Mercury Insurance wildfire insurance review

A California-rooted carrier still writing where others paused.

Specialist / non-standardAM Best A (Excellent)Reviewed June 2026

Founded

1961

Headquarters

Los Angeles, California

Financial strength

A (Excellent)

Channel

Specialist / non-standard

Insures more than 650,000 California homeowners and is one of the state’s most reachable admitted names.

FireRisk.ai rating

76/ 100
Wildfire appetite4/5
Financial strength4/5
Claims & service3/5
Mitigation credit4/5

Our editorial scores for a wildfire-exposed home — appetite weighted heaviest. Not a financial rating; not carrier-supplied. See how all carriers rank →

Wildfire appetite & overview

Mercury is a California-founded insurer that has continued writing homeowners business through the crisis and is one of the carriers staying and growing under the state’s Sustainable Insurance Strategy. In August 2025 it filed California’s first SIS homeowners rate plan using a reviewed wildfire catastrophe model, and committed to adding tens of thousands of policies — explicitly targeting distressed, higher-wildfire-risk areas and FAIR Plan depopulation. Appetite still varies by ZIP, and rates have risen.

Strengths

  • +Strong California roots and presence
  • +Publicly committed to growing in distressed wildfire ZIPs
  • +Helping move homeowners off the FAIR Plan
  • +Bundling discounts
  • +A (Excellent) financial strength

Watch-outs

  • Concentrated in fewer states
  • Appetite still ZIP-by-ZIP in worst areas
  • Filed a 6.9% homeowners rate increase (effective ~July 2026)

What it costs

Mercury’s August 2025 SIS filing — the first in the state to use the reviewed Verisk wildfire catastrophe model — seeks an average 6.9% homeowners increase, expected to take effect around July 2026 for 650,000+ policyholders.

How to improve your odds of being written

  1. 1Insure a California home (Mercury’s core market)
  2. 2Ask specifically about its SIS / distressed-area program if you’re in a high-risk ZIP or on the FAIR Plan
  3. 3Work with a Mercury-appointed independent agent

Recent developments

What’s changed lately — dated so you can judge how current it is.

Aug 2025

Filed California’s first Sustainable Insurance Strategy homeowners rate plan, using the reviewed Verisk wildfire model.

2025

Committed to 38,000+ new policies long-term (6,000+ over two years) focused on wildfire-distressed areas and FAIR Plan depopulation.

Best for

California homeowners — including some higher-risk ZIPs — looking on the admitted market.

How to get a quote

Through Mercury-appointed independent agents, mainly in California and select states.

Bottom line

One of the more realistic admitted options for Californians in moderate-to-high ZIPs. Worth a quote before defaulting to the FAIR Plan.

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Mercury Insurance wildfire insurance FAQ

Does Mercury Insurance cover homes in high fire-risk areas?

Mercury is a California-founded insurer that has continued writing homeowners business through the crisis and is one of the carriers staying and growing under the state’s Sustainable Insurance Strategy. In August 2025 it filed California’s first SIS homeowners rate plan using a reviewed wildfire catastrophe model, and committed to adding tens of thousands of policies — explicitly targeting distressed, higher-wildfire-risk areas and FAIR Plan depopulation. Appetite still varies by ZIP, and rates have risen.

Is Mercury Insurance financially strong enough to pay a wildfire claim?

Mercury Insurance carries an AM Best financial-strength rating of A (Excellent), indicating its assessed ability to meet ongoing insurance obligations. Ratings can change, so confirm the current rating before buying.

Who is Mercury Insurance best for?

California homeowners — including some higher-risk ZIPs — looking on the admitted market. One of the more realistic admitted options for Californians in moderate-to-high ZIPs. Worth a quote before defaulting to the FAIR Plan.

Disclosure: This is an independent, research-based editorial review. FireRisk.ai is not affiliated with, endorsed by, or acting on behalf of Mercury Insurance. The company name and any AM Best rating are used for identification and comparison only. This is not insurance or financial advice, and we are not a licensed insurance agency. Availability, appetite, ratings, and pricing change and vary by ZIP and home — verify everything directly with the carrier before purchasing. We may be compensated when you request quotes through a partner.