Tomorrow morning, the Nevada Division of Insurance has scheduled a Town Hall meeting in Incline Village, Nevada to discuss the impacts of wildfires in the Western United States on homeowners and condominium insurance. The Town Hall meeting will be held at 10:00 am on Friday, June 28 at the Donald W. Reynolds Community Center located at 948 Incline Way in Incline Village.

As The Globe reported last month, homeowners and realtors in the Tahoe basin have warned the state of an insurance crisis as insurers have dropped coverage or have abandoned the regional market due to an “increased risk of wildfires.”

“The threat of wildfires in Nevada and the West are creating challenges to consumers and communities,” said Nevada Insurance Commissioner Scott Kipper in a press release. “The Division of Insurance is hearing from those impacted and I feel that it is important that consumers have an opportunity to share the impact directly with the agency. Our goal is to not only hear from community members but also to share what the Division is working on and what can be done.”

The consequences of these insurance non-renewals is further explained by the founder of Lakeshore Realty Chris Plastiras who has been selling real estate in Incline Village for 45 years.

Plastiras told The Globe: “American Family is pulling out of Incline Village. Farmers is gone. State Farm is the only game in town, that I am aware of. In my perspective this will have a very negative effect on real estate values because we can’t get loans on homes that cannot get insurance. The insurance industry has seen fit to put us in a “high-risk” category that takes them out of the realm of being overseen by the insurance industry… allowing insurance companies to set pricing however they see fit. They can raise rates, relatively exponentially, and that becomes a problem. I have seen a lot of things. I have worked in the this market through four recessions and there is no quick fix unless the governor calls an emergency session of the legislature.”

An emergency session of the legislature may seem extreme to some, however, the situation is dire for many fixed-income homeowners who reside in single family homes or communities managed by an HOA. Many The Globe spoke to fear the worst if they wait until the next legislative session starting February 2024.

There are over 100 HOA’s in Incline Village who are currently scrambling to find coverage for their properties, with many having to resort to partial coverage or exorbitant rate hikes which are then passed down to the owners through assessments and/or increased monthly HOA dues.

A 35-year realtor in Incline Village, who resides in an HOA community dropped by their insurance carrier, is facing $6,000 in fire insurance assessments on her condo this year and her monthly dues of $600 will more-than-double to an anticipated $1,500 a month.

Denise Bremer, President of the Incline Village Association of Realtors, further warns that this trend of non-renewals of home insurance policies is not isolated to “at risk” areas, but is spreading across Nevada, including Las Vegas, and other states.

Bremer told The Globe: “This all started in California and it has naturally migrated this direction. We are telling other states, “Hey, this is coming,” and that it is a natural progression. I have been dealing with the California side for years, but it is more prevalent now due to the recent wildfires.”

Back in May, The Globe contacted Assemblywoman Heidi Kasama (R-LV) for comment. Kasama sits on the Interim Committee of Commerce and Labor and is a real estate professional.

At that time, Kasama issued the following statement to The Globe: “Insurance is designed to mitigate loss when a casualty happens. Nevada has been hard hit by wildfires in all parts of the state. We have seen the challenges that occurred in Florida after Hurricane Andrew and the difficulty that ensued to insure properties, particularly residential homes. I am deeply concerned for the challenges our property owners are experiencing. I would also be concerned with government intervention into the private marketplace. I am committed to working with Insurance Commissioner Kipper, stakeholders, and my colleagues to resolve this difficult and challenging situation for all property owners in Nevada.”