Wildfire, Hail, Building Costs Pushed Montana Home Insurance Costs Up by 18% in 2025

Montana home insurance costs spiked 18% in 2025, pushing the state’s average annual premium up more than $300 by the end of last year, according to Insurify’s 2026 Insuring the American Homeowner report. Since 2023, Montana’s average annual home insurance premium has soared about 20%, ending 2025 at $2,399, data shows.

Increasing wildfire and hail risks, rising home values, and a shrinking pool of home insurers are driving Montana’s escalating home insurance costs, experts say.

What’s behind Montana’s rising home insurance costs?

Wildfire risks have risen substantially in Montana. Nearly 70% of all wildfires recorded in the state have happened in the last 26 years. And nearly a third of Montana properties (29%) have a high wildfire risk, the highest percentage of any state.

“We’ve seen over the last several years that homeowners insurance in Montana is getting more expensive, and it’s harder and harder for people in high-risk wildfire areas to find adequate coverage,” Montana Insurance Commissioner James Brown told a local Fox affiliate earlier this year.

Hail is also a problem for Montana homeowners and insurers.

In 2025, the state saw approximately 20 hail events that affected thousands of homes throughout the state, including residences in Lewiston, Billings, Great Falls, Helena, Glendive, Glasgow, and Missoula, according to hail data company HailPoint. Some areas saw hailstones as large as 4 inches in diameter.

Insurance industry representatives also point to “legal system abuse,” restrictive regulations, and high claims losses, the Daily Montana reported earlier this year. But consumer advocates say the state needs “more data” and “more accurate data” to really understand the forces behind rising home insurance costs.

What’s next: Searching for solutions in the face of continued increases

The state’s 2025 home insurance policy average of $2,399 was still $549 lower than the national average. But Montana homeowners likely face another 1.6% increase by the end of 2026, Insurify data scientists project.

A 1.6% rise in 2026 would bump the state’s annual average to $2,437. Montana consistently ranks in the middle for home insurance costs compared to other states.

Nearly a year ago, the Montana state legislature authorized the creation of an interim committee to study the state’s “escalating insurance challenges.” The legislature called on the committee to evaluate the causes of rising property insurance costs, determine how those causes affect rates, and put forth possible solutions.

The legislature’s Economic Affairs Interim Committee is conducting the study. The bill authorizing the study requires the committee to deliver its results by Sept. 15, 2026.

Meanwhile, state legislators passed a bill that allows insurers to provide discounts for homeowners who take steps to make their homes more wildfire-resistant, such as using fire-resistant materials in construction and placing non-flammable landscaping around their property. But the bill doesn’t require insurance companies to provide the discount.

Montana requires insurance companies to notify the state’s insurance office whenever they intend to change their rates or policy rules. But they’re allowed to apply new rates and rules as soon as they’ve filed the information with the state.

In a February 2026 interview with NonStop Local, the Fox affiliate serving central and western Montana, Brown stressed that he can’t approve or disapprove home insurance rates.

Instead, he said, “We look at … if a premium increase is excessive. We can’t set the actual price of the premium, but we can see if it’s excessive. Then we look to see if the premium may be discriminatory.”

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