Wildfire & Insurance Insurance Communications Challenges & Opportunities Carole Walker, Executive Director, RMIIA carole@rmiia.org / www.rmiia.org

Wildfire Insurance Challenges What We Hear From Consumers, Media, Regulators, Policymakers, Fire Officials Property Insurance Availability Fears over non-renewals, insuring new properties Lack understanding on how insurance works, expectations, mitigation requirements Anecdotes vs. reality/ “consumer” groups /public adjusters Property Insurance Affordability Rising insurance costs for all risk Confusion over impact of other risks Discounts/incentives for mitigation

Key Insurance Messages Wildfire is a risk science shows can be reduced Wildfire is increasingly a shared insurance risk If homeowners are NOT willing to take proven steps to reduce risk it will be increasingly difficult to get & keep affordable insurance Insurers increasingly require mitigation steps Insurability is financial incentive to do mitigation Insurance is available in WUI, but may need to shop & pay higher premium Insurers considering all individual risk factors Wildfire residents must accept responsibility to protect homes & personal finances

Insurance Preparedness Messages Do annual insurance policy "check-ups" Keep up with local building costs & adjust coverage to include home remodeling & additions Review auto policy limits & coverage. Ask about coverage for building code upgrades, debris removal & landscaping Know what is & is NOT covered: consider separate flood insurance, risk increased in burn areas Create or update a home inventory that includes lists, photos or videotape of your home or apartment’s contents. Consider extra insurance for expensive items.

Wildfire & Insurance Opportunities Key Stakeholder Partnerships Federal, state, local government, wildfire/safety organizations, homeowners groups, realtors, planners, regulators, construction National Fire Protection Association/Firewise RMIIA, III, IBHS, NWIC, NIC, companies working with Firewise to establish insurance wildfire coalition Opportunity to leverage Firewise communities with mitigation & insurance preparedness messages Improve dialogue with fire community Establish better industry communication & best practices

Model Community Mitigation Program Wildfire Partners Unique collaborative initiative of 35 partner organizations led by Boulder County—its primary goal: assisting homeowners in reducing the threat of wildfire to their properties 800 homeowner participants Provides technical expertise, onsite property inspections, follow-up visits, consumer hotline & financial support Homeowners spend average of 60 hours & $2,400 performing mitigation, receive average of $700 in financial assistance Funded by FEMA, CO DNR, Boulder County June Cold Springs Fire success stories

Model Community Mitigation Program Wildfire Partners established & adopted as mitigation model Approached RMIIA & insurance industry as partners RMIIA, PCI, Allstate, Farmers, State Farm, USAA on Advisory Committee Allstate, State Farm, USAA officially accept inspection certification Don’t make any promises—just making property more insurable Don’t certify very high-risk, i.e. slope, access, no fire protection NAIC summer meeting presentation Support of Governor’s Task Force/Regulators/Partners Wildfire Partners’ Secret Sauce Based on IBHS science Experienced on-site inspectors provide individual homeowners complete mitigation recommendations Homeowner assistance & ongoing mitigation commitment

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