Is Your Home Covered? What Every San Diego Homeowner Needs to Know About Fire Insurance in 2025

What You Need to Know About Fire Insurance in San Diego

Imagine buying your dream home in San Diego, only to later discover that your fire insurance falls short—or even that you can’t get coverage at all. With increasing fire risks and rising insurance premiums, many homeowners are left scrambling to find coverage.

As of 2024, new real estate transaction laws in California require greater transparency about fire risks and insurance. These include mandatory disclosures on fire hazard severity zones, insurance availability, and mitigation requirements. Understanding these changes is crucial for buyers and sellers navigating the market. So, how do you know if you’re covered? And what are your options if traditional insurers won’t insure your property? Let’s break it down.

1. Are You Covered? A Quick Fire Insurance Checklist

Not all fire insurance policies are created equal. Here are the key things to check in your current or future policy:

• Coverage Limits: Does your policy cover the full cost of rebuilding your home at today’s construction prices?
• Extended Replacement Cost: Many policies now offer only partial replacement, so check if yours covers 100% or more.
• Wildfire Coverage: If you’re in a high-risk area, standard policies may exclude wildfires—double-check the fine print.
• Loss of Use Coverage: Will your insurance pay for temporary housing if you’re displaced by a wildfire?
• Debris Removal & Landscaping Protection: These add-ons can be crucial after a fire.

If you’re unsure about any of these, it’s time to call your insurance rep and review your policy.

2. What If You Can’t Get Fire Insurance? Understanding the California FAIR Plan

With major insurance providers pulling out of wildfire-prone areas, many homeowners find themselves unable to secure traditional fire coverage. If this happens, your last resort is the California FAIR Plan, a state-backed insurance pool designed for high-risk properties.

• Who Qualifies? Homeowners in high-risk fire zones who have been denied coverage by standard insurers.
• What’s Covered? Basic fire damage, but a separate policy is required for liability, theft, and other protections.
• How Do You Apply? Contact an independent insurance broker for assistance with FAIR Plan enrollment.

While not ideal, the FAIR Plan ensures that no homeowner is left completely uninsured.

3. New Fire Insurance Documents in Real Estate Transactions

Starting in 2024, California introduced new required disclosures and documents related to fire insurance and risk. If you're buying or selling a home in San Diego, here’s what you need to know:

• Fire Risk Disclosure Statement: Sellers must disclose if the property is in a high or very high fire hazard zone.
• Insurance Availability & Cost Estimate: Buyers must be informed of any potential challenges in obtaining insurance before closing.
• Mitigation Requirements Notice: Properties that do not meet fire mitigation standards, such as defensible space or fire-resistant roofing, must have this disclosed.
• HOA & Wildfire Insurance Coverage: Buyers in condos or planned communities must receive details on the HOA’s fire insurance policy or lack thereof.

These changes mean buyers and sellers must be proactive about fire insurance discussions early in the transaction process.

4. Is Defensible Space Required? Understanding California’s Fire Mitigation Rules

California law requires homeowners in designated fire hazard severity zones to maintain defensible space around their property. Homeowners can determine if their property falls within these zones by checking with their local fire department, reviewing CAL FIRE’s Fire Hazard Severity Zone maps, or reviewing the NHD (Natural Hazards Disclosure) report provided during a real estate transaction. Consulting their insurance provider is also recommended. Defensible space is a buffer area where vegetation, debris, and flammable materials are reduced to slow the spread of wildfires.

• Who Is Required to Do It? Homeowners in high and very high fire hazard severity zones.

• What Are the Requirements? Properties must maintain a minimum of 100 feet of defensible space, with specific clearance zones:

• Zone 1 (0-30 feet): Remove dead vegetation, keep tree branches at least 10 feet from structures, and trim shrubs.

• Zone 2 (30-100 feet): Reduce vegetation density, remove fallen leaves, and space out trees to limit fire spread.

• Is It Enforced? Fire departments conduct inspections, and non-compliance can result in fines or insurance coverage denials.

Creating defensible space not only protects your home from fire but may also help lower your insurance costs by reducing risk.

5. How to Lower Your Fire Insurance Costs in San Diego

If your fire insurance is expensive—or you’re struggling to get coverage—there are ways to reduce risk and lower premiums:

• Create Defensible Space: Maintain a cleared area around your home to reduce wildfire spread risk.
• Upgrade to Fire-Resistant Materials: Metal roofs, ember-resistant vents, and tempered glass windows can make a big difference.
• Install a Sprinkler System & Smart Sensors: Some insurers offer discounts for homes with enhanced fire protection systems.
• Get Community Firewise Certification: If your neighborhood participates in fire risk mitigation programs, you may qualify for better rates.

Final Thoughts: Don’t Wait Until It’s Too Late

With wildfire risks increasing, fire insurance is no longer just a box to check—it’s a crucial part of homeownership in San Diego. Whether you're a buyer, seller, or current homeowner, taking the time to understand your coverage, explore your options, and make your home fire-resilient will protect both your investment and your peace of mind.

Need help navigating fire insurance in your real estate transaction? Contact your insurance provider today to review your coverage or speak with a real estate expert to ensure you're fully protected. Reach out to your insurance provider or a trusted real estate professional for guidance.