If you own a home in California and haven't reviewed your insurance policy in the last 18 months, there's a meaningful chance your coverage has changed without you fully realizing it. Carriers have been quietly adding wildfire exclusions, lowering dwelling limits, and in many cases, non-renewing policies outright — particularly in WUI (wildland-urban interface) zones.

What's Actually Changed

Between 2019 and 2024, more than 2.8 million California homeowners received non-renewal notices from their carriers. State Farm, Allstate, Farmers, and dozens of smaller admitted carriers have restricted or exited high-risk California markets. What this means for homeowners who stayed with the same policy:

  • Wildfire exclusions added mid-term or at renewal — often buried in an endorsement packet
  • Dwelling coverage frozen below current rebuild costs — California construction costs are up 40%+ since 2020
  • Smoke and debris removal limits reduced — relevant in every California wildfire
  • Additional Living Expenses (ALE) periods shortened — now sometimes only 12 months when rebuilds take 24+

The California FAIR Plan Misunderstanding

Many homeowners who lost admitted market coverage turned to the California FAIR Plan — the state's insurer of last resort. The FAIR Plan provides fire coverage, but it's not a homeowners policy. It has lower limits, doesn't cover liability, doesn't cover theft or water damage, and shouldn't be your only coverage.

The FAIR Plan covers fire. A Difference in Conditions (DIC) policy covers everything else. Together, they approximate a standard homeowners policy — but cost more and require active management.

How to Check Your Coverage Right Now

Pull your current declarations page and check these five things:

  • Does your dwelling limit equal current rebuild cost? (Not market value — rebuild cost.)
  • Is wildfire specifically included or excluded?
  • What is your ALE/loss of use limit and period?
  • Is there extended or guaranteed replacement cost?
  • Has your carrier filed for non-renewal in your ZIP code?
💡 Bollinsure TipAn independent broker can check all admitted and E&S markets simultaneously. If your current carrier has weakened your coverage, there are often better alternatives — even in high-risk zip codes — that most homeowners don't know about.

E&S Markets: The Option Most Agents Won't Mention

Excess and Surplus Lines (E&S) insurance covers risks that admitted carriers won't write. In California's current market, many wildfire-zone homes can only be properly insured through E&S markets — and getting access requires a licensed surplus lines broker. The coverage is real, it's regulated, and in many cases it's genuinely better than what was available before the market disruption.

What To Do This Week

Call your broker — or us — and ask for a coverage review that specifically looks at wildfire exposure, current rebuild cost, and carrier stability. It takes about 15 minutes and could mean the difference between being fully protected and being left with a check that doesn't come close to covering your rebuild.