Fury as retired couple have home insurance yanked after 42 years of never missing a payment

A retired couple live in Wyoming has been dropped from their home insurance and cannot find another policy, an epidemic facing older couples across the state.

After 42 years of carrying the same coverage, never missing a payment and never turning in a claim, the couple received a notice that their insurance rate for their mobile home in Dixon was going up by $1,900.

'This all started a year-and-a-half ago,' said the man, who Cowboy State Daily referred to as David for anonymity purposes. 'Our insurer sent us a letter saying that the insurance side of the business was going to transfer to Farmers.'

David and his wife had no choice but to find new insurance they could afford with less coverage for their mobile home.

'I'm on a fixed income,' David said. 'So that might not bother anybody in Jackson Hole, but we can't do that.'

A retired couple in Dixon, Wyoming has been dropped from their home insurance, an epidemic facing older couples across the state.

After 42 years of carrying the same coverage, never missing a payment, and never turning in a claim, a retired couple received a notice that their insurance rate was going up by $1,900

A few months later, however, their new insurer informed the couple they they were unaware the they were insuring a mobile home, and that their coverage was terminated.

The couple has since been without an option for home insurance despite their on-time payments and decades-long loyalty.

'I did some looking around, and I just couldn't come up with anything,' David said. 'So, since the end of January, we haven't had any insurance on our home.'

David has had experience as a volunteer firefighter, and understands the vulnerability of mobile homes, such as burning to the ground by the time first responders receive the call. 

At this point, he is just praying nothing of the sort happens to their home.

Wyoming's Insurance Commissioner, Jeff Rude, said that the Dixon-based couple is not the only ones struggling to insure their mobile home. 

Allstate's recent exit left 344 customers scrambling for new mobile home insurance providers, further tightening the already limited market, he said.

According to Rude, insurers are hesitant to offer mobile home coverage due to perceived higher damage risks and lower profit margins compared to traditional brick-and-mortar homes.

'I think there's a reluctance, or there's more damage to a mobile home than there is when you have brick-and-mortar homes or the profits are much smaller and so they don't want to put the risk out there.'

But it's not just mobile homes, with traditional property owners across the state being impacted too.

As insurance rates continue to skyrocket, with no signs of plateauing, Rude said owning a house has become more and more unattainable.

David and his wife had no choice but to find new insurance they could afford with less coverage for their mobile home

A few months later, however, their new insurer informed the couple they they were unaware the they were insuring a mobile home, and that their coverage was terminated

'That's a cost that some folks don't necessarily take into account right away,' he said. 'But they really need to because those rates, the cost has gone up and everything we've seen indicates it's not going to come down anytime soon.'

Inflation and frequent natural disasters create a 'perfect storm' for insurance companies, according to Rocky Mountain Insurer's Association's Carole Walker. 

The cost of rebuilding or repairing property is at record highs, while natural disaster are increasing.

'That includes, for Wyoming, wildfire risk, or if you're in a hail-prone area like Cheyenne, hail risk,' she said. 'This is the most challenging property insurance market that we've seen in a generation.' 

Walker believes this is the most challenging property insurance market in a generation.

Wyoming Department of Insurance Commissioner Jeff Rude said insurers are hesitant to offer mobile home coverage due to perceived higher damage risks and lower profit margins compared to traditional brick-and-mortar homes

Both Rude and Walker recommend working with an insurance agent to find the best deals for homeowners and mobile home owners.

They also said to improve insurability and potentially lower costs, homeowners should take steps to make their homes safer. Consulting with their insurance company about specific mitigation requirements is a good first step, they said.

Community-wide wildfire mitigation efforts can further improve safety and potentially benefit everyone.