Montana
‘Layered, adaptive’ wildfire insurance approach needed in Montana
Jordan Hansen
(Daily Montanan) Calling rising wildfire insurance rates an “urgent challenge,” a Headwaters Economics and Columbia Climate School report released this month points to potential approaches to address the financial burden on Montana property owners.
Nationwide, property insurance rates are rising — but they’re doing so even faster in areas with “climate-related perils” according to a report published by the U.S. Treasury Department at the beginning of this year.
Non-renewal of policies is also an issue and that same Treasury report found that in areas with “the highest expected losses from climate-related perils,” non-renewals of property insurance coverage were more common.
The Headwaters report looks at five strategies that could be employed to help communities in high-risk areas find insurance. These approaches include community risk pooling, ideas pulled from agriculture insurance and large-scale state reform.
According to the state’s insurance commissioner, James Brown, the state could see the fifth-highest state increase in property insurance increases this year, citing a National Association of Realtors report. Montana policy holders paid a little more than $4 billion in premiums in 2013, that number in 2022 was almost $7.4 billion, according to the National Association of Insurance Commissioners.
He pointed to escalating fire risk in a May letter as part of the problem.
“First, wildfires have become more frequent and intense. Nearly 70% of all wildfires recorded in Montana have occurred since 2000,” Brown wrote. “These longer-lasting, more destructive fires dramatically increase the risk to homes, pushing insurance rates higher. Second, Montana’s scenic appeal and lifestyle continue to attract new residents, inflating property values and replacement costs — thereby driving up premiums.”
He went on to write that half of all properties in Montana are “at risk of catastrophic wildfire damage.”
‘Ability to financially rebound’
About 75,000 acres burned in Montana this year with one main residence, according to the state’s Department of Natural Resources and Conservation. Fires involving large numbers of structure losses — such as the Eaton and Palisades fires around Los Angeles earlier this year — have become more common and the economic losses are staggering.
Montana has seen some fires that have destroyed homes, including the 2021 fire in Denton and the Bridger Foothills Fire in 2020.
According to a 2023 Department of Interior report, the annual burden of wildfires on the U.S. Economy was between “$71 billion to $348 billion in 2016 dollars ($87 billion to $424 billion in 2022 dollars).” The same report said there are “huge” data gaps around “property damage, loss of life, and healthcare costs.”
Tens of millions are spent on fire suppression and mitigation in Montana each year and nationally, suppression costs consistently ring in at well over a billion dollars annually.
But even with the suppression and mitigation efforts, communities can struggle when faced with a fire disaster.
“As the protection gap expands between those with insured losses and those without, a community’s ability to financially rebound is weakened, municipal revenue flows including property taxes may be diminished, and significant federal investment may be needed to offset recovery and rebuilding costs,” the Headwaters report reads.
It also cautions that no single strategy will solve all problems and goes on to say a, “layered, adaptive, and equity-focused framework,” will be needed to address insurance issues caused by wildfires. Additionally, the report does not cover renters nor the “unique” experiences of Native Americans living on tribal reservations.
“Land inside reservations may have unique ownership structures and be subject to federal oversight in ways that interfere with private sector insurance coverage, and tribes have long contended with additional administrative barriers to public support systems,” the report reads.
‘Reducing their own risk’
The report suggests five “new pathways” for insurance in the state, which are: voluntary certification programs, community-based catastrophe insurance, parametric policies, FAIR state plans (insurance of last resort), and state regulatory reform.
The report discusses the benefits and drawbacks of each approach, as well as examples from other states that have utilized some of those ideas. FAIR plans have been implemented in Florida, for example, while parametric policies essentially model agricultural drought insurance.
Voluntary certification is the idea that’s gained the most traction, said Kimi Barrett, a lead wildfire research and policy analyst at Headwaters. Barrett, along with Columbia Climate School’s Lisa Dale, authored the report.
