Legislation, Growth & Municipalities
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Legislators from both parties and the Idaho Department of Insurance are looking for solutions to the Gem State’s growing homeowners insurance problem.
On Monday, Rep. Mark Sauter, R-Sandpoint and a bipartisan group of five legislators from throughout the state and Department of Insurance Director Dean Cameron added new bills to the House Business Committee’s list to consider that would seek to ease the pain for Idahoans who are at risk of losing their homeowners’ insurance or experiencing high price hikes. There are now three bills in front of the committee for consideration to address the problem in the 2026 legislative session, including one Sauter brought earlier in the session.
While the state cannot force insurance companies to operate in the State of Idaho or offer certain prices, this package of bills seeks to give residents more notice and transparency on how to address problems with their coverage. The Department of Insurance is proposing the creation of a mitigation fund to provide financial assistance to Idahoans who cannot afford to make changes to their home to make it more wildfire resistant, which could help them keep their coverage or keep it affordable.
“We know across the country the property insurance market is tight everywhere,” Cameron said. “But we know that in the states that have this mitigation fund, namely the southeastern part of the country, Louisiana, Alabama, Mississippi and Florida their rates are all going down… because they’re spreading the risk and reducing the risk down for the insurance carriers.”
New data compiled by the Idaho Department of Insurance shows thousands of policy cancellations statewide since 2022, as well as double and sometimes triple-digit increases in homeowners insurance premiums to keep their policies. The difficulty in finding homeowners’ insurance coverage puts financial pressure on homeowners with mortgages who are required to insure their homes and those with paid-off properties who worry they won’t have any coverage if they lose their home in a fire.
The Idaho Legislature heard bills that would study the problem of the Gem State’s insurance market and provide funds for homeowners to mitigate their risk during the 2025 legislative session, but neither idea made it out of the House Business Committee.
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All three bills have been introduced in the House Business Committee, but have not yet been scheduled for a public hearing.
More time before a cancellation, more information
Both bills brought by legislators aim to give homeowners more information about what’s happening with their policies.
HB 562, brought by Sauter alone earlier in the session, would double the notice companies are required to give homeowners before cancelling their policies, from 30 days to 60 days. His new bill introduced this week would require insurance companies to disclose their wildfire risk models, scores, and justifications for how they set their rates for homeowners. It also would require the companies to make any possible discounts for homeowners who make changes to their properties to be more fire resistant, publicly accessible.
Sauter collaborated on this bill with Rep. Judy Boyle, R-Midvale, Rep. Monica Church, D-Boise, Sen. Treg Bernt, R-Meridian, and Sen. James Ruchti, D-Pocatello.
“My area has experienced some considerable increases in property insurance costs and this is asking the insurance companies to give the information on how they rate, not necessarily the formula, but the things that are important to them so (homeowners) can make good decisions,” Sauter said.
The bill requires insurers who use a wildfire risk model to determine the outcomes of policies to provide homeowners with an annual written notice on their home’s wildfire risk score and any possible discounts available. The notice would have to include a “plain language explanation” of their wildfire risk score, a range of scores that could be applied to the property and an explanation for the score. It would also need to include an explanation of what impact mitigation measures on the property or in the community could have on the risk for the property.
It would also require the Department of Insurance to collect Idaho-specific information and publish this information for the public and politicians to examine to understand the status of the problem, starting at the beginning of 2027.
Lewiston legislator questions need for mitigation fund
The Department of Insurance wants to give homeowners who can’t afford home repairs a financial boost.
Cameron returned for the second year in a row to pitch a bill creating a Wildfire Mitigation Fund run by the State of Idaho that would provide funds for homeowners to address problems with their homes that would impact their homeowners’ insurance policy coverage. This wouldn’t be covered with extra money approved by the legislature, but instead would be funded when the department collects excess fees of $125 million. Then, one fourth of that amount would go to the mitigation fund.
Rep. Kyle Harris, R-Lewiston asked Cameron a series of questions about the bill, noting “I struggle with this bill quite a bit.” He asked if people who live within the City of Boise would be eligible for this program. Cameron said if it’s approved, the state would have to create an application process and determine who would be eligible, likely with an eye toward helping low and middle-income homeowners who cannot afford cutting trees, replacing roofs or other changes that insurers would require to bring their rates down.
“If the state did nothing and we didn’t act on this at all, if a homeowner went through the process of hardening their home could they get a lower rate from the insurance company without the state being involved?” Harris asked.
“(Insurance carriers) look at our state and we have a significant amount of wildfire and a significant amount of acres that are burned so they’re naturally shying away from coming to Idaho or staying in Idaho,” Cameron said in response. “We’re trying to provide a statewide mechanism where we can show we’re hardening our homes. There are individuals hardening their homes on their own and certain companies that have been created that are also participating. This is to help in that effort, not to take the place.”
It passed out of committee on a voice vote, but a handful of legislators voted no.
date: 2026-02-12 19:02:00