Homeowners insurance in Montana

The home insurance market in Montana

Montanans paid $807.2 million in homeowners premiums in 2025, according to NAIC market share data. These are the 10 largest insurance groups by 2025 direct premiums written:

Three national groups, State Farm, Liberty Mutual and Farmers, write just over half the state's homeowners premiums, and the top 10 write about 85%, based on NAIC data. It is a small market, under a billion dollars a year, and two of the top 10, Mountain West Farm Group and Farmers Union Mutual, are regional groups without a profile here.

What drives home insurance costs in Montana

Wildfire, hail and rebuilding costs. The NAIC put Montana's average HO-3 premium at $1,768 for 2023, about 2% above the countrywide $1,737. The trend is steeper than the level: Commissioner of Securities and Insurance James Brown said in August 2026 that NAIC data show Montana's average homeowners premium rose 74% from 2018 to 2024, or 44% after inflation, the largest increase in the NAIC's western region (Daily Montanan, Aug. 12, 2026).

Wildfire drives the availability problem. Brown said in August 2026 that homeowners in Ravalli and Flathead counties were seeing high nonrenewal rates "due to perceived wildfire risk," and his office has warned that wildfire coverage is becoming less common in standard policies and more expensive. A U.S. Senate Budget Committee staff report found Montana's nonrenewal rate grew 67% from 2018 to 2023, among the 10 fastest increases in the country. Brown has also pointed to population growth pushing up property values and replacement costs, which feed straight into Coverage A limits.

Deductibles and coverage rules to know

Montana has no hurricane or named-storm deductible rules. Hail is the deductible to watch. CSI has warned that split deductibles are spreading, where wind and hail losses carry a percentage deductible instead of a flat dollar amount, and that some policies pay roofs 10 to 15 years old at actual cash value. Its own example: a $20,000 hail-damaged roof at 12 years old, paid at 50% depreciation under a $250,000 policy with a 2% hail deductible, leaves the homeowner $15,000 out of pocket. The hurricane and percentage deductible calculator runs your numbers; see Roof payment schedules and ACV roof endorsements.

Montana's notice rules protect you at renewal:

• Nonrenewal: at least 45 days' notice before the policy expires, with a copy to your agent (MCA §33-15-1105).
• Worse terms or a higher rate: they take effect at renewal only if the insurer mailed notice at least 45 days before expiration (§33-15-1106).
• Single claim: an insurer may not nonrenew over one loss unless it told you in writing, when you applied or before renewal, that a single loss is one of its criteria. A coverage question that does not become a claim cannot be held against you.
• Cancellation: after the first 60 days, only for nonpayment, material misrepresentation, a substantial change in risk or a few other listed reasons, with 10 days' notice (§33-15-1103).

Brown said in 2025 that he issued an advisory opinion reminding insurers they cannot cancel or nonrenew based on a "perceived imminent threat of wildfire" when the fire is miles away.

Since 2025, an admitted insurer that uses a wildfire risk score must, on request from you, your agent or an applicant, provide the score, the range of possible scores, who created it, when, and the key factors that hurt it, within 30 days (MCA §33-16-117, from HB 533). Surplus lines insurers are exempt. See wildfire risk scores and how insurers use them.

Flood and other gaps

Homeowners policies exclude flood. FEMA counted 3,638 NFIP policies in force in Montana as of September 30, 2026, down from 3,863 a year earlier. Brown has stressed that flooding can happen year-round in Montana and that NFIP policies generally take 30 days to start. See NFIP flood insurance explained.

If you can't find coverage

Montana has no FAIR plan or other state residual market for homes; it is not on the member list of PIPSO, the association of state property insurance plans. A homeowner turned down by admitted insurers, often over wildfire exposure, typically ends up in the surplus lines home insurance when standard carriers say no market, which CSI itself suggests when standard coverage is not available. Surplus lines policies can cost more and use different forms, so read the declarations and exclusions closely. See owning a home in a wildfire area: keeping your coverage and your home insurance was nonrenewed: what to do now.

Claims rules and deadlines

Montana sets a firm payment clock in statute. An insurer must pay or deny a claim within 30 days after receiving proof of loss. If it reasonably asks for more information, it gets 60 days unless it tells you why it is not paying in full or reports suspected fraud. A late payment owes 10% annual interest from the due date (MCA §33-18-232).

The Unfair Claim Settlement Practices Act (MCA §33-18-201) also requires insurers to affirm or deny coverage within a reasonable time after proof of loss and to explain the policy basis for a denial or compromise offer. You can sue for damages caused by certain violations under §33-18-242, but you must file within two years of the violation, and Montana does not allow a separate common-law bad-faith suit.

For the contract claim itself, §28-2-708 voids any contract clause that limits the time to enforce your rights, and actions on written contracts have six years (§27-2-202). CSI does not list a claim mediation program; disputes go through its complaint staff, the policy's appraisal clause or court. See the appraisal clause: settling a claim value dispute.

Discounts and mitigation programs

Montana has no state home-hardening grant. HB 136 (2025) clarified that insurers may give a benefit or premium reduction for fire, wind and hail mitigation without violating anti-rebate law, and must tell policyholders about it in writing. It does not require a discount. A March 2026 legislative staff paper for the HJ 61 property insurance study noted that only California and Colorado mandate wildfire mitigation discounts. Brown said his office will seek a 2027 bill to support premium discounts for wildfire prevention work. Ask your insurer what it credits for a Class 4 roof, ember-resistant vents and defensible space, and see home hardening for wildfire and insurance discounts.

After hailstorms, watch for storm chasers. CSI fined four out-of-state dent repair companies after a July 2022 hailstorm for offering to waive insurance deductibles, which Montana law prohibits.

Where to get help

The Office of the Montana State Auditor, Commissioner of Securities and Insurance (CSI), takes insurance questions at 406-444-2040 or 800-332-6148. File a complaint online or by mail to 840 Helena Avenue, Helena, MT 59601 (fax 406-444-1980). Complaints must be in writing. CSI asks you to first document your calls with the insurer and try to resolve the problem there. See how to file a complaint with your state insurance department, and use the nonrenewal action plan if you are nonrenewed. Neighboring Idaho and Wyoming face similar wildfire pressure.