Insurer targets Nevada, other Western states for wildfire survey

Nevada Appeal News Service

State Farm Insurance is surveying 23,000 homes in Nevada and five other Western states to determine if more should be done to protect their properties from wildfire.

The survey is part of a three-year pilot project which began a year ago and also includes Arizona, Wyoming, Utah, Colorado and New Mexico. Insured homeowners selected for the project will be contacted by State Farm before their property is inspected, then be mailed a list of recommendations, if needed, for their property.

"Types of roofs, shrubbery, distance of tree tops to a home, where gas tanks are situated," said Gus Miranda, State Farm spokesman. "They will have 18 to 24 months to address those recommendations. If they do not, there is a possibility (their policy) will not be renewed. We are trying to help homeowners stave off the threat of wildfire."

The move is a signal from the industry that wildfires in the West are a fact of life. State Farm insures more homes and lives than any other company in the nation. One of every five homes in Nevada is a State Farm customer.

"It's a pilot program. We hope it's never tested. We just want to see how the program will work," said Miranda. "If it does well, we'll look at extending other wildfire-prone states."

Last year in California the insurance industry conducted a survey of 11 regions to determine fire-safety issues. The survey was done in conjunction with fire-safe councils and fire departments.

The information generated by the survey will not affect the policies of individual homeowners, according to Tully Lehman, a spokesman for the Insurance Information Network of California, which conducted the survey and represents 70 percent of the industry in the state.

In California, like most states, a homeowner seeking insurance could be turned down by a company if his or her home is determined to be more vulnerable to wildfire than others. But, in general, there is no specific policy related to wildfire danger the industry follows.

"Some companies look at their own books and say, 'We have an awful lot of exposure in this particular area," Lehman said. "We have an awful lot of high risk and may need to cut back. It's a business decision."

The answer, Lehman said, is to shop around.

"There are so many companies," Lehman said. "Insurance companies are also looking at longtime historical data. If you saw your rates increase substantially, go out and shop around with other companies."

Actual losses from wildfire are still dwarfed by other insurance claims caused by water damage or incidents like a hail storm.

"A hail storm in Texas can affect 100,000 homes in a few days," Miranda said. "I can't speak for the industry, but threats created by wildfire are becoming more prevalent. It's up there on the radar screen and we're doing something about it."