West’s record wildfires haven’t changed bond ratings or pricing

California and Oregon are experiencing yet another record-setting year of wildfires.

The that provide coverage to individuals and businesses who are unable to obtain insurance in the regular market.

If a homeowner doesn’t purchase insurance through a FAIR plan, then the mortgage servicer or the lender would place insurance on it, Hibler said.

“If you don’t have a mortgage, the homeowner has a decision to make about where they will get insurance,” she said.

“A lot of national insurers have been pulling out of California and are planning on re-entering when they are able to charge different rates,” Trevino said.

State Farm stopped accepting new applications for policies on California properties in May 2023. Allstate had announced in November 2022 it would pause new homeowners, condo and commercial policies in California to protect current customers, The Associated Press reported in 2023. It cited inflation and a challenging reinsurance market and rapidly growing catastrophe exposure.

California Department of Forestry and Fire Protection

California Insurance Commissioner Ricardo Lara unveiled a strategy on June 12 that he said would “restore coverage options for Californians across the state while safeguarding the integrity of the state’s insurance market.

“We are enacting a major reform, so if you are stuck on the FAIR plan, because of your unique wildfire risk, there will be help for you,” Lara said in a statement.

The California FAIR plan has become the only option for homeowners in fire prone areas of the state, but Lara said his plan will change that. The plan will “force insurance companies to take into account wildfire mitigation efforts at the individual property, community and regional level.”

It allows for rate increases using a long-term catastrophe model, but also requires major insurers to write no less than 85% of properties in distressed areas of a rate filing being adopted and report their progress to the department.

Twelve wildfires were active in California Thursday morning; so far 805,000 acres have burned, 1,165 structures were damaged and one fatality was reported, according to the California Department of Forestry and Fire Protection.

The fires plaguing California “are a clear and present danger to our way of life,” Newsom said during a press briefing.

Oregon Gov. Tina Kotek invoked the Emergency Conflagration Act for the Elk Lane Fire Monday, the 11^th time she has invoked the Act in recent months as the state faces record-breaking fires in multiple locations.

The state has been experiencing record temperatures soaring into the 90s and wind gusts up to 18 miles per hour, and these heightened fire conditions are expected to continue through the week, according to the state fire marshal’s office.

“We have a long way to go before fire season ends, and I remain committed to using every resource available to fight the fires across our state and jumpstart a full recovery,” Kotek said.