Washington Claim Analysis Finds Most Homes in 2023 Wildfire Were Under-Insured

An analysis of the claims paid out after the Gray and Oregon Road fires in Washington last year found that most of the homes destroyed were under-insured.

The fires destroyed 366 homes, burning more than 20,000 acres outside of Spokane in August 2023.

Washington Insurance Commissioner Mike Kreidler’s office initiated a data call in June to collect information from insurers that had a loss associated with the fires.

The results showed 355 significant dwelling claims ($10,000 in dwelling loss and $10,000 in personal property loss), and 244 had paid out 100% of their coverage for damage and 162 are still open and ongoing.

“That’s a sign that in most cases, the coverage limits were reached,” Kreidler said in a statement. “It’s a tragic loss for the people involved in these fires and an unfortunate situation to not be made whole after a life-changing event.”

Kreidler urged homeowners to review their policies regularly to ensure coverage meets the costs to fully replace their home and possessions should a loss occur.

The data call showed:

• 737 claims were made relating to the wildfires, and 664 of those claims resulted in a payment. Companies paid out $212 million as of July 31, for an average payment amount of almost $320,000.
• Of the 244 claims that paid out 100% of their coverage, 75 did not have extended replacement loss coverage. The 169 homes with extended replacement loss coverage were able to recover more than their policy limit.
• 111 claims had personal property damage, outbuilding damage or loss of use coverage.
• 32% of the people filing the claims that had significant loss were dropped from their previous insurance company; 36 policies were nonrenewed, while 79 were cancelled mid-term.
• The limits on loss of use coverage varied among claims: 154 had a dollar amount limit, with no time restrictions; 73 claims had a time limit (12 to 36 months), with no dollar amount restrictions; 98 claims had both a time limit and dollar amount restriction, the most common being 24 months.