Wildfire Risk Insurance
Increased severity and frequency of wildfires across the US have led to major disruptions in the insurance market, leading to significant premium increases and nonrenewal. In some cases, wildfire risk insurance is sometimes unavailable to home and business owners.
Homeowners who have experienced property destruction due to wildfires and filed insurance claims have seen their insurance rates increase by approximately 25%
Average property insurance premiums have risen by more than 30 percent since 2020, and there is wide variation by location.
With each year, the insurance market worsens, leaving home and business owners scrambling…
What is needed is a comprehensive effort at the federal level to provide solutions to rising premiums and coverage denials. One of the primary objectives of the Wildfire Alliance is to work with Congress to find a solution to rising premiums or wildfire gaps in coverage.
Key Points:
- Wildfires are driving up insurance premiums and causing policy cancellations.
- No federal solutions exist for the rising wildfire insurance crisis.
- The Wildfire Alliance seeks Congressional help to address coverage gaps.
Home and business owners are struggling to absorb rapidly rising premiums and coverage details and are, on their own, powerless to compel insurers to cover risk at a reasonable rate. A lot is at stake for high-risk communities, including rapidly declining property values, an exodus of business, and a slowdown of future development.
To date, states have taken an ad hoc approach with insurers to compel private insurers to provide coverage for wildfire risk. Results are mixed. Other states have yet to take action.
