Based on the data from household survey in Hunan, Fujian, and Jiangxi, this paper applied contingent valuation method (CVM) to analyze the WTP of policy forest insurance. By using 364 valid questionnaires, the paper estimated the farmers' WTP for policy forest insurance. They are 3.61 yuan/acre in Hunan, 2.18 yuan/ acre in Fujian, and 1 yuan/acre in Jiangxi. Then, the paper analyzed factors which influence farmers' WTP by using Cox proportional hazard model, and concluded that, when the family size is bigger, the soil yield is lower and the forest area is bigger, attention to policy forest insurance is more, and then, farmers' WTP for policy forest insurance will be higher. Besides, Men' WTP for policy forest insurance is higher than women. Finally, the following suggestions are given: first, strengthening the publicity of policy forest insurance, second, improving policy forest insurance system based on local conditions, improving insurance companies' service levels and enhancing the management of policy forest insurance market and finally, promoting the establishment of rural financial system.