Authored by Sara Weathers

California Governor Gavin Newsom recently released the state budget, only allocating $2 billion to wildfire costs.  With the amount of destruction caused by wildfires in California in previous years, and with there being more than 700 wildfires in California from January to June in 2021 alone, this number could be considered low. 

John Norwood of insurancejournal.com made this argument recently, stating that this amount is low compared to other items in the state budget. The state's comparatively low budget allocated to wildfires means the responsibility falls solely on home and business owners to protect their property. Property insurance premiums for homeowners are currently in the five-to-six figure range if they can even find any coverage. Property insurance has become increasingly hard to find in California due to how widespread wildfires have become.

It has become a balancing act for property owners in California to decide whether they can afford to pay for property insurance or if they can afford not to. Without the government in California committing to reducing the amount of wildfires occurring and their severity, property insurance costs will only continue to rise, and the accessibility to property insurance will be an ongoing issue.  

 

Photo Credit: victor4, 123rf.com