Discount Qualification Requirements for Insurance

Published Date: 11/03/2023

Title: How California Homeowners Can Save Up to 14.5% on Fire Insurance Through Wildfire Hardening

In recent years, wildfires have reshaped California’s landscape — not just ecologically, but financially. As insurance carriers recalibrate their risk exposure, homeowners across the state have felt the impact through rising premiums and shrinking coverage options. Amid these challenges, the California FAIR Plan Association (CFPA) has introduced two new wildfire mitigation discounts that could help property owners reduce their fire insurance premiums by up to 14.5%.

On a recent episode of The Insurance Hour, host Karl Susman broke down what these discounts mean, how homeowners can qualify, and why “home hardening” has become a key term in modern insurance language. His explanation offers both a financial incentive and an educational roadmap for property owners looking to protect their homes — and their wallets.

What Is “Home Hardening,” and Why Does It Matter?

Before diving into the specifics of the discounts, Susman introduces the concept of home hardening, sometimes called wildfire hardening. This term describes measures homeowners can take to make their property more resistant to wildfires — by using fire-resistant materials, clearing vegetation, and creating defensible space.

The insurance industry sees this as a partnership between insurers and homeowners. When properties are better protected, there are fewer and smaller claims — which helps stabilize the overall market. As Susman notes, “Not having fire damage is good for us. It’s good for the insurance industry. And what’s good for the insurance industry, meaning not paying a lot of claims, means we’re going to end up with lower premiums.”

In other words, home hardening isn’t just about individual protection — it’s part of a broader effort to balance risk and affordability in California’s volatile insurance landscape.

The Two Discounts: A Breakdown of the 14.5% Savings

The California FAIR Plan’s new wildfire mitigation program offers two separate discounts that can combine to total 14.5% off the fire portion of your policy:

1. Wildfire Hardening – Protecting the Structure (10% Discount)
2. Wildfire Hardening – Protecting the Immediate Surroundings (5% Discount)

Let’s unpack each one and what you need to do to qualify.

1. Wildfire Hardening: Protecting the Structure (10% Discount)

This discount focuses on the physical structure of your home — its roof, walls, windows, and other components that influence fire vulnerability. To qualify, your dwelling must meet five specific criteria, and all must be satisfied (no partial credit).

The Five Structural Requirements:

1. Class A Fire-Rated Roof
   Your roof must be made of a Class A fire-rated material. Acceptable options include composition shingles, concrete, clay tile, stone, or metal.
   What doesn’t count: Wood shake roofs — a beautiful but highly combustible material — are ineligible.
2. Non-Combustible Exterior Base
   The bottom six inches of all exterior walls must be made of non-combustible material, such as concrete, stucco, or brick. This helps prevent flames or radiant heat from igniting siding materials near the ground.
3. Fire-Resistant Vents
   All vents (eave, attic, crawlspace, etc.) must have ember- and fire-resistant mesh coverings. During wildfires, embers can easily enter through vents and ignite the home from the inside — one of the most common causes of structural loss.
4. Double-Paned Windows
   Windows must be double-paned to improve resistance to heat and flying embers. The outer layer acts as a shield, while the inner layer helps maintain the integrity of the glass under high temperatures.
5. Enclosed Eaves
   Open eaves can trap embers. Enclosing them creates a barrier that significantly reduces ignition risk.

If your home meets all five criteria, you may qualify for a 10% discount on the fire portion of your FAIR Plan premium. But as Susman reminds listeners, “Four out of five will not count.” The California FAIR Plan requires full compliance, verified through an inspection.

2. Wildfire Hardening: Protecting the Immediate Surroundings (5% Discount)

The second discount focuses on the defensible space around your home — the critical area where landscaping, vegetation, and outbuildings can either slow or spread fire. To qualify for this 5% discount, you must meet the following four environmental standards:

1. Clear Vegetation and Debris from Under Decks
   Decks often trap dry leaves and debris, creating hidden fire hazards. Keeping these areas clear helps prevent ignition from embers or radiant heat.
2. Maintain an Ember-Resistant Zone Within Five Feet of the Home
   The first five feet around your house are the most critical. This “ember-resistant zone” should be completely free of flammable materials — no mulch, no wooden fences attached to the home, and no combustible decor.
3. No Combustible Structures Within 30 Feet
   Sheds, playhouses, or other outbuildings must be non-combustible or located at least 30 feet from the main home. If that’s not possible, those structures may need to be upgraded with fire-resistant materials similar to the primary dwelling.
4. Maintain Defensible Space per California Public Resources Code 4291
   This state law outlines vegetation management requirements — such as trimming trees, clearing brush, and removing debris within specified distances from structures. Compliance isn’t just about safety; it’s also a legal requirement in many fire-prone zones.

Together, these measures create a perimeter that helps firefighters defend the property and reduces the likelihood of a total loss.

The Application and Inspection Process

Applying for these discounts isn’t as simple as checking a box. Homeowners must complete a specific form — the CFP SUP App WF02/23 — detailing the actions taken to meet each qualification. Each item must be initialed, and the California FAIR Plan will send out an inspector to confirm compliance.

Susman emphasizes the importance of preparation: “Please understand that there will be an inspector coming out to look to be sure that you do qualify for this discount or these discounts if you’re applying for both of them. I can’t stress it enough because I don’t want people to end up with a surprise — and worse than that, having their premium go back up again.”

In other words, be sure your home truly meets all the criteria before submitting your application. Otherwise, your discount could be revoked after inspection, leading to unexpected rate increases.

Why These Discounts Matter

At first glance, a 10–15% savings might not seem monumental. But for many California homeowners paying thousands annually for fire coverage, the savings can be significant — and cumulative over time. More importantly, the home hardening process improves safety, reduces community fire risk, and supports long-term insurance stability.

The FAIR Plan’s initiative reflects a broader industry movement toward risk-based incentives. Insurers want to reward mitigation because every avoided claim helps stabilize the entire system. As wildfires become more frequent and intense, encouraging proactive behavior is essential to keeping insurance available and affordable.

A Shared Responsibility: Homeowners and Insurers Working Together

Susman’s explanation underscores an important truth about today’s insurance market: homeowners and insurers must work in partnership. The days of “set it and forget it” coverage are over. With mounting environmental risks and economic pressures, policyholders must take active steps to make their properties insurable.

For insurers, these programs help balance risk exposure and demonstrate responsiveness to consumer needs. For homeowners, they offer both tangible savings and peace of mind.

Final Thoughts: Protect Your Home, Protect Your Investment

California’s insurance landscape may be challenging, but programs like the FAIR Plan’s wildfire hardening discounts represent a hopeful step forward. By investing in home safety improvements and environmental mitigation, property owners can not only lower their premiums but also contribute to a safer, more resilient community.

As Karl Susman reminds his audience, “At the end of the day, what this boils down to is the California FAIR Plan is giving us the ability to get 14.5% off of the premium that we’re paying for our fire insurance. Half of this has to do with work that we can do on our own on the house. The other part has to do with work that we need to do on the surrounding area. Between the two, if you can do it, please, please do it.”

In a state where wildfire risk is both a natural and financial reality, those who harden their homes today are not only saving money — they’re safeguarding their future.