Wildfire
Disclosure
Report

WFDR was developed by FortressFire to assess the wildfire risk characteristics of a property, in line with the intended objectives of AB 38.

• WFDR is a tool for real estate professionals and their seller and buyer clients.
• WFDR is not based on a generalized hazard model, but rather a property’s specific physical structure and its surroundings.
• A PDF version of the WFDR is emailed to the report purchaser within 48 hours of report ordering. Payments can be made via escrow account (if transaction is under escrow) or credit card payment via an authorized distributor.

As California’s drought and wildfire situation continues to worsen, 50% of surveyed real estate professionals noted that their clients have had issues with wildfire risk. 80% of those affected agents added that their clients had difficulties with property insurance that covers damage due to wildfire. In 30% of the real estate transactions, Defensible Space (onsite) Inspection was requested by either buyers or sellers. The uncertainty about property insurance eligibility and home insurance premium has created friction to real estate transactions.

• WFDR provides both sellers and buyers with an objective assessment of the property vulnerability to wildfire, and an estimated costs for retrofitting and mitigating wildfire risk to align the property with AB 38, CalFire, and homeowner’s insurance underwriting standards.
• For a buyer, the information may be used to negotiate concessions to the property sale price. There is no fire insurance contingency in the California Residential Purchase Agreement. The buyer needs to conduct their investigation diligence. If there is a loan contingency, failure to obtain fire insurance and therefore secure a loan after the offer is accepted would not justify exercise of the loan contingency.
• For a listing agent or seller, they may choose to include WFDR in the seller disclosure package or not, since WFDR is not a mandatory requirement. Inclusion of the WFDR report early on minimizes transaction complexity later.

FortressFire brings together a diverse group of scientists, technologists, insurance experts, service operations leaders, and fire management professionals dedicated to protecting homes and businesses from the devastation of wildfire.

FortressFire worked closely with the California of Association of REALTORS® (C.A.R.) who has continuously served its members and homeowners in California since 1905, to develop the WFDR. The report incorporates significant input from real estate professionals throughout the state. FortressFire also collaborates closely with CalFire, Insurance Institute of Business & Home Safety (IBHS) and California Department of Insurance (DOI). CalFire conducts inspections. IBHS sets the national standard for resilient construction. DOI sets the insurance standard.

Local, state, and federal authorities regularly plan for the prevention and control of wildfire. Which authority is responsible for a given area is defined by law, administrative analysis, and direct protection agreements between authorities.

Public Resources Code sections 4125-4128 define which lands are the direct responsibility of the state (SRA) and local responsibility (LRA). Federal agencies are responsible for any federal land (FRA). Direct Protection Agreements (DPAs) may mean that a different authority takes responsibility for an area. The SRA, LRA, and FRA maps are updated from time to time and new maps are due by the end of 2023.

Maps can be found at: https://osfm.fire.ca.gov/divisions/community-wildfire-preparedness-and-mitigation/wildfire-preparedness/fire-hazard-severity-zones/fire-hazard-severity-zones-map/

Public Resources Code sections 4202 directs the State Fire Marshal to classify lands in the SRA into fire hazard severity zones (FHSZ). These zones are classified as Moderate, High, or Very High. Government Code 51175 directs the State Fire Marshal to work with local authorities to define FHSZs for local areas that meet the criteria for Very High classification. Local authorities may impose additional requirements for wildfire prevention over and above the state recommended FHSZ.

Fire Hazard Severity Zones are determined by models based on historical data and fire science. These models have two key components: the probability of burning and the expected fire behavior under extreme fuel and weather conditions.

Local, state, and federal authorities regularly plan for the prevention and control of wildfire. Which authority is responsible for a given area is defined by law, administrative analysis, and direct protection agreements between authorities.

Public Resources Code sections 4125-4128 define which lands are the direct responsibility of the state (SRA) and local responsibility (LRA). Federal agencies are responsible for any federal land (FRA). Direct Protection Agreements (DPAs) may mean that a different authority takes responsibility for an area. The SRA, LRA, and FRA maps are updated from time to time and new maps are due by the end of 2023.

Maps can be found at: https://osfm.fire.ca.gov/divisions/community-wildfire-preparedness-and-mitigation/wildfire-preparedness/fire-hazard-severity-zones/fire-hazard-severity-zones-map/

Public Resources Code sections 4202 directs the State Fire Marshal to classify lands in the SRA into fire hazard severity zones (FHSZ). These zones are classified as Moderate, High, or Very High. Government Code 51175 directs the State Fire Marshal to work with local authorities to define FHSZs for local areas that meet the criteria for Very High classification. Local authorities may impose additional requirements for wildfire prevention over and above the state recommended FHSZ.

Fire Hazard Severity Zones are determined by models based on historical data and fire science. These models have two key components: the probability of burning and the expected fire behavior under extreme fuel and weather conditions.

Flame length and burn probability increase roughly 40 – 60% between CalFire’s Fire Hazard Severity Zone classes. More intense fires create more intense heat and more embers. Heat can cause windows to break and flammable siding to burn. Embers can penetrate vents and ignite structures from within. Much like the State Fire Marshal creates FHSZs, insurance companies create catastrophe models (CAT models) that similarly model the probability that wildfire will impact an area, along with the severity of the fire should it arrive. Structures in areas with high probabilities of intense wildfire may be considered risky to insure. The probability of wildfire is only part of the decision whether to insure a property. The vulnerability of the structure to damage or destruction is also considered. Structures in wildfire zones and considered vulnerable to wildfire are often considered too risky to insure.

Years of research have gone into understanding how wildfire affects structures. Various researchers, local, state, and federal agencies and insurers have proposed “best practices” to safeguard properties in the face of wildfire. California Defensible Space requirements are just one such set of best practices. The defensible space requirements are nuanced, recognizing the landscaping contributes to the value and comfort of a home, and that every home is different. This flexibility, however, comes at a price: Defensible space rules require experience with wildfire / structure interactions and different types of fuels. As a result, California requires inspections to certify that homes comply with defensible space requirements.

IBHS has come up with similar guidelines for use by insurance companies to evaluate the vulnerability of homes and businesses in wildfire zones. These guidelines err on the side of safety and simplicity. As such, they are stricter than the defensible space requirements. Thus, it is possible that your home could comply with defensible space requirements but still not meet an insurer’s criteria for coverage.

Companies such as FortressFire use more sophisticated physics-based models to determine which fuels on a property will cause structural failure in the event of wildfire and offer recommendations for mitigations – which may include trimming or removal of fuels or upgrading of vents, windows, or siding materials. These recommendations align to IBHS standards. FortressFire’s WFDR details structural vulnerabilities, fuel contributions, and mitigation recommendations – with their associated cost estimates. While these recommendations do not guarantee insurance coverage, they greatly increase a home’s survivability in a wildfire.

More on California Defensible Space requirements can be found at: https://www.fire.ca.gov/dspace

More on IBHS wildfire guidelines can be found at: https://wildfireprepared.org

Like a home inspection report, the WFDR analysis is valid for a few months.  The vulnerability of a property to wildfire evolves over time due to changes in structure materials, modifications, addition/removal of adjacent structures, and vegetation types and density.