Voluntary certification, where citizens do specific things to reduce fire risk on their property in tandem with others in their community, leans into the idea of home and community hardening, an approach conservation groups applaud.
Some scientists have argued the root of the wildfire issue is actually a structural ignition problem and that losses could be lessened by better building codes and materials.
These types of policies have mostly been done in western parts of the country.
“It’s modeled off of what hurricane mitigation is required in places like Alabama and elsewhere, where it’s essentially a fortification of a home to that hazard,” Barrett said. “And in doing so, demonstrating to insurance providers that the risk has been reduced enough to meet criteria for insurance retainment moving forward.”
Colorado has modeled this policy, passing a statewide fire code this year that made a home-hardening inspection mandatory at point of sale. The report also found there are potentially psychological factors to consider within the voluntary certification program.
“Shifting residents’ current expectations of external support, including home protection from firefighters, disaster relief from FEMA, and insurance as a buffer from loss will take a concentrated effort,” the report reads. “When homeowners accept personal responsibility for reducing their own risk, they may find the costs associated with home hardening to be more acceptable. Fostering this mindset change will take significant public outreach.”
‘A house in the country’
However, population trends show that people keep moving to and building in fire-prone areas.
According to the Montana Environmental Information Center, the number of new homes built in wildfire-prone areas doubled between 1990 and 2020.
Areas like the Bitterroot and Flathead Valleys are particularly vulnerable, even as southwestern Montana has exploded in population. Grass fires in Montana are a concern too, as evidenced by the fire that swept through Denton in 2021.
“Everyone wants a house in the country, right? It’s beautiful, and yet we created the imperfect storm,” Dominick DellaSala, a conservation scientist, said to the Daily Montanan. “Because now the climate has shifted, the Forest Service can’t possibly put out all these fires that are increasing in speed, intensity and acres burning where all these houses were built. So what do we do about it?”
The state Legislature is looking at the broader issue of property insurance rates in an interim committee and there’s a wildfire study bill as well. Those discussions could end up becoming legislation during the 2027 Legislative session, and the hope from the Headwater Report’s authors is that it helps inform these discussions.
It’s also important to note what insurance companies are looking for, Barrett said.
“Insurance is spending money on homes getting damaged and destroyed by wildfire,” Barrett said. “What they need to see is risk reduction ahead of a wildfire to those homes and communities placed in high risk areas, and that forest treatments and fuels reduction of landscapes alone, will not get them there, nor will suppression and response. It requires addressing the built environment at the same level that we currently address suppression and forest treatments.”
Insurance advocates have pointed to low amounts of hazardous fuels work being done under the Trump Administration — possibly as much as a 38% drop in annual average of acres treated — and are looking to see more done.
“We’ve seen more evidence and more informative reports for policyholders and homeowners about what they need to do to help protect and defend their home and make sure that they’re safe,” said Jayson O’Neill, an insurance advocate. “We aren’t seeing this sort of same urgency from our regulators and our state insurance commissioner and our state legislators.”
Montana
SLIDESHOW: Severe storms moved through western Montana on Thursday
Severe storms moved through parts of Montana on Thursday, prompting a total of 5 Severe Thunderstorm Warnings. Reports included strong wind gusts and hail in several communities, including Augusta, Choteau, Sunburst, Bigfork, Kalispell and Evergreen.
The strongest reported wind gust was 60 mph near Augusta, while hail up to 1 inch was reported near Evergreen and Kalispell.
