Wildfires destroyed over 2,400 homes in 2024, with one-third of US homes in high-risk wildfire counties. Home insurance covers fire and smoke damage, offering dwelling, personal property, and loss of use coverage. Insurers are excluding wildfire coverage, canceling policies, or refusing renewals. Tips include insuring above replacement cost value and understanding actual cash value vs. replacement cost.

Extended replacement cost coverage can increase dwelling coverage by 50%, while guaranteed replacement cost coverage pays for full replacement cost. Actual cash value accounts for depreciation, potentially resulting in lower payouts. Insurers may refuse renewals due to wildfires, necessitating alternative coverage options like Fair Access to Insurance Requirements (FAIR) plans or surplus/excess line (E&S) carriers.

Home and renters insurance typically offer personal property and additional living expense (ALE) coverage for wildfire damage. Mitigating wildfire risk includes creating a 30-foot buffer around the home and using fire-resistant materials. Renters insurance doesn’t provide dwelling coverage, but landlords’ insurance may cover property damage. Comprehensive car insurance covers vehicle damage from wildfires, not legally required but recommended for financed or leased vehicles. Hiring a public adjuster can help navigate wildfire insurance claims.

Read more at Yahoo Finance: Does homeowners insurance cover wildfires?