Idaho Homeowners Face Rising Insurance Costs as Wildfire Risk Increases
Though Idaho has managed to minimize home losses during recent wildfires, insurance companies are preparing for potential future disasters. Dean Cameron, director of the state’s Department of Insurance, noted that many homes survived wildfires due to fire-safe landscaping and ‘sheer willpower’ from firefighters.
Insurers are raising premiums and adjusting coverage in wildfire-prone areas. Some companies are even avoiding new policies in certain regions. In 2023, 91 property insurance companies operated in Idaho, but by April, about 25 had chosen not to renew some or all policies due to wildfire concerns.
From 2021 to 2023, Idaho’s home insurance premiums increased by 46%, the fourth-fastest rate in the country. Cameron’s department is gathering data from insurers to understand their rate calculations and coverage decisions.
Some insurers are limiting coverage in areas like Boise County, Kootenai County, and Blaine County. Cameron believes Idaho’s ‘friendlier approach’ to insurance companies may help keep them in the state, unlike stricter states like California.
Cameron advocates for a mitigation fund to help homeowners upgrade their properties, but a proposed bill failed in the Legislature. Homeowners facing rate hikes or coverage issues can contact the Department of Insurance for assistance.
As of May, the average cost of homeowners insurance in Idaho was about $1,400 per year. Factors such as property value and mitigation measures like xeriscaping influence premiums alongside wildfire risk. In some cases, homeowners can still get insurance but face skyrocketing premiums, while others may struggle to sell their homes due to insurers’ reluctance to write new policies in high-risk areas.
