Homeowners Insurance During Escrow in California Wildfire Country
To line up California wildfire insurance on a home you’re buying, start quotes for the exact address before your offer is accepted, have a firm quote in hand before you remove your investigation contingency, and bind the policy before closing. If no regular carrier will write the home, the California FAIR Plan is the state’s fallback for fire coverage, usually paired with a separate difference-in-conditions (DIC) policy for the rest. The market is improving in 2026, but availability is still decided address by address.
In Sonoma, Napa, Marin, Mendocino and Lake counties, insurance has become a contract issue as much as a cost. This guide sets out where the state’s insurance reforms stand, how to fit insurance into your escrow timeline, what carriers ask about, and what to do if a quote falls through. It sits within our home-buying process guides.
Where California’s insurance market stands in late 2026
The Department of Insurance announced its Sustainable Insurance Strategy in September 2023 and finalized its regulations in December 2024. The central trade is this: insurers may now use forward-looking catastrophe models in setting rates, but only if they expand coverage in wildfire-distressed areas.
The first filings under that rule have been approved. In December 2025 the Department approved Mercury’s filing, which it called the first received under the strategy, with a commitment to add more than 38,000 policies over the long term, starting with more than 6,000 over two years. It also approved CSAA’s filing and listed six companies that had committed to grow in California: Mercury, CSAA, Farmers, USAA, Pacific Specialty and California Casualty.
The Department’s May 20, 2026 implementation update reported early signs of improvement. The FAIR Plan added about 16,000 residential policies in the first quarter of 2026, compared with 35,000 to 50,000 a quarter from 2024 through September 2025. The same update said average FAIR Plan rates would rise 29% effective October 15, down from the 36% requested.
None of this guarantees a policy for a particular house. CAL FIRE’s hazard maps are separate from insurers’ own models: the State Fire Marshal’s map page links a Department of Insurance alert titled “CAL FIRE Hazard Maps Do Not Affect Insurance Rates or Availability.” Our guide to fire hazard severity zones in the North Bay explains what the maps do control.
An insurance timeline for your escrow
Insurance problems surface late when buyers wait for the lender to ask. Work it into the contract from the start.
| Stage | Insurance task |
|---|---|
| Before you write the offer | Give a licensed broker the address, square footage, year built, roof type and age, and any hardening work; ask for indications from admitted carriers and, if needed, the FAIR Plan |
| Offer accepted | Ask the seller for the AB 38 defensible space report if the home is in a High or Very High zone, receipts for mitigation work and the home’s loss history |
| Investigation period | Get firm quotes after the inspection, so carriers see the roof and systems as they are; confirm the deductible and wildfire terms |
| Before removing the loan contingency | Confirm in writing that your lender accepts the carrier, the policy form and the deductible |
| Before closing | Bind the policy and send evidence of insurance to the lender and escrow |
An independent broker can usually quote several carriers, and the FAIR Plan if needed, while a captive agent quotes only one company’s policies; in a hard market, the wider search saves time. Unless your contract adds a specific insurance condition, the investigation contingency is usually where insurability gets resolved, so set its length with insurance in mind.
Our guides to the California escrow timeline, the loan contingency and how contingencies work cover the deadlines. C.A.R. also publishes a Buyer Homeowner’s Insurance Advisory (form BHIA) that many agents include in the purchase package.
Diamond may refer you to partners we work with; you’re free to choose any provider.
What carriers ask about, and what earns a discount
The Department of Insurance’s Safer from Wildfires framework lists the mitigation steps that the regulation ties to insurance discounts. The Department says every action on the list qualifies for a discount, and doing more can save more. They are also the features carriers ask about first.
- The roof. A Class A fire-rated roof; the Department notes that wood shake shingles aren’t Class A.
- Vents. Ember- and fire-resistant vents with fine noncombustible metal mesh.
- The base of the walls. Noncombustible material on the bottom 6 inches of exterior walls.
- Eaves and windows. Enclosed eaves, and multi-pane glass or shutters.
- The first five feet. An ember-resistant zone cleared of plants and wood chips, with wood fencing attached to the house replaced by metal.
- Decks and outbuildings. Cleared vegetation and debris under decks, and combustible outbuildings such as sheds and ADUs at least 30 feet from the home.
- Defensible space. Compliance with state and local rules, shown by an inspection report.
- Community programs. Firewise USA sites and Fire Risk Reduction Communities certified by the state Board of Forestry.
An inspection report is the simplest proof of defensible space; our guide to AB 38 defensible space inspections explains who inspects in each county, and our post on home hardening in Napa, Sonoma and Marin covers retrofits.
Checking the property’s claims history
Insurers look at prior claims on the property as well as the house itself. Ask the seller, in writing, about any insurance claims during their ownership and get copies of related repair records.
