Wildfire risk is reshaping the homeowners insurance market in Washington state, particularly for residents living in areas that are more vulnerable to wildfire activity, including many residences in Spokane County. While premiums have increased sharply in recent years, new data from the Washington state Office of the Insurance Commissioner shows rate increases are now beginning to cool down.

Due to rising claims from catastrophes, including the 2023 wildfires in Medical Lake and Elk, homeowners insurance rates rose 16.6% in 2023, followed by a 21.7% increase in 2024. Last year, home insurance rates grew 8.9%, but as of May 1, 2026, rates have dropped 0.5%. The data represents a weighted average of how the top 20 insurers in Washington state have adjusted their rates year to year since 2023, explains Aaron VanTuyl, communications and media manager for the Office of the Insurance Commissioner.

"It looks like home insurance rates are plateauing, at least for the moment," VanTuyl says.

Home insurance rates and premiums are rising as insurers adjust to an uptick of wildfire losses, he says. Additionally, home insurance rates are influenced by the high cost of construction materials that have been impacting repair and rebuild costs.

As long as the rate changes aren't artificially inflated or result in unfair price-gouging or excessive profits, the insurance commissioner's office is required by law to approve them, VanTuyl explains. Insurers operating in Washington state are not allowed to freely raise rates, he says. Instead, rate increases need approval through an actuarial review process. Approved rate changes must be "actuarially sound," meaning the rates are based on data and risk assessment. 

Wildfire risk scoring also is becoming an increasingly important factor in how insurers evaluate properties and determine coverage eligibility and pricing. Wildfire risk scoring is typically performed by third parties, which establish scores using satellite imagery, property data, insurance loss data, and fire science to create wildfire risk assessments that can evaluate an individual property. Those scores are then sold to insurance companies.

While rates are currently plateauing, some state officials are pursuing new laws to ensure long-term affordability and transparency through risk-score disclosures and home improvement grants. For example, VanTuyl says, Washington state Insurance Commissioner Patty Kuderer sponsored two consumer protection bills regarding homeowners insurance policies during the 2026 legislative session: Senate Bill 5928 and Senate Bill 6079.

SB 5928 passed the Senate with a vote of 48-1, but met resistance and stalled in the House Committee on Consumer Protection & Business. The bill would have required insurers to disclose wildfire risk scores when used in underwriting or coverage decisions, force insurers to explain what factors into the score, and provide clear advice on how to improve wildfire risk scores.

State Sen. Shelly Short, who sponsored the bill, says there aren't any guarantees with pieces of legislation.

"What reads good to the Senate may not meet the same vigor in House," Short says.

The bill was met with overwhelming support in the Senate, but the House committee sought revisions to the specific wording of the bill before allowing it to move forward, Short says. The Republican senator represents Washington's 7th legislative district, encompassing the northeast corner of the state bordering Canada and Idaho. The district includes all of Okanogan, Pend Orielle, and Stevens counties, in addition to portions of Chelan, Douglas, and Spokane counties, all of which are considered susceptible to wildfires.

"We need insurance companies to work with their consumers and help them know and understand what the wildfire risk scores mean and how homeowners can work to lessen that risk," Short says of the bill. "Insurers owe the homeowners that kind of transparency."

The second bill, SB 6079, ultimately failed in a House committee after passing in the Senate with a 37-11 vote. The goal of the bill was to create a voluntary grant program using regulatory funds from the insurance commissioner's office that could be used to help retrofit existing homes to meet wildfire preparedness standards put in place by the Insurance Institute for Business & Home Safety. The bill would not have impacted the state budget, asserts VanTuyl.

The Tampa, Florida-based Insurance Institute for Business & Home Safety is an independent, nonprofit scientific research organization that simulates natural disaster scenarios and provides data to improve building codes. The institute's Wildfire Prepared program was introduced in 2022 and made available to Washington residents in April. 

The institute offers valuable insights, Short says, but their recommendations assume a uniform level of funding that isn't feasible for resource-limited rural areas.

Both bills had the support of Short and Democratic Sen. Marcus Riccelli, who represents District 3 in Spokane and advocates for consumer and wildfire protections in Eastern Washington. Riccelli says some of the insurance nonrenewals have impacted urban areas in District 3, drawing his attention.

The voluntary grant program introduced with SB 6079 was designed to help homeowners meet industry fire resistance standards. The program just needs a chance to be tested and proven, Riccelli says.

"I believe it to be a step in the right direction," Riccelli says. "Given the chance to be proven, this program can expand and help a lot of homeowners in the region and state."

SB 6079 received some push back attributed to jurisdictional authority between the Department of Natural Resources and the Office of the Insurance Commissioner. The Department of Natural Resources is working to ensure there is no overlap in jurisdictional oversight with fire mitigation efforts. Riccelli says there's hope to "iron out" any discrepancies before the 2027 legislative session.

Both consumer protection bills will be presented at public events throughout the year to help educate the public. New, revised bills likely will be introduced in 2027, VanTuyl says. 

Higher insurance rates, and policy nonrenewals will be pressing issues for homeowners for the foreseeable future, Short says, adding that she will continue emphasizing public awareness and education about consumer rights, responsibilities, and how to better protect high-risk properties.