Homeowners scramble as insurers quietly pull out of wildfire-prone areas: 'It is a problem for everybody'

Yahoo

4 days ago

Homeowners in Idaho are scrambling to find affordable insurance after many companies have reduced or stopped coverage in the state.
As the Idaho Statesman reported, wildfires in Idaho have increased in size and severity in recent years because of rising global temperatures. While some homeowners have adapted by adding fireproof features to their homes and removing plants that are susceptible to burning, some insurance companies feel it's too risky to continue operating.
Insurers told Dean Cameron, the director of the state's Department of Insurance, that Idaho is "just one firestorm away from this taking out, wiping out a whole community."
Because of this, several insurance companies have stopped writing new policies, limited coverage to properties that aren't in fire-prone areas, and increased premiums to offset potential losses.
This year, 25 of Idaho's 91 property insurance companies discontinued some or all coverage because of wildfire risks. Any remaining coverage has gone up substantially, with insurance premiums rising by 46% from 2021 to 2023 in the state, according to a report by insurance agency Policygenius.
"There is a general belief that this is just a rich-people-that-live-in-wildland-interface problem."
"That's not the case," Cameron told the Idaho Statesman. "It is a problem for everybody."
Higher insurance premiums affect current and future homeowners; if costs go up too much, people may struggle to pay other bills or even be forced to obtain coverage through state-run programs that are meant to be a last resort, since they typically only provide basic protection.
For prospective homebuyers, limited availability of insurance can make it difficult to buy a home, since lenders require proof of insurance before approving loans.
The insurance industry is experiencing volatility across the United States, with numerous companies having to raise prices to offset damages from increasingly frequent storms. Burning dirty fuels such as oil and gas has put more heat-trapping gases in the atmosphere, leading to higher temperatures, the perfect conditions for extreme weather.
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States such as Florida, Texas, Louisiana, and California are among the most vulnerable to natural disasters, and therefore, a chaotic and unstable insurance market. But even in the Upper Midwest, which isn't normally associated with severe weather events, home insurance premiums have risen by nearly 40% over the past seven years.
The shifting climate doesn't discriminate, and unfortunately, that means millions of people are dealing with skyrocketing insurance costs.
Luckily, the Statesman reported that Idaho is "better positioned" than other Western states to handle the insurance crisis.
While the Department of Insurance understands companies still need to make a profit, it's hosted public demonstrations to show homeowners how to make their properties fire-resistant to lower the risks of extensive damage or loss.
These "home hardening" initiatives, which include removing flammable vegetation and installing fire-resistant materials, have helped many homeowners keep their insurance, as a YouTube video uploaded by KTVB detailed.
Earlier this year, Cameron pushed for a measure to assist homeowners with funds to upgrade their properties and protect them from wildfires, but it did not pass.
If you want to make your home fire-resistant without spending too much, you can always use a fire-retardant paint on your home's exterior and fire-retardant fabric spray on upholstery that will at least make fabrics harder to ignite, as Life Hacker recommended.
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