Wildfire questions can stall a mortgage, even in coastal neighborhoods like Point Loma. If you are buying or refinancing in San Diego County, your lender will expect the right insurance in place before funding. You want clarity, not last-minute surprises. This guide explains what lenders require, how San Diego’s wildfire maps factor in, and what to do if a carrier will not write your address. Let’s dive in.

What your lender needs to fund

Most mortgages require a homeowners policy with dwelling coverage on a replacement-cost basis. Lenders also expect proof of coverage, often a binder or declarations page, and correct mortgagee clause details before closing. Fannie Mae guidance rejects actual cash value policies and calls for replacement-cost settlement, which is the standard many lenders follow. You can review the requirements in the Fannie Mae Selling Guide.

If acceptable coverage is not in place, a lender may delay funding or refuse to close. In some cases, a servicer can place force-placed insurance and charge you for it, which is usually more expensive and less protective for you. Avoiding gaps and delivering the binder early keeps your loan on track.

How wildfire risk is mapped in San Diego County

California’s Fire Hazard Severity Zone maps classify areas as Moderate, High, or Very High based on fuels, slope, and weather. These designations inform local planning, building standards, and can influence insurer underwriting. Learn how FHSZ mapping works through CAL FIRE’s overview and viewer on fire.ca.gov.

San Diego’s maps were updated in 2024 and 2025, with the City of San Diego adopting its Local Responsibility Area updates effective August 30, 2025. Countywide, acreage in Very High zones increased in the 2025 updates. Always confirm the current designation for a specific address using the City’s resources on sandiego.gov.

Point Loma snapshot

Point Loma is a developed coastal peninsula, which often means less direct wildland interface than inland foothills. Many coastal neighborhoods are not mapped as Very High, yet property-level factors and insurer models still matter. Do an address-level check rather than assuming coastal equals low risk. Start with the CAL FIRE resources at fire.ca.gov.

Insurance options and your loan

A standard homeowners policy from an admitted carrier typically includes fire and other perils, plus replacement-cost coverage for the dwelling. That structure usually aligns with lender expectations described in the Fannie Mae Selling Guide.

If you cannot secure a private-market policy, the California FAIR Plan is the insurer of last resort for fire-only coverage. FAIR Plan policies are named-peril and generally do not replicate a full homeowners package, so brokers often pair them with a Difference-in-Conditions policy to fill gaps. Explore FAIR Plan basics and broker options at the California FAIR Plan. Lenders may accept a FAIR Plan plus DIC approach, but you should confirm requirements and limits early.

If the private market says no

Ask your insurance broker to pursue a FAIR Plan fire policy paired with DIC coverage, then confirm with your lender that this combination satisfies the loan. If coverage lapses or cannot be placed, servicers can impose force-placed insurance after proper notice. Understand your rights and the process through the CFPB’s guidance on force-placed insurance.

Steps that keep escrow on schedule

• Start insurance shopping 2 to 4 weeks before closing. Ask carriers if they write in your property’s zone and whether replacement-cost coverage is available. A quick overview of timing and binders is available from this home insurance before closing guide.
• Verify the property’s Fire Hazard Severity Zone via CAL FIRE and the City’s map viewer. Save screenshots for your files.
• Request a binder naming the lender as mortgagee and send it to escrow and your loan officer well before your loan documents are issued.
• If FAIR Plan is the only option, discuss DIC add-ons and lender acceptability before you remove contingencies.

Mitigation that can lower premiums

California requires insurers to offer discounts for verified home hardening and defensible space. Review eligible steps and consumer protections on the Department of Insurance’s Safer from Wildfires page at insurance.ca.gov. You can also pursue recognition through the IBHS Wildfire Prepared Home program. San Diego County Fire provides local resources and assistance for mitigation and certification at sandiegocounty.gov.

New statewide initiatives continue to evolve, including efforts to stabilize availability and reward mitigation. Follow CDI updates and program news in recent releases, such as the 2025 announcement on consumer protections and market reforms at insurance.ca.gov.

Quick checklists

For buyers

• Confirm FHSZ status for the exact address using CAL FIRE and the City’s map viewer.
• Shop carriers early and request replacement-cost quotes.
• Obtain your binder and deliver it to your lender and escrow.
• If using FAIR Plan plus DIC, document both policies and confirm with the lender.

For sellers

• Disclose any recent insurance nonrenewals or cancellations.
• Provide documentation of mitigation work, including roof, ember-resistant vents, or defensible space.
• Share any recent insurance quotes that may help buyer underwriting.

If coverage is canceled or lapses mid-loan

Contact your insurer and servicer immediately. Servicers must provide notice before force-placing coverage, and you can remove force-placed insurance by providing proof of acceptable replacement coverage. The CFPB explains your protections and next steps in its force-placed insurance guide.

A calm, early, and property-specific approach prevents surprises in San Diego County. If you want a discreet, step by step plan for your next move, reach out to Scott Woods for guidance and introductions to trusted local pros.

FAQs

Are Point Loma homes commonly in Very High wildfire zones?

• Point Loma is a coastal, developed area and many properties are not mapped as Very High, but you should verify the exact address using the City and CAL FIRE FHSZ tools on sandiego.gov and fire.ca.gov.

Will a California FAIR Plan policy satisfy my mortgage?

• A FAIR Plan is fire-focused and not a full homeowners policy, so lenders often expect it to be paired with a DIC policy and to meet replacement-cost requirements described by Fannie Mae.

How early should I shop for homeowners insurance before closing in San Diego?

• Start 2 to 4 weeks before closing, confirm the carrier will write your address and coverage type, and deliver the binder to your lender and escrow, as outlined in this insurance-before-closing overview.

What protections apply if my insurer cancels after a wildfire?

• The California Department of Insurance outlines consumer protections, temporary moratoria, and mitigation-based discounts under Safer from Wildfires, which you can review at insurance.ca.gov.

Do mitigation upgrades really reduce premiums in San Diego County?

• Yes, insurers must offer discounts for verified mitigation and home hardening, and programs like IBHS Wildfire Prepared Home can help document improvements, with local assistance available via San Diego County Fire.