California’s Wildfire Disclosure Rules: What Real Estate Agents Need to Know
A Layer of Ongoing Complexity for Agents
California’s wildfire disclosure law isn’t brand new. Since 2021, sellers of older homes in high- and very-high fire hazard zones have been required to disclose both a property’s vulnerabilities and what steps, if any, have been taken to harden the home against wildfire.
But here’s what’s changed: in 2025, this rule has become far more consequential. With devastating wildfire seasons fresh in memory, insurers retreating from riskier markets, and buyers more concerned than ever about safety and insurability, wildfire disclosures have shifted from “just another form” to a make-or-break factor in real estate transactions.
The Rule in a Nutshell
Applies to homes built before 2010 in designated high and very high fire hazard zones.
Sellers must disclose features that make a home vulnerable (combustible roofs, uncovered vents, vegetation within 5 feet, single-pane windows).
They must also state whether upgrades or “home hardening” measures have been completed.
Future enforcement: By 2029, defensible space regulations will require vegetation and other combustibles to be removed within five feet of homes in high-risk zones.
Why It Matters for Transactions
Home Values Shift
Research cited by Bloomberg shows wildfire risk disclosures can reduce home prices by up to 5%. However, homes that have completed fire-hardening steps often sell for a price premium.
Insurability Can Make or Break a Sale
In today’s market, whether a property can even secure homeowners insurance is a major contingency. A strong wildfire disclosure can help buyers get approved for coverage — and sellers close faster.
Buyers Are Paying Attention
While disclosure packets can overwhelm buyers, wildfire readiness is becoming a top priority. Agents who guide clients through the impact on insurance are adding real value.
How Real Estate Agents Can Stay Ahead
Educate Sellers: Encourage them to complete wildfire hardening steps before listing. A safer home is more marketable.
Prepare Buyers: Explain that disclosures affect both insurance eligibility and long-term affordability.
Partner with Experts: Work with independent insurance brokers like Millsap Insurance who can step in early to evaluate insurability.
Where Millsap Insurance Fits In
At Millsap Insurance, we’re an independent agency and broker, meaning we’re not tied to one carrier. We can shop across multiple insurers to find the best fit for each unique property.
For agents, that means:
A reliable partner who can help your buyers secure coverage on homes in wildfire zones.
A resource for sellers who want guidance on making their homes more insurable before listing.
Less deal uncertainty — because coverage is often the last piece standing between accepted offer and closed escrow.
Bottom Line
California’s wildfire disclosure rules are reshaping the real estate market. For agents, success means not just selling the home — but helping clients understand how fire risk impacts price, insurability, and long-term value.
That’s where we come in. We help your clients protect what matters most while making your transactions smoother.
