October 28, 2024

OLYMPIA, Wash. — An analysis of the insurance claims paid out after the Gray and Oregon Road fires shows that most of the homes destroyed were under-insured.

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

Washington state Insurance Commissioner Mike Kreidler’s office initiated a data call in June of 2024 to collect information from insurance companies that had a loss associated with the fires. 

The results showed 355 significant dwelling claims — consisting of $10,000 in dwelling loss and $10,000 in personal property loss. Of those claims, 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. “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 revealed that:

• 737 claims were made relating to the wildfires and 664 of those claims resulted in a payment. Companies had paid out a total of $212,188,637 as of July 31, 2024, 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 — which helps repair a home after a covered loss when the cost of labor and materials have increased. The 169 homes with extended replacement loss coverage were able to recover more than their policy limit. 
• Not all the claims filed covered direct damage to a home; 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 — which provides for housing and living expenses in the event a home is temporarily uninhabitable and being repaired — 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.

If you live in a wildfire risk area, Kreidler recommends making sure you have at least 24 months of loss of use coverage due to the time it takes to rebuild a destroyed home.

Kreidler previously asked insurers to expedite the approval process for debris removal after the fires and urged insurers to extend additional living expenses for wildfire victims.