September 2, 2025
Nevada homeowners face rising insurance costs amid wildfire, flood, and earthquake risks. Learn how to navigate coverage gaps and protect properties in 2025.
Nevada's homeowners insurance landscape has experienced significant turbulence in 2025, driven by escalating wildfire risks, climate-related claims, and broader economic pressures affecting the insurance industry. For property servicers and homeowners alike, understanding these market dynamics is crucial for making informed coverage decisions.
Nevada homeowners pay an average of $1,092 to $1,470 annually for homeowners insurance, placing the state among the more affordable markets nationally. Home insurance in Nevada is cheaper on average than in many bordering states, though this advantage is rapidly eroding due to emerging risk factors.
The Nevada Division of Insurance approved about 10 insurers to raise their rates for more than 130,000 Nevadans in early 2025, with some increases reaching nearly 30%. The Nevada Division of Insurance reported a 21% increase in rates since 2018, reflecting the state's growing exposure to catastrophic losses.
Source: Bankrate and ValuePenguin 2025 rate data for $300,000 dwelling coverage
Despite remaining competitive with neighboring states, Nevada's rate advantage continues to narrow as wildfire and climate risks intensify across the region.
Northern Nevada faces particularly acute wildfire challenges. In 2023, 481 homeowners insurance policies were canceled or non-renewed due to wildfire risk, an 82% increase compared to the previous year. Additionally, nearly 5,000 applications for homeowners insurance were declined due to wildfire risk, a 104.8% increase over the previous year.
The recent Davis Fire demonstrated the evolving threat landscape, burning over 5,800 acres and forcing evacuations of approximately 20,000 residents near Reno. This event highlighted how wildfire risks are increasingly affecting populated areas where development meets fire-prone wilderness zones.
The vast majority of homeowner insurance applications being declined are in Northern Nevada. Lake Tahoe communities have been particularly impacted, with Incline Village seeing two of 21 companies stop writing policies for their homes and Stateline seeing the number of available companies drop from 18 to 14.
Beyond wildfire, Nevada homeowners face multiple perils requiring specialized coverage considerations:
The insurance market has responded to increased risk exposure through strategic withdrawal from high-risk areas. Earlier this year insurers reported their intention to cancel another nearly 5,000 policies due to wildfire risk in 2024.
This retreat has created coverage gaps that traditional markets struggle to fill, leaving many homeowners with limited options or facing prohibitive premium increases.
Recognizing the emerging coverage crisis, Nevada lawmakers are considering Assembly Bill 437, which would establish a Fair Access to Insurance Requirements (FAIR) Plan. This state-managed program would provide last-resort coverage for homeowners unable to secure insurance through standard markets.
The proposed Nevada FAIR Plan includes several protective measures:
Given Nevada's risk profile, homeowners should prioritize:
Extended Replacement Cost: Critical for areas with high construction costs and supply chain vulnerabilities
Additional Living Expense (ALE) Coverage: Essential for extended displacement during wildfire or flood events
Equipment Breakdown Coverage: Recommended for HVAC and plumbing systems stressed by extreme heat and temperature fluctuations
Standard homeowners policies in Nevada typically exclude:
In the Las Vegas area, condos and townhomes commonly operate under HOA master policies. Property owners must understand whether their individual coverage needs address "walls-in" or "walls-out" scenarios to avoid coverage gaps.
For mortgage servicers managing portfolios with Nevada properties, partnering with specialized insurance providers can significantly reduce operational costs while improving customer outcomes. Covered offers comprehensive insurance solutions that help servicers transition from reactive call center operations to proactive customer support. By connecting borrowers with appropriate coverage options and risk mitigation strategies, servicers can reduce exposure while ensuring customers feel fully supported in navigating Nevada's evolving insurance landscape. This approach transforms insurance management from a cost center into a value-added service that strengthens customer relationships while addressing rising coverage costs and exposure risks.
The Nevada insurance market will likely experience continued rate pressure through 2025 and beyond. Key drivers include:
Property owners can improve insurability and potentially reduce premiums through:
Given market volatility, homeowners should:
Nevada operates without a traditional FAIR Plan currently, meaning high-risk properties must seek coverage through surplus lines or non-admitted markets. The state's cancellation and non-renewal requirements provide some consumer protection:
The Nevada Division of Insurance continues monitoring market conditions and may implement additional consumer protections as wildfire risks evolve. The proposed FAIR Plan represents the most significant potential regulatory change affecting market access.
Nevada's homeowners insurance market reflects broader Western challenges of balancing risk exposure with coverage accessibility. While the state maintains competitive rates relative to neighbors, increasing wildfire activity, climate pressures, and economic factors are driving significant market changes.
Property owners and servicers must stay informed about evolving risk factors, coverage requirements, and available options. Proactive risk management, comprehensive coverage planning, and strategic partnerships will be essential for navigating Nevada's dynamic insurance landscape successfully.
The key to thriving in this environment lies in understanding that homeowners insurance has evolved from a routine protection product to a complex risk management tool requiring specialized expertise and ongoing attention to market developments.
This article provides general information about Nevada’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.
