For the first installment of our series The Insurance Dilemma, we’re exploring the intersection of insurance and wildfire risk. Living With Fire Director Christina Restaino and Outreach Coordinator Megan Kaye sit down with the Deputy Commissioner of the Nevada Division of Insurance to discuss growing concerns about how wildfire risk is affecting insurance affordability and availability in Nevada.

Restaino highlights that rising costs go beyond affordability, saying, “It's becoming an environmental justice issue.” She explains that with the increasing cost of living, housing, and insurance, the question becomes, "How can we afford to live? Home prices are at an all-time high, interest rates are very high, homeowners' insurance is very high, and you start thinking—who can afford to live here?"

Todd Rich shares the Division of Insurance’s foundational mission: “to protect consumers in their dealings with insurance carriers.” He explains that wildfires became a significant challenge for insurance companies in 2017, and “science really hasn’t caught up to what the carriers are doing yet.” Companies are still adjusting models for where and how they write coverage and are not fully accounting for communities’ pre-fire mitigation efforts. Rich adds, “Carriers aren’t really giving credit yet, and they’re not giving credit for communities that have done a really good job.”

• For more information visit the consumer section of the Nevada Division of Insurance website at https://doi.nv.gov/Consumers/
  
  
• Here are consumer insurance tips from Todd Rich:
  • Know Your Agent Options: Understand the difference between independent agents and captive market agents. Independent agents can offer policies from multiple insurance carriers, while captive agents represent only one carrier. Exploring both options can help you find the best coverage for your needs.
    
    
  • Understand Your Policy: Carefully review the specifics of your insurance policy to ensure you’re aware of what is and isn’t covered. Pay special attention to whether smoke damage is included, as this may vary between policies and carriers.