September 9, 2025
Idaho home insurance rates rose 17% in 2024 as wildfire risks grow and insurers tighten coverage, ending the state’s long run of low-cost homeowners insurance.
Idaho's homeowners insurance market is experiencing significant turbulence as premiums surge and wildfire risks intensify across the Gem State. While Idaho has historically enjoyed some of the nation's most affordable homeowners insurance rates, recent market dynamics are rapidly changing this landscape, creating new challenges for property owners and servicers alike.
Idaho homeowners face a dramatically shifting insurance landscape. Idaho home insurance rates have increased by 17% in 2024, significantly more than the 3% increase in Utah, despite the states' similar wildfire challenges. This represents one of the steepest increases in the western United States, signaling a fundamental shift in how insurers view Idaho's risk profile.
The average cost of homeowners insurance in Idaho in 2024 is $1,448, which is $975 less than the national average of $2,423. However, this affordability is rapidly eroding. Meridian and Nampa saw the greatest year-over-year increase in home insurance costs between October 2023 and October 2024, with average premiums surging by 21% in both cities.
The state's insurance landscape varies significantly by provider and location. The average premium in Idaho is $1,392, or $116 a month, for $300,000 in dwelling coverage, though rates can fluctuate dramatically based on specific risk factors and carrier underwriting policies.
According to a 2024 Forest Service analysis, Idaho ranks in the top 4% of U.S. states for wildfire risk exposure. This elevated risk profile is fundamentally reshaping the insurance market. Idaho wildfires had burned about 1 million acres in 2024 as of mid-October, with the August 2024 Paddock fire burning nearly 190,000 acres over 12 days.
The concentration of risk in certain areas is particularly concerning for insurers. Ada County (which encompasses Boise), faces an expected annual wildfire loss of $25 million, according to FEMA. This localized risk concentration explains why some of the state's largest metropolitan areas are experiencing the steepest rate increases.
Idaho's harsh winter conditions create additional risk exposures that insurers must price into their policies. The state's mountainous terrain and extreme temperature variations lead to significant risks from snow loading, ice dams, and frozen pipe claims. These seasonal perils add complexity to underwriting decisions and contribute to overall premium calculations.
Not all homeowner's and renter's insurance policies provide coverage for earthquake damage. Idaho sits within the Intermountain Seismic Belt, creating moderate earthquake exposure that requires careful consideration. While standard homeowners policies exclude earthquake coverage, 42 states have a reasonable chance of experiencing damaging earthquake, with Idaho among the states at elevated risk.
Idaho's regulatory approach significantly impacts market dynamics. Idaho is one of 17 U.S. states without a Fair Access to Insurance Requirements (FAIR) Plan, a last-resort insurance program for high-risk properties that private insurers won't cover. This absence of a state backstop means that property owners in high-risk areas who are denied coverage must seek expensive surplus lines options.
The state's cancellation notice requirements provide some consumer protection. The Idaho Department of Insurance requires carriers to provide 30 days' notice for cancellation (10 days for nonpayment). However, these protections offer limited relief as insurers increasingly restrict new business and non-renew existing policies in high-risk areas.
Insurance companies are responding to Idaho's elevated risk profile through multiple strategies. The DOI has heard from insurers who are limiting their risk exposure in some areas of the state, mostly in areas prone to wildfire. We do expect this to continue as the market hardens.
This market hardening manifests in several ways:
The lack of a FAIR Plan becomes particularly problematic as private insurers reduce their appetite for risk. Colorado, which previously didn't have a FAIR plan and faces wildfire risks similar to Idaho, authorized the creation of a FAIR Plan in 2023. Idaho's resistance to implementing similar measures leaves consumers with fewer options as the private market contracts.
Property owners can take proactive steps to reduce their risk profile and potentially lower premiums. According to a Guidewire analysis, some studies have shown certain home hardening features may reduce wildfire-related damage risks by as much as 70%, depending on home location, structure, and surrounding vegetation. Individual results will vary based on specific property characteristics and local conditions.
Installing a new Class A fire-rated roof and tempered glass windows, as the IBHS recommends, isn't in every homeowner's budget, but some mitigation strategies are free. Clearing out items stored under the deck, removing debris that accumulates under siding, and moving vehicles and other objects away from the house will mitigate wildfire damage, too.
The Idaho Department of Insurance is actively promoting these strategies. In April, the DOI partnered with the IHBS, a nonprofit that studies building safety, to host a controlled-burn demonstration showing the effectiveness of resilient building materials.
Credit score has the largest impact on Idaho's premiums, with the average premium difference reaching $2,001 depending on the score. Those with poor credit pay an average of $2,595 per year for homeowners insurance, according to NerdWallet's rate analysis. That's 78% more than those with good credit.
