Could Your Home Insurer Drop You Just Before Fire Season?

Wildfire season is upon us, with experts predicting above-average activity across the U.S. during the summer months. If you live in an at-risk area, you’re likely worried about an outbreak—and your homeowners insurance. Companies can drop your coverage with relatively short notice for a few reasons, including increased risk exposure. Fortunately, there are steps you can take to protect yourself.  

When Can Insurers Cancel Your Policy?

Insurers can generally cancel a homeowners policy in its first 60 days for any reason. However, once that timeframe passes, their options become more limited. Generally speaking, you must stop paying premiums, commit fraud, or make substantial risk-related changes to your property for an insurer to terminate a policy while it’s in effect. 

“Nonrenewals at the end of the term are a different story,” said Anthony M. Lopez, founder and CEO at Your Insurance Attorney in Miami, Florida. They can occur for a laundry list of reasons, including your claims history, location, insurer’s business decisions, and, yes, increased risk of natural disasters such as wildfires. 

Notice Required

However, “insurance companies are required to give homeowners notice,” said Scott Holeman, a spokesperson for the Insurance Information Institute. “The specific notice period varies by state.”

Most states require written notice between 20 and 60 days for an insurer to drop your coverage. For instance, wildfire-prone Georgia requires 30 days’ notice for most nonrenewals and cancellations, while Texas requires 60 days’ notice for nonrenewals and 10 days’ notice for cancellations.

California Requirements

In hard-hit California, home insurers must deliver cancellation notices 10 to 20 days before a policy’s effective termination and provide written notice of a nonrenewal 75 days before the policy expires. However, following the January 2025 wildfires—and after several insurers reduced operations in the state— California’s insurance commissioner issued a mandatory one-year moratorium on insurance nonrenewals and cancellations in wildfire-declared disaster areas.

While California’s moratorium can be helpful for many homeowners in areas affected by or adjacent to wildfires, it does not apply to all situations:

• Insurers cannot cancel or decline to renew insurance policies for one year in areas where a wildfire emergency has been declared.
• If your ZIP code is included in the moratorium and you received a notice of cancellation or nonrenewal for wildfire risk after the wildlife emergency was declared, ask your insurance company to reinstate the policy. If they refuse, contact the state for assistance.
• The state has also called on insurance companies to voluntarily delay nonrenewals for six months in areas near the moratorium areas. This request includes nonrenewals issued up to 90 days before the emergency was declared in January but taking effect after the start of the wildfires. However, your insurer does not have to comply with that request.

Know Your Rights

Your state might similarly provide additional protections. Oregon, for instance, prohibits companies from canceling or nonrenewing homeowners insurance based on its wildfire risk maps. And, while not wildfire-centric, Florida has special insurance cancellation waiting periods for homes damaged in hurricanes or windstorms.  

“The bottom line is, you do have more rights than you may know, but you need to be proactive and know what those rights are,” said Kara Credle, a licensed personal lines insurance producer with Guardian Service in North Carolina. “Contact your state insurance department and ask about the protections in place for wildfire coverage.”

The National Association of Insurance Commissioners’ (NAIC) website provides contact information for your state insurance department and local agents.

What to Do if You Lose Coverage

These steps can help you avoid coverage loss or lapses if you receive a homeowners insurance cancellation or nonrenewal notice.

Call Your Insurer

You’ll want to understand the reason for the cancellation. Also, “determine if fire-resistant improvements can be made to [the] property,” said Matthew Auer, dean and arch professor at School of Public and International Affairs, University of Georgia.

Those improvements or other measures might preclude the cancellation.

Make Improvements 

Even if your current insurer isn’t amenable, taking wildfire risk mitigation efforts could help you secure new (and affordable) coverage. These efforts include cleaning your gutters, building with fire-resistant materials, and keeping combustible materials at least 10 feet away from your home’s perimeter. 

Shop for a New Policy 

Request quotes from multiple homeowners insurance companies right away.

“Consider independent insurance agents or brokers,” Holeman said. “These professionals can often help you navigate the insurance market and find insurers who cover high-risk homes.”

Explore FAIR Plans

Many states, including California, Florida, and North Carolina, sponsor Fair Access to Insurance Requirements (FAIR) plans. While pricey, these plans are an option if you find yourself completely shut out by traditional insurers.  

The Bottom Line

An uptick in wildfires has led to an increase in homeowners insurance cancellations and nonrenewals. While states generally permit this practice, they also require that insurers give you at least some notice—usually between 20 and 60 days—before dropping coverage. You can better understand your cancellation risk by reviewing your policy and learning about your state-specific protections. If you receive a loss-of-coverage notice, appeal to your insurer, shop for a new policy, and identify a state-sponsored backup plan.