The Caldor Fire burns homes along a ridge on Aug. 30, 2021 near South Lake Tahoe, California. (Photo by Justin Sullivan/Getty Images)
Insurance companies have profited from Nevadans and their homes for the last decade, but that isn’t stopping them from pulling coverage or hiking rates over concerns about the risk of wildfires, state lawmakers were told Wednesday.
Thousands of homeowners insurance policies are being canceled or not-renewed this year due to wildfire risk, according to the State of Nevada’s Division of Insurance, leaving administrators concerned about people’s abilities to secure adequate protection in the face of natural disaster.
In Nevada, home insurers have been profitable every year of the past decade, with profits on average ranging from 5 to 10% of written premiums, according Nevada Insurance Commissioner Scott Kipper, who appeared before the interim legislative committee on commerce and labor on Wednesday to discuss the issue and what the state might consider doing to address the growing problem.