Defensible space

Fire insurance has always been included in the typical American homeowner policy.

"In fact, the first homeowner insurance was fire insurance, so that is absolutely part of the basic homeowner's policy," said State Farm Insurance spokeswoman LuWanna Nielsen.

The automatic inclusion of fire coverage in home policies is becoming less certain, however, as more homes are built in the "wildland-urban interface area" where neighborhoods and forests intermingle.

After catastrophic fires like those that killed 24 people and destroyed more than 3,600 homes in Southern Calif. last year, insurance companies may require more risk-management procedures from policy holders.

It might seem abstract for insurance companies to require home owners to trim hedges and trees a certain distance from structures, but that's the way we're headed, according to fire department officials and insurance insiders.

The insurance industry has discussed the idea of requiring "defensible space" - where flammable brush is cleared 50 feet - around insured homes for years.

State Farm Insurance is taking the lead with a program known as "the Defensible Space Initiative." It calls for fire-safety inspections of homes in high-risk Western areas. Reports will be issued on how to increase the safety of individual homes.

"They'll have 18 to 24 months to meet the recommendations," said Gus Miranda, State Farm spokesman. "If they do not, we'll look at the possibility of not renewing them."

Miranda said the program is designed to reduce the risk to firefighters, but others suggest the cost of payouts may be a factor.

"It's all motivated by money - the insurance industry has paid out $300 billion over the last two years in claims for fire and water damage," said Carson City Fire Department Inspector Lee Horton. "They've realized, 'We have to do something about this - it's killing us.'"

The insurance industry paid out $2.5 billion on 19,000 claims for last year's California fires alone, Miranda said.

Firefighters in the West, though not motivated by pay outs, have been pushing for defensible space for years. They appreciate having insurance companies to help spread the word.

"The insurance lobby is a big, powerful, multimillion-dollar lobby and they're gonna sell this idea, you bet," said Horton.

No insurance rate discounts are being offered by State Farm for policy holders who maintain approved defensible space, Nielsen said. "There are no discounts currently available for that, although we do encourage (defensible space)."

Another "risk management" idea fire departments are pushing is sprinklers inside homes in neighborhoods where there are no fire hydrants. Insurance companies like State Farm are not talking about that idea yet, according to Miranda.

"That idea is mostly being pushed by fire departments but you can bet in the next five years the insurance companies may be telling you, 'If you live in an area where there are no fire hydrants, you have to have sprinklers in your home in order for us to insure you," said Horton.

Discounts are offered by State Farm to homeowners who have sprinklers. A 5 percent discount is offered to those with sprinklers in part of their homes and a 10 percent discount is offered for those with sprinklers through their whole homes.

This is good news for those who might be paying higher rates to live in scenic but more fire-prone urban-interface areas.

Policy rates do not increase just because you live a forested area, Nielsen said, although that is one of several factors considered.

"There are many, many factors that go into rating."

Carson City has ordinances requiring sprinklers in areas where the city does not provide water such as southwest of the Stewart Indian School and up Old Clear Creek Canyon.

"There's quite a few areas that don't have city-supplied water, that don't have city- supplied fire hydrants and homes in those areas are all required to have sprinklers," Horton said. "That's true in Douglas County, Sedona, Ariz., most of Colorado - all over the place."

Contact Karl Horeis at khoreis@nevadaappeal.com or 881-1219.