New law allows insurers to exclude wildfire from policies
The only major wildfire in Douglas County during 2025, the June 20 Conner Fire claimed 17,000 acres and a third structure before it was done. The blaze started after one home caught fire spread to another and then to the wildland. As of Jan. 2, no cause has been released by the Nevada Fire Marshal’s Office.
Under a new state law that took effect Jan. 1, insurers are explicitly allowed to exclude wildfires from policies.
Assembly Bill 376 permits insurers to also offer property insurance that solely covers wildfires, similar to riders that allow earthquake insurance.
Under the change to Chapter 691A of Nevada Revised Statutes, a wildfire means an unplanned or uncontrolled fire in an area of combustible vegetation that originated from outside any residential or commercial property. However, the law expressly allows insurers to use a different definition if allowed by the insurance commissioner.
“An insurer could not make that change unilaterally,” said Nevada Division of Insurance spokesman Drew Pearson. “An insurer would be required to submit new form and rate filings to the Nevada Division of Insurance for review and approval before removing wildfire as a covered peril. Any such change would be subject to the Division’s standard regulatory review process.”
The bill was enacted as part of an effort to keep insurers from leaving Nevada, and concerns about insurance losses due to wildfires were part of the debate.
It has been more than four years since the Tamarack Fire burned homes in Douglas County.
