Increasingly they're not. Wildfire has creaated an insurance crisis.

Lack of insurance, or rather, uninsurability, tends to reduce mortgage availability. Banks don't like smokey assets.

https://www.forbes.com/advisor/homeowners-insurance/californ...

https://www.nytimes.com/2020/09/16/climate/california-home-i...

You just apply for it but recently fire insurance companies have been pulling out of the market or skyrocketing their rates. Many homeowners are now simply opting out of it....a very risky move. If I were those homeowners, I would see the writing on the wall and simply move before you become the victim. If a good fire comes through that area, all of those homes will be burned up quickly.

Opting out is usually only an option for homeowners without mortgages. If your fire insurance lapses then the mortgage servicer will purchase a policy on your behalf to protect their asset, and then deduct the premium from your escrow account.

From what I've seen, you can buy a house in california w/ a mortgage without earthquake insurance. Why is that possible then?

Historically, houses in California had been burning rather rarely, even in very fire prone area, so fire insurance is a good business as long as you set your rates appropriatey.

In Los Gatos, some homeowners were denied a few years back and Senator Feinsteinn threw a fit, so the insurance cos relented.

There was also the issue of the insurance companies refusing to pay out claims, paying bonuses to executives, and other shenanigans.