STORM REPORTS:
12 SE Grant — 56 mph thunderstorm wind gust
7 NNE Augusta — 60 mph thunderstorm wind gust
5 ENE Choteau — 59 mph thunderstorm wind gust
Sunburst — 54 mph thunderstorm wind gust
Ennis — 59 mph thunderstorm wind gust
3 SSW Ennis — 52 mph thunderstorm wind gust
2 E Helena — 54 mph thunderstorm wind gust
19 E Swan Lake — 56 mph thunderstorm wind gust
2 NNW Yaak — thunderstorm wind damage – Multiple downed trees reported along Highway 2 between MM 3 and 8
3 WSW Blacktail — 53 mph thunderstorm wind gust
1 NNW Troy — 49 mph thunderstorm wind gust
5 ENE Choteau — 56 mph thunderstorm wind gust
Turah — 0.88″ hail
1 NNW Bigfork — 0.75″ hail
3 SW La Salle — 0.50″ hail
2 N Evergreen — 1.00″ hail
1 W Kalispell — 1.00″ hail
3 WNW Kalispell — 0.75″ hail
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Montana
Las Vegas man sentenced after Helena coin shop burglary in Montana
LAS VEGAS (KSNV) — A man from Las Vegas has been sentenced after stealing coins and precious metals from a Helena shop in Montana.
This comes after Bishop Lott, 47, pleaded guilty in January to one count of interstate transportation of stolen property.
A judge sentenced Lott on Thursday to 27 months in prison, followed by three years of supervised release. He was also ordered to pay $276,153.08 in restitution to the Helena business as well as five other theft victims.
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The government alleged in court documents that Lott, along with Ricky Rynell Rose, broke into Wayne Miller Coins in Helena and stole nearly $59,000 in coins and precious metals from a Helena business.
Rose pleaded guilty last year and was sentenced to 39 months in prison.
The Helena Police Department received a call on March 3, 2024, reporting that Wayne Miller Coins had been burglarized earlier that day.
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As part of their investigation, Helena police officers reviewed surveillance footage from multiple businesses. They analyzed email account data, which led them to Lott and Rose, who had taken the stolen material to Nevada.
Montana
A battle over dark money is brewing in Hawaii and Montana
Political spending that is funneled into elections from a variety of nonprofits is known as dark money — and unlike campaign spending or the money deployed by PACs and super PACs, these sources are not required to disclose their donors. Following the Supreme Court’s 2010 Citizens United decision, which created the country’s current election spending landscape, this has ramped up dramatically, with the 2024 election seeing a record $1.9 billion in dark money spending, nearly double the $1 billion spent in 2020. Now, some campaign finance reformers think they’ve found a state-level reform that can rein in this spending.
Now, campaign finance reformers think they’ve found a solution, and it’s already in place in Hawaii.
A newly enacted corporate law, SB 2471, changes the powers that corporations, or other artificial persons like nonprofits, are granted by the state of Hawaii. In the United States, states grant artificial persons powers as part of an agreement that allows those artificial persons to operate in the state. SB 2471 works by changing the powers that Hawaii grants these entities to disallow them from spending on politics at all.
Tom Moore, a senior fellow at the Center for American Progress and former chief of staff to Federal Election Commission commissioner Ellen Weintraub, told Salon that the law operates upstream of Citizens United by dealing with the powers granted to corporations and other artificial persons, rather than trying to regulate what they can and cannot do with those powers.
“Citizens United said, ‘Hey, if you’re a corporation that is empowered to spend in politics, your right to spend independently in politics can’t be infringed,’” Moore said. “Fine. What this [Hawaiian law] does is say, ‘You know, we’re not going to create that kind of corporation anymore. We’re going to create the kind of corporation that doesn’t have any political spending powers.’ Citizens United and all the other campaign finance cases that the courts have ever decided do not speak to that.”
In his analysis, Moore said this strategy also has a better chance of standing up to scrutiny from the Supreme Court because courts have long upheld a state’s ability to assign powers to corporations operating within their borders, going back hundreds of years.
“They’re gimmicks, and the Supreme Court is not usually impressed by gimmicks.”
“The Supreme Court has said for 200 years that the states can do whatever they want in terms of assigning powers to corporations. They made a fatal assumption in Citizens United that 100 years ago, when states gave away all the powers and said, ‘You can do anything that a human could do,’ they assumed that states would never change their mind on that,” Moore said. “But they never said the states couldn’t change their mind on that, and now they are.”
For example, a recent court ruling in Delaware allowed a change to a town charter that would allow corporations to vote there under some circumstances.
