RENO, Nev. (KOLO) – Insurance companies are either tightening coverage or withdrawing from high-risk areas.

The Nevada Division of Insurance reported a 21% increase in home insurance rates since 2018.

In 2023, 481 homeowners’ insurance policies were canceled or non-renewed due to wildfire risk, marking an 82% rise from the previous year.

Kevin Musico, the CEO of Goosehead Insurance, says it just keeps rising.

“So, the insurance industry has kind of had a huge shift and change. You know, for our Northern Nevada market, the Davis fire was kind of the pinnacle of all right, they’re taking notice and they’re going to make some changes. Then followed by the Palisades and Eaton fires in Los Angeles, that caused a national crisis,” says Musico.

Musico says that carriers are still here in Reno, but they’re being very selective about where they’re insuring and the immediate area around a house.

“They’re now evaluating, do you have vegetation five feet from the structure? Clearing that out gives you a better chance with the insurance company. They’re looking at roofs, the condition and age of a roof. They’re looking at other factors. How well is the property maintained,” says Musico.

He says zip code 89511 is an example of an area with difficult insurability. “It’s right up against the urban interface. It’s got a lot of vegetation and fuels, and it’s got a lot of terrain, which is something that carriers are looking at today,” says Musico.

He suspects this will also impact the sale prices of homes in areas prone to wildfires. “I think the values of that real estate and the rebuilding, and the houses is probably going to come down from what it used to be,” says Musico.

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