Tahoe Is Calling. Just Don’t Forget About Insurance.

Tahoe Is Calling. Just Don’t Forget About Insurance.

Whether you’re finally buying that ski-in cabin or claiming your slice of the lake for summer getaways, Tahoe real estate is as rewarding as it is competitive. But one detail that trips up many vacation-home buyers? Getting insured.

In high-fire-risk zones like Tahoe Donner, Alpine Meadows, or even parts of Incline Village, traditional insurance carriers are pulling back—and second homes add another layer of complexity.

The good news? I’ve helped dozens of buyers navigate it successfully. Here’s what you need to know to protect your mountain home (and your peace of mind).

What Kind of Insurance Do You Actually Need?

Depending on the type of property you're purchasing, the combination of coverage may vary. Here’s how it typically breaks down for homes in the Lake Tahoe and Truckee area:

HO-3 Policy (Standard Homeowners Insurance)

This is the most common policy for single-family homes. It typically covers:

• The structure (dwelling)

• Personal belongings

• Liability protection
  ⚠️ Note: Many insurers now exclude wildfire coverage from HO-3 policies in Tahoe's high-risk zones.

California FAIR Plan

A state-backed, fire-only policy available when traditional insurers won’t write coverage. It protects against:

• Fire and wildfire

• Smoke damage

• Lightning
  Because it only covers fire-related damage, it must be paired with a secondary policy for full protection.

DIC (Difference in Conditions) Policy

This companion policy fills in the gaps of the FAIR Plan and typically includes:

• Liability

• Theft

• Water damage

• Wind and hail

HO-6 Policy (Condo Insurance)

If you're buying a condo in Lake Tahoe, you'll need an HO-6 policy. This covers:

• The interior of your unit (walls, floors, cabinetry, appliances)

• Your personal property

• Personal liability
  Most HOAs in Tahoe only cover the building exterior and common areas, so it’s critical to review your association’s master policy before choosing a plan.

Firewise Communities: What They Are and Why They Matter

Living in a Firewise-recognized community can improve both your wildfire safety and your insurability. These neighborhoods have taken proactive steps—like vegetation management and evacuation planning—that help reduce fire risk.

For example, Tahoe Donner has become a statewide leader, partnering with CAL FIRE on a groundbreaking insurance pilot tied to years of forest management work.

Check Firewise community status  Fire Wise 

Defensible Space Inspections: What Buyers and Sellers Need to Know

A key requirement for many Tahoe properties is a Defensible Space Inspection, which ensures there's a safe buffer between your home and surrounding vegetation. This inspection:

• Reduces fire risk

• Is often required before closing

• Is free and completed by your local fire protection district

Who’s Responsible?

Sellers are usually responsible for ordering the inspection during escrow, but any homeowner can (and should) request one proactively. It’s one of the best steps you can take to preserve both your property and your insurability.

Here’s where to schedule inspections or learn more based on location:

• CAL FIRE – Placer & Nevada Counties
  (Tahoe Donner, Truckee, Alpine Meadows, West Shore)
  Schedule Inspection ›

• North Tahoe Fire Protection District
  (Kings Beach, Tahoe Vista, Homewood, Tahoma, Carnelian Bay)
  Schedule Inspection ›

• Tahoe Douglas Fire Protection District (Nevada side)
  (Incline Village, Glenbrook, Zephyr Cove)
  Schedule Inspection ›

Final Thoughts: Yes, You Can Get Covered

The headlines may sound scary, but don’t let insurance stop you from buying a home in Tahoe. With the right support and strategy, it’s absolutely possible to find great coverage that protects your mountain investment.

Want My List of Trusted Local Insurance Agents?

I’ve worked with some of the best in the region—agents who specialize in second homes, short-term rentals, high-fire-risk properties, and navigating the FAIR Plan + DIC combo.

Just reach out and I’ll send you my curated list. I’m also happy to review HOA docs, help you prep for defensible space compliance, or connect you with local wildfire mitigation pros.

📞 Contact Me 917.797.3554