Homeowners stunned after losing insurance coverage for reasons beyond their control: 'We got a letter saying that they were dropping us'

A number of Idaho homeowners were recently left stunned when their insurance companies dropped them. Why did this happen? Because they're residents of areas prone to wildfires.

What's happening?

According to KTVB7, some insurance companies are ending coverage in high-risk areas, leaving many without coverage as wildfire season approaches.

"We got a letter saying that they were dropping us," Dena Neubaum told the local news outlet. "In three months, we've had three insurance companies."

Neubaum said she eventually obtained new coverage — but this policy won't address wildfire damage. Agents are reportedly "determining whether certain regions are too risky or unprofitable to insure due to increasing wildfire threats."

Insurance companies can rank areas according to risk based on various factors, including environmental characteristics, and agents may decline to insure residents if risks are deemed too high.

Why is wildfire insurance protection important?

Due to the impacts of planet-warming pollution, wildfires are growing more frequent, severe, and destructive.

Rising global temperatures, prolonged droughts, and unpredictable weather patterns create ideal conditions for wildfires to spread rapidly, threatening homes and whole communities. That's why comprehensive wildfire insurance is an essential safeguard.

Without proper coverage, homeowners in high-risk wildfire areas face enormous financial burdens if their properties see damage or destruction. Rebuilding costs, temporary housing expenses, and replacing belongings can leave the uninsured struggling to recover after a disaster. Wildfire coverage can offer some measure of financial protection, helping families rebuild their lives without excessive out-of-pocket costs.

Wildfire insurance is also crucial for maintaining property values and community stability in fire-prone regions. As more carriers limit or drop coverage in high-risk areas — including those susceptible to other extreme weather events, like hurricanes and floods — homeowners without protection may struggle to sell their homes, leading to economic decline in vulnerable neighborhoods. 

What's being done to protect Idaho homes from wildfires?

Reporting from KTVB7 suggested that homeowners could strengthen their cases for keeping coverage by making their homes more resilient to fires.

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The local outlet later spoke with Zach Mason, whose project Ember Safe helps residents "harden" their homes against wildfires. Mason said that with risk-mitigating upgrades, "some homeowners have gone full coverage again." Such fixes might include spreading gravel around the home's perimeter to block embers, cleaning out gutters, and ensuring wooden fences do not touch the house — or are swapped out for metal fences.

An agent who spoke with KTVB7 also suggested contacting your own agent if your coverage is cut due to wildfire risk. They may have ideas or advice about how or where to secure another plan.

Idaho does not currently have a Fair Access to Insurance Requirements Plan like some other states prone to disasters. The Natural Resources Defense Council describes FAIR Plans as state government-operated safety nets "providing insurance to property owners who cannot obtain traditional insurance because they are considered high risk, typically due to factors like location, property age, or construction type."

Meanwhile, the Idaho Department of Insurance has been working on two bills to help residents harden their homes. According to the Idaho Capital Sun, department director Dean Cameron also presented a resolution to the state legislature in early March to "create a legislative committee to study Idaho's property insurance market."

But you don't have to live in Idaho to help fight the growing threat of wildfires worldwide. Consumers living anywhere can modernize the machines and appliances they use every day to save money as well as reduce the heat-trapping pollution that drives rising temperatures. By making your next vehicle an electric one, switching to solar, or installing a heat pump, you can play an important part in combatting increasingly destructive disasters.

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