The States Where Properties Are Most at Risk of Wildfires

California is the U.S. state with the highest numbers of homes at risk of extreme wildfires by far. In 2023, their number stood at almost 1.3 million, according to data by CoreLogic published by the Insurance Information Institute. Comparing this to Census data from the same year, the number represents 8.7 percent of homes in the state. In smaller Colorado, the second biggest absolute number of homes at dire risk of fires - more than 330,000 - even amounts up to 12.6 percent of the state's housing units.

The numbers show in which states significant chunks of housing stock are located in areas prone to wildfires. These are often wooded and mountainous areas that attract people because of their natural beauty, but also come with inherent dangers to life and property. Increased building activity in such areas has contributed to higher wildfire losses in the United States, as has climate change and increased fire activity, especially in more recent years. This has led to areas potentially considered relatively save in the past now seeing their wildfire risks increase.

The risk of wildfires and property destruction has become so prevalent in states like California that earlier this year, insurer State Farm discontinued 72,000 home insurance policies in the state. Among the zip codes with most cancellations were L.A. neighborhoods like Pacific Palisades and Calabasas/Hidden Hills, which are currently being affected by destructive wildfires, while others like Bel Air and Brentwood remain under threat by them. In many cases, State Farm had been the only company still maintaining policies in the areas.

In mountainous states like Idaho and Montana, the share of homes at risk of extreme wildfires reached between 12 and almost 16 percent, while the absolute number of houses at risk is smaller in these less densely populated locations.