Montana Warns Insurers Against Unfair Wildfire-Related Coverage Denials

Montana Commissioner of Securities and Insurance, James Brown, issued a firm reminder to all licensed property and casualty insurers across the state today: do not unfairly deny or drop property insurance coverage simply because of wildfire risk—unless there’s a clear and substantial threat to the specific property.

Unjust Denials Spark Concern

The advisory follows a growing number of complaints from Montana residents and insurance agents. Reports have surfaced of insurers refusing to issue or renew policies even in areas not directly impacted by wildfires. Some complaints involve homes within city limits or developed neighborhoods being denied coverage due to fires miles away.

Each Property Must Be Evaluated Individually

“Montanans deserve fair access to property insurance, especially during wildfire season,” said Commissioner Brown. “Insurers cannot use wildfire risk as a blanket reason to deny coverage for properties that are not at a substantially increased risk. Each case must be evaluated on its own merits.”

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Montana Law Prohibits Unfair Discrimination

Under Montana Code Annotated Section 33-18-210(7), it’s illegal for insurers to unfairly discriminate between similar risks. This includes canceling or refusing coverage based solely on geographic location, unless there’s a legitimate business reason or legal requirement. The law ensures that insurers treat policyholders in the same class and hazard category equally.

Commissioner’s Office Ready to Investigate

Commissioner Brown’s office emphasized that it will investigate any reports of unfair insurance practices related to wildfire risk and take enforcement action when necessary.

Montanans Encouraged to Report Issues

Consumers who feel they’ve been unfairly denied property insurance due to wildfire concerns are urged to reach out to the Commissioner’s office. Here's how you can get in touch:

Online: csimt.gov
Phone: (406) 444-2040
Email: ics@mt.gov

Protecting Montana Policyholders

“This office is committed to protecting Montana consumers and ensuring that insurance companies comply with the law,” Commissioner Brown added.

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For more information about wildfire-related insurance rights, visit csimt.gov.