Utah Homeowners Struggle with Home Insurance in Low-Fire-Risk Area
Homeowners in Kayenta, Utah, are facing a puzzling situation: increases in insurance rates and even non-renewal notices, despite their community having a low risk of wildfires. This situation raises questions about how insurance companies assess risk and make decisions about coverage.
“The guy who came out to inspect the property had his mind made up in advance.”
The Kayenta Conundrum
Kayenta, located in the scenic state of Utah, presents a paradox for its residents. While the area experiences minimal fire activity, homeowners are still seeing their insurance policies become more expensive or even canceled. This trend stems from a broader industry shift, where insurance companies are reevaluating their risk assessments, often influenced by predictions rather than historical events.
One resident of Kayenta, a homeowner for 27 years, shared a frustrating experience: “Allstate dropped them after 40 years, ‘And no fires, no floods, no wind damage, no claims,'” they stated. This illustrates the suddenness and unexpected nature of these policy changes, leaving long-term homeowners in a precarious position.
Factors Influencing Insurance Decisions
So, why are insurance companies making these decisions? The answer is complex. Insurance Commissioner John Pike noted that insurance companies in Utah have considerable autonomy. “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,” Pike explained.
While the lack of strict regulations gives companies freedom, some believe that broader risk models play a role. High temperatures, average wind speeds, and other environmental factors, even if not directly impacting Kayenta, are considered. Some insurance companies are considering weather data, including both current conditions and long-term trends, such as increasing temperatures and drought, to determine a location’s fire risk.
Navigating the Changing Landscape
What can homeowners do? According to Pike, the best starting point is to “ask questions” to understand the reasoning behind any policy changes. In addition, homeowners can take proactive steps to protect their properties.
These steps include:
- Using fire-resistant building materials on roofs.
- Regularly cleaning roof surfaces and gutters to remove debris.
- Removing low-hanging tree branches.
- Spacing landscaping shrubs apart.
- Clearing dry grass, weeds, and leaves from the area around the home.
Local landscaping services, such as Defy It Landscaping, offer assistance to homeowners in fire-safing their properties.
By taking these actions, homeowners can better protect their properties, potentially making them less susceptible to non-renewal and higher insurance rates.
