by John Dowd
Rising homeowners insurance costs and limited coverage options are making it increasingly difficult for Montanans to buy and keep homes, according to insurance officials, real estate professionals and policymakers who gathered in Hamilton for a public forum hosted by the Bitterroot Board of Realtors.
The Bitterroot Board of Realtors partnered with the Montana Association of Realtors and the Montana State Auditor’s Office to host a “Lunch with the Commissioner” event featuring Montana State Auditor and Insurance Commissioner James Brown. The discussion focused on the state’s evolving homeowners insurance market, particularly in wildfire-prone areas.
A panel of industry experts included Brown; Kris Anglin, sales and business development partner for Montana State Fund; Scott Countryman, an insurance broker with Goosehead Insurance in Kalispell; and Daniel Cox, government affairs director for the Montana Association of Realtors.
The event drew real estate agents, local business owners, fire council representatives, legislators and community members. Mike Kent, president of the Bitterroot Board of Realtors, said the forum helped attendees better understand why insurance premiums continue to rise.
“It gave them some idea of why rates are going up,” Kent said.
“We were able to have a candid conversation with Realtors about rising insurance coverage,” Brown said, adding that the goal was to provide information that will hopefully make agents’ jobs easier.
According to Kent, insurance affordability has become a growing obstacle for homebuyers. Increasing premiums are factored into monthly mortgage payments. “That affects their buying power,” said Kent, causing some home sales to collapse before closing.
He said the trend has been building since about 2018, following several catastrophic wildfire seasons in California and Oregon, and has intensified as large fires have continued across the West.
In addition to higher premiums, homeowners are increasingly facing non-renewals from insurance companies. While some insurers are choosing not to renew existing policies, they may offer replacement coverage at substantially higher rates, Kent said.
Countryman added that insurance costs are becoming as significant to household budgets as mortgage payments themselves. “Insurance is starting to have that same weight on the budget,” said Countryman. “It’s pricing people out of homes.”
He also praised the strong turnout, saying the discussions would help provide direct feedback to lawmakers in Helena. ”Having folks here is kind of like bringing Helena to Hamilton,” Countryman said.
Brown mentioned recent House Bill 533, passed during the 2025 Montana Legislature. The law requires insurance companies to disclose wildfire risk scores and the specific scoring information used when evaluating homeowners or applicants. Wildfire risk scores are one metric insurers use when determining premiums, but Brown and Countryman said the lack of consistency among insurance companies limits the usefulness of those disclosures.
Countryman noted the lack of standardization and that consumers are often left guessing which areas or characteristics may lead to higher premiums. Brown said, “Insurance companies are getting more sophisticated with how they identify risk,” Brown said.
Panelists said companies now consider numerous factors including market saturation, slope of the land, tree density, proximity to water and other environmental conditions.
Distance from a fire department is another significant consideration, Countryman said. During a question-and-answer session, one attendee asked why similar properties in neighboring Idaho sometimes appear to have lower insurance rates. Countryman said the differences between western states are often not significant, but noted it may be due to distance from a fire department. According to Countryman, even being more than five miles from a fire station can significantly affect premiums. Insurance companies may also consider whether departments are volunteer or full-time, as well as their staffing levels and funding. Many Montana fire departments rely on volunteers, and much of the state’s rural housing lies beyond that five-mile threshold.
Despite the increasing sophistication of insurance models, panelists said insurers often rely more heavily on regional risk than on mitigation efforts completed on individual properties. While actions such as fuel reduction around a home may be considered, western Montana as a whole is generally viewed as a high-risk area.
Brown said his office is exploring additional wildfire mitigation efforts, including potential grant opportunities aimed at reducing wildfire risk and improving insurance availability.
Following the event, Brown called the forum a success and said its primary objective was to help real estate professionals better prepare homebuyers for insurance costs before closing.
“The overriding goal of the forum was to get agents thinking about having difficult conversations with prospective home buyers about insurance coverage and price, so no surprises on the back end — post-house sale,” Brown said.
Brown said he also wanted to hear directly from industry professionals about conditions in the insurance market to help identify possible legislative and regulatory solutions ahead of the 2027 Montana Legislature.
The Ravalli County forum was the third hosted by Brown’s office, following similar events in Flathead and Lewis and Clark counties. A fourth forum is planned for Gallatin County after Labor Day as officials continue addressing rising insurance premiums and increasing notices of policy non-renewal across Montana.
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