Idaho Homeowners Insurance

Idaho homeowners face unique property risks that require careful attention when purchasing insurance coverage. From wildfire threats in forested areas to earthquake exposure in the Intermountain West, Idaho producers must understand both standard coverage and state-specific considerations.

Standard Homeowners Policy Forms

Idaho uses the standard Insurance Services Office (ISO) homeowners policy forms:

ISO Policy Forms Comparison

Understanding Perils Coverage

Named Perils (HO-2 and HO-3 Personal Property):

• Fire or lightning
• Windstorm or hail
• Explosion
• Riot or civil commotion
• Aircraft
• Vehicles
• Smoke
• Vandalism or malicious mischief
• Theft
• Volcanic eruption
• Falling objects
• Weight of ice, snow, or sleet
• Accidental discharge of water or steam
• Sudden and accidental tearing, cracking, burning, or bulging
• Freezing
• Sudden accidental damage from artificially generated electrical current

Open Perils (Special Form):

• Covers all risks of direct physical loss EXCEPT specifically excluded perils
• Broader coverage but requires understanding of exclusions

Coverage Components

Coverage A - Dwelling

Protects the physical structure of your home:

• Main dwelling structure
• Attached structures (garage, deck)
• Built-in appliances
• Fixtures and permanently installed equipment
• Materials for repair stored on premises

Idaho Considerations:

• Replacement cost recommended due to construction cost increases
• Consider ordinance/law coverage for older homes
• Wood-frame homes in wildfire areas may face restrictions

Coverage B - Other Structures

Covers detached structures on the property:

• Detached garages
• Storage sheds and barns
• Fences and retaining walls
• Guest houses (if not rented)
• Swimming pools and hot tubs

Standard Limit: 10% of Coverage A

Idaho Note: Agricultural buildings may need separate farm insurance if used for farming operations.

Coverage C - Personal Property

Protects belongings and contents:

• Furniture and household items
• Clothing and personal effects
• Electronics and appliances
• Sports equipment
• Jewelry, art, and collectibles (subject to sub-limits)

Standard Limit: 50-75% of Coverage A

Special Limits Apply To:

Exam Tip: Know the special sub-limits for high-value items. Clients with valuable jewelry, firearms, or collectibles need scheduled personal property endorsements.

Coverage D - Loss of Use

Pays additional living expenses when home is uninhabitable:

• Temporary housing costs
• Restaurant meals (above normal)
• Laundry and cleaning
• Storage fees
• Pet boarding

Standard Limit: 20-30% of Coverage A

Idaho Winter Consideration: Extended claims may occur due to severe winter weather damage requiring lengthy repairs.

Coverage E - Personal Liability

Protects against third-party bodily injury and property damage claims:

• Legal defense costs
• Settlements and judgments
• Medical payments for others

Standard Limits: $100,000 to $500,000

Coverage F - Medical Payments to Others

No-fault medical coverage for guests injured on property:

• Covers reasonable medical expenses
• No need to prove negligence
• Does not cover household members

Standard Limit: $1,000 to $5,000

Idaho-Specific Property Risks

Wildfire Exposure

Wildfire is a critical concern for Idaho property insurance:

High-Risk Areas:

• Boise National Forest region
• Central Idaho mountains
• Northern Idaho panhandle forests
• Wildland-urban interface (WUI) zones
• Rural properties with heavy vegetation

Insurance Implications:

• Some insurers declining coverage in high-risk zones
• Higher premiums in wildfire-prone areas
• May require Firewise USA certification
• Defensible space requirements
• Water source requirements for firefighting

Firewise Communities Program: Idaho encourages participation in the Firewise USA program:

• Reduces wildfire risk through community efforts
• May qualify for insurance discounts
• Involves defensible space around homes
• Community education and planning

Earthquake Risk

Idaho sits in the seismically active Intermountain West region:

Key Facts:

• Standard homeowners policies EXCLUDE earthquake
• Separate earthquake policy or endorsement required
• Deductibles typically 10-20% of dwelling coverage
• Coverage includes structure and contents damage
• Building code upgrade coverage recommended

Idaho Seismic Zones:

• Southeast Idaho: Moderate to high seismic activity
• Boise area: Moderate seismic risk
• Central Idaho: Near active fault systems
• Panhandle: Lower but not zero risk

Severe Weather

Winter Hazards:

• Heavy snowfall and ice dams
• Roof collapse from snow weight
• Frozen pipe bursts
• Heating system failures

Summer Hazards:

• Hailstorms (significant in some areas)
• Severe thunderstorms
• Flash flooding (standard policies exclude flood)
• Wind damage

Flood Insurance

Flood is EXCLUDED from standard homeowners policies:

National Flood Insurance Program (NFIP):

• Available through FEMA for eligible properties
• Required for federally-backed mortgages in flood zones
• Covers building and contents
• 30-day waiting period typically applies

Private Flood Insurance:

• May offer higher limits than NFIP
• Sometimes competitive pricing
• Faster claims processing possible

Property Insurance Claims

Idaho Claims Handling Requirements

Idaho law establishes standards for claims handling:

Proof of Loss

Insureds typically must:

• Report loss promptly
• Protect property from further damage
• Cooperate with investigation
• Provide requested documentation
• Submit sworn proof of loss if requested

Actual Cash Value vs. Replacement Cost

Exam Tip: Understand the difference between ACV and replacement cost valuation. Idaho insurers must clearly disclose valuation methods.

Common Endorsements for Idaho

Essential Endorsements to Consider

Idaho Dwelling Policy (DP Forms)

For properties not eligible for homeowners policies:

• DP-1 (Basic Form): Named perils only
• DP-2 (Broad Form): Broader named perils
• DP-3 (Special Form): Open perils on dwelling

Common uses:

• Rental properties
• Vacant homes
• Homes that don't meet HO underwriting criteria