I found it a little odd watching the news about the wildfires in Idaho and seeing fire trucks speeding off with such stalwart insurance names as Liberty Mutual and AIG emblazoned on the side panels. I remember reporting some years ago on the fire protection service the insurers of High Net Worth individuals were offering their customers as an endorsement to their Homeowners policies. This was the first time I saw footage of them in action, but it was the reaction of television reporting on it that most intrigued me.

The Beaver Creek fire has burned since Aug. 7. According to the most recent update around 11 a.m. EST from InciWeb, the blaze has consumed more than 108,000 acres of grass, sagebrush and timber and spread through the resort communities and luxury homes around Sun Valley and Ketchum. As of last night, firefighters contained 30 percent of the wildfire, an improvement from the 9 percent early Tuesday.

While large wildfires typically gain attention, this particular one is noteworthy because it threatens the multi-million homes of celebrities. According to a report from NBC News, the fires are approaching the vacation homes owned by such notable Hollywood stars as Tom Hanks, Bruce Willis and others.

This is where the insurance companies’ fire services come in. For example, American International Group offers Wildfire Protection Unit under its Private Client Group where a fire unit will go to a home and spray foam or other fire retardant chemical to protect the house. Certainly, other insurers offering these services are doing the same.

These services to High Net Worth clients are not new. What is surprising is the reaction of the mainstream press and others. They have gone to some length explaining this special service—making it sound as if the carriers are doing this out of their own self-interest or some sense of magnanimity. The truth is insurers are not doing this free of charge. One reason this service may have gone little noticed in the past is that there has not been such a concentration of exposure to draw attention. While few may have made much note of the private firefighter service before, I’m certain the insurer’s customers have—and to have this coverage must bring some sense of comfort.  Nevertheless, I’m sure even wealth does not erase the anxiety any homeowner feels over the possible loss of a home.

For the hotshots on the front lines defending the greater populace, this extended service has to aide their efforts. The fire service notes, “Multiple insurance companies with structure protection clauses provided engines to clients and coordination with the team [of firefighters].” This comes at a time with the nation’s resources stretched thin with more than 35 fires throughout the West.  

Ironically, this service harkens back to the early days of fire insurance where customers put a plaque on the outside of their home to show they were insured, informing a local fire service they paid for them to come to save their home. No plaque and you were out of luck. We are past those days of narrow self-interest—but wealth still has its privileges.

Photo: U.S. Forest Service.