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Spokane wildfires raise scrutiny of availability and coverage for WA homeowners
A broker with World Insurance Associates said some homes that avoided flames may still be uninhabitable because utilities were shut down, and many policies now limit wildfire payouts unless mitigation steps were taken.
Washington's destructive wildfires, including the Spokane Complex Fires near Spokane, are expected to intensify scrutiny of homeowners' insurance availability and rebuilding protection as tens of thousands of residents assess their properties, according to Insurance Business.
The fires began Saturday, Aug. 1, and Gov. Bob Ferguson declared a statewide emergency and imposed a burn ban. By Aug. 3, around 65,000 people had been ordered to evacuate, with officials estimating about 700 buildings destroyed and thousands of homes without electricity.
Insurance Business reports broker Rob Karl, unit leader for the West Division of World Insurance Associates in Seattle, said clients face both displacement and uncertainty over their homes' condition. He noted that even houses not directly damaged by fire may be temporarily uninhabitable because utilities have been shut down.
Karl also pointed to tighter wildfire underwriting in recent years, including reduced insurer capacity in wildfire-exposed areas and mitigation requirements tied to continued coverage. He said many policies include coverage caps that limit wildfire payouts unless homeowners have taken those steps, adding complexity to residents' next decisions as they plan for where they will live if their properties were destroyed.