In recent years, wildfires have reshaped California’s landscape not only environmentally but financially. As insurance carriers adjust their risk exposure, homeowners across the state have felt the pressure through rising premiums and shrinking coverage options. In response, the California FAIR Plan Association (CFPA) has introduced two wildfire mitigation discounts that can reduce fire insurance premiums by up to 14.5%.
On a recent episode of The Insurance Hour, host Karl Susman explained how these discounts work, who qualifies, and why “home hardening” is now a critical part of modern insurance planning. His insights offer both immediate savings and long-term protection for California property owners.
What Home Hardening Is and Why It Matters
Before discussing the discounts themselves, Susman defines home hardening—also known as wildfire hardening—as the set of improvements that make a home more resistant to fire. These include fire-resistant building materials, clearing vegetation, and creating defensible space around the structure.
From the insurance industry’s perspective, home hardening is a partnership between homeowners and insurers. Better-protected homes mean fewer and less severe claims, which ultimately supports market stability and helps control long-term premium increases. As Susman explains, fewer fire losses benefit everyone in the system.
Home hardening is no longer just a safety concept—it is now directly tied to insurance affordability.
Overview of the FAIR Plan’s 14.5% Wildfire Discounts
The California FAIR Plan’s wildfire mitigation program offers two separate discounts that may be combined for a total savings of 14.5% on the fire portion of a policy:
- A 10% discount for wildfire hardening of the home’s structure
- A 5% discount for wildfire hardening of the surrounding property
Each discount has strict qualification requirements that must be fully met to receive approval.
Wildfire Hardening Discount for the Home Structure (10%)
This discount applies to the physical construction of the home. All five of the following requirements must be met to qualify—partial compliance does not count.
The home must have a Class A fire-rated roof made from materials such as composition shingles, concrete, clay tile, stone, or metal. Wood shake roofs do not qualify.
The bottom six inches of all exterior walls must be constructed from non-combustible material such as stucco, concrete, or brick.
All vents must be fitted with ember- and fire-resistant mesh to prevent airborne embers from entering the structure.
Windows must be double-paned to increase resistance to heat and flying embers.
Eaves must be fully enclosed to prevent embers from collecting in exposed cavities.
If any one of these conditions is missing, the discount is not granted. Verification is performed through inspection.
Wildfire Hardening Discount for the Surrounding Property (5%)
The second discount focuses on defensible space and environmental conditions immediately surrounding the home. To qualify, all four requirements must be satisfied.
All vegetation and combustible debris must be cleared from beneath decks and elevated structures.
An ember-resistant zone must be maintained within five feet of the home, free of flammable materials such as mulch, wooden fencing attached to the structure, and decorative combustibles.
No combustible structures may exist within 30 feet of the main dwelling, unless they are built or retrofitted with fire-resistant materials.
The property must comply with California Public Resources Code 4291, which governs vegetation management, brush clearance, and defensible space standards in wildfire-prone areas.
Together, these measures significantly reduce ignition risk and improve the ability of firefighters to defend the home during wildfire events.
Application and Inspection Requirements
Applying for these discounts requires completion of the official FAIR Plan form CFP SUP App WF02/23. Homeowners must initial each qualifying item and attest that all requirements are met.
Once submitted, the California FAIR Plan will schedule an inspection to verify compliance. Susman stresses that homeowners should not apply unless their property fully qualifies. If an inspection reveals deficiencies, the discount can be revoked and premiums adjusted upward, sometimes retroactively.
Preparation and documentation are essential to avoid unpleasant surprises.
Why These Discounts Are Financially and Strategically Important
A 10% to 15% savings on fire insurance premiums can represent substantial annual and long-term cost reductions for many California homeowners. Beyond the direct financial benefit, home hardening increases safety, reduces community-wide risk, and supports long-term insurance availability.
The FAIR Plan’s discount program reflects a broader industry shift toward rewarding mitigation rather than simply charging for exposure. As wildfire frequency and severity increase, proactive risk reduction is now essential to keeping coverage accessible.
Homeowners and Insurers as Shared Partners in Risk
Today’s insurance market requires active participation from homeowners. The traditional “set it and forget it” approach to insurance is no longer viable in high-risk regions.
For insurers, wildfire mitigations reduce catastrophic exposure. For homeowners, they improve property safety, enhance insurability, and deliver real premium savings. The success of programs like this depends on cooperation between both sides.
Final Thoughts on Protecting Your Home and Your Investment
California’s wildfire risk is both a natural hazard and a financial reality. The FAIR Plan’s wildfire hardening discounts offer a meaningful way for homeowners to lower premiums while strengthening their homes against fire.
As Karl Susman emphasizes, homeowners now have the opportunity to earn up to 14.5% off their fire insurance by improving both their structures and surrounding properties. Those who take the steps to harden their homes now are not only saving money—they are actively protecting their long-term financial security in an increasingly volatile environment.
In today’s insurance landscape, mitigation is no longer optional—it is a critical part of responsible homeownership.
