Are wildfires rapidly becoming a problem for insurers in the UK?

Wildfires are something that most of us commonly associate with hot countries such as western USA, southern Europe and Australia. However, in recent times the UK has experienced a significant increase in the number of wildfire occurrences. In this article we explore why this could potentially become a problem for Insurers.

What is a wildfire?

There is no single definition of a wildfire but the National Fire Chiefs Council’s (NFCC) Operation Guidance states:

A wildfire is defined as an uncontrolled vegetation fire where a decision or action is needed about its suppression. 

A wildfire will meet one or more of the following criteria:

• Involves a geographical area of at least one hectare (10,000 square metres)
• Has a sustained flame length of more than 1.5 metres
• Requires a committed resource of at least four FRS appliances/resources
• Requires resources to be committed for at least six hours
• Presents a serious threat to life, environment, property and infrastructure.

According to the NFCC, most wildfires in the UK are caused by human activity, such as:

• Littering - from discarded cigarettes or reflective items and glass
• Unattended fires - campfires or barbeques not distinguished and left unattended
• Deliberate acts - some fires are started on purpose
• Controlled burning - these can be to manage land, such as heather burning on peat land, but they can sometimes get out of control

The three components of fire

The fire triangle illustrates the three elements required to ignite and sustain a fire. Remove any one of the three sides of the triangle and a fire cannot start. This also applies to wildfires: 

1. Fuel – Any combustible material that can burn, so in the case of wildfires, any dry vegetation, forest, grassland, heather or peat, for example. Low humidity increases flammability.
2. Oxygen – The surrounding air. In the case of wildfires, strong winds push flames into new fuel, so the wind accelerates the spread.
3. Heat – The ignition or spark. Wildfires are usually ignited from human activity or a lightning strike.

The shape of the land also has an effect on how a fire progresses. Fires generally spread faster uphill and valleys and ridges can also channel wind, increasing fire intensity.

Climate change

Climate change makes landscapes hotter and drier, so more fire-prone, plus changing rainfall patterns also means lengthening wildfire seasons.

According to the European Forest Fire Information System (EFFIS), 2025 was reportedly the UK’s worst year for wildfires on record, which directly correlates with last year being the UK’s hottest year on record. With parts of the UK having been in heatwave conditions, with little no measurable rainfall in July, 2026 appears to be heading towards being another record-breaking year.

Potential impact of wildfires

Although large wildfire disasters are less common in the UK than in some other countries, fires can still threaten homes, infrastructure and public services when hot, dry and windy conditions occur. According to experts, the big danger of wildfires in the UK in the future is at the point where rural areas of vegetation meets the urban built-environment, known as the “rural-urban interface”.

Built-up areas are most at risk from wildfire where homes, infrastructure and businesses sit close to flammable vegetation such as forests, heathland, moorland, grassland or open countryside.

Examples include houses on woodland edges, villages beside heath or moorland, industrial estates near grassland, and transport or utility infrastructure such as roads, railways and power lines.

The growing rural-urban interface increases wildfire exposure because development is expanding into areas where people, buildings and ignition sources meet combustible landscapes. In the UK, higher-risk locations include coastal heathlands near settlements, moorland communities, woodland-edge housing developments, and areas around the Pennines, Peak District, North York Moors and parts of Scotland during prolonged dry weather.

In June 2026, the government announced that it was strengthening wildfire resilience heading into this summer, including positioning teams of specialist firefighters in key areas within reach of communities.

State-of-the-art kit, like dedicated off-road vehicles, will also be available through a wider £97 million investment to fund the largest scale upgrade of national resilience assets in almost twenty years.

Considerations for insurers

Fire services are currently battling a number of wildfires across the UK after another period of hot, dry weather, meaning that, according to the NFCC, we are also seeing increasing number of wildfires crossing into the rural-urban interface, resulting in significant property damage, evacuation of communities, and injuries.

Damage caused by a wildfire would usually be covered under most property insurance policies, under the standard fire peril.

However, with incidents of wildfire becoming more regular, with the longer, hotter summers brought about by climate change, insurers may increasingly look to consider including wildfire exclusions or separate, higher deductibles.

In fire-exposed areas in the future, insurers may therefore need to reassess the peril and consider tightening their terms, raising premiums or limiting new business.

In some instances, beyond the resultant physical damage to property, fires have led to restricted access, power outages and road closures, resulting in business interruption claims; which is something further for insurers to consider when assessing risk going forward.

Claims may not always relate to physical damage, in the traditional sense. Rather, some properties may have suffered soot damage, charring or ash contamination. Consideration will need to be given to the meaning of ‘damage’, any policy definitions and the precise scope of cover.

Where insurers have faced valid claims arising from a wildfire, they should also look to consider subrogation opportunities against any legally liable third party.

This is an issue which will become increasingly prevalent. This will no doubt focus insurers minds on how to offer appropriate cover whilst also mitigating exposure. In areas at higher risk of wildfires, insurers should look carefully at what risk control measures are in place or should be put in place; for example, by way of a suitable endorsement. 

Should you have any queries about this article or related issues, please get in touch.

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