If you're an Idaho homeowner, you've probably noticed something alarming about your insurance bill lately. Premiums jumped 17% in 2024 alone, and some neighborhoods saw rates more than double. The culprit? Wildfire risk. With nearly one million acres burned in 2024 and 200 structures destroyed, Idaho's wildfire crisis isn't just a summer news story—it's reshaping the entire home insurance market.
Here's what makes Idaho's situation particularly tricky: unlike many Western states facing similar challenges, Idaho doesn't have a FAIR Plan—a last-resort insurance option for high-risk properties. That means if your insurer drops you, you could be scrambling to find any coverage at all. Let's walk through what you need to know to protect your home and your wallet.
Why Idaho's Wildfire Insurance Market Is Changing So Fast
The numbers tell a stark story. Between 2022 and 2024, Idaho's average home insurance premium climbed from $1,308 to $1,798—a nearly 40% increase in just two years. Some areas got hit even harder. In Caldwell's 83606 ZIP code, premiums more than doubled to $2,751. Cities like Meridian and Nampa saw 21% increases in a single year.
What's driving these increases? Insurance companies are looking at Idaho's wildfire losses, which jumped from $16 million in 2022 to $24.5 million in 2024, and deciding the risk is too high. Twenty-five insurers either stopped writing new policies or pulled out of Idaho entirely in 2024. Between 2022 and 2023, the market lost more than 40,000 policies—about 9% of all homeowners insurance in the state.
The areas most affected are exactly where you'd expect: forested regions, foothill communities, and anywhere with significant vegetation near homes. Boise's situation is particularly concerning—60% of homes face wildfire risk over the next 30 years, with expected annual losses of $25 million. From Coeur d'Alene to Cascade to Boise's foothills, homeowners are getting non-renewal notices or seeing premiums skyrocket.
What Standard Homeowners Insurance Covers (and Doesn't)
Here's some good news: standard homeowners insurance in Idaho typically does cover wildfire damage. Your dwelling coverage protects your house structure, your personal property coverage handles your belongings, and additional living expenses cover hotel bills if you need to evacuate. This is different from flood insurance, which requires a separate policy.
However—and this is crucial—you need adequate coverage limits. If your home is insured for $250,000 but would cost $400,000 to rebuild, you're severely underinsured. With construction costs rising, many Idaho homeowners are discovering their coverage hasn't kept pace with replacement costs. Review your policy annually and consider inflation guard provisions that automatically increase your coverage.
Another important consideration: wildfire deductibles. Some insurers in high-risk areas are implementing separate, higher deductibles for fire losses—sometimes 5% or even 10% of your dwelling coverage instead of the standard flat deductible. On a $300,000 home, a 5% fire deductible means you'd pay $15,000 out of pocket before insurance kicks in. Read your policy documents carefully and ask your agent specifically about fire deductibles.
How to Protect Your Home and Keep Your Insurance
Creating defensible space isn't just about wildfire safety—it's increasingly becoming a requirement for maintaining insurance coverage. Idaho recommends 100 feet of defensible space on flat ground, extending to 200 feet on slopes. This breaks down into three zones, each with specific requirements.
In the immediate zone (0-5 feet from your home), remove all combustible materials. No firewood stacks, no mulch against the foundation, no shrubs touching the house. This zone should be completely non-combustible. In Zone 1 (5-30 feet), eliminate fire-prone vegetation, move combustible patio furniture, and trim tree branches that overhang your roof. Clean your gutters and roof of pine needles and leaves—these are shockingly effective at catching embers.
Zone 2 (30-100+ feet) should have well-spaced trees and vegetation clusters, not continuous fuel. Keep detached structures like sheds at least 50 feet from your main home. Many insurers are now requiring photos of your defensible space during underwriting or renewal. Some are even using satellite imagery to assess vegetation around properties.
Home hardening also matters. Class A fire-rated roofing, ember-resistant vents, and double-pane tempered glass windows all reduce your risk. While these upgrades aren't cheap, they can help you maintain coverage when insurers are pulling back from your area. Document all mitigation work with photos and receipts—this evidence can be crucial when shopping for insurance or appealing a non-renewal decision.
What to Do If You're Dropped or Can't Find Coverage
Getting a non-renewal notice is terrifying, especially knowing Idaho doesn't have a FAIR Plan to fall back on. But you have options. First, don't wait until your policy expires—start shopping immediately. Work with an independent insurance agent who can check multiple companies. Some insurers are still writing policies in areas where others have pulled out.
Surplus lines insurers (non-admitted carriers) may cover homes that standard insurers won't touch. These policies are more expensive and offer less consumer protection, but they're better than going uninsured. The Idaho Department of Insurance also proposed a Wildfire Risk Reinsurance and Mitigation Pool that would help insurers continue covering high-risk areas, though this is still in development.
If you have a mortgage, understand that your lender will purchase forced-place insurance if you can't get coverage—and it's astronomically expensive with minimal protection. Exhaust every option before letting your policy lapse. Consider higher deductibles, reduced coverage limits, or combining mitigation work with policy shopping to improve your insurability.
Getting Started: Your Action Plan
Start by reviewing your current policy—today, not next month. Check your coverage limits against current rebuilding costs, identify any fire-specific deductibles, and verify that additional living expenses are adequate. Then assess your property's wildfire risk honestly. Resources like Idaho Firewise (idahofirewise.org) and Ada Fire Adapted (adafireadapted.org) offer free risk assessments and mitigation guidance.
Create your defensible space in stages if the work seems overwhelming. Focus first on Zone 1 (the critical 30 feet around your home), then expand outward. Document everything with dated photos. When you've completed mitigation work, inform your insurer—some offer discounts for Firewise certification or documented defensible space.
Idaho's wildfire insurance market is challenging, but not impossible to navigate. The key is being proactive rather than reactive. Don't wait for a non-renewal notice to think about defensible space. Don't wait for wildfire season to review your coverage. The homeowners who are maintaining affordable insurance in Idaho are the ones treating wildfire protection as an ongoing priority, not a one-time project. Start today, and you'll be in a much stronger position when the next fire season arrives.
