California will require insurance companies to offer coverage in wildfire zones (at a cost to consumers)

[usonian]

And not shareholders. Hmmmmmmm.

https://www.fastcompany.com/91253686/california-will-require-insurance-companies-to-offer-coverage-in-wildfire-zones

3 minute read

Insurance companies that stopped providing home coverage to hundreds of thousands of Californians in recent years as wildfires became more destructive will have to again provide policies in fire-prone areas if they want to keep doing business in California under a state regulation announced Monday.

The rule will require home insurers to offer coverage in high-risk areas, something the state has never done, Insurance Commissioner Ricardo Lara’s office said in a statement. Insurers will have to start increasing their coverage by 5% every two years until they hit the equivalent of 85% of their market share. That means if an insurer writes 20 out of every 100 state policies, they’d need to write 17 in a high-risk area, Lara’s office said.

Major insurers like State Farm and Allstate have stopped writing new policies in California due to fears of massive losses from wildfires and other natural disasters.

In exchange for increasing coverage, the state will let insurance companies pass on the costs of reinsurance to California consumers. Insurance companies typically buy reinsurance to avoid huge payouts in case of natural disasters or catastrophic loss. California is the only state that doesn’t already allow the cost of reinsurance to be borne by policy holders, according to Lara’s office.

[SWBTATTReg]

1. Just curious, how much of Calif's geographical area is prone to fire dangers? I imagine quite a bit, being that

a lot of the terrain in Calif is pretty hilly, thus harder to get to, to fight fires etc.

What a mess. I guess the Insurance Industry is trying to change the impact of such fires by driving insurance costs up so much, that no one can eventually afford to build in Calif., but what about those people that have been long-term residents of Calif., and their structures have survived for the longest time already?

Are there any 'success' stories in Calif. w/ regards to 'fire policy'? Kind of like FL and their hurricanes. I know that some advocate not to build in prone areas, but what do they do w/ those people that have been in some areas for generations? Have they been biting the bullet and paying the insurance for decades, generations, for a long time? I imagine possibly, since their farms, ranches, etc. are worth a heck of a lot more in today's money.

[usonian]

2. You bring up some good points, but I don't have answers.

California's population is very concentrated into small areas, and not so much in the central valley.

There are smallish mountain ranges near the coast, but steep enough to be trouble (sirocco kinds of winds in So Cal) and I saw the devastation in the Oakland Hills.

Other areas push against foothills as they spread, though I do see a lot of development on "flatland" outside the hills.

I live in the Sierra Foothills, and despite the danger here (several fires were arson, sorry to say) I keep the area near my home very clear and made some firebreaks out of the scrub, large ones, actually. CalFire used to inspect often, but haven't visited in recent times.

CalFire provides lots of resources.
https://readyforwildfire.org/

Homes have been wrapped in foil during wildfires to protect them.

Others may have more to add.

[SWBTATTReg]

3. Thank you for the add'l information. I am thinking that since this is a long running topic of concern in Calif.,

then the answers are somewhat difficult to answer, resolve, after all, it does cost money and some of the solutions are rather far-fetched, move everyone out of danger areas permanently, don't allow building in those prone areas, etc.

Wrapping homes in foil is a clever solution, if it works. Similar to installing a effective metal siding on homes, barns, etc.

Your steps to keep areas clear of debris and making firebreaks is pretty smart too.

In the Ozarks, where in some areas we have the prairies and their grasses bordering up against the forests of interior MO (as well as other states) so this is a persistent fire hazard in MO. Especially when the winds are kicking up, kind of like you get in Calif. with those winds. That is some crazy winds you get off the coast there, maybe also from Mexico too.

We were always burning off the leaves, mowing the large grassy yard to keep vegetation down but it was always a challenge, especially for a large 18-acre yard and a volunteer fire dept. in our area, which we donated to, to keep it viable and active. There's a lot of volunteer fire depts in the rural parts of MO, and some bigger cities will send help if need be, if they are close enough.

Hope the fire season for you all will be a relatively short and peaceful season.

[usonian]

4. Fire season is over, late this year.

CA is dry in summer, hence the hazard, and wet in winter. Wet winters foster undergrowth, which is fuel the next summer.

The Ready For Wildfire site recommends a 100' safety zone, max grass height in it, and trees pruned up 6' off the ground or 15% of smaller trees. And so on. Not easy in steep areas. I sometimes feel like that goat with two legs shorter than the other to, so as to navigate hills.

Yerba Santa grows rapidly. Recent winter storms broke a lot of limbs (and some very big old trees). They weren't able to bear the load of 2 feet of snow, usually only a few inches here when it happens. Old trees just fall and there are big removal campaigns to lessen the fuel lying around.



One fell across the road and was cut up quickly.

[Dem2theMax]

5. I can respond for Southern California.

Any place that doesn't have a lot of concrete is fire prone. I'm surrounded, not by concrete. And there is no such thing as a 3-month 'fire season' anymore. It's 12 months of the year where I live.

We have had about a tenth of an inch of rain in the past five or six months. It's dry as a bone. It's going to be a really bad 2025, if we don't get some serious weather soon.

[The Mouth]

6. The problem is people build in areas that have a wildfire ever 25-100 years

We know this because some plants can't even reproduce without wildfire.

So someone moves into an area that burns with regularity and then gets upset when they can't get insurance.

Insurance is for things that are not likely to happen, not for things that *will* happen (except for life insurance).

We have hundreds of thousands of people building, and who have built, in areas that are *GOING* to burn.