Wildfire risk, strict rate rules, and a state backup plan all shape what coverage you can get, sometimes down to your street.
Quick answer: California doesn’t legally require homeowners insurance, but nearly every mortgage lender does. The bigger issue here is getting coverage. Several major insurers have limited new policies in high wildfire-risk areas, so the FAIR Plan and comparing insurers by address matter more than in most states.
Coverage options and pricing shift by CAL FIRE hazard severity zone. Some carriers limit or decline new policies in higher-risk areas, which is why comparing options by specific location matters more here than in most states.
When a standard policy isn’t available, the California FAIR Plan provides basic fire coverage as a last resort. It’s usually paired with a second policy that fills the gaps.
Under Proposition 103, insurers need state approval before changing rates. That’s stricter than most states, and it affects how quickly prices respond to risk.
| Peril | Covered by standard policy? | How it's typically addressed |
|---|---|---|
| Wildfire | Yes, if a policy is available | FAIR Plan if you're turned down for a standard policy |
| Earthquake | No | Separate earthquake policy, often through the California Earthquake Authority (CEA) |
| Flood | No | Separate flood insurance policy |
| Mudslide / debris flow | Often excluded, varies by carrier | Check your policy, or add coverage |
Coverage options change by city. Pick where you live to see what’s available.
Don’t see your city? We can still help. Call and talk to one of our agents.
California does not legally require homeowners insurance. In practice, nearly all mortgage lenders require it as a condition of the loan, so most homeowners with a mortgage carry it regardless of state mandate.
The California FAIR Plan is the state’s backup option for homeowners who can’t get a standard policy, most often because of high wildfire risk. It covers fire damage but less than a regular policy, so most people pair it with a second policy (called a difference-in-conditions policy) to fill the gaps.
No. Standard homeowners policies in California exclude earthquake damage, the same as in other states. Earthquake coverage is available separately, most commonly through the California Earthquake Authority (CEA), a state-created entity that most major carriers offer alongside their standard policies.
Several major insurers have paused or limited new homeowners policies in parts of California in recent years, citing wildfire risk and the state’s regulatory approach to rate approval. This has increased reliance on the FAIR Plan in some high-risk areas and made comparing which insurers are available at your address more important than in most states.
California requires insurers to get prior approval from the Department of Insurance before changing rates, under a ballot measure known as Proposition 103. This prior-approval system is stricter than the rate regulation used in most other states.
Insurance options change block by block in California. One of our licensed agents can tell you what’s available at your address.
