What are wildfire mitigation discounts?
Home insurance companies provide wildfire mitigation discounts to homeowners who make changes or upgrades that reduce the risk of wildfire damage. They are also available to homes in communities that have certain designations.
Discounts for wildfire mitigation are mainly found in California, where wildfires have had a major impact on home insurance rates. Currently, they have limited availability in other states.
How can you get a discount for wildfire mitigation?
Contact your insurance company to have wildfire mitigation discounts added to your policy. You will likely be required to provide evidence of the completed work. If you live in California, discounts are required by law for certain types of mitigation. In other states, options are limited.
“I am not aware of any states other than California that mandate insurer wildfire mitigation discounts, but instead are working with insurers on WUI building codes, mitigation grant funding and community-wide mitigation initiatives.,” says Carole Walker, executive director of the Rocky Mountain Insurance Association (RMIA), which represents Colorado, New Mexico, Utah and Wyoming.
Currently, the only company known to offer discounts outside of California is USAA, which offers discounts to homes in Firewise USA communities in the following 10 states:
- California
- Colorado
- Texas
- Arizona
- Oregon
- New Mexico
- Utah
- Wyoming
- Montana
- Idaho
What wildfire mitigation strategies earn a home insurance discount?
You can do a few different things to get a home insurance discount for wildfire mitigation, although what qualifies for a discount differs from company to company.
Some of the things that can earn you a wildfire mitigation discount are:
- Upgrading your roof to fire-resistant materials
- Creating defensible space on the property around the home by clearing vegetation and combustible debris
- Installing enclosed eaves and ember/fire-resistant vents to prevent sparks and embers from igniting the house
- Installing multi-pane windows or deployable non-combustible shutters
- Community-level wildfire mitigation
What are the required wildfire mitigation discounts in California?
In California, all home insurance companies must offer some type of wildfire mitigation discount, either at the community level, such as Firewise communities or for specific mitigation on the property itself.
Per the California law, insurance companies must offer discounts for the items listed in the table below. Insurance companies can add further discounts to this list.
| Community level | Immediate surroundings | Building hardening |
|---|---|---|
| Fire Risk Reduction Community | Clear debris and vegetation under decks | Class-A fire-rated roof |
| Firewise USA site | Clear debris, vegetation, mulch, combustible materials and objects within five feet of the building | Enclosed eaves |
| Have only noncombustible materials within five feet of the building | Fire-resistant vents | |
| Have no combustible structures within 30 feet of the building | Multi-pane windows | |
| Create a defensible space around the building | At least six inches of noncombustible vertical clearance at the bottom of the exterior |
How much is the wildfire mitigation discount?
The amount of the discount varies by company and also by the type of wildfire mitigation. It may also depend on where you live. Different parts of California have different wildfire risk levels, affecting discounts.
According to Ruiz, State Farm offers a 2% discount for community mitigation and 5% for home mitigation. Discounts from other insurance companies will vary.
Contact your insurance company to find out how much the available discount is for your home.
Sources:
- Milliman. “Understanding the new California wildfire rating requirements.” Accessed January 2024.
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