How Much Does Wildfire Insurance Cost Per Year?

Texas homeowners in wildfire-prone areas often do not realize that their standard policy already includes fire coverage — but the premium they pay is significantly shaped by their wildfire exposure. Here is exactly what wildfire insurance costs in Texas in 2026.

Wildfire Coverage Is Built Into Standard Homeowners Insurance

The first important clarification is that there is no separate "wildfire insurance" product in most cases. Wildfire damage is covered under a standard homeowners HO-3 policy as part of the fire peril — meaning the cost of wildfire protection is embedded in your overall premium rather than sold as a standalone product.

Standard HO-3 homeowners insurance typically covers fire damage, including from wildfires — however, in high wildfire risk areas, some insurers may add exclusions, increase deductibles, limit coverage, or decline to renew policies in designated high-risk zones.

The Wildfire Premium Supplement in Texas

FEMA's National Risk Index data gives us the most precise estimate of what wildfire risk actually adds to a Texas premium. The estimated annual wildfire insurance supplement for a median-priced home of $349,893 in Texas is approximately $40 per year — calculated at $0.11 per $1,000 of home value using the FEMA NRI benchmark. That figure represents the statewide average — homeowners in high-risk wildfire corridors pay significantly more. A recent GAO report found that premiums for homes in severe or extreme wildfire risk areas were about 8% higher — roughly $181 more annually — than those in major wildfire risk areas, the next lower category.

High-Risk Zones Pay Dramatically More

For Texas homeowners in the Hill Country, West Texas, the Panhandle, and the Austin western corridor, wildfire surcharges are far more significant. Austin homeowners insurance averages about $3,500 per year for a standard HO-3 policy — roughly 14% below the Texas statewide average of $4,085 — but carriers are starting to price Texas wildfire with property-level scores that can raise rates or trigger non-renewal. The wildfire-exposed western corridor of Austin prices higher per dollar of dwelling because of brush, slope, and distance from fire response. CoreLogic ranks Austin fifth in the nation for wildfire damage risk, with nearly 95,000 homes and $40.6 billion of value at moderate or greater risk.

When Standard Coverage Is Not Enough

Homeowners in high-risk areas should carefully review their policy terms, consider a supplemental wildfire policy or FAIR Plan coverage, and consult a licensed insurance agent. If you have been denied coverage in the private market due to wildfire exposure, the Texas FAIR Plan provides fire coverage as a guaranteed minimum — with dwelling coverage available up to $1 million. Contact the Texas FAIR Plan Association at 800-979-6440 or use the Texas Wildfire Risk Assessment Portal at tfs.tamu.edu to check your specific property's exposure before your next renewal.