MT| The July 2, 2025 Advisory Memorandum from the Montana State Auditor’s Office reaffirms that property and casualty insurers in Montana are prohibited from refusing, canceling, or limiting insurance coverage solely due to wildfire risks unless there is a substantially increased risk of loss, as mandated by state law. The Commissioner has received complaints about insurers denying coverage in areas not directly threatened by wildfires, such as within city limits, and warns that such actions may be investigated as violations of the Montana Insurance Code. Insurers are reminded to assess wildfire risk on a case-by-case basis, and consumers are encouraged to report any unfair refusals or limitations to the Commissioner’s office.
Key points:
- Insurers cannot refuse, cancel, or limit property or casualty insurance based on wildfire risk unless there is a clear, substantially increased risk of loss.
- The Commissioner will investigate complaints about unfair insurance denials, especially in areas not directly threatened by wildfires.
- Consumers are urged to report suspected unfair insurance practices related to wildfire risk to the Montana State Auditor’s Office.