Rising Wildfire Risks Drive Up Homeowners Insurance Rates
Recent wildfires in California have homeowners both inside and outside the state anxiously reviewing their insurance coverage and rates. According to reporting in The Park Record, homeowners in Utah may soon face increased insurance costs as a direct result of the climate crisis. This trend reflects a broader pattern: as climate change intensifies, so do the risks and costs associated with property insurance.
Over the last few years, homeowners in Summit County, Utah, have already seen their wildfire insurance premiums climb. In some cases, residents have lost their coverage entirely, The Park Record reports. With the recent devastating wildfires in Southern California, this concern is only heightened, and experts warn that rates may increase even more throughout the West.
Insurance companies use complex national risk assessment formulas to determine policies and coverage. For homeowners in areas like Summit County, the increased frequency and intensity of wildfires along the West Coast translates directly to a higher risk profile, leading to rate hikes or even policy cancellations.
Instead of evaluating homes on an individual basis, insurance companies are increasingly relying on software that examines communities as a whole, using average statistics to assess entire areas. As global temperatures continue to rise, leading to more frequent and intense wildfires, these risk assessment models have prompted insurance companies to raise premiums or remove coverage completely in high-risk zones.
“Some Summit County homeowners have seen their insurance prices double,” Clair Christoffersen, co-owner of C&W Premier Insurance, told The Park Record. “And homeowners associations are seeing increases as high as 300%.”
The escalating cost is another clear consequence of the climate crisis, with rising temperatures and associated extreme weather events. Homeowners in vulnerable regions struggle to maintain affordable insurance coverage. This situation is critical for homeowners in many areas of the West, including Summit County.
Policy and Individual Action
State and local governments are now attempting to address rising insurance rates. For example, State Representative Casey Snider in Utah proposed House Bill 48, which targets and outlines risk zones using a state-run mapping system. This new system could evaluate homes based on individual neighborhoods and properties, potentially creating fairer risk assessments for homeowners.
Beyond governmental action, residents can contribute to mitigating the risks of climate change by making eco-friendly changes in their daily lives. Simple lifestyle adjustments, such as reducing single-use plastics, transitioning to renewable energy sources, and choosing secondhand goods can make a measurable difference over time. While the effects of individual actions may seem small, collective efforts can have dramatic impacts on the overall climate challenge.
