INCLINE VILLAGE, Nev. – There was standing room only at the Donald W. Reynolds Community Center, even after organizers added rows of chairs to accommodate the many community members who attended the Town Hall in Incline Village on Friday, June 28.

That’s where Nevada Division of Insurance Commissioner Scott Kipper addressed wildfire related homeowner and condominium insurance challenges in the state. It also provided an opportunity for him to hear community member insurance experiences, hardships and challenges.

You don’t have to look far to see the culprit behind these challenges. Ryan Sommers, Fire Chief for North Lake Tahoe Fire Protection District, says you can probably turn to any news source and see the catastrophic wildfires on the west coast burning at a frequency of just about every summer. “That has obviously raised the hairs on insurance companies,” he says, “and the amount of monies that they would be out if they were to lose one of their client’s properties in these fires.”

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Sommers as well as other uniformed firefighters speckled the crowd from NLTFPD as well as Tahoe-Douglas Fire. They added to the multitude of residents that overflowed the room, some waiting outside to get in, what Sommers referred to as a united front amid insurance companies, public agencies and government officials.

“I think when we come out in droves against them, then they start to listen,” Chief Sommers said, “They’re not just going to listen to one or two people or one or two agencies, but when we can all get together and express the same message, that’s when we’re going to see these results.”

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The commissioner started the meeting informing the crowd on what actions the division has planned on addressing challenges, but it didn’t take long before a resident interrupted with a question—what can be done today?

“I’m hoping that you’re going to go back to your office and you’re going to sit down and say, ‘the people can’t wait until 2027 for a solution,” the crowd member said, now into the shared microphone and continued, “People have immediate problems now.”

This started the chain of many residents sharing their concerns and potential solutions, sending Commissioner Kipper and his staff home with a long list.

The commissioner ended the hall by declaring three main takeaways from the gathering’s input and says his staff were taking notes on resident concerns as well. He has at the top of his list addressing hardships condominium owners and homeowners’ associations expressed.

“I don’t want to leave,” one condo owner said after sharing that she may get pushed out of her home after paying over $12,000 for insurance. “I love my home,” she expressed, and said she’s been here since 1976.

The myriad of challenges condominium owners and HOA representatives discussed typically started with a non-renewal notice. Then ensues the saga of finding insurance with high enough caps, and then affording the policies once they find them.

One HOA representative shared resorting to an international policy since local policies didn’t provide high enough coverage for their association’s condominium complex. Others shared that their HOA fees have more than doubled to accommodate insurance rate increases between 250-1,000%.

Many asked why these prices for condominium and HOAs have gotten so out of hand.

Kipper explained insurance for condominiums are considered commercial, which means the division has limited authority over those policies. Unlike residential polices for single-family homes, for example, where the department can review and scrutinize those rate increase, that isn’t the case with commercial policies. It would take legislation to change that.

He said companies are also allowed under Nevada law to not renewal policies and refrain from expanding enrollment if they feel the risk is too great.

The commissioner said he won’t let that stop him from pushing for solutions. “As much as our hands are somewhat tied and our ability to regulate that somewhat limited,” he told the crowd, “that does not mean we can’t pursue some ways to address those challenges before we get to a legislative session.”

In fact, many of the actions he proposed, for both condominium and single-family home insurance, require legislative action at the next session coming up in 2025.

Some requested the commissioner call the governor for a special legislative session to address these needs as soon as possible.

While Kipper told the Tribune he didn’t want to speculate on the likelihood of a special session, his department will debrief the governor on their takeaways and plans going forward.

Another one of those takeaways came from many community members calling for recognition by insurance of their hard work on defensible space and other wildfire mitigation efforts, including establishing Firewise communities.

“Why are we doing this?,” one community member asked, if insurance companies aren’t acknowledging it in their retention or premium rates, he explained.

“We don’t want the insurance companies relying on a Google earth shot of the property,” Chief Sommers told the Tribune, explaining they want to instead show the companies work done to reduce vegetation.

During the meeting Kipper said, “We will push on that because I think that is vitally important.” He said the division likely doesn’t have the authority to mandate it, but said they could encourage it, explaining mandating certain things is a fine line to tow in creating a healthy marketplace for insurance companies.

“We don’t want companies to realize or come to the realization that Nevada is no longer a great place to do business and will give second thought to either expanding in the state or coming into the state,” he said.

This tied into his next takeaway, that the recruitment of companies is important. Commenters pointed out that the problem isn’t just wildfire risk, it is also a supply and demand issue. They theorized bringing more companies into the market could address this.

Some inquired whether the division whether could expedite new company applications, to which the commissioner answered it is something they could do. He said they would look at what they can do to invite companies as well.

The commissioner said it’s clear the department needs to work on a Fair Access to Insurance Requirements (FAIR) Plan. Those are insurance plans of last resort, and he explained they are typically more expensive and cover less, but do provide an option for those who can’t find coverage. This was another example of a solution that needs legislation first and likely won’t get implemented until 2025 or 2026, if passed.

The division has conducted two data calls to insurance companies in the last couple of years. The data has indicated the companies are still writing business in northern Nevada, but, the commissioner said, they are becoming more evaluative in what risks they underwrite.

They also found non-renewals up but, “it is not a significant problem yet although the trend is very concerning,” the commissioner explained.

Some questioned whether those findings add up. “I think if you look at this room and how many people you have online,” one commenter observed, “I think we would hugely disagree with that.”

Kipper informed the room of a third data call, this time including the condominium and HOA side of things.

His division is working on a bill draft request to extend the notice time required for insurance companies to notify consumers of non-renewals and rate increases. He said they are also looking at a concept in which insurers would have to disclose what composes a rate increase, listing inflation, wildfire risk and home value increases as examples.

It’s also the division’s goal to provide oversight on the risk and catastrophe models insurers use. Through the oversight they want to ensure the models are fair and consumers aren’t placed at a disadvantage.

At the meeting the commissioner recommended residents shop around for insurance and consult brokers, potentially more than one, who can search multiple insurance companies for consumers. The division also provides a search tool where homeowners can find companies accepting applications in their zipcode.

Residents can ask further ask questions and share concerns with the division by emailing insinfo@doi.nv.gov.

The division plans on releasing the full video of the meeting on their website and provide a follow up video addressing concerns.

Chief Sommers wants residents in the Incline Village and Crystal Bay area to know the fire district is there for them with defensible space inspections and free chipping services. “We will also go to bat for them and help them go against these insurance carriers and will present the work that we’ve done around there.”

They encourage those living outside of the area to check with their local fire departments for their inspection and mitigation services.

Commissioner Kipper ended the hall stating the residents had opened their eyes on issues and shared appreciation for the hard questions. “Nothing ever gets done when it’s soft and easy.”