Insurance offers a safety net for people should the unthinkable happen. However, for homeowners in wildfire-prone California, that protection is being pulled out from underneath them through no fault of their own.
What's happening?
Around 17,000 properties in California are set to lose their fire insurance protection from Liberty Mutual, the San Francisco Chronicle has reported.
The Liberty Mutual Fire Insurance Company is not renewing insurance policies in the Golden State, citing outdated technology for managing dwelling fire protection.
This would typically cover structural damage to properties — rather than the belongings kept inside them — following wildfire events, and it is mostly for landlords and vacation homeowners who don't live in these homes permanently.
As one affected homeowner told the Chronicle, removing coverage is "sort of like a boyfriend who breaks up with you and can't really tell you why."
Why is insurance removal concerning?
Around 1% of total insurance policies under Liberty Mutual will not be renewed, according to the company, and less than 2% of its fire insurance market will lose coverage.
Regardless, that leaves properties and homeowners vulnerable to physical and financial losses in an area where wildfires are notably common — and becoming more frequent and intense.
In 2023, Cal Fire recorded 7,386 wildfires, burning 332,822 acres and destroying 157 structures. In 2024, 6,228 had been reported up to Sept. 19, with 995,639 acres burned and 1,425 buildings destroyed.
A warming planet, worsened by human-caused pollution, is leading to hotter and drier days, making the conditions for wildfires increasingly favorable.
California is also going through an insurance crisis. Even if coverage is available, which it often isn't, policies are getting increasingly expensive to the point that many residents are considering leaving. In the coastal county of Santa Cruz, for example, Scotts Valley residents are seeing premiums rise by two-and-a-half to three-and-a-half times compared to five years ago.
What can be done about wildfires?
Not only are humans responsible for changes in climate that make it easier for wildfires to spread, but they are also the reason most wildfires begin.
According to the National Interagency Fire Center, 87% of wildfires begin from human activity, and many of them are preventable.
So, first, let's start with the climate.
Reducing the pollution we produce daily will slow the accumulation of planet-warming gases that make thermometers creep up. We can do so by switching to renewable energy, ditching gas-guzzling cars, and making responsible shopping choices, among other beneficial actions.
Wildfires can begin from sparks that ignite dry plants and grasses — vehicles, gas-powered garden machinery, and power tools can all produce sparks. So, maintaining cars properly, switching to human-powered gardening equipment, and avoiding power-tool use in dry areas can reduce the chances of starting a burning event. Avoiding campfires and fireworks is also sensible in the grip of drought conditions.
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