The article discusses the rising fire insurance premiums, particularly in light of recent catastrophic fires in California, and its potential impact on Montana homeowners.
Montana’s newly elected State Auditor and Commissioner of Insurance, James Brown, explains how insurance companies are increasingly pulling out of California due to the huge losses sustained, with estimates from the California fires exceeding $100 billion.
He also mentions that many insurance companies are now charging higher premiums or limiting coverage, with a national average increase of 33% in homeowners’ insurance premiums from 2020 to 2023.
Brown encourages Montana residents to contact their insurance providers to review their coverage in response to the anticipated rise in premiums.
He also shared his personal experience of raising his deductible from $2,500 to $7,500 to manage costs.
Despite these challenges, he reassured that Montana has not seen the same trend of insurers leaving the state as in California, but warned that Montanans could still face increased premiums due to the broader financial strain on insurance companies.