California officials have proposed new legislation that could see the introduction of a state insurance policy to help cover the costs associated with natural catastrophes including wildfires, earthquakes and floods.
Senator Bill Dodd, Insurance Commissioner Ricardo Lara, and Treasurer Fiona Ma say California Disaster Insurance (SB 290) would function like home insurance except for the state, with premiums being paid using existing emergency funds that would trigger a payment in the event of a catastrophe.
The proposition of SB 290 is aimed primarily at combating the high costs associated with wildfires, with climate change and increased levels of infrastructure development in high-risk areas heightening the potential for significant losses.
“Rising wildfire suppression costs can strain California’s financial resources and threaten cuts to critical programs,” said Dodd.
“As climate change continues to contribute to devastating infernos, we need a strategy to reduce the pressure on state and community coffers.”
Original Title: Bill could see California take out insurance for nat cat costs
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