If you own a home in Montana, wildfire isn't some distant threat you see on the news—it's a neighbor you need to plan for. Since 2000, nearly 70% of all recorded wildfires in the state have occurred, and Montana now ranks second in the nation for homes at catastrophic wildfire risk. That's not a typo: over half of Montana properties are vulnerable. Whether you're in a forested mountain community, on a ranch with acres of grassland, or in a development that backs up to the wildland-urban interface, understanding how wildfire insurance works can mean the difference between recovery and financial devastation.
Here's the good news: standard Montana homeowners insurance covers wildfire damage. The challenging news? The insurance market is changing fast, with premiums up 22.1% in 2024 alone and some insurers pulling out of high-risk areas entirely. Let's walk through what you need to know to protect your property and your wallet.
What Wildfire Coverage Actually Includes
Your standard homeowners policy in Montana includes fire coverage, and that extends to wildfire. This typically covers damage to your dwelling, other structures on your property like detached garages or sheds, and your personal belongings. If a wildfire destroys your home, your policy should pay to rebuild it—assuming you have adequate coverage limits.
But here's where many Montana homeowners leave money on the table: additional living expenses (ALE) coverage. If you're evacuated or your home is uninhabitable after a fire, ALE pays for your hotel, meals, and other extra costs while you're displaced. Given that major wildfire rebuilds can take a year or more, this coverage is essential. Make sure your policy includes robust ALE limits—don't just accept the default.
You'll also want extended replacement cost coverage. Construction costs spike after widespread disasters as contractors and materials become scarce. Extended replacement cost (typically 125% to 150% of your dwelling limit) ensures you can actually rebuild even if costs exceed your policy limit. In Montana's current market, this isn't optional—it's critical protection.
The Montana Insurance Market Reality
Let's talk numbers. The average Montana homeowner paid $3,819 for insurance in 2024—that's $1,396 above the national average. Premiums have jumped 57.8% over six years, with that steep 22.1% increase in 2024 alone making Montana the fifth-fastest-growing insurance market in the country. Wildfire losses are the primary driver.
Some Montana homeowners are finding their policies non-renewed entirely. Insurers are using wildfire risk scoring tools to identify high-risk properties, and if your home scores poorly—maybe you're surrounded by dense forest, have a wood shake roof, or lack adequate defensible space—you might receive a non-renewal notice. Unlike California or Florida, Montana doesn't have a FAIR plan (a state-backed insurer of last resort), so your options become surplus lines carriers or going uninsured. Nearly one in ten Montana homeowners already lacks insurance, likely priced out of the market.
Here's the silver lining: Montana recently passed legislation (HB 136) requiring insurers to offer premium discounts when homeowners invest in wildfire mitigation. Installing an ignition-resistant roof, fire-resistant siding, or creating defensible space can now earn you tangible savings. Another law (HB 533) requires insurers to disclose how they calculate wildfire risk scores, giving you transparency into why your rates are what they are and what you can do about it.
Protecting Your Property: Defensible Space and Home Hardening
The condition of your home and surrounding vegetation is the biggest factor in whether it survives a wildfire. This matters for your safety, obviously, but it also directly impacts your insurance costs and availability. The concept you need to understand is the Home Ignition Zone (HIZ)—the area up to 200 feet around your structure.
Creating defensible space means managing vegetation in this zone to slow or stop fire spread. Start with the first five feet immediately around your home—no combustible materials, no wood piles, no dead vegetation. Out to 30 feet, you'll want well-spaced trees and shrubs, mowed grass, and removal of dead branches. From 30 to 100 feet (or more, depending on your terrain), focus on thinning trees, removing ladder fuels that let fire climb from ground to canopy, and maintaining lower vegetation. Montana's Department of Natural Resources and Conservation (DNRC) offers free site visits through local land offices to help you develop a defensible space plan.
Home hardening addresses the structure itself. Most homes ignite from wind-blown embers, not the fire front. Your roof is the most vulnerable point—if you still have wood shake shingles, replacing them with Class A fire-rated materials (metal, asphalt, tile) is your highest-return investment. Vent screens should have at least 1/8-inch non-flammable mesh to keep embers out. Consider replacing wood siding with fiber cement or stucco in the most vulnerable areas. Multi-pane windows with tempered glass resist radiant heat better than single-pane.
Yes, these improvements cost money. But they typically pay for themselves through insurance savings over a few years, and they might make the difference between having coverage or not. Document everything you do with photos and receipts, and send updates to your insurance agent—don't assume they'll automatically adjust your rates.
Special Considerations for Rural and Remote Properties
If your Montana property is in a remote location, you face additional challenges. Insurers care about fire protection class ratings—essentially, how far you are from a fire station and whether you have hydrants or other water sources nearby. Rural properties typically score worse, which translates to higher premiums or coverage denials.
You can't relocate the nearest fire station, but you can improve your individual property's fire-readiness. Install a dedicated fire suppression system or maintain adequate water storage with a pump system firefighters can access. Keep your access road maintained and wide enough for fire trucks. Clear brush along the road corridor. Join or support your local volunteer fire department. These actions demonstrate to insurers that you're taking risk seriously.
If you're building new or buying rural property, factor insurance into your decision. Before you close, get insurance quotes from multiple carriers. A property that seems like a dream can become a financial nightmare if it's uninsurable or costs $8,000 a year to insure.
How to Get the Coverage You Need
Start by reviewing your current policy. Look at your dwelling coverage limit—does it reflect current reconstruction costs? Construction inflation has been significant. Your limit should cover rebuilding the entire structure, not the market value of your home (which includes land). Add extended replacement cost coverage if you don't have it.
Shop around. Montana's insurance market is competitive, and rates vary significantly between carriers. Get quotes from at least three companies, including regional carriers that understand Montana risks. Ask specifically about their wildfire risk assessment process and what mitigation measures earn discounts.
Take action on mitigation before wildfire season hits. Create your defensible space in spring when conditions are wet. Schedule a DNRC site assessment. Make your home hardening improvements. Then document everything and inform your insurer. Being proactive shows you're a good risk and positions you better if you need to switch carriers.
Finally, have an evacuation plan and document your belongings. Take video walking through your home, capturing contents and finishes. Store this digitally off-site. In the chaos after a wildfire, having this documentation makes the claims process vastly easier.
Montana's wildfire risk isn't going away, but you're not helpless. The combination of adequate insurance coverage, property mitigation, and understanding your options gives you real protection. Start by evaluating your current coverage, get quotes if needed, and make a plan to improve your property's fire resistance. Your future self—and your bank account—will thank you.
