When one California homeowner found out that insurance companies were offering discounts to customers who pursued wildfire mitigation efforts, they were thrilled.
But after reviewing the credits for 10 mitigation categories, they found each one was worth just 67 cents a year, or $6.70 total, even as insurers increasingly press homeowners to make those improvements.
Here's what to know
The homeowner posted their findings to Reddit's r/Insurance community, in which they explained that several carriers, including Mercury, Farmers, and AAA, offered discounts for implementing measures such as defensible space, enclosed eaves, and ember-resistant vents.
But when the original poster dug into the details, they found that these changes would only earn them pennies. "Needless to say, I won't be spending thousands on home upgrades to save $6.70 on annual insurance premiums," they wrote.
Despite that, the OP said some projects could still be worth doing on their own merits. They pointed to what they called the "big three," including a Class A fire-rated roof, ember-resistant vents, and a five-foot area around the home cleared of vegetation and other combustible materials. Together, those things can reduce wildfire risk by over 60%, they said.
One commenter said they found percentage-based credits online, but the OP responded that the figures came directly from their AAA paperwork.
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"Here's the thing you're missing — if you don't perform wildfire mitigation, you may no longer be eligible for insurance with some particular insurers; so it's not so much the discount, it's the fact that insurers have the right to refuse coverage for policyholders outside their underwriting guidelines," another wrote.
The discussion included other wildfire-hardening steps insurers may ask about, including clearing vegetation beneath decks, keeping combustible fences or gates away from the house, ensuring no combustible structure is within 30 feet of the house, using enclosed eaves and multipane windows, and having at least 6 inches of noncombustible siding above the ground.
Even if credits or savings are essentially nonexistent, some work may still be worthwhile. The OP concluded that they would probably move forward with the big three changes even though insurance was "a total non-factor" in their decision.
Where can I learn more?
Wildfire risk is fueling a broad fight over what insurers require from homeowners and what they offer in return.
• In Colorado, lawmakers approved discounts for wildfire mitigation in home insurance pricing.
• Iowa's insurance commissioner warned California wildfire losses could raise premiums.
• In California, one major insurer's pullback from new policies shrank homeowners' coverage options.
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