Design Highlights
- Nevada’s new law allows insurers to remove wildfire coverage from standard homeowner policies starting January 1, 2026.
- Homeowners in high-risk areas may need to purchase separate wildfire insurance due to coverage exclusions.
- A state-administered FAIR Plan will assist homeowners denied coverage by three insurers, requiring proof of wildfire protection measures.
- The legislation has received mixed reactions, with support from fire officials and concerns from consumer advocates about underinsurance.
- Homeowners now face challenges in securing adequate protection and navigating the evolving insurance landscape.
As Nevadans brace for the looming wildfire season, a new law has thrown a wrench into the insurance game. Enter AB376, the legislation that’s stirring up quite the buzz. It passed through the Nevada legislature like hotcakes, garnering unanimous support. Governor Joe Lombardo gave it his stamp of approval, and now it’s set to take effect on January 1, 2026.
But here’s the kicker: this law allows insurers to exclude wildfire coverage from standard homeowner policies. Yup, you read that right. Homeowners might find themselves scrambling for separate wildfire-only policies instead.
This change isn’t just a minor tweak; it’s a major shake-up. Insurers now have the freedom to ditch the wildfire coverage that previously came with homeowners’ policies. Why? Because the folks in northern Nevada have been facing a tough time. Thousands have been denied coverage altogether, particularly in high-risk zones like Incline Village and Stateline.
Sure, Nevada’s wildfire risk isn’t as dire as California’s, but it’s growing, and nobody wants a repeat of the mass insurer exodus seen in other states. That’s the last thing Nevadans need—being left out in the insurance cold. Despite the challenges, insurance companies in Nevada remain profitable, demonstrating the potential for growth in the insurance market.]
But wait, there’s more. The law also introduces a state-administered FAIR Plan, which sounds great in theory. It’s meant to help homeowners who get turned down by three insurers. But guess what? It comes with strings attached—homeowners need to implement wildfire protection measures on their properties.
It’s like a game of musical chairs, and not everyone’s going to be sitting when the music stops.
Not everyone is cheering for this new direction. The Nevada Fire Chiefs Association and Washoe County are on board, likely because they want to see more options for their residents. However, the American Property Casualty Insurance Association isn’t too thrilled.
Consumer advocates are also raising their eyebrows, warning that many could end up underinsured. And let’s not forget the irony here—while California mandates wildfire coverage, Nevada is moving in the opposite direction. It’s a curious case of “let’s see what happens.”
Homeowners in wildfire-prone areas are now faced with a tough reality. They’ll need to shop for separate policies, and mortgage lenders may not even require wildfire coverage.
