October 14, 2025
Protecting Your Assets During California’s Fire Season
As Californians, we are accustomed to the seasonal threat of wildfires. With the fire season extending and intensifying, being prepared has never been more critical. While National Fire Prevention Week was observed from October 5-11, the principles of fire safety are timeless and essential year-round. It is never too late to act, and we are dedicated to providing you with the vital information needed to safeguard your family, home, and business. Understanding your insurance coverage is a fundamental part of that preparation. At Teague Insurance, we are committed to ensuring you have the clarity and confidence to navigate the complexities of wildfire risk and insurance.
Last week’s Fire Prevention Week theme, “Charge into Fire Safety: Lithium-Ion Batteries in Your Home,” also brought a modern fire risk to the forefront. As we review broader insurance strategies, we will also address this specific, and increasingly common, household hazard.
The Shifting Landscape of California Wildfire Insurance
The insurance market in California is adapting to the increased frequency and severity of wildfires. This has led to significant changes that directly impact policyholders. Being aware of these shifts is the first step toward ensuring you are adequately protected.
Key developments include:
- Rising Premiums and Reduced Availability: Insurers are recalibrating their risk models, which has resulted in higher premiums, especially in wildfire-prone areas. Some major carriers have limited writing new policies or have chosen not to renew existing ones, making it more challenging for homeowners and businesses to find coverage.
- The California FAIR Plan: As the private market has tightened, more Californians are turning to the California FAIR Plan. This plan provides basic fire insurance when traditional coverage cannot be obtained. It is important to recognize that a FAIR Plan policy is a backstop, often covering only fire damage. You will likely need a separate policy to cover other risks like liability and theft.
- Regulatory Changes: California has introduced new regulations requiring insurers to cover more homes in high-risk areas if they wish to operate in the state. These rules also allow insurers to use advanced catastrophe modeling to set rates, which may further influence premiums. Crucially, these regulations also mandate that insurers account for mitigation efforts taken by property owners, creating a direct incentive for you to make your property safer.
Actionable Steps for Homeowners and Families
Your peace of mind is our priority. Taking proactive steps can significantly reduce your risk and ensure your insurance coverage meets your needs when it matters most.
1. Review and Understand Your Homeowner’s Policy
Do not wait until a fire is approaching to understand the details of your policy. A thorough review with your insurance advisor is essential.
- Coverage Limits: Is your dwelling coverage limit high enough to rebuild your home at current construction costs? Inflation and demand surges after a major event can dramatically increase rebuilding expenses.
- Personal Property Coverage: Understand the limit for your personal belongings. Most policies have sub-limits for certain categories like jewelry or fine art. Creating a detailed home inventory with photos or videos can simplify the claims process.
- Additional Living Expenses (ALE): This coverage pays for temporary housing and related costs if your home becomes uninhabitable. Confirm the duration and monetary limit of your ALE coverage.
- Exclusions and Gaps: Be clear on what your policy does not cover. Standard policies may have specific exclusions. An experienced advisor can help identify potential gaps and recommend solutions.
2. Harden Your Home Against Wildfires
Proactive mitigation is one of the most effective ways to protect your property. It can also lead to discounts on your insurance premiums under new state regulations.
- Create Defensible Space: Clear flammable vegetation, leaves, and pine needles from your roof, gutters, and at least 30 feet around your home. Trim trees and create separation between shrubs.
- Use Fire-Resistant Materials: When renovating or building, choose fire-resistant materials for roofing, siding, and windows.
- Secure Vents: Cover attic and crawl space vents with fine metal mesh (1/8-inch) to prevent embers from entering your home.
3. “Charge into Fire Safety”: Managing Lithium-Ion Batteries
Last week’s Fire Prevention Week theme highlighted a growing fire risk inside our homes. Lithium-ion batteries are found in phones, laptops, e-bikes, and countless other devices.
- Purchase Wisely: Only use chargers and batteries that are designed for your specific device and listed by a qualified testing laboratory.
- Charge Safely: Avoid charging devices on flammable surfaces like a bed or couch. Do not leave devices charging unattended for extended periods or overnight.
- Handle with Care: If you notice a battery is swelling, leaking, or overheating, stop using it immediately. Move it to a safe, isolated location away from flammable materials if possible.
- Proper Disposal: Never discard lithium-ion batteries in regular trash or recycling bins. Take them to a dedicated battery recycling center.
Essential Guidance for Business Owners
For businesses, the stakes are just as high. A fire can disrupt operations, destroy inventory, and create long-term financial challenges. A comprehensive insurance and continuity plan is vital.
1. Evaluate Your Commercial Property Insurance
Your business property policy is your first line of defense.
- Building and Contents Coverage: Ensure your policy limits are sufficient to replace your building, equipment, inventory, and other business personal property at today’s values.
- Business Interruption Insurance: This critical coverage can replace lost income and cover ongoing expenses (like payroll) if your business is forced to shut down due to a covered loss like a fire. Review the policy’s waiting period and the duration of the coverage.
- Ordinance or Law Coverage: If your building is damaged, local building codes may have changed since it was constructed. This coverage helps pay for the increased cost of rebuilding to meet current codes.
2. Develop a Business Continuity Plan
A robust continuity plan ensures you can resume operations as quickly as possible after a disaster.
- Data Backup: Regularly back up essential business data, including financial records and client information, to a secure off-site or cloud-based location.
- Supply Chain Alternatives: Identify alternate suppliers and vendors in case your primary partners are also affected by a widespread event.
- Communication Strategy: Have a clear plan to communicate with your employees, customers, and stakeholders in the event of a disruption.
Partner with a Trusted Advisor
Navigating the complexities of insurance in the face of California’s wildfire risk can be a difficult task. You do not have to do it alone. As your dedicated insurance advisors, we are here to provide the expertise and support you need.
Our team will work with you to:
- Conduct a thorough review of your current personal or commercial policies.
- Identify potential coverage gaps and explain your options in clear, understandable terms.
- Advise on mitigation efforts that can better protect your property and potentially lower your premiums.
- Serve as your advocate with insurance carriers to find the best possible solutions for your specific needs.
Your protection and security are our foremost concerns. Contact Teague Insurance today to schedule a comprehensive review of your coverage and ensure you are prepared for the season ahead.