WASHINGTON – Homeowners across Washington are experiencing significant challenges as tens of thousands face cancellations or non-renewals of their home insurance policies each year. The Washington Office of the Insurance Commissioner reports that about 37,000 households are affected annually due to various factors, including wildfire risks.
Although this number represents a small fraction of the state’s 2.5 million active policies, it poses a significant problem for those who lose coverage. Mortgage lenders typically require insurance, making it difficult for potential homebuyers to secure mortgages if they cannot obtain home insurance.
Stevens County Fire District 1 Chief Mike Bucy is raising concerns about the current insurance assessment methods. He believes they do not account for the efforts and capabilities of local firefighters.
“They’re using a risk management company to do the assessment but the risk management company’s not including firefighting capabilities in that risk assessment,” Bucy said.
Bucy created a YouTube slideshow to address the frustrations of his community, emphasizing that insurance companies focus on geographical cues like burnable materials and property access.
“We could spend tens of millions of dollars and we still get no recognition. We’re doing our jobs, we have the capabilities,” he said.
Britney Inglis, a resident of Nine Mile Falls, experienced the impact firsthand when her home insurance policy was not renewed in January, following the Elk and Oregon Road fires in neighboring Spokane County. “We’ve gone through now six insurance companies that have offered coverage and by the end of the month are cancelling policies due to fire danger,” she said.
Inglis, who is also a realtor, highlighted the broader implications for the housing market. She noted that without insurance, buyers struggle to secure financing, and sellers face difficulties, especially in the manufactured and mobile home industry.
“Especially in the manufactured and mobile home industry we are seeing that where a lot of the insurance companies are refusing to cover that period and that’s impacting those sales because they’ll sit on the market for years to come,” Inglis explained.
The state is currently experiencing one of the largest housing shortages in its history, and insurance issues are exacerbating the problem.
“I have a feeling we’ll end up with a lot more homelessness issues,” Inglis said.
Despite the challenges, the Washington State Insurance Commissioner encourages homeowners to shop around for insurance, as some companies do not use wildfire risk as a factor. However, the lack of required consideration for firefighting capabilities remains a point of contention.