Moore believes that this Hawaiian law, and others like it in the works in other states, have a good chance of surviving at the Supreme Court. However, some critics disagree, saying this legal maneuver is likely to be struck down.
Brad Smith, the chairman and founder of the Institute for Free Speech, a nonprofit that advocates against limits on political speech, including political spending, called the move an “end run” around Citizens United.
“They’re gimmicks, and the Supreme Court is not usually impressed by gimmicks. If you want to do it, you probably have to change the makeup of the Supreme Court or be willing to pack the court and have the political muscle to do it,” Smith said.
In his opinion, the court is likely to see Hawaii’s law as a violation of the First Amendment and is unlikely to look favorably on the argument that these laws deal with powers rather than with rights and that this has to do with how corporations have changed in the past 200 years.
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Smith explained that in the past, states used to create bespoke statutes for corporations to do something like operate a ferry or a toll bridge. These days, however, the laws governing corporations are more uniform.
“That’s just not how corporations operate in the modern world,” Smith said.
Smith added that he suspects the court will see this law as conditioning the creation of a corporation, or similar artificial person, on forfeiting the right of the people forming a corporation to political speech in the form of spending.
“You could not have the state say we’re going to allow you to register your home, but only if you agree that you won’t spend any money from your home equity line of credit on any kind of political activity,” Smith said. “You can’t deny people the benefits of the law based on a determination that they give up some type of constitutional rights.”
Notably, under Hawaii’s law, the people who form corporations are still allowed to engage in political spending; it’s just that the artificial person in question is disallowed. Still, Smith said, he believes the court will still see the law as unconstitutional.
What’s clear is that this new law, or one like it, will likely be headed to the Supreme Court and that’s because there are already other states where people are mobilizing to create similar laws.
Jeff Mangan, the founder and president of the Transparent Election Initiative, is already spearheading an effort to get a similar statute on the ballot in Montana in 2026, telling Salon that the group is only about 1,000 signatures away from meeting the petition requirements, with four weeks left.
“It’s an all-volunteer effort in Montana, we don’t have any paid signature gatherers, and it’s something that hasn’t been seen in a couple of decades here,” Mangan said.
While election finance reform is typically seen as a progressive issue, Mangan said that the initiative has been well-received by Montanans of all political leanings and that he’s optimistic that the measure will pass, though he’s expecting a significant political battle once the ballot measure is approved.
“We start with a very simple question: Do you believe there’s too much money in politics?” Mangan said. “Citizens will say ‘Yes,’ and they may not agree exactly what the solution is, but we can all agree that there’s too much money in politics.”
Mangan acknowledged that the law, if passed in Montana, would be limited in that it only addresses dark money, which is a relatively small portion of political spending. While 2024 saw nearly $2 billion in dark money spent, it saw some $15 billion in outside political spending, according to the election spending watchdog OpenSecrets. Still, Mangan said, he’s already had organizers in all 50 states reach out expressing interest in the project and in starting similar efforts in their home states.
The Montana measure has also already survived a legal challenge at the Montana Supreme Court, which makes organizers optimistic that the law will survive a federal challenge. The court ruled that the law was not an infringement of rights because the law “speaks only to powers, not rights, and it does not expressly revoke any constitutional rights.”
Still, Mangan expects that his group and the supporters of the measure will have to fight tooth and nail to get the bill passed via referendum if and when it appears on the ballot in November.
“It’ll certainly be a David versus Goliath battle. They’ve already started. The Chamber of Commerce and industry groups attempted to stop the initiative right at the beginning of the signature-gathering phase. They sued the state to stop us from gathering signatures. They were unsuccessful,” Mangan said. “We expect litigation at every step of the way through this, not to mention whatever political campaign they choose to throw at us, and I would imagine it’ll be expensive and immense. It almost makes our point. Exactly the reason we need the Montana plan is because of exactly what we’re seeing being thrown against us.”
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