This allows them to take money and walk away from their property without rebuilding. For instance, if homeowners have insurance coverage for $1.7 million and owe $800.000 on their mortgage, their insurer will pay off the mortgage and send them a check for the remaining $900,000.

Homeowners going this route – or those who receive a settlement that is more than their actual rebuilding costs – should consult with a tax professional about whether that money could be considered income.

“If the insured gets more money and has extra money after the rebuild and repairs, that could be considered taxable income,” says Hubert Klein, partner with Eisner Advisory Group in Iselin, New Jersey. “This doesn’t happen frequently, but if somebody got an estimate for a very high number and was able to do it cheaper, technically, the difference would be taxable.”

However, money received and used for rebuilding or additional living expenses typically isn’t taxable.

In addition to providing funds directly to homeowners, insurance companies can help post-wildfire by ensuring that new homes are built to withstand future fire damage.

Proactive steps to protect your home before wildfires

Don’t wait until after a wildfire hits to make fire-resistant upgrades. You can do the following:

  • Create a defensible space by removing flammable materials within at least 30 feet of your home.
  • Clear your roof of leaves and debris.
  • Install ember-resistant vents.
  • Plug any gaps in the eaves.
  • Use non-combustible materials for fencing near the home.

Also, be sure to review and update your homeowners policy regularly. Rather than shopping by price, be sure you are purchasing coverage that will be adequate to rebuild your property should the unthinkable happen.

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