Most of the homes destroyed in last year’s Gray and Oregon Road fires were uninsured, according to an analysis of insurance claims by the state Insurance Commissioner’s office.
On the same day in August 2023, the fire burned more than 20,000 acres and destroyed 366 homes near Elk and Medical Lake.
Washington State Insurance Commissioner Mike Kreidler’s office launched a data call in June to collect information from insurance companies that suffered losses related to the fires.
Monday’s news release said the investigation revealed 355 “significant housing claims” consisting of at least $10,000 in housing losses and $10,000 in personal property losses. Of these claims, 244 have paid 100% of their damages and 162 are still pending.
“In most cases, this indicates that you have reached your coverage limits,” Kreidler said in a statement. “It is a tragic loss for the people involved in these fires and an unfortunate situation where they cannot recover despite the life-changing events.”
The data also revealed that a total of 737 bushfire-related claims were made, of which 664 were paid out. Insurers have paid a total of $212.2 million as of July 31, 2024, with an average payout of approximately $320,000.
Medical Lake Mayor Terry Cooper, who is also chairman of the Spokane Area Long-Term Recovery Group, which helps residents affected by the fires, said Monday that the numbers from the health commissioner’s office make sense.
“I don’t know anyone who doesn’t have adequate insurance,” Cooper said.
Not all claims filed covered direct damage to the home. There were 111 claims for personal property damage, property damage, or loss of use coverage. Additionally, 98 claims had both time limits and monetary limits, with the most common being 24 months.
Kreidler urged homeowners to regularly review their insurance policies to ensure their coverage covers the cost of completely replacing their home and belongings in the event of damage. . He recommended that people living in areas at risk of wildfires should purchase at least 24 months of loss of use coverage to allow time for rebuilding.
Property values have risen rapidly during the COVID-19 pandemic, but a lack of supply and rising labor costs, along with a lack of supply, have meant that most coverage policies haven’t kept up with home values. The fire was “literally the perfect storm” because most homeowners weren’t thinking about renewing their insurance right away, Cooper said.
Cooper echoed Kreidler’s comments, reminding homeowners that their replacement coverage is up to date, includes wildfire coverage, and includes funds for debris removal in the event of a total loss. We encourage you to contact your insurance company to confirm. Homeowners can also educate themselves on how to protect and insure their homes from fire.
At the policy level, Cooper said the company is looking at ways to prevent insurers from removing entire postcodes they deem high risk by using standardized, evidence-based risk assessment factors. . She’s also encouraging Congress to pre-fund debris removal, which would provide a faster path to rebuilding.
Late last month, a group of more than 60 insurance companies sued Inland Power to recover claims paid to policyholders affected by the Gray Fire. The lawsuit alleges that the fire was caused by a defective utility pole due to the power company’s negligence.
