Nevada Wildfire Insurance Law AB 376: What Incline Village Homeowners Need to Know

by Crystal Bauer

Nevada's AB 376, in effect since January 1, 2026, lets insurers remove wildfire from standard homeowners and HOA policies and sell it as a separate policy. An insurer can't do this on its own. It first needs approval from the Nevada Division of Insurance, and as of August 2026 no northern Nevada insurer had asked. For Incline Village and Lake Tahoe, the law still matters now: it shapes whether buyers can get a mortgage, what HOAs pay for insurance, and how long it takes to close.

What does AB 376 do?

AB 376 gives insurers a new option, and it puts the state in charge of approving it.

Wildfire can be excluded. Insurers may remove wildfire as a covered peril from standard property policies.
Wildfire-only policies are allowed. Insurers can sell standalone wildfire coverage, similar to how earthquake coverage is sold separately.
"Wildfire" now has a legal definition. It means an unplanned or uncontrolled fire in vegetation that starts outside any home or business. The insurance commissioner can approve a different definition.
State approval comes first. "An insurer could not make that change unilaterally," a Division of Insurance spokesman said. Insurers must file new forms and rates and get them approved.
It applies statewide. An insurer can't single out one town. Any wildfire carve-out it uses has to apply across Nevada.

What it doesn't do: Nevada has no FAIR Plan, the state-backed insurer of last resort some states offer. A bill to create one died in the same 2025 session.

Why does it matter so much in Incline Village and Lake Tahoe?

Incline Village sits in the wildland-urban interface, where homes meet forest. Insurers were pulling back here well before AB 376.

Year	Nevada policies canceled over wildfire risk	Applications declined over wildfire risk
2023	481	Nearly 5,000
2022	264	More than 2,400

Nevada homeowners' insurance rates have risen about 21% since 2018. The number of Nevada homes in wildfire-prone areas grew 208% from 1990 to 2020.

The law got its first real test in August 2026, when a wildfire on the edge of Reno burned about 15,000 acres and put roughly 90,000 people under evacuation notices. The Division of Insurance urged residents to check their policies.

Local agents are split on what comes next. Ron Wright of Alera Group in Incline hopes the law brings major insurers back to the area. The Consumer Federation of America warns homeowners could end up paying for two expensive policies, or not notice that wildfire was dropped from their base policy.

What does AB 376 mean for buyers, sellers, and HOAs?

Buyers: getting a loan. Mortgage lenders require insurance that covers fire. If wildfire becomes a separate policy, buyers may need two policies in place before closing. That raises the monthly payment and can affect how much loan you qualify for. A Reno attorney told KOLO the law raises concerns for lenders, who need assurance that buyers carry enough fire coverage.

HOAs: budgets and dues. AB 376 applies to HOA master policies too. A separate wildfire policy for a condo or townhome community would be a new budget line, and owners would likely see it in higher dues or a special assessment.

Everyone: closing timelines. Getting quotes, especially for a separate wildfire policy, can take longer than a typical homeowners policy. In Incline, it's smart to start shopping for insurance as soon as you're under contract, not the week before closing.

Sellers: being ready. Buyers will ask what insurance costs. A current declarations page, recent quotes, and a record of defensible space work (clearing brush and fuel around the house) can help a deal close on schedule.

What should Incline Village homeowners do now?

Read your policy's "Exclusions" section and confirm wildfire is still a covered peril.
Read every renewal notice closely. Look for new forms, endorsements, or the word "wildfire."
Ask your agent whether your insurer has filed, or plans to file, a wildfire exclusion with the Division of Insurance.
Find out what a standalone wildfire policy would cost, in case you ever need one.
HOA owners: ask your board what the master policy covers and whether the reserve budget plans for higher premiums.
Keep up your defensible space, and keep records of it. Ask North Lake Tahoe Fire Protection District about a defensible space inspection.
Planning to sell in the next year? Collect your insurance documents now.

Frequently asked questions

What is Nevada AB 376? It's a 2025 Nevada law, in effect since January 1, 2026. It lets insurers exclude wildfire from standard homeowners and HOA policies and sell wildfire coverage as a separate, standalone policy.

Has my insurer dropped wildfire coverage? Probably not yet. Insurers need approval from the Nevada Division of Insurance first, and as of August 2026 none in northern Nevada had requested it. Check your policy and every renewal to be sure.

Can I still get a mortgage in Incline Village? Yes. Lenders require fire coverage, though. If wildfire is ever split out of standard policies, buyers may need a second policy before closing.

Does Nevada have a FAIR Plan for wildfire insurance? No. Nevada has no state-backed insurer of last resort. A bill to create one did not pass in 2025.

Does AB 376 affect HOA and condo insurance? Yes. It applies to HOA master policies too, so it could affect HOA budgets and dues.

How can I lower my wildfire insurance risk in Lake Tahoe? Keep up your defensible space, use fire-resistant materials when you remodel, keep records of the work, and shop your policy with an agent who knows the Tahoe market.