LexisNexis Risk Solutions, which keeps insurance-related consumer data, lets consumers request their own consumer disclosure report online, by mail or by phone. Under the federal FACT Act, a consumer is entitled to one free copy every 12 months. Because the report is the owner’s, the seller would have to request it and share it with you.
Read the natural hazard disclosure at the same time. Flood, fire and seismic zones on that report are the same questions underwriters ask; see our guide to reading a natural hazard disclosure report.
If no carrier will write it: the FAIR Plan and a DIC policy
The Department of Insurance describes the FAIR Plan as a private association, run by insurance companies, for owners who can’t find coverage in the regular market. You shop the market first, then apply through a licensed agent or broker registered with the FAIR Plan, or call the FAIR Plan at 800-339-4099.
- What it covers. The FAIR Plan’s dwelling policy is a named-peril policy covering fire and lightning, internal explosion and smoke. Vandalism and malicious mischief can be added for an extra cost.
- Limits. Up to $3 million for residential policies and $20 million per location for commercial policies.
- What it leaves out. Water damage, theft and liability need a separate DIC policy from another insurer. The Department says a comprehensive residential FAIR Plan option is in progress, with no completion date given.
Ask your lender before you rely on a FAIR Plan and DIC combination, and get the answer in writing. Our guides to buying a home that needs the FAIR Plan and insuring a high-value home in California go into limits, surplus lines carriers and coverage gaps.
Disaster moratoriums protect existing policies, not new ones
After a declared wildfire emergency, Insurance Code section 675.1 bars insurers, for one year, from cancelling or refusing to renew a residential policy based solely on the home’s location in the area where the fire occurred. The Commissioner lists the ZIP codes covered, which are those within or next to the fire perimeter.
The protection applies to policies in force when the emergency was declared. It helps a seller keep coverage while the home is on the market, but it doesn’t give a buyer a right to a new policy. You’ll need your own policy in your name; the seller’s coverage doesn’t come with the house.
For sellers: making the home easier to insure
A buyer who can’t get a quote can’t close, so insurability is part of pricing and preparation. Before you list, gather the documents carriers ask for:
- A current AB 38 inspection report, if the home is in a High or Very High zone.
- Roof age and type, with permits or receipts for any replacement.
- Receipts and photos for vents, ember-resistant zone work and other hardening.
- Your own claims history and any repair records.
- C.A.R.’s Fire Hardening and Defensible Space Advisory, Disclosure, and Addendum (form FHDS), completed with your agent.
A pre-listing inspection can find roof or vegetation issues while there’s time to fix them. This is general information, not legal or insurance advice; talk to a licensed insurance broker or a California real estate attorney about your situation.
Questions people ask
Can you get wildfire insurance in California?
Yes, though not always from a regular carrier. Several admitted insurers have committed to write more policies under the state’s Sustainable Insurance Strategy, and the FAIR Plan provides fire coverage when no one else will.
When should I get homeowners insurance quotes during escrow?
Start before you write the offer, get firm quotes during your investigation period, and bind before closing. Don’t remove the investigation contingency until you know you can insure the home on terms your lender accepts.
What if I can’t find insurance before my contingency deadline?
Ask the seller for a written extension, apply to the FAIR Plan with a DIC policy as a fallback, and confirm your lender accepts it. If none of that works in time, a contingency still in place lets you cancel under its terms.
Does the FAIR Plan cover everything a homeowners policy does?
No. It covers named perils such as fire, lightning, internal explosion and smoke, up to $3 million for a residence. Water damage, theft and liability need a separate DIC policy.
Do CAL FIRE hazard maps raise my insurance rate?
The Department of Insurance says they don’t affect rates or availability. The maps do control disclosures, defensible space rules and building standards.
Can a disaster moratorium help me as a buyer?
Not directly. Insurance Code 675.1 protects residential policies in force when an emergency was declared, so it may keep the seller insured while the home is listed, but it doesn’t cover a new buyer’s application.
Will hardening the house lower my premium?
The Department of Insurance says every Safer from Wildfires action qualifies for a discount. How much depends on the carrier, so ask each one what it credits.
If you’re buying in the North Bay’s hills, we can build insurance into your offer timeline and help you collect the documents carriers want. Start with our buyer services.
Sources & notes
- California Department of Insurance: Sustainable Insurance Strategy updates
- California Department of Insurance: Mercury Insurance and CSAA expand homeowners coverage (December 20, 2025)
- California Department of Insurance: Sustainable Insurance Strategy implementation fact sheet (May 20, 2026; copy hosted by United Policyholders)
- California Department of Insurance: California FAIR Plan
- California Department of Insurance: Safer from Wildfires
- California FAIR Plan: Dwelling policy
- CAL FIRE Office of the State Fire Marshal: Fire Hazard Severity Zones
- California Public Law: Insurance Code section 675.1
- LexisNexis Risk Solutions: Consumer disclosure reports
- California Association of Realtors: List of standard forms (updated June 2026)
Last reviewed October 2026 by Matthew Martinez.
