Insurance Companies Drop Ivins Homeowners Over Wildfire Risk Despite No Fires
Homeowners in Kayenta, a community located in Ivins, Utah, are finding their insurance policies canceled due to wildfire risks, despite the area having no record of significant fires. Residents are reporting both dramatic rate increases and non-renewal notices after what they describe as insufficient property inspections.
“After 40 years and no claims, Allstate dropped me,” stated one anonymous homeowner. The resident, who has lived in Kayenta for 27 years, added, “And no fires, no floods, no wind damage, no claims.” The homeowner also said of a recent inspection, “The guy who came out to inspect the property had his mind made up in advance. They are dropping everyone in Kayenta.”
According to Insurance Commissioner John Pike, insurers use their own risk models to make coverage decisions. “All insurance companies have their own models. It might be called their ‘secret sauce’,” he said. “We have competition. So typically, you can find someone to write it.”
However, there is no standard requirement for the procedures, timing, or location for insurance companies’ property inspections before canceling coverage. “There’s not a lot that insurance companies have to do,” Pike explained. “It’s largely up to them in Utah. They are not highly regulated and we don’t overlook every step of their process. They decide that.”
Experts suggest that while Utah is not yet experiencing the large-scale insurance withdrawals seen in California, the rising cost of coverage could compel many homeowners to find alternate insurance providers. Commissioner Pike advises policyholders facing cancellation to “ask questions.” He said you may be able to get recommendations or requirements from the insurance company for your policy’s renewal.
Landscaper Mowefa Eastman, co-owner of Defy It Landscaping, noted that homeowners in Kayenta have used their services to create more fire-safe landscaping that could be closer aligned to criteria of insurance providers. “We come in and clear out any dead foliage. Anything that is close to the house that would be considered a fire hazard,” Eastman explained. “We then replace it with stuff that is not flammable, like gravel, landscape rock, flagstone patios and walkways.”
Pike also commented that wildfires in other parts of the country, including the significant fires in Southern California earlier this year and now the fires in South Carolina, have and will reshape the insurance industry. “When we have events such as we’ve seen recently in California, those experiences are going to affect what insurers are willing to write,” Pike observed. “They are going to be looking at maps more carefully and reassessing how much risk they will take on.”
He added, however, that no area in Utah is entirely uninsurable yet. Affordability and the number of companies writing policies in more fire-prone areas are becoming key. KUTV reached out to Allstate and Farmers Insurance, who had policies with some Kayenta residents who did not receive renewals. Allstate offered the following statement: “Generally, inspections are done several months before renewal to allow homeowners ample time to address any potential hazards and avoid nonrenewal. Since each policy is unique, we encourage customers to contact their Allstate agent or Allstate customer service to discuss their specific situation and any factors affecting their renewal.” No response was received from Farmers before publication.