This significant variance highlights the importance of maintaining good credit for Idaho homeowners, especially as base rates continue to rise due to wildfire and other risks.
The following table compares average annual homeowners insurance premiums for $300,000 in dwelling coverage across Idaho and its neighboring states:
Sources: Multiple industry analyses from MoneyGeek, Newsweek, and Insurance.com
Idaho's premiums remain competitive regionally, though the gap is narrowing. Montana and Nebraska experienced the highest jumps in 2024, both at 22.1%. Minnesota and Washington followed, both at 19.5%. While Idaho's 17% increase is substantial, neighboring Montana experienced even steeper increases, suggesting regional market pressures affect the entire Mountain West.
For mortgage servicers and financial institutions managing Idaho property portfolios, the evolving insurance landscape demands proactive customer support strategies. Customers increasingly struggle with policy non-renewals, coverage gaps, and rapidly escalating premiums that strain monthly budgets.
Covered aims to enhance the customer experience and ease operational burdens by offering access to licensed insurance professionals who specialize in navigating Idaho's challenging market. Rather than simply fielding frustrated calls about insurance increases, servicers may be able to offer warm transfers to insurance professionals. This approach may help organizations enhance service delivery and better support customers navigating Idaho's challenging insurance market, while potentially allowing internal customer service teams to focus on other priorities.
The Idaho homeowners insurance market faces continued pressure from multiple factors. Weather forecasters are predicting a lively hurricane season, which likely will lead to additional rate increases into 2025 in many coastal areas, and similar weather pattern predictions suggest Idaho's wildfire risks will remain elevated.
For property owners and servicers, experts suggest several strategies may be effective in a challenging market environment:
Risk Assessment: Conduct thorough wildfire risk assessments for properties, particularly those in the wildland-urban interface. Valley County is considering a fire risk assessment proposal that involves dividing the county into zones based on wildfire risk factors and applying fire-resilient building standards to zones with extreme danger.
Proactive Mitigation: Encourage implementation of home hardening measures, which may help reduce premiums and improve insurability, depending on individual property characteristics. As insurance companies pull back on covering high-risk parts of Idaho, installing fire-resistant features could potentially make properties more attractive to insurers.
Market Diversification: Work with multiple carriers and consider surplus lines markets for high-risk properties. The concentration of standard market insurers creates vulnerability when companies restrict underwriting.
Coverage Review: Idaho homeowners should consider reviewing their policies to help ensure they have adequate coverage if a wildfire destroys their home. As noted by insurance regulators, "The rising replacement costs and valuation of homes compared to coverage limits catches consumers off guard after a disaster".
Earthquake Considerations: Given Idaho's seismic risk, property owners may want to evaluate earthquake coverage options, as typically, insurance companies that offer earthquake coverage require a separate deductible, which can be higher than what is usually offered for more common homeowner's insurance coverages.
Idaho's homeowners insurance market is at an inflection point. While the state maintains relative affordability compared to coastal high-risk areas, current trends suggest continued rate increases and tighter underwriting standards may be likely. Experts suggest that success in this environment may depend on proactive risk management, comprehensive coverage analysis, and strategic partnerships that can help navigate an increasingly complex marketplace.
The combination of wildfire risk, climate change impacts, and reinsurance market pressures suggests that Idaho's days of rock-bottom insurance rates may be ending. Property owners and industry professionals who adapt early to these new realities may be better positioned for long-term success in the evolving risk landscape.
This article provides general information about Idaho’s homeowners insurance market based on available industry data as of 2025. Individual circumstances vary significantly, and premium quotes, coverage options, and policy terms differ by insurance company. Consumers should consult with licensed insurance professionals for specific coverage recommendations and current pricing. Information presented should not be considered as guaranteed outcomes or personalized insurance advice.
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*Savings claim based upon averaging actual anonymized savings data for dwelling-only insurance rates paid (from July 2023 - June 2024) by customers of two of Covered’s largest mortgage industry partners across twenty-seven (27) US states. Bundles and non-dwelling insurance coverages were excluded.
† Net Promoter Score (“NPS”)® calculation averages post-purchase customer satisfaction surveys from 9/24/2024 - 2/28/2025. NPS® is a market research metric measuring customer satisfaction with a scoring calculation that incorporates both detractor and promoter customer feedback.
Quotes are presented solely for your convenience. Savings may vary. Rates are subject to change based upon the specific coverage you select and other factors that apply to your situation. CA License #0M81402, doing business as Cubbard Insurance Solutions in California.
