Wildfire and insurance options for homeowner coverage

A new report from examines the latest research, lessons learned, and expert views to identify five approaches and innovative strategies for wildfire insurance coverage in high-risk areas. The report outlines advantages and trade-offs for each strategy, specific case studies and pilot programs, as well as policy recommendations and state regulatory examples from California, Colorado, and Oregon.

At the heart of these approaches is a need to reduce the risk of wildfires damaging homes and neighborhoods. Insurance is an important tool for providing financial protection after a disaster, as well as shaping behavior, such as incentivizing building and landscape upgrades that make homes more resistant to wildfire. While there is no single solution, with proper support these insurance strategies can play a role in reducing damages and provide clearer signals about wildfire risk to homeowners before a disaster strikes. The report’s authors note some limitations to their analysis. The solutions they explore in the report focus primarily on the insurance needs of homeowners only. People in other living circumstances, such as renters, Tribal communities, and others may not be able to benefit from all of them.