Protecting your home amid rising insurance costs and wildfire risks

Montanans are facing a new reality: skyrocketing homeowners’ insurance premiums and an escalating wildfire threat. According to the National Association of Realtors, Montana may experience the fifth-highest state increase in homeowners’ insurance rates this year — a trend impacting residents statewide.

Two major forces are driving higher costs. First, wildfires have become more frequent and intense. Nearly 70% of all wildfires recorded in Montana have occurred since 2000. These longer-lasting, more destructive fires dramatically increase the risk to homes, pushing insurance rates higher. Second, Montana’s scenic appeal and lifestyle continue to attract new residents, inflating property values and replacement costs — thereby driving up premiums.

Also, Montana now ranks second nationally for the percentage of homes at risk of catastrophic wildfire damage. Over 50% of properties are vulnerable, and many homeowners — especially those near wildland-urban interfaces — are facing steep premium hikes or non-renewal notices.

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Recognizing the urgent need to address these mounting costs, I championed several key bills this legislative session that lay the groundwork for a fairer, more affordable insurance marketplace in Montana.

• House Bill 533 is a consumer transparency bill that requires insurers using wildfire risk scores to disclose the underlying data and methodology upon request. This empowers homeowners to fully understand how their properties are evaluated and question assessments that could unfairly inflate premiums.

• HJ 61 tasks the Montana Legislative Council with studying the root causes of Montana’s rising property insurance rates and identifying long-term policy strategies to stabilize the homeowners market.

• HB 136 allows insurers to offer premium reductions to homeowners who invest in wildfire mitigation and resilient construction — such as in ignition-resistant roofs or fire-resistant siding.

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These bills are a strong step toward balancing risk, encouraging preparedness, and pushing back against unaffordable premiums.

Further, to protect your home and wallet:

• Review your policy annually and ask about discounts for upgrades or bundling.

• Ensure wildfire damage is covered and that your dwelling coverage reflects rebuilding costs.

• Consider surplus lines insurance if standard coverage isn’t available.

• Join wildfire preparedness programs like Fire Safe Montana or Firewise USA.

• Maintain a fire-safe property and have an emergency plan.

If you receive a non-renewal notice due to wildfire risk, contact your insurance agent or our office. Visit [csimt.gov/insurance] (http://csimt.gov/insurance) [csimt.gov] or call 406-444-2040 for help.

Preparedness is protection.

James Brown, Commissioner of Securities and Insurance, Montana State Auditor.