Homeowners Face Insurance Challenges Amid Rising Wildfire Risks in Nevada
The recent wildfires in Nevada have left many residents grappling with the aftermath, as they struggle to find insurance coverage for their homes. In the north of Peavine Mountain, Rick Arrate is one of many who lost his home to the flames. “It’s barren, desolate. It looks like my house was bombed,” he lamented.
Arrate is now faced with the daunting task of rebuilding without insurance, relying instead on personal savings, a GoFundMe campaign, and government assistance like FEMA. Despite several attempts, he was unable to secure a policy due to the remote location of his property. “I tried to get insurance a few times. I don’t care if I had a billion dollars, no one wanted to talk about insuring my property,” he stated.
In Nevada, there is no mandate for insurance companies to offer policies to homeowners. This has left several residents, including 13 out of 59 who reported damage from the Hawk Fire, without insurance. Nevada Insurance Commissioner Ned Gaines noted, however, that the state’s risk level remains relatively unchanged. “I don’t see our risk as any higher today than it was pre-fires,” Gaines said, emphasizing the state’s low destruction rates compared to other regions like Spokane, where hundreds of homes were lost.
Despite this, residents like Beth Smith in Caughlin Ranch are experiencing difficulties in maintaining insurance coverage. Following Acuity’s decision to exit the Nevada market, Smith found herself among nearly 2,000 Nevadans seeking new insurers. “I was incredibly disappointed and totally shocked that other companies won’t even quote us,” she shared, highlighting the challenge of fulfilling mortgage requirements without homeowners insurance.
The Nevada Division of Insurance reported over 2,700 policy cancellations or non-renewals in 2024 due to wildfire risks, marking a record high for the state. Incline Village and areas near the Ruby Mountains were notably affected. However, Gaines anticipates a decline in those numbers with new data expected in the fall.
Attention has turned to a new state law that permits insurers to exclude wildfire coverage from policies, although none have yet done so. Gaines remarked, “We would scrutinize it very closely. It’s not an idea that any of them have really picked up on.”
Michael DeLong from the Consumer Federation of America warns of potential cost implications if separate wildfire policies become necessary, leading homeowners to pay two premiums. Meanwhile, Arrate remains determined to rebuild on Peavine Mountain, stating, “I will build something to live up here on Peavine and be okay.”
Residents concerned about insurance issues or scams are advised to contact the Nevada Division of Insurance and document damage only when it is safe to do so.
