Idaho introduces bill to create wildfire risk pool and grant program

House Bill 17 aims to stabilize insurance rates and encourage wildfire risk mitigation efforts

Idaho introduces bill to create wildfire risk pool and grant program

Catastrophe & Flood

By Kenneth Araullo

The Idaho Legislature has introduced House Bill 17, a proposal to establish a wildfire risk pool and grant program aimed at reducing property insurance costs and encouraging wildfire risk mitigation efforts.

The bill seeks to create the Idaho Wildfire Risk Mitigation and Stabilization Pool, managed by a 12-member board representing the insurance and forest product industries, consumer advocates, fire officials, and legislators.

Funding for the pool would come from multiple sources, including 25% of premium tax revenue exceeding a $113 million annual threshold, along with excess stamping fees, grants, and contributions for fire mitigation projects.

An insurer participation charge would also contribute to the fund. According to a report from AM Best, the pool could assess participating insurers as a last resort, subject to approval by the Idaho Department of Insurance director, who must determine that such an assessment serves the best interests of the state and its residents.

The legislation includes provisions for a grant program to support residents and communities undertaking wildfire risk mitigation. While the bill does not specify the size of the grants, it indicates they should be capped to reach as many participants as possible and may require matching funds.

The bill’s sponsors argue that the initiative will stabilize property insurance rates, improve accessibility, and attract insurers to the Idaho market. A statement accompanying the legislation highlights that other states with significant wildfire risks have seen insurers withdraw due to rising claims, increasing reinsurance costs, and higher property replacement values.

Gov. Brad Little endorsed the legislation as part of a broader strategy to prevent Idaho from experiencing wildfire events comparable to those in California. Little proposed an additional $100 million for fire prevention and suppression efforts, including investments in early detection systems, aviation programs, and bonuses for firefighters.

The funding would also replenish Idaho’s Fire Suppression Fund, depleted during the 2024 wildfire season.

The American Property Casualty Insurance Association (APCIA) has expressed support for the wildfire mitigation funding outlined in the bill but raised concerns about the mandatory assessment on insurers in the event of catastrophic losses. APCIA vice president of state government relations Lyn Elliott noted that Idaho currently has a competitive insurance market and no crisis.

“APCIA would like to see the mitigation funding program move forward, and APCIA continues to be engaged in discussions in hopes of negotiating amendments to alleviate members’ concerns related to the high-risk pool program,” Elliott said.

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