Wildfire risk, inflation driving up Idaho's homeowners insurance costs

Home insurance has been on the rise lately in Idaho, and homeowners in North Idaho are feeling the pinch.

Coeur d'Alene resident Doris Lunceford said her family was told by the insurance company that everyone in the area was experiencing a major increase.

"The amount we pay doubled, and in order to get it a little bit lower we had to bundle our car insurance with it," Lunceford said.

For Bridget Catton Coate, to try and keep the price lower, it meant she had to switch insurance companies to receive a more competitive rate. It was the first time she switched insurance companies in 40 years.

Lunceford and Coate aren't alone, according to the Idaho Department of Insurance.

IDI Director Dean Cameron said homeowners insurance costs are trending up across the state and across the country. 

He attributes the rising rates to multiple factors but pointed out that when homeowners renew their insurance, the threat of wildfire for homes in the Wildland-Urban Interface plays a part. The WUI is considered a riskier area. As growth has continued, that increases risk for insurance companies.

"Inflation in construction/reconstruction costs, both in materials and labor, are driving rebuild costs upwards," Cameron said, adding that a higher value of homes being insured statewide also adds to the trend. 

Is there relief in sight for homeowners? 

Insurance prices for homes tend to increase as risks and the potential for risk increases within market standards. 

"Relief is achieved as we reduce risk and as inflation is reduced," Cameron said.

There may, however, be a light at the end of the tunnel.

"We are proposing legislation which will help reduce risks and increase carrier participation," Cameron said.

Idaho Department of Insurance can help answer insurance questions at 208-334-4250 or consumeraffairs@doi.idaho.gov.