2025 Reports

Wildfire and Insurance: Options for Homeowner Coverage

Dale, Lisa Allyn; Barrett, Kimiko

As wildfires grow more frequent and destructive across the Unites States, homeowners face a new challenge: securing affordable and adequate insurance coverage. Traditional insurance markets are strained, with rising premiums, non-renewals, and insurers withdrawing entirely from some markets in high-risk regions. The result is that homeowners must pay more for home insurance or may not be able to get home insurance at all. When entire communities face this crisis, the long-term consequences can include a reduction in local tax revenues and critical services, downgraded municipal bond ratings, and other financial pressures.

A new report from Headwaters Economics and Columbia Climate School, “Wildfire and Insurance: Options for Homeowner Coverage,” examines the latest research, lessons learned, and expert views to identify five approaches and innovative strategies for wildfire insurance coverage in high-risk areas. The report outlines advantages and trade-offs for each strategy, specific case studies and pilot programs, as well as policy recommendations and state regulatory examples from California, Colorado, and Oregon.