About 350,000 residents have lost wildfire insurance in recent years, as a series of catastrophic fires have swept the state of California and insurance industry struggles to keep up with climate change.
Wildfire insurance is out of reach for many Californians, according to an article by Gireesh Shrimali, and the industry needs to adjust to the new climate realities of the state.
"Over the past several years, premiums have risen significantly – as much as 300% to 500% [pdf] in many cases. And in many high-risk areas, insurers are increasingly opting not to renew coverage," according to Shrimali. In all, 350,000 Californians have lost insurance coverage since a second year of catastrophic fires hit the state in 2018.
According to Shrimali, California needs a new way to calculate risk given the challenges of climate change in the state.
Challenges for insurers include the increasing severity of risk, the danger of adverse selection (when low-risk customers subsidize high-risk customers), and the effects of spiraling premiums.
To manage these risks, Shrimali suggests a few specific measures that would achieve better models for assessing and pricing risk as well as steps to ensure a "robust and guaranteed demand for wildfire insurance, which will attract private insurers into the market."
FULL STORY: In fire-prone California, many residents can’t afford wildfire insurance
How US Cities Can Prepare for Climate Disasters
Resilience, encompassing infrastructure, governance, economic strength, and social cohesion, is critical for cities to mitigate rising climate risks like flooding, wildfires, and heat, ensuring long-term recovery and adaptability.
Building Resilient Communities: Insights from the LA County Cities Summit
The Los Angeles County Cities Summit convened local leaders to share strategies for advancing sustainability, addressing climate resilience, extreme heat, and other pressing environmental challenges through policy and community-driven solutions.
Rebuilding After Disaster: The Role of Social Connections in Resilience
Dr. Lucy Jones emphasizes that resilience in the face of climate-driven disasters like wildfires relies on building strong social connections, which empower communities to recover and adapt to an increasingly challenging future.
Analysis: Cybertruck Fatality Rate Far Exceeds That of Ford Pinto
The Tesla Cybertruck was recalled seven times last year.
National Parks Layoffs Will Cause Communities to Lose Billions
Thousands of essential park workers were laid off this week, just before the busy spring break season.
Retro-silient?: America’s First “Eco-burb,” The Woodlands Turns 50
A master-planned community north of Houston offers lessons on green infrastructure and resilient design, but falls short of its founder’s lofty affordability and walkability goals.
Test News Post 1
This is a summary
Analysis: Cybertruck Fatality Rate Far Exceeds That of Ford Pinto
The Tesla Cybertruck was recalled seven times last year.
Test News Headline 46
Test for the image on the front page.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
EMC Planning Group, Inc.
Planetizen
Planetizen
Mpact (formerly Rail~Volution)
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research
NYU Wagner Graduate School of Public Service