The commissioner says there is no evidence that insurance companies are abandoning policyholders in high-risk areas of Washington.
SPOKANE, Wash. — As the Southern California wildfires burn, fears of insurance companies dropping policies in high-risk areas have increased. Washington State’s newly elected Insurance Commissioner Patty Kuderer says her goal as commissioner is to ensure that everyone in the state has access to insurance.
Eastern Washington is no stranger to wildfires and residents have raised concerns surrounding the future of insurance policies ahead of the summer fire season.
“When you have an insurance issue we want your first thought to be to call the office of the insurance commissioner,” said Kuderer. “My job is not just to provide oversight and regulation to the industry but to act in the public interest.”
Kuderer says there is no evidence that insurance companies are abandoning policyholders in Washington.
“We have no evidence of anyone leaving the state because of the wildfire risk at this time but we don’t want to be there either,” said Kuderer.
However, some people in high-risk areas have told KREM 2 about the struggles of finding and being able to afford insurance.
Robert Phillips lost his cabin to the Palmer Fire in 2020 and says he was not able to get insurance because it was too expensive.
“I looked into it, and they asked me, ‘Well, where are you at?’ I said, ‘Okanogan County, up above Oroville,’ and they said, ‘Huh uh, you couldn’t even afford it.'” said Phillips.
Kuderer says those in situations like this, who receive a non-renewal notice or are unable to find other insurance, can use a state plan called the “Fair Plan” which she says should be used as a last resort. Kuderer says there are only about 300 policies on that plan, which is paid through insurance companies’ reserves.
“That program has been used as a transitory basis, so people use it temporarily because we have alternatives in the state,” said Kuderer.
Kuderer says people can visit the Office of the Insurance Commissioner’s (OIC) website under the “wildfires and homeowner insurance” section for information and tips about what to do to make sure they have adequate coverage.
Kuderer also says she will be visiting communities to hear directly from people across the state about insurance concerns but people can also contact the OIC with questions and concerns.
