Property insurance rates in Montana are on the rise, prompting legislative action to uncover the reasons. House Joint Resolution 61, passed during the 2025 session, mandates an interim study on property insurance, ranking as the top study bill of the session. The Economic Affairs Interim Committee, led by House Speaker Rep. Brandon Ler, is conducting the study. On Tuesday, a panel featuring insurance lobbyists, consumer advocates, and research groups like Headwaters Economics presented their findings.
Insurance lobbyists cited factors such as extreme weather, “legal system abuse,” increasing building costs, and regulatory overreach as contributing issues. Companies are concerned about potential losses as they pay out more than they earn, risking the departure of providers. Ler addressed cost shifting, a term also discussed in property tax debates, emphasizing that making policies cheaper for one group could raise costs for others. He stressed the need to retain the remaining insurance companies in the market.
Consumer advocates expressed worries over insufficient data on rate increases, policy nonrenewals, and the impact of credit scores on costs. Michael DeLong from the Consumer Federation stated, “We need more data, and we need more accurate data, and it’s not just an issue in Montana, but across the country.” He highlighted the anecdotal evidence of rising premiums and policy refusals without concrete data to gauge the full extent of the problem.
From 2021 to 2024, average insurance premiums for Montana homeowners rose by about 10%, with national premiums increasing by nearly $650. A federal study from 2018-2022 compiled data from states, but Montana did not participate. Plans are underway for Montana to join the next NAIC data call, with data expected by June. Trevor Graff, director of government relations with the Securities and Insurance office, emphasized the state’s commitment to data participation, saying, “I’m hoping we can focus on the fact that we are participating in the data call.”
Wildfires remain a significant concern, with billion-dollar disasters expected to rise by 50% by decade’s end. Montana faces at least one billion-dollar disaster annually. A presentation noted, “By the end of this decade, it is likely Montana will have experienced 16 or more billion-dollar disasters in just 10 years.” Kimi Barrett of Headwaters Economics, who co-authored a wildfire insurance report, emphasized the need for proactive risk reduction.
Ler, an experienced firefighter, acknowledged the need for federal fire mitigation, though the extent required is debated. He advocated for federal responsibility over lands to see substantial risk reduction, stating, “We can have all the mitigation plans in place on your private property, but when you have a fire coming down at you at 60 mph, there’s absolutely nothing you can do, and the houses are going to burn just the same.”
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