State Farm Wildfire Insurance Review
The largest U.S. home insurer — but pulled back hard in California.
Reviewed by Tom Hunt, Wildfire Risk Expert
Editorial independence: This is an independent review compiled from public information. FireRisk.ai is not affiliated with, endorsed by, or paid by State Farm, and earns no commission from State Farm. Any ratings, prices, or performance figures are attributed to their source and have not been independently verified by us — always confirm current details directly.
Founded
1922
Headquarters
Bloomington, Illinois
Financial strength
A++ (Superior)
Channel
National admitted carrier
The largest U.S. homeowners insurer by market share — and the company at the center of California’s insurance crisis.
FireRisk.ai rating
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
State Farm is the biggest homeowners insurer in the country and still the default in much of the interior West. But it became the face of California’s crisis: it paused new homeowner applications statewide in 2023 and filed large non-renewal batches in high-hazard ZIPs, then sought emergency rate increases after the January 2025 Los Angeles firestorm. In high-risk California areas you often cannot get a new State Farm policy at all; elsewhere it remains competitive, especially bundled.
Claims & customer satisfaction
Massive scale and a deep local-agent network, but State Farm did not place in the top tier of J.D. Power’s 2025 U.S. Home Insurance Study (led by Amica, Chubb and Erie). It paid roughly $6.2 billion in claims in 2025, largely tied to the LA wildfires.
Strengths
- +Top-tier financial strength (A++)
- +Huge local-agent network for in-person help
- +Strong auto + home bundle discounts
- +Wildfire-mitigation discounts in several states
Watch-outs
- –New homeowner business paused in California since 2023
- –Non-renewals concentrated in high-hazard ZIPs
- –Appetite for WUI homes has narrowed sharply
- –Raised California homeowner rates 17% in 2025
Exclusions & limitations
Items that a standard homeowners policy — including State Farm's — typically does not cover. Verify with your agent before binding.
- ✕Land and soil — the value of the land beneath your home is never covered; only the structure and its contents.
- ✕Vehicles — cars, trucks, and other motor vehicles are covered by your auto policy, not your home policy, even if destroyed in a wildfire.
- ✕Jewelry, art, and collectibles above sub-limits — standard policies cap payouts for valuables; a scheduled-property rider or floater is required for full value.
- ✕Business property and equipment — commercial inventory, business computers, and tools kept at home are typically excluded or capped.
- ✕Flood damage — water used to fight a wildfire (aerial drops, hydrant streams) can cause significant structural damage that a standard fire policy does not cover; a separate flood or DIC policy is needed.
- ✕Ordinance or law upgrades — if local codes require upgrading electrical, plumbing, or structural systems during a rebuild, those costs may not be covered without an ordinance-or-law endorsement.
Mitigation discounts & what saves you money
These are the hardening steps most widely recognized across the wildfire insurance market — including by State Farm where applicable.
- Class A roof: The highest fire-resistance rating for roofing materials — one of the most impactful factors in wildfire underwriting and pricing.
- Defensible space: Clearing and maintaining at least 30–100 feet of vegetation around the structure; required by law in many states and rewarded by virtually every carrier.
- Firewise USA community: Homes in NFPA-recognized Firewise communities often qualify for a documented discount at several carriers (USAA, AAA/CSAA, and others).
- Ember-resistant vents and screens: Vents are a primary ember-entry point; 1/8-inch or finer metal mesh screens meaningfully reduce ignition risk and are a common underwriting credit.
- Ignition-resistant siding and windows: Non-combustible or ignition-resistant exterior cladding and dual-pane or tempered-glass windows reduce heat and ember vulnerability and signal a hardened home to underwriters.
See also: how to improve your odds of being written — the State Farm-specific steps are in the qualifying section below.
What it costs
California regulators approved a 17% emergency homeowners rate increase effective June 1, 2025 (cut down from the 21.8% State Farm requested). A March 2026 settlement with the Department of Insurance and Consumer Watchdog kept that 17% in place.
How to improve your odds of being written
- 1Be in a lower-to-moderate hazard ZIP — appetite is sharply ZIP-driven
- 2Bundle auto + home for the best pricing and acceptance odds
- 3Document a Class-A roof and defensible space for mitigation credit
How to apply — step by step
The typical process for getting State Farm coverage. Exact steps vary by state and distribution channel.
