California wildfire & home insurance — what VA buyers should know
Program figures verified July 2026 — details change; confirm your scenario with us.
Important: This is general, informational content for California Veterans and home buyers — not insurance advice, and not a statement of what any specific home will cost to insure. California’s insurance market is changing quickly. Always confirm current availability, pricing, and requirements with a licensed insurance agent and official sources such as the California Department of Insurance and CAL FIRE / OSFM.
Why insurance matters for your VA loan
Every mortgage, including a VA loan, requires you to carry hazard (homeowners) insurance on the property. In parts of California with elevated wildfire risk, obtaining that insurance has become harder and more expensive, and in some cases it has to be pieced together from more than one policy. Because insurance is a condition of closing, it’s smart to get quotes early — ideally before you’re deep into escrow — so there are no surprises near your closing date.
California’s home-insurance market in 2026
California has seen a broad tightening of the homeowners-insurance market. Average premiums rose roughly 84% from the end of 2020 to early 2026, and insurers non-renewed more than 2.8 million policies in fire-prone ZIP codes between 2020 and 2025. The strain is no longer limited to the highest-risk mountain areas — it now reaches some moderate- and lower-risk ZIP codes too. The practical effect for buyers is fewer carrier options in many areas and more reliance on the state’s FAIR Plan.
What is the California FAIR Plan?
The California FAIR Plan is the state’s insurer of last resort — coverage for homeowners who cannot find a policy on the open market. Enrollment has grown sharply (up about 44% between fall 2024 and the end of 2025, to more than 668,000 policies). A FAIR Plan policy covers basic perils such as fire, smoke, lightning, and internal explosion; it is not a full homeowners policy, so many owners add a supplemental “difference in conditions” policy for liability, theft, and water damage. The California Department of Insurance approved an average FAIR Plan rate increase of about 29% effective in late 2026, with the wildfire-exposure portion varying widely by property.
Fire Hazard Severity Zones (and what they do and don’t affect)
CAL FIRE’s Office of the State Fire Marshal publishes Fire Hazard Severity Zone (FHSZ) maps (updated in 2025), which classify areas as moderate, high, or very high hazard. Home sellers must disclose elevated fire danger to buyers. One common point of confusion: the California Department of Insurance has clarified that these hazard maps are not used directly by insurers to set rates — insurers use their own catastrophe models. Still, the maps are a useful way to understand a property’s general wildfire exposure before you buy.
Lowering your premium — Safer from Wildfires
California’s Safer from Wildfires framework requires insurers to offer discounts for specific mitigation steps. Examples include a Class-A fire-rated roof, ember- and fire-resistant vents, a 5-foot ember-resistant zone around the home (including fencing), defensible space, and community-level mitigation. Doing more generally saves more — ask your insurer which discounts apply to the home you’re considering.
What this means for your VA home purchase
- Get homeowners-insurance quotes early, before you’re committed in escrow.
- If the home is in a higher-hazard area, ask specifically about FAIR Plan plus a supplemental policy.
- Budget insurance into your monthly payment — it’s part of your PITI and your VA qualification.
- Ask the seller for the wildfire-hazard disclosure and any mitigation already done.
FAQ
Can I get a VA loan on a home in a California fire zone?
Yes, as long as you can obtain the hazard insurance your lender requires. In higher-risk areas that may mean a California FAIR Plan policy plus a supplemental policy. Line up insurance early so it is in place by closing.
What is the California FAIR Plan?
It is California's insurer of last resort for homeowners who cannot get coverage on the open market. It covers basic fire perils such as fire, smoke, lightning, and internal explosion, and many owners add a supplemental policy for fuller coverage.
Why is California home insurance so hard to get right now?
Insurers non-renewed more than 2.8 million policies in fire-prone ZIP codes between 2020 and 2025 and pulled back from many areas, so buyers have fewer options and increasingly rely on the FAIR Plan. Confirm current availability with a licensed agent.
How can I lower my California wildfire insurance premium?
California’s Safer from Wildfires program offers discounts for mitigation such as a Class-A fire-rated roof, ember-resistant vents, and a 5-foot ember-resistant zone around the home. Ask your insurer which discounts apply.
Is earthquake insurance required for a VA loan in California?
No. Neither the VA nor California law requires earthquake insurance on a VA loan — insurers must offer California Earthquake Authority coverage every two years, but buying it is optional. The one exception worth knowing: CalVet loans include earthquake and flood coverage automatically through CalVet's Disaster Indemnity program.
Informational only. Mike Certo and Cornerstone First Mortgage are not insurance agents and do not sell insurance. Verify all insurance details with a licensed insurance professional and official California sources.