Missoula, MT (KGVO-AM News) – Have you checked in with your home fire insurance provider lately?

Following the devastating fires in California, we contacted our own insurance provider and have made some changes to make our coverage a bit more affordable.

I spoke with Montana’s newly elected State Auditor and Commissioner of Insurance James Brown this week about the California fires and their effect on hazard insurance.

Insurance Commissioner on Rising Fire Insurance Premiums

“As you know, prior to these fires, insurance companies were already pulling out of California,” began Brown. “For example, Allstate (Insurance) left (California) in 2022 and no longer provides new home insurance policies. American National has completely left the state of California. Hartford left the state of California in early 2024 and then State Farm announced that in 2023 it would discontinue home insurance, citing historic increases in construction costs, inflation, and wildfire risk.”

Brown revealed the shocking losses suffered in the California fires.

Brown Said Damage Estimates on the California Fires are Over $100 Billion

“Estimated loss projections just from this L.A. (Los Angeles) fire could be the greatest natural catastrophe in the United States history in terms of loss,” he said. “We’re talking about north of $100 billion now, and the sad and unfortunate thing for many of those that have been harmed by this wildfire is that JP Morgan only estimates some $20 billion of that $100 plus billion will actually be covered by existing private insurance.”

Brown said our state is lucky, in that most insurance carriers are still writing policies for Montanans.

“I’m glad to say here in Montana, we have not seen the trend where insurance companies are leaving the state,” he said. “I don’t project that’s going to be the case in a five-year planning horizon, but where we will be impacted in Montana is that it is most likely because of the huge amounts of loss that these insurance companies are going to experience that this could translate to increased homeowners insurance premiums in the state of Montana, unfortunately.”

Brown Encourages All Homeowners to Check With Their Insurance Providers

Brown revealed some alarming news for all Montana homeowners about their hazard insurance bills.

“The reality is from 2020 to 2023, average homeowners insurance premiums jumped around 33 percent in this country, rising from about $1,900 to $2,500,” he said. “I absolutely acknowledge and recognize, now that I’m the Auditor in the State of Montana, that this is a huge issue for Montanans, and it’s part of the larger affordability crisis that all American citizens are facing, not just Montanans, but every American has been facing since about 2020 and 2021.”

On a personal note, in order to keep our own homeowner’s insurance up to date, we have had to increase our deductible from $2,500 to $7,500.

Brown suggested that each home, apartment, and business owner contact their insurance provider and better understand their current coverage.