- 1Get a quote online or through an agent. State Farm sells through agents — find a State Farm-appointed agent in your area and request a homeowners quote, or visit the carrier's website if online quoting is available.
- 2Provide your home details. Be ready with your home's square footage, year built, roof type and age, construction material, distance to the nearest fire station, and any hardening features (ember-resistant vents, defensible space clearance, Class-A roof, ignition-resistant siding). More detail means a more accurate quote and fewer surprises at underwriting.
- 3Schedule an inspection if required. Higher-value homes and high-hazard ZIPs commonly trigger an in-person or virtual inspection before coverage is bound — especially at State Farm. Have documentation of recent upgrades (permits, photos, receipts) ready to share.
- 4Review, then bind coverage. Read the declarations page carefully: confirm your dwelling limit covers a full rebuild at current labor and material costs, check the loss-of-use and personal-property sub-limits, and ask about any wildfire-specific exclusions or endorsements. Once you're satisfied, pay the first premium installment and your coverage is in force.
Recent developments
What's changed lately — dated so you can judge how current it is.
Paused new homeowner applications across California, citing wildfire exposure and rising costs.
17% emergency homeowners rate increase took effect in California after the January 2025 LA firestorm (42,000+ claims).
Settlement with CA regulators kept the 17% increase and extended a moratorium halting mass non-renewals through 2026.
Best for
Homeowners in lower-to-moderate wildfire ZIPs, or existing customers bundling auto and home.
How to get a quote
Through local State Farm agents — but new high-risk California policies are largely unavailable as of 2026.
Bottom line
A strong, financially rock-solid choice where they’ll still write you. In distressed California WUI markets, treat State Farm as unlikely and line up alternatives.
Compare State Farm against carriers that fit your ZIP
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State Farm wildfire insurance FAQ
Does State Farm cover homes in high fire-risk areas?
State Farm is the biggest homeowners insurer in the country and still the default in much of the interior West. But it became the face of California’s crisis: it paused new homeowner applications statewide in 2023 and filed large non-renewal batches in high-hazard ZIPs, then sought emergency rate increases after the January 2025 Los Angeles firestorm. In high-risk California areas you often cannot get a new State Farm policy at all; elsewhere it remains competitive, especially bundled.
Is State Farm financially strong enough to pay a wildfire claim?
State Farm carries an AM Best financial-strength rating of A++ (Superior), indicating its assessed ability to meet ongoing insurance obligations. Ratings can change, so confirm the current rating before buying.
Who is State Farm best for?
Homeowners in lower-to-moderate wildfire ZIPs, or existing customers bundling auto and home. A strong, financially rock-solid choice where they’ll still write you. In distressed California WUI markets, treat State Farm as unlikely and line up alternatives.
What does State Farm cover in a wildfire?
A standard State Farm homeowners policy covers direct fire and smoke damage to the dwelling structure, attached structures (like a garage), personal property inside the home, and loss of use — meaning additional living expenses if you're displaced by an evacuation order or because the home is uninhabitable. Debris removal is typically included, though it may be a sub-limit. Always confirm the specific endorsements and coverage limits on your quote, as policy terms vary by state and product.
How do I qualify for State Farm's best wildfire rate?
The biggest factors that influence your rate and eligibility with State Farm are your home's location (ZIP-level wildfire hazard score), the construction type and age of your roof, the amount of defensible space you maintain, and whether your home has ember-resistant vents, ignition-resistant siding, and dual-pane or tempered windows. Documenting and demonstrating those hardening steps — and mentioning any Firewise USA community membership — will put you in the best position for the lowest available rate. Bundling auto with home is also a common discount where State Farm offers both.
What's not covered by State Farm's standard policy?
Like almost all homeowners policies, a standard State Farm policy does not cover land value, vehicles (covered by auto insurance), flood damage including water dropped or pumped during firefighting, or jewelry and art above sub-limits without a scheduled-property endorsement. Business property and ordinance-or-law rebuild upgrades may also be excluded or capped. If you're pairing State Farm with a California FAIR Plan, add a Difference-in-Conditions (DIC) policy to fill the liability, water, and theft gaps.
Disclosure: This is an independent, research-based editorial review. FireRisk.ai is not affiliated with, endorsed by, or acting on behalf of State Farm. 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.