VIP Insurance co-owner Korrie Bourn talks about homeowner insurance during a presentation at Winthrop library on Oct. 30.

Correction:  MVCC clarified that “It is not the case that WA explicitly prohibits offering Firewise discounts, but there is something confusing about the language in statute that might make it seem that way, and people are working on addressing the confusion.

Methow Housing Trust hosted a presentation on homeowners insurance Oct. 30 with speakers from VIP Insurance and Methow Valley Citizens Council.

Korrie Bourn, co-owner of VIP Insurance, said wildfire risk and higher replacement costs from inflation are causing some home insurance premiums to rise by 20-80%. 

Bourn said insurance companies are mapping areas at higher wildfire risk, but this information is proprietary and not disclosed to the public. Insurance companies may even be relying on different maps, according to Bourn.

Areas that are more difficult to insure include Wolf Creek, East County Road, Pine Forrest, Twin Lakes and Eidelweiss. High value homes in outlying areas are also more difficult to insure.

Bourn said insurance companies’ appetites for risk has decreased.

“We’re in a hard market right now,” she said.

Bourn advised homeowners remain with their current policy if they can. Jumping to another carrier to chase lower premiums may be shortsighted, especially if their current policy is grandfathered in for renewal. New carriers can send non-renewal notices.

One option for lowering one’s premium is to opt for a higher deductible. Insurance companies record claims for the last five years, which can impact premiums and renewals. If the difference between the claim and deductible is not great, Bourn suggests weighing the impact of submitting a claim versus paying out of pocket.

Some insurance companies are not providing discounts for Firewire communities because of legal interpretations, according to Lorah Super, Program Director of Methow Valley Citizens Council (MVCC). Super followed up with the Office of the Insurance Commissioner (OIC) and relayed the following:

“Relating to Firewise discounts. Any insurance company can file a discount for Firewise. They must meet all of the standards apparent in the insurance code for any other discount. The must show their assumption that the mitigation reduces claims costs (with supporting data) and the insurance company can fairly apply it to all WA consumers that do the same amount of mitigation. That’s how all other discounts are considered….

…..I think Firewise is much more difficult for a company to file a rate plan for because not every home in the “Firewise” community needs to participate. We hope companies will start considering IBHS wildfire prepared home plus standard as a basis for wildfire mitigation discount once they have the data to support the filling. This certification is for the single home and is an annual certification.

To further clarify, any insurance company is welcome to file a wildfire discount. It’s not OIC that is blocking the companies from doing this.”

Some insurance companies, such as SAFECO and Mutual of Enumclaw, contract with firefighters to move debris and complete mitigation work around a house. Bourn said from an insurance perspective, this is more cost effective than paying a claim for a burned house.

Bourn said insurance carriers are limiting new enrollees, but in most cases, her agency is able to find a policy for homeowners. If a homeowner has received a notice of non-renewal, it is important to look for a new policy as soon as possible to avoid a penalty that comes with a lapse in coverage.

Dana Golden, Resilient Methow Coordinator at MVCC, was invited to speak at a conference of the National Association of Insurance Commissioners. She said insurance companies are acknowledging climate change and are showing a willingness to support climate change mitigation, such as lowering carbon emissions, that would reduce their risk.

For additional information about homeowners insurance and wildfire risk, visit https://www.fireadaptedwashington.org/toolkit/insurance-clean-up/

I am the founder and editor of Methow Valley Examiner, an online publication for locals, by locals. MVE explores stories beyond the headlines.

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