Utah Homeowners Face Insurance Woes Amid Wildfire Concerns
IVINS, Utah (KUTV) — Homeowners in Kayenta, a community in Ivins, Utah, are experiencing insurance troubles despite a lack of major wildfires in the area. Residents report non-renewal notices and soaring rates, prompting concerns about the practices of insurance companies.
One homeowner shared their experience, stating, “After 40 years and no claims, Allstate dropped me. I’ve been in Kayenta for 27 years. And no fires, no floods, no wind damage, no claims.” The homeowner, who preferred to remain anonymous, added, “The guy who came out to inspect the property had his mind made up in advance. They are dropping everyone in Kayenta.”
Insurance Commissioner John Pike acknowledged that insurers use their own risk models, which he described as their “secret sauce,” to determine coverage decisions. He noted that while competition exists, there’s no standard for how insurance companies conduct inspections before dropping coverage.
“There’s not a lot that insurance companies have to do,” Pike said. “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.”
While Utah has not experienced insurance withdrawals on the scale of California, experts suggest that rising costs could force some homeowners to seek alternative providers.
If a policy is canceled, Pike recommends that homeowners “ask questions.” This could lead to recommendations or requirements from the insurance company for policy renewal.
Landscaper Mowefa Eastman, co-owner of Defy It Landscaping, said homeowners in Kayenta are using their services to create fire-safe landscaping, potentially aligning with insurance providers’ expectations.
“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 cited recent devastating fires in California and South Carolina, stating these events will influence what insurance companies are willing to cover. He said companies are carefully reviewing maps and reassessing risk.
He also stated that there is no place in Utah that is entirely uninsurable yet. It’s more a matter of affordability and availability of insurance providers in higher fire-prone areas.
KUTV sought comment from Allstate and Farmers Insurance. Allstate responded with this statement:
Generally, inspections are done several months before the renewal to allow homeowners plenty of 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.
Farmers did not respond before publication.
