California’s home insurance crisis has made financing a home in a fire-risk area one of the most complex transactions in the state. Private insurers have exited the market at scale, the FAIR Plan has limits that don’t satisfy all lenders, and most mortgage brokers don’t have the insurance broker relationships or lender knowledge to navigate the situation. DiVita Home Finance does. We have closed purchase and refinance loans in California’s highest-risk fire zones — Marin County, Sonoma County, Los Angeles foothill communities, the East Bay hills — and we maintain a curated network of insurance brokers who can place coverage when standard agents can’t.
The Two Problems We Solve
Problem 1: Finding insurance that satisfies your lender. The California FAIR Plan is the insurer of last resort — it covers fire damage to your dwelling, but not liability, contents, or loss of use. Most lenders require all of these. You need a wrap policy alongside the FAIR Plan. Finding a broker who can place that wrap policy in today’s California market — through surplus lines carriers and E&S markets — requires relationships that most agents don’t have. We refer you to brokers in our network who do this every day in the communities where you’re buying.
Problem 2: Finding a lender who will close. Not all lenders will lend in California’s fire zones — and among those that will, requirements vary significantly. Some jumbo lenders require admitted carrier coverage; others accept surplus lines. Some restrict LTV in Very High Fire Hazard Severity Zones. Some require defensible space inspections. We know which investors work in which areas and what they require, so we can match you to the right lender for your specific property before you’re in contract.
Our Insurance Broker Network
DiVita Home Finance maintains an active referral network of independent insurance brokers who specialize in California fire zone coverage — brokers with access to surplus lines markets, Lloyd’s of London syndicates, specialty admitted programs, and wrap policy products designed specifically for FAIR Plan customers. These are not general insurance agents — they are specialists who navigate the current California market every day and know which carriers are actively writing in specific zip codes.
When you apply for a mortgage with us on a fire zone property, we introduce you to the right broker from our network early in the process — not the day before closing. Early placement of insurance avoids the most common reason fire zone escrows fall apart: running out of time to find coverage that satisfies the lender.
Loan Types Available in California Fire Zones
| Loan Type | Fire Zone Available? | Key Requirements |
|---|---|---|
| Conventional (Fannie Mae conforming) | ✅ Yes | FAIR Plan + wrap policy satisfies guidelines; lender overlays may vary |
| FHA | ✅ Yes | HUD accepts FAIR Plan; wrap policy needed for liability |
| VA Loan | ✅ Yes | VA accepts FAIR Plan; wrap policy recommended |
| Jumbo (portfolio) | ✅ Select lenders | Insurance carrier requirements vary; LTV may be restricted; we know which investors approve |
| DSCR (investment) | ✅ Select investors | Rental income qualifying; flexible on insurance structure |
| Bank Statement (self-employed) | ✅ Select investors | 12–24 months deposits; available in fire zone markets |
| Asset Depletion (retirees) | ✅ Select investors | Liquid assets converted to income; available in fire zone markets |
Fire Zone Markets We Serve
DiVita Home Finance originates loans across California’s fire zone communities. Areas where we have specific lender and insurance broker experience include: Marin County — Mill Valley, Fairfax, San Rafael, Novato, Tiburon hillsides, Muir Woods corridor. Sonoma County — Healdsburg, Glen Ellen, Guerneville, Occidental, Kenwood, Santa Rosa hillside neighborhoods. Los Angeles County — Pacific Palisades, Malibu, Altadena, Pasadena foothills, Chatsworth, Calabasas, Topanga Canyon, Santa Clarita hillsides. East Bay Hills — Oakland Hills, Berkeley Hills, Moraga, Orinda, Lafayette, Walnut Creek hillsides. Peninsula / South Bay — Woodside, Portola Valley, Los Altos Hills, Los Gatos hills. San Diego County — Rancho Santa Fe, Ramona, Julian, Valley Center, Alpine. Ventura County — Ojai, Thousand Oaks hills, Camarillo hills.
Understanding the FAIR Plan and Wrap Policy
The California FAIR Plan covers fire and smoke damage to your dwelling — up to $3,000,000 as of 2026. It does not cover personal liability, contents, loss of use, theft, or water damage. Most mortgage lenders require all of these to be covered as part of your homeowner’s insurance package. A wrap policy — also called a companion or DIC policy — fills these gaps by covering everything the FAIR Plan excludes. Together, FAIR Plan + wrap creates coverage equivalent to a standard HO-3 homeowner’s policy across two policies from two separate insurers.
The challenge is that wrap policies for FAIR Plan customers are not available from standard insurance agents in most cases. They require brokers with access to surplus lines (E&S) markets — the same non-admitted market used for unique or high-risk risks that admitted carriers won’t write. Our insurance broker network has this access. Read our full guide to California FAIR Plan wrap policies.
How the Process Works With DiVita
Step 1 — Pre-approval. Apply or call us. Tell us the property address and that you’re in a fire zone. We’ll identify the right loan program and lender based on your profile and the property’s fire zone designation.
Step 2 — Insurance broker introduction. We immediately connect you with an insurance broker from our network who specializes in fire zone coverage. They’ll assess the property, identify what coverage is available, and structure a FAIR Plan + wrap or surplus lines package that satisfies your specific lender’s requirements.
Step 3 — Underwriting with accurate payment. We use your actual insurance quote in the payment calculation from day one — so there are no DTI surprises when the real premium comes in. Fire zone insurance is materially more expensive than standard policies; accounting for it accurately protects your qualification.
Step 4 — Close. With insurance confirmed and a lender who has approved the fire zone coverage structure, your escrow closes without last-minute insurance emergencies.
Call (415) 847-7700 or apply online. Tell us about your property and the insurance situation — we’ll tell you exactly what’s possible and connect you with the right coverage specialists.
Related Resources
California Fire Insurance Crisis and Your Mortgage: Complete 2026 Guide
California FAIR Plan: Coverage, Limits, and What Lenders Require
Wrap Policies for FAIR Plan: Filling the Coverage Gap
Getting a Mortgage in a California High Fire Zone: 2026 Lender Requirements
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
