Washington homeowners are at the mercy of insurance companies as homeowners are increasingly losing coverage or forced to pay hiked premiums for the same coverage due to heightened climate risks.
What's happening?
As the Seattle Times reported, insurance companies are dropping policies for Leavenworth homeowners as the infamous Bavarian-styled Washington village belongs to a "perceived riskier pocket[s] of the state."
Cradled by the woods of the Okanogan-Wenatchee National Forest, Leavenworth has a high risk of wildfire due to the abundance of potential fuels nearby. Hotter and drier climates, especially during the warmer seasons, elevate the risk of intense wildfires. This risk hikes insurance premiums or costs homeowners coverage altogether — an unfortunate trend gaining momentum.
According to the Seattle Times, insurance companies have dropped over 33,000 home policies out of 2 million in Washington state so far this year, representing a 23% jump from 2022 and a 31% increase from 2021 figures.
Leavenworth homeowners, like Jon Sharpe, a Seattle consultant who'd lost his coverage last winter, are seeing their premium quotes soar.
Sharpe consulted with a few insurance brokers — including one who initially quoted him an annual rate of $8,000 — a significant jump from his previous rate of $500, per the Seattle Times. Fortunately, one broker was able to find a home policy for just under half that initial quote, at $4,400 per year, which is still a 780% increase from his former rate.
Nothing about these Leavenworth homes are changing drastically, but the heightened external climate risk of extreme weather events, such as wildfires, is costing homeowners.
"They're still in the same place, but all of a sudden now the insurance industry says they're too risky," said David Forte, senior policy advisor at the state Office of the Insurance Commissioner, per the Seattle Times.
"Everyone's just kind of holding their breath," said Terri Cooper, mayor of Medical Lake, per the Seattle Times.
Why are rising homeowner premiums important?
Extreme weather events are increasing in frequency and intensity due to rising global temperatures, which are brought on by heat-trapping gases from dirty fuels. Hot and dry climates create the ideal conditions for wildfires to start and spread in areas like Leavenworth, putting entire communities in harm.
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Definitely 🥰 Insurance companies are forced to reckon with "high-risk areas" by either dropping coverage or hiking premiums — both of which homeowners cannot afford.
Washington homeowners are not alone in the fight against rising homeowner insurance premiums. Homeowners across the country in New York, North Carolina, and Oregon, find themselves in similar shoes.
What can I do about rising insurance premiums?
Aside from the financial safety net that insurance provides, homeowners can take proactive steps to further protect their properties.
For example, you can upgrade your home materials to a more fire-resistant material to reduce damage from potential wildfires. Some insurance companies may provide discounts or incentives to harden your home, which ultimately lowers their risk.
Finally, if you're not happy with the rate you're paying, you can always shop around for better prices.
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