Wildfire's & Homeowner's

​How Wildfires Are Changing Homeowners Insurance in Washington State
Wildfires are no longer a rare event in many parts of Washington State. With hotter summers, extended droughts, and increasing fuel loads in forests and rural areas, wildfire risk has become a growing concern for homeowners, insurers, and regulators alike. That rise in risk is having multiple effects on insurance rates, policy availability, coverage, and what homeowners need to do to protect themselves. Below are major ways wildfires are affecting homeowner insurance in Washington, plus what you can do about it.


Rising Premiums and Underwriting Scrutiny

1. Higher Insurance Rates
   Because wildfire risk is increasing, insurers are revising how they set premiums (the amount homeowners pay). The cost to rebuild a home after fire damage has gone up, materials, labor, rebuilding standards, etc. so losses from wildfire are more expensive than in past decades.
2. Non-renewals & Cancellations in High-Risk Areas
   Homeowners in wildfire-prone areas are seeing their policies canceled or not renewed. Some carriers are pulling back from underwriting in certain ZIP codes seen as having higher wildfire risk.
3. Risk Modeling & Granular Pricing
   Insurers are increasingly using more advanced risk models that consider vegetation, historic fire perimeters, topography, and proximity to firefighting resources. These models let insurers price policies more granularly (for example, by ZIP code or even parcel) instead of broadly. Homes in “worse” risk zones often pay more or have fewer insurer options.

Policy Availability and Coverage Detail

1. Policy Availability
   Some homeowners in wildfire-exposed zones are finding that standard home insurance policies are hard to get. In these areas, insurers may refuse to offer renewal or require different (more expensive) terms.
2. Coverage Gaps & Underinsurance
   • Underinsurance: Many homeowners do not carry enough coverage to rebuild fully after a fire. The replacement cost of homes, especially in rural or difficult-to-access areas, often exceeds what homeowners had estimated.
   • Extra Coverage Needed: Items like extended replacement cost (which covers increases in materials/labor), “additional living expenses” (for temporary housing if your home is uninhabitable), and things like debris removal become more important. Some policies may have limits or exclusions, so reviewing your policy with your agent matters.

Regulatory & Consumer Protection Issues

1. Notice Requirements & Consumer Rights
   In Washington, insurers must give homeowners advance notice if they intend to cancel or not renew policies. For example, there's a minimum advance written notice period (60 days) for insurer-initiated non-renewals or cancellations.
2. State Oversight and Transparency
   The Washington State Office of Insurance Commissioner (OIC) is increasingly tracking wildfire-related non-renewals, cancellations, and premium hikes, especially by ZIP code. Part of this is to detect when insurers may be pulling back in risky areas.
3. Legislation & Building Codes
   Efforts are underway (or being debated) to strengthen building codes, adopt wildfire-resilient construction practices, enforce defensible space (clearing vegetation around homes), and generally reduce risk. These mitigations can sometimes help homeowners get better insurance terms (or at least avoid extreme premium hikes) if insurers or regulators recognize them.

What Homeowners Can Do
Given all the above, here are steps homeowners in Washington can take to lessen the impacts and protect themselves:

• Evaluate your coverage carefully: Make sure your policy reflects current rebuilding costs. Ask about “replacement cost” vs “actual cash value,” extended replacement cost, and additional living expenses.
• Understand wildfire risk in your area: Know your ZIP code’s risk, proximity to vegetation or forests, distance to water sources or fire hydrants, and local firefighting capacity. These factors affect your premiums and coverage.
• Mitigate risk proactively:
  • Create and maintain defensible space (clear brush, trees close to structures)
  • Use fire-resistant roofing and siding materials
  • Maintain safe access for emergency vehicles
  • Keep roofs, gutters, vents free of debris
• Shop around: Different insurers may assess risk differently; some may offer discounts or recognize mitigation efforts. Don’t assume one insurer’s quote is “the market” in your area.
• Stay alert to policy renewals / cancellation notices: When deadlines approach, act quickly to find alternatives if your insurer is nonrenewing.
• Document everything: For valuables, maintain home inventories, photos/video; keep receipts. After fire damage, good documentation helps in claims.

Broader Impacts & Trends to Watch

• Insurance market contraction in high-risk zones may accelerate, making coverage scarcer or more expensive.
• Frequency of catastrophic events are pushing insurers to reprice risk more aggressively.
• Regulators may mandate greater transparency or limit how insurers can deny coverage based solely on wildfire risk without considering local mitigation efforts.
• Potential for state/institutional solutions such as subsidies, state-run insurance pools, or incentives for homeowners to upgrade homes or landscaping to reduce fire risk.

Conclusion
In short, wildfires are reshaping the homeowner insurance landscape in Washington State in significant ways: from rising premiums and stricter underwriting to increased risk of non-renewals or coverage gaps. But there are also ways homeowners can respond by understanding their risk, improving the resilience of their homes, being proactive about coverage, and staying abreast of regulatory changes. As wildfire risk continues to grow, being informed and prepared is more essential than ever.