Montana state auditor urges homeowners to review flood, wildfire insurance coverage

MISSOULA, Mont. — Amid recent flooding and ahead of wildfire season, Montana State Auditor James Brown is urging homeowners to make sure their homes are properly insured.

Brown said flooding is the leading cause of insurance peril in the nation and can happen year-round in Montana.

He said homeowners should not wait until flooding is imminent to seek coverage because there is typically a 30-day waiting period before flood insurance takes effect.

“Number one, by far the number one source of confusion related to flood insurance is the basic homeowners policy doesn’t cover flood damage, most Montanans may not know that,” said Brown.

Brown said some private flood insurance options exist, but the National Flood Insurance Program remains the main way Montanans can get covered.

He also said wildfire coverage is becoming less common in standard homeowners insurance policies and increasingly expensive.

Brown encouraged homeowners to be careful when shopping for the lowest-cost policy, because cheaper plans may offer less coverage or come with higher deductibles.

“That may not be enough to cover the loss if their house were to burn down, so one of the things we encourage as well is to talk to your agent about what the level of coverage that you have for your home to make sure that it’s fully insured so if you do have a fire or flood or some sort of peril, you’re able to replace your home,” said Brown.

Lower-cost policies may leave homeowners responsible for the first several thousand dollars in losses before insurance coverage begins.

Brown said homeowners should speak with their insurance agents to make sure their policies covers damages if a disaster occurs.