by Richard Uhlhorn -June 20, 2024
Homeowner Insurance Issues:
Chelan Fire & Rescue followed up on the suggestion from the State Insurance Commissioner’s office that the only way to change criteria on the way home owners insurance ratings are accomplished was to go through a legislative process.
Homeowners throughout the State are suffering from either cancellation or large increases in their home owners insurance
The District commissioners and administration immediately set up a meeting with State Representatives Michael Steele and Keith Goehner along with State Senator Brad Hawkins.
Commissioner Russ Jones opened the meeting by telling the State Representatives, “We need a lot of help from you guys.”
The issue is how the current insurance companies are approaching wildfire risk assessments that include wholesale Zip Code exclusions on whether or not to cancel and/or increase a home owner’s policy. Jone’s stated that both Chelan 7 and District 5 would like to see the insurance companies assess individual properties for risk. Jones told the them if legislation was crafted right, it could be beneficial.
Many home owners have expressed concern about the ability to even sell their property when no insurance is available for the buyer.
Hawkins replied that passing any kind of legislation is hard. “We can pre-file new bills as early as December so they are ready to go in January.”
Goehner stated that the issue is very troubling to him. He talked about insurance companies risk assessing properties in one batch from Leavenworth to Stevens Pass. “There is a wide variety of properties where the risk isn’t that great,” said Goehner. “What is the real level of risk,” he asked?
Goehner went on to state that insurance companies have had some huge payouts. (the 2014 Carlton Complex had 365 homes destroyed.). “Any legislation pretty much has to be statewide. Representatives will be sensitive to their own area. We are going to have to have a more in depth conversation.”
“There are a lot of different insurance companies,” stated Steele. He brought up risk maps and wondered what a risk map of the entire state would look like. “We have a motivation…. There has been a giant swing in costs.” Steele added that the representatives have a lot of work to do to prepare a draft bill by December.
Jones said he was aware of the consequences. “I know that this isn’t going to happen overnight, but we have the obligation to try.”
Goehner asked about other states. Fire Chief Brandon Asher replied that he didn’t have all the details but there is a rumor that Oregon is preventing insurance companies from using a map.
Hawkins said bringing a bill forward sometimes results in positive things happening. “The insurance lobbyists are powerful,” said Hankins, adding that insurance companies try to recoup their costs the only way they can.
Goehner stated that the only way insurance companies can identify risk is be hardening. Asher replied that Chelan Fire & Rescue is always available for home inspections. He brought up the work that has been completed in Union Valley to keep fire from structures like homes.
Commissioner Mark Donnell said Union Valley where he lives has followed the DNR Fire Wise program but said they weren’t getting recognized. “What is hard… we are not being recognized,” he stated. “I’m doing all I can. Whatever insurance companies want, we would do,” he added.
Goehner said that Fire Wise was considered not effective and is not recognized.
Jones said the district was three weeks into this issue and that the items the representatives brought up were helpful. Asher said the current wildland map was way off. “We are coming up with a way more detailed map,” said Asher. He added that wildland/urban interface fire fighting capabilities is being evaluated.
Lisa Garvich asked how banks reacted when a home owners insurance is cancelled. Jones replied that the State has to satisfy insurance with banks, so homeowners are covered.
Goehner said the legislative staff has to immediately begin to work on what needs to be in the draft legislation.
Hawkins suggested that the Fire Districts ask the candidates running for Insurance Commissioner the questions. “Ask them the questions.” Steele added that they should be a part of the conversation.
The insurance issue will continue to be a hot topic amongst property owners and agencies responsible for protecting that property. Fire District No. 6 and No. 5 will continue to address the issue and try to force some reasonable changes to the criteria insurance companies use to assess fire risks with home owners.
In other business:
Chelan Fire and Rescue responded to 88 calls in May. They have also sent personnel out on State Mobilizations. The District’s fire and rescue boat is deployed to the Pioneer Fire.
Backup in the lower Wapato Basin for any on water emergency will be handled by the Sheriff’s Department. Assistant Chief Shawn Sherman has put his personal boat into service with rescue gear on board.
All Things Lake Chelan 