Fire damage is a devastating event that can affect any homeowner. Beyond the emotional and financial toll, understanding your insurance coverage is crucial to ensuring you’re protected in the event of a fire. While most standard homeowners insurance policies cover fire and smoke damage, there are important nuances and potential limitations to consider. This guide outlines what you need to know and how to navigate fire insurance coverage to safeguard your home and investment.
Does My Homeowners Insurance Cover Wildfire Damage?
In most cases, standard homeowners insurance provides coverage for the following in the event of fire damage:
The structure of your home
Other structures on your property, such as detached garages or sheds
Personal belongings within your home
This protection typically applies to fires caused by candles, electrical malfunctions, grease fires, lightning, and wildfires. However, not all types of fire damage are covered. Exclusions may include damage caused by:
Nuclear hazards
Arson
Poor maintenance or neglect
Regular wear and tear
To ensure your policy fully meets your needs, it’s important to review your coverage with your insurance agent. A REALTOR can also help connect you with resources or other professionals for additional support.
What Should I Do If My Policy Doesn’t Cover Fire Damage?
In high-risk areas, some insurance companies may exclude or limit fire coverage. If you face this situation, here are a few alternatives to explore:
Shop Around: Not all insurers have the same risk tolerance. Non-admitted insurers, for example, may offer coverage in high-risk areas, but they operate under different regulations. These insurers specialize in filling coverage gaps left by standard policies.
Work With Surplus Lines Brokers: These brokers focus on high-risk insurance needs, including wildfire coverage. While they can provide tailored policies, surplus lines insurers don’t participate in state insurance guaranty funds, so be sure to read the details carefully and ask questions about coverage limits.
State Resources: Contact your state insurance department or commissioner for guidance on available fire insurance options. They may also help you find surplus line brokers or other specialized providers.
What Can I Do If My Home Is Ineligible for Fire Damage Coverage?
If your home is located in an area deemed too high-risk, you may still have options:
Compare Quotes: Seek multiple quotes from standard insurers and surplus line brokers to explore available coverage.
Obtain Wildfire-Prepared Certification: Certifications from organizations like the Institute for Building & Home Safety demonstrate proactive efforts to reduce wildfire risks and may improve your eligibility for insurance.
Consult State Authorities: Reach out to your state insurance commissioner for additional guidance and resources.
What Is a FAIR Plan?
If you can’t find coverage in the private market, a FAIR (Fair Access to Insurance Requirements) plan may be a last resort option. These state-backed policies provide fire insurance for high-risk properties that are otherwise uninsurable.

While FAIR plans tend to be more expensive and offer limited protections compared to private insurance, they can still be a critical safety net for homeowners in high-risk areas.
Protect Your Home and Your Future
Understanding your fire insurance coverage is essential, especially if you live in an area prone to wildfires. Taking the time to review your policy and explore alternatives can make all the difference in protecting your home and your financial well-being.
At Scout Realty, we’re more than just real estate professionals—we’re your trusted partner in protecting your home and investment. Whether you’re buying a property, navigating high-risk insurance options, or need guidance on safeguarding your home, we’re here to help.