As wildfires burn across Washington State, Insurance Commissioner Patty Kuderer is drawing attention to a growing insurance crisis facing homeowners in fire-prone areas — and the legislative steps the state took in 2026 to address it.

New Legislation Targets Wildfire Risk Transparency

During the 2026 Washington legislative session, Commissioner Kuderer advanced two bills aimed at protecting homeowners from the financial impacts of wildfire. Key among them is a measure that would require insurance companies to disclose wildfire risk scores when those scores are used in underwriting decisions, explain the factors behind the score in plain language, and provide concrete steps consumers can take to improve their wildfire risk rating.

The legislation also protects property owners who have invested in mitigation work — such as creating defensible space, installing ember-resistant vents, or replacing combustible roofing — by requiring insurers to reassess risk scores when demonstrable improvements have been made since a previous evaluation.

Coverage Gaps a Major Concern After Fires

As firefighters battled the Upriver Fire in Spokane County earlier this month, the OIC used the moment to remind homeowners of critical steps they should take now — before fire threatens their home. According to Kuderer, one of the most common post-fire discoveries is that homeowners' coverage limits are inadequate to fully replace lost structures and contents.

Key guidance from the OIC includes:

  • Review your homeowner's policy annually to ensure replacement cost coverage keeps pace with rising construction costs
  • Confirm that your policy includes Additional Living Expenses (ALE) coverage, which pays for hotel, food, and other costs while your home is being repaired or rebuilt
  • Document your belongings with a home inventory — video walkthroughs, photo records, and receipts stored off-site or in the cloud can dramatically speed up the claims process
  • Know your insurer's claim timeline obligations under Washington state law

OIC Deploying at Disaster Assistance Centers

The Office of the Insurance Commissioner plans to have staff present at Spokane-area disaster assistance centers to assist wildfire survivors with insurance questions and claims navigation. Homeowners dealing with fire damage can also contact the OIC's consumer protection hotline.

The Bigger Picture: Insurer Withdrawals

Washington is grappling with a trend seen across the West: insurance companies reassessing or withdrawing from high-risk wildfire markets, leaving homeowners with fewer options and higher premiums. The new transparency legislation is seen as one tool to address this dynamic — helping homeowners understand and improve their risk profile rather than simply being dropped from coverage.

For insurance-related questions related to wildfire, visit insurance.wa.gov or call the OIC consumer hotline at 1-800-562-6900.