Homeowners in Montana are facing challenges to find and pay for insurance due to rising wildfire risk.
Insurance industry analysts told lawmakers on the Modernization and Risk Analysis Committee last week Montana has the highest percentage of properties in high-risk wildfire areas of any western state
Lyn Elliot represents a national insurance trade group.She told lawmakers rising property values coupled with increasing wildfire risks are creating a situation where the math doesn’t add up for insurers.
“Our challenge is simple supply and demand economics. Insured costs and exposures are rapidly escalating much faster than rate increases,” said Elliot.
Montana is projected to see the fifth-highest homeowner’s insurance rate increase in the country in 2024. That’s according to an analysis from the National Association of Realtors.
Legislative analysts reported that 70% of all recorded wildfires in Montana history have occurred since 2000. Insurance companies are grappling with policies as wildfires are expected to burn hotter and longer in a changing climate.
