In recent months, KB Tenacious noticed growing concern among residents in Skagit’s upriver areas, especially around Concrete, about potential changes in home insurance coverage due to wildfire risk and recent adjustments to the "fire line." Many residents claimed to have observed adjustments in fire line boundaries and feared that this reclassification might prevent them from renewing or getting home insurance. Several soon-to-be residents mentioned that they believed they could not get insurance when attempting to purchase a home and that the fire line may have been the reason.
We could not confirm all of these claims, but a few were found to be false. Many residents were declined based on building type/age, and personal credit, and in one case, they refused the insurance because flood insurance was required. The one individual we found that was declined due to their credit was based on the individual making several recent claims, many found fraudulent, on previous homes.
To address these concerns, we conducted a thorough investigation, reaching out to multiple local insurance agents and the Washington State Office of the Insurance Commissioner (WAOIC). Here are our findings.
Investigation Findings
Local Insurance Agents’ Input: Based on responses from various agencies, we learned that, as of now, homes around Concrete continue to be covered and should remain eligible for coverage under current wildfire assessments. Special recognition goes to Don Schlagel’s Allstate office, whose receptionist was particularly helpful in our inquiries.
Response from the Washington State Office of the Insurance Commissioner (WAOIC): We reached out to the WAOIC for clarification on state guidelines and regulations regarding wildfire risks. Below is a copy of their official response, shared here to maintain transparency with the community:
"Dear (Name excluded) with KB Tenacious,
Thank you for reaching out to the Washington State Office of the Insurance Commissioner. Based on the information provided, it appears that several folks in your area are worried about nonrenewal of their home policies due to potential wildfire risk exposure.
Our office regulates insurance companies in accordance with the laws and rules found in RCW 48 and WAC 284 (links below). RCW 48 Link: https://apps.leg.wa.gov/rcw/default.aspx?Cite=48WAC
Renewal or cancellation of an insurance policy is generally at the option of the insurance company. Present law, RCW 48.18.2901, merely requires that a notice be sent out in writing giving at least 45 days advance notice and stating the reason for nonrenewal or cancellation.
Link to RCW 48.18.2901: https://app.leg.wa.gov/RCW/default.aspx?cite=48.18.2901
Our office regulates insurance companies in accordance with the laws and rules found in RCW 48 and WAC 284 (links below).
RCW 48 Link: https://apps.leg.wa.gov/rcw/default.aspx?Cite=48
WAC 284 Link: https://app.leg.wa.gov/wac/default.aspx?cite=284
Renewal or cancellation of an insurance policy is generally at the option of the insurance company. Present law, RCW 48.18.2901, merely requires that a notice be sent out in writing giving at least 45 days advance notice and stating the reason for nonrenewal or cancellation.
Link to RCW 48.18.2901: https://app.leg.wa.gov/RCW/default.aspx?cite=48.18.2901
Regarding the reason for cancellation, WAC 284-30-570 provides additional guidance, I copied it below.
WAC 284-30-570 states: Whenever an insurer is required by law to give the reason for its canceling, denying, or refusing to renew insurance, as, for example, pursuant to RCW 48.18.291, 48.18.292, or 48.30.320, it shall give the true and actual reason for its action in clear and simple language, so that the insured or applicant will not need to resort to additional research to understand the real reason for the action. It is not sufficient, for example, to state that an insured "does not meet the company's underwriting standards." The reason why the individual does not meet such underwriting standards is what must be given.
Regarding your mention of 'the wildfire line' updating, there is no current insurance law or rule that provides guidance for requiring a statewide wildfire rating. Insurance companies typically hire a third party to survey the areas that they either want to offer insurance or currently offer insurance. These surveys are then used to establish that individual company's rating for wildfire risk. If a current customer's property no longer falls within that insurance company's wildfire rating guidelines, then the insurance company would send out a nonrenewal notice.
For homeowners that may receive a nonrenewal, I would recommend they speak with a licensed insurance agency. Independent agencies aka brokers tend to represent many companies and may be able to provide them with multiple quotes with one phone call. Since our office does not sell insurance and is required to remain unbiased, I can provide you with a method to search for an agency.
Below is a link to our website to search for Agents, Agencies or Companies. You would search under Agency and then type in your city name under the search field for city. Use the drop down under 'Types of insurance' and select 'Auto / Home'. Anything that is blue is a hyperlink - if you click on the name of an agency, you have access to view the 'Companies this agency can represent'. The more companies the agency represents, the higher likelihood that they are an independent insurance agency/broker.
Here is the link: https://fortress.wa.gov/oic/consumertoolkit/Search.aspx
If you are not able to obtain coverage by working with one of the agencies from our search tool, then I would recommend contacting the Washington Fair Plan. You can reach them by phone at 425-745-9808, and I have also listed their website below. The WA Fair Plan guarantees access to home insurance for our consumers.
I hope these resources help answer your question and provide the information you were requesting today. Please let us know if you have any additional questions.
Best Regards, Lindsey"
Recommendations for Residents
Homeowners who may face policy non-renewal are encouraged to contact independent insurance agencies, which can often provide multiple quotes. If traditional coverage remains unavailable, residents can contact the Washington Fair Plan for guaranteed access to insurance, per the above email.
KB Tenacious remains committed to keeping our community informed and will continue to check for any developments. Should anything significant change, we’ll provide updates as quickly as possible.
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