Insurance Challenges Loom for Idaho Homeowners as Wildfire Risks Escalate
IDAHO, USA — With wildfire season approaching, a growing number of Idaho homeowners are discovering their insurance policies are not being renewed. Insurance providers are reevaluating coverage in high-risk areas, raising concerns about the availability and affordability of home insurance for those living in wildfire-prone zones.
Insurance agents report that companies are assessing whether certain regions are too risky or financially unsustainable to insure given the increasing frequency and intensity of wildfires in recent years. The escalating risk has led some insurers to question the long-term viability of offering coverage in these areas.
“We got a letter saying that they were dropping us,” said Dena Neubaum, a Cascade resident who has faced repeated insurance difficulties. She highlighted the instability of finding coverage, noting that she had gone through three insurance companies in a short period. Although Neubaum eventually secured a policy, it excludes wildfire damage, leaving her vulnerable.
Troy Hooper, a Farmer’s Insurance agent, acknowledged the industry-wide challenge of evaluating risk. “Any insurance carrier in an area like that is going to assess their risk and decide whether they’re profitable or not, or if it’s a good risk,” Hooper said.
Insurance companies categorize areas throughout Idaho based on environmental factors such as dryness and wildfire susceptibility, classifying them as low, moderate, or high risk. Hooper described how the risk assessment changes with geography, noting that high-risk classifications are common in mountainous regions. “I was ensuring a place up in Cascade that is right behind the fire station, and I had to send a map to Farmers to say, ‘No, seriously, they are right behind the fire station,'” Hooper said.
To mitigate risk and improve their chances of obtaining and keeping insurance, homeowners can take proactive measures. Creating a defensible space around their homes, particularly those in woodland areas, is a key step.
“You want to make sure that there’s at least a border area to protect the house,” Hooper advised.
Hooper reassured homeowners that options are available even if their current insurance is dropped. The first step, he suggested, is to contact their insurance agent. “Call your agent. That should be your first call. Find out what’s my next step? Can I get in with another carrier?” Hooper recommended.
Farmer’s Insurance is actively monitoring legislative efforts to address the insurance challenges facing Idaho homeowners. Currently, Idaho does not have a Fair Plan. However, several legislative initiatives are underway. The Idaho Department of Insurance is collaborating with the legislature on two bills: HB384 and H17, which are intended to help Idahoans harden their homes against wildfire damage. Additionally, House Concurrent Resolution 16 proposes the establishment of an interim committee to study the impacts of the property insurance market on Idahoans. A spokesperson from the Idaho Department of Insurance confirmed that these measures are designed to address the increasingly complex issues confronting homeowners.
“People get really, really panicky when things like this happen,” Hooper said. “Stop and breathe and realize you can get through this.”
