State lawmakers heard testimony last week on the connection between wildfires and skyrocketing insurance rates.
Insurance industry insiders told the Environmental Quality Council several factors are fueling steep hikes in home insurance rates. Average insurance premiums for a typical Montana homeowner increased by 10% from 2021-2024.
One significant driver is more people building expensive homes in the fire-prone wildland-urban interface, or WUI.
According to Brandon Vick of the National Association of Mutual Insurance Companies, Montana ranks among the highest in the country for states with homes in the WUI.
Extreme weather, including drought and growing wildfire risk presents a significant danger to these homes.
Industry reps encourage state and local officials to strengthen building standards in the WUI and guide development away from high fire-risk areas.
Consumer advocates told the interim committee that policyholders are frequently confused by their insurance company’s wildfire risk scores. Those scores can lead to higher premiums.
They add insurers are not clearly explaining to their customers how to reduce wildfire risks to stay insured.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.