Until now, taking out homeowner’s insurance also included a policy against fires and forest damage, but the scenario will change starting January 1, 2026, in the state of Nevada, United States. According to statements by Michele Steinberg and Christina Rust of the National Fire Protection Association to the Reno Gazette Journal, this will mark a before and after, making it more difficult for people to find comprehensive coverage for their homes. The idea is to take out an additional policy separately that covers this type of damage, which is beyond the reach of many.
Areas of particular concern include places like Lake Tahoe and the eastern side of the Sierra Nevada mountains, as well as the Los Angeles area, California, which was devastated by fires in early 2025. This new measure is possible thanks to the approval of Assembly Bill 376 (AB 376) earlier in 2025, through which companies can test new rules over a four-year period. With this new measure proposed by Representative P.K. O’Neill, Americans run the risk of not being aware that they lack this coverage, which concerns experts. However, Nevada Insurance Commissioner Ned Gaines defends the usefulness of this law.
Fire protection
Starting January 1, 2026, purchasing homeowners insurance in Nevada, United States, will change under a new regulation. This is Assembly Bill 376 (AB 376), which allows companies to test different rules over a four-year period. Although this law aims to regulate the insurance market and prevent it from collapsing by offering policies for anything, it actually has other types of consequences that worry experts. In statements to the Reno Gazette Journal, Michele Steinberg and Christina Rust of the National Fire Protection Association explained that, “Some consumers may not realize that wildfire coverage is no longer included in their standard policies.
Others may be unwilling or unable to pay for an additional policy. In the most extreme case, fire insurance could completely disappear from the market, exposing thousands of homeowners to serious financial risks. This is because this new law allows insurance companies not to include coverage for wildfires in home insurance, which they have done until now. The concern is that wildfire insurance policies will become an additional expense. Areas of particular concern include Lake Tahoe and the eastern side of the Sierra Nevada mountains, as well as the Los Angeles area, which was devastated by wildfires during 2025.
Who is in favor?
According to data from The Cool Down, cancellations and non-renewals of policies related to wildfires increased by 82% in 2025. Nevada Insurance Commissioner Ned Gaines argues that it is a law that protects consumers and safeguards them. On the other hand, Representative P.K. O’Neill, who proposed the law, told the Reno Gazette Journal: ‘We have to do something, we have to try something. This bill covers that. If we kept doing what we were doing and did nothing, it would have been catastrophic.’ Although there are voices defending the usefulness of the law, the truth is that many households will be left unprotected due to the inability to afford an additional wildfire protection policy.
Frequently asked questions
What does the change in insurance involve?
Starting in 2026, home insurance in Nevada will no longer automatically include wildfire protection. This coverage will become an “add-on” that must be paid for separately.
What risks do homeowners face?
Many people could be left without protection because they cannot afford the additional cost or because they don’t realize their policy no longer covers fire, which exposes them to losing all their money in the event of a fire.
Why was this law passed if it seems dangerous?
Its supporters say that the current system was collapsing and insurers were leaving. They believe it is better to offer “scaled-down” insurance than to let companies abandon the state entirely.