Prime Insurance Company – Your Partner in Wildfire Protection Understanding the Rising Threat of Wildfires, What Every Homeowner Should Know

Utah, United States, 19th Feb 2025 – Wildfires have become an increasingly pressing concern for homeowners across the United States, with the average number of acres burned steadily rising since the 1980s. In 1983, around 1.4 million acres were affected by wildfires; by 2020, that figure surged to over 10.1 million acres. This trend highlights the need for homeowners to be well-informed about quality wildfire coverage in their homeowner’s insurance policies.

Despite the growing threat, many insurance companies have yet to include comprehensive wildfire coverage in their standard homeowner’s insurance policies.

However, Prime Insurance Company recognizes the importance of this coverage and offers insurance in the excess and surplus line markets, including wildfire protection. they aim to shed light on the risks associated with wildfires, pinpoint the states that are most affected, and discuss the significant benefits of wildfire coverage for Americans.

Update: Recent Wildfires in Los Angeles

The recent devastating wildfires in California, notably the Palisades Fire, have brought to the forefront an urgent insurance crisis. Major insurance providers are halting new policies in response to the rising risks driven by climate change and increased migration into fire-prone areas. Consequently, homeowners are increasingly turning to the California FAIR Plan, an insurer of last resort, which has seen a spike in enrollment, raising questions about its long-term financial stability. To address this issue, California has implemented regulations requiring insurers to cover more homes in high-risk areas, igniting a conversation about balancing consumer protection with the sustainability of the insurance industry. This situation serves as a critical reminder of the challenges homeowners face in securing insurance amidst escalating climate risks. It reflects concerns similar to those experienced during the 2008 financial crisis, including declining property values and limited access to insurance. In light of these developments, choosing Prime Insurance Company for your wildfire coverage becomes a strategic decision. With traditional insurance markets grappling with adapting to these heightened risks, Prime Insurance Company meets the challenge head-on with its focus on excess and surplus (E&S) lines of insurance. 

What Are Wildfires? 

Wildfires, defined as uncontrolled fires that spread through wildland vegetation, commonly occur in areas like prairies, grasslands, and forests. These fires can be sparked by human activities or natural phenomena such as lightning. Studies estimate that human actions contribute to about 85% of wildfires. In the United States, wildfires are a frequent occurrence, causing significant damage, including loss of property and personal belongings. The National Interagency Fire Center reports an average of 70,000 wildfires each year since 1983. California is particularly vulnerable, with over 2 million Properties at risk and more than 9,000 wildfires recorded in 2021 alone. Other states facing considerable wildfire threats include Texas, Colorado, Arizona, and several others, each with thousands of properties at risk. Interestingly, in 2021, Montana had the highest percentage of properties at risk, followed closely by Idaho and Colorado. Notably, Delaware and the District of Columbia were the only areas that did not experience any wildfires that year.

 Do All Homeowner’s Insurance Policies Cover Wildfires? 

A significant concern among homeowners is their understanding of insurance coverage. A Forbes survey indicates that 72% of homeowners lack a clear grasp of essential homeowners coverage, despite an increase in premiums over the past year. This highlights the need for insurance producers to engage their clients in discussions about what is included in their policies. Many homeowners mistakenly assume that their standard homeowners insurance covers wildfire damage. Unfortunately, this isn’t always the case, as some insurers may exclude wildfire coverage or impose high deductibles. For insurance producers aiming to meet their clients’ needs, partnering with a company like Prime Insurance Company can be invaluable. With over 40 years of experience in surplus lines insurance, they provide tailored solutions that address the unique challenges posed by wildfires and other risks.

Essential Elements of a Wildfire Policy 

For insurance producers, crafting a comprehensive wildfire insurance policy involves covering several key elements that will benefit clients. Clients must understand the specifics of their coverage to avoid surprises when disaster strikes. A well-rounded wildfire policy should cover the structure of the home and its contents, given the potential for severe damage from wildfires. Clients should also consider purchasing a minimum amount of content coverage to protect their belongings. Additionally, coverage for additional living expenses can be essential if families must relocate temporarily during repairs—this helps minimize out-of-pocket costs. Including theft and vandalism coverage is also wise, as the aftermath of a wildfire can lead to increased risks in these areas. Furthermore, landscaping coverage can safeguard clients from losses associated with their gardens and outdoor features. Lastly, policies should address claims for fire or smoke damage resulting from wildfires, recognizing that smoke can cause extensive damage even without direct fire contact. 

Recognizing the Need for Specialty Insurance

Wildfires are just one reason Americans may seek non-standard homeowners insurance. Other factors include owning high-value homes or residing in areas with significant risk. It’s essential for insurance producers to understand these needs and engage clients with solutions that provide peace of mind and comprehensive protection. Through proactive communication and tailored offerings, producers can help homeowners feel secure in their coverage choices.

Navigating Wildfire Coverage for Homeowners

At Prime Insurance Company, they are committed to supporting insurance producers who strive to enhance their clients’ coverage options. Their comprehensive homeowners policies can encompass a variety of protections, including wildfires, floods, wind, earthquakes, mudslides, and more—conveniently consolidated into one policy. Prime Insurance is here to provide essential solutions. 

Are there specific risks that your standard homeowner’s policy does not cover? Or perhaps your current policy limits do not fully reflect the value of your home? Prime Insurance specializes in Homeowners Insurance solutions, known as TRU Homeowners, designed to deliver peace of mind in situations like these. With flexible underwriting, Prime Insurance provides customized solutions that allow for higher limits in scenarios that traditional insurance companies often overlook. 

A TRU Homeowners policy can serve as an additional layer of protection alongside a standard homeowners policy or stand alone as a fully comprehensive home insurance solution for high-risk properties. 

Prime encourage you to explore the benefits of a risk-sharing partnership instead of the traditional deductible approach to insurance. This alternative may offer a more cost-effective strategy for managing your insurance needs

Prime is an excess and surplus lines carrier with over 40 years of experience. Prime is rated A (Excellent) AM Best and writing business in all 50 states. 

For further information or to request a quote, please reach out to Prime Insurance Company at 800-257-5590 or quotes@primeis.com.

Media Contact

Organization: Prime Insurance Company

Contact Person: Barbara Malkowski

Website: https://www.primeis.com

Email: Send Email

Contact Number: +18013045500

Address: 8722 S. Harrison St. Sandy, UT 84070

State: Utah

Country: United States

Release Id: 19022523714