A new housing development in Escondido, Dixon Trail, is being marketed as the first “wildfire resilient neighborhood” in the United States. Built by national developer KB Home, the neighborhood features 64 homes constructed with fire-resistant materials and methods. Key elements include double-paned tempered glass windows, steel fencing that mimics wood, stucco shutters, and gravel perimeters.
According to CalMatters, each home in the development follows standards established by the Insurance Institute for Business & Home Safety, a nonprofit funded by the insurance industry. The Institute, which began issuing “wildfire prepared” designations in 2022, is expected to issue its first neighborhood-wide certification for this project.
Home Hardening Comes with Significant Costs
Retrofitting existing homes to meet wildfire resilience standards remains a major hurdle. Millions of Californians live in areas classified as wildfire-prone, and many homes were built before the 2008 wildfire-focused building codes were introduced. A 2024 report from Headwaters Economics estimated that the cost to harden a two-story home can range from $2,000 to over $100,000.
Insurance industry leaders describe these retrofits as “pre-disaster mitigation” efforts, with potential to reduce long-term replacement costs. However, the upfront expenses remain a barrier for widespread adoption.
California Launches Pilot Program to Retrofit At-Risk Communities
The California Wildfire Mitigation Program, launched in 2019, represents the state’s initial effort to retrofit homes at a neighborhood scale. The $117 million initiative, jointly managed by Cal Fire and the Governor’s Office of Emergency Services, has retrofitted 21 homes to date. Target areas include economically distressed and fire-prone regions such as Lake County and Dulzura.
Challenges to expansion include the cost and availability of materials, contractor expertise, permitting delays, wage requirements, and environmental regulations. Retrofits completed so far have ranged from $36,000 to $110,000 per home. The pilot program aims to complete work on 2,000 homes and inform future policy design.
Local Governments Pursue Independent Solutions
With no statewide hardening mandate currently in place, some cities and counties are developing their own initiatives. Marin County, for example, passed a local tax measure in 2020 to fund fire prevention programs. These include safety assessments, matching grants for home retrofits, and vegetation management.
Berkeley recently enacted regulations requiring homeowners in hillside areas to maintain a five-foot buffer around their houses—commonly known as “zone zero.” Enforcement will begin in 2026. Cal Fire is working to develop similar statewide regulations, which are expected to be finalized by the end of 2025.
Insurance Companies Influence Homeowner Decisions
The insurance market has played a significant role in motivating home hardening measures. Some companies have issued non-renewal notices or increased premiums unless homeowners implement specific fire-resistant upgrades.
A 2023 regulation requires insurers to offer discounts to homeowners making qualifying changes, although the process for applying and the actual savings vary. Some carriers have pulled out of the California market due to wildfire-related losses and regulatory challenges, limiting available options.
New Insurance Models Explore Risk-Based Incentives
Innovative insurance models are being piloted to reflect reduced fire risk. In one example, the Tahoe-Donner homeowners association received a 40% policy discount following years of forest thinning and brush clearing. The policy was underwritten by Globe Underwriting in London, with financial support from the Nature Conservancy.
Although the policy only applies to shared land, it demonstrates that insurers may respond favorably to proactive risk mitigation. Policymakers and advocates suggest that such approaches could help build public support for broader investments in fire resilience.
Legislative Proposals Under Review
Several bills are under consideration in the California Legislature. One proposes redirecting a portion of insurance tax revenues toward retrofit grants. Another would create a certification program for hardened homes, while a third seeks to establish a Community Hardening Commission to guide rulemaking.
The goal of these proposals is to expand access to retrofit funding, standardize requirements, and improve insurance availability for homeowners who invest in wildfire resilience.
Photo: KB Homes
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