It sounds like it's a resourcing issue, not a change in philosophy. It doesn't change the fact that it won't be happening though.
It sounds like it's a resourcing issue, not a change in philosophy. It doesn't change the fact that it won't be happening though.
Yes.
https://news.ycombinator.com/item?id=41920127 ("HN: The Forest Service Is Losing 2,400 Jobs–Including Most of Its Trail Workers")
Relevant comment by S201: https://news.ycombinator.com/item?id=41922195
"The overall Forest Service budget has indeed been increasing, but it's nearly all going to wildfire fighting. I recently wrote about the state of forest road funding and went in depth on this here: https://ephemeral.cx/2024/09/losing-access-to-the-cascades
> Overall, in 1995 16% of the Forest Service budget was dedicated to wildfires. By 2015 it was 52% and by 2025 it’s projected to be upwards of 67%. Without large amounts of additional funding it is virtually guaranteed that the Forest Service’s budget will continue to be siphoned away by firefighting needs."
https://www.conservationgateway.org/ConservationPractices/Fi...
I'm not sure how it works in California, but wildfires don't really care about our jurisdictional boundaries...
I can assure you that no matter how high the risk of fire, insurers will be willing to provide insurance on that so long as they are legally allowed to charge the appropriate premiums.
Not true. Assume for the moment that you're the CEO of Golden Insurance Co., and you're still writing fire insurance policies in Burn County, CA. After Yet Another massive fire - and loads of "100% loss" payouts - from your balance sheet - the experts in your Risk Estimating Dept. say the premium to insure a $600K house in Burn Co. needs to be $200K/year - because they expect to pay out to replace that house ($600K) every 4 year ($150K/year), and they need the other $50K for overhead and temp. relocation benefits and rebuilding-cost inflation and a bit of hedge - just in case they're wrong, and things burn down even more often.
Now - if the fire insurance for a $600K house costs $200K/year, how many of the homeowners can and will actually pay that much for fire insurance? Perhaps a number that's falling like a rock? Meanwhile, Wall St. is howling about the horrible risk that your balance sheet is facing, if there's another big fire season. And the 99% of homeowners who can't afford those premiums are bitterly angry, and in a mood to string up the bearer of bad news (meaning you) from the highest tree still standing.
SO - why wouldn't you, as CEO, make the unfortunate decision to just stop writing fire insurance policies for properties in Burn Co., CA?
How do people afford to move and start new lives when you can't sell your property because it is uninsurable?
Nobody is suggesting jailing the irresponsible. But there is no reason they’re entitled to that capital. They took a risk and it was a bad one.
Effective fire prevention will also make fire insurance cheaper and reducing development in fire-prone areas will reduce the cost of forest management.
California spends a roughly an order of magnitude more per acre they are responsible for, when compared with the USFS so I don't think underspending by California is the issue here. The problem seems to be the lack of authority for CalFire to manage fire risk on federal land.
Second, how do you know it is just one million homes? I'm interested to learn more there
Since CA tends to be a rich state, I vote that those living in SF and LA pay 75% of the required fees, and the remainder of the state pay the rest.
Did prices for wood even go down post-COVID back to their previous level?
(But I'm certainly not seeing the glut of cheap lumber that others may appear to be alluding to here...)
Why? We played with the farfetched hypothetical of California unilaterally acting on federal land. But if the Forest Service says “come on in” and they do, I’m struggling to see who would face any real consequences given the Congress’s power of the purse isn’t being touched.
Sure. I don’t see how the Congress stops that if the USFS (not Parks) and Sacramento strike a deal.
https://www.cnn.com/2019/10/31/us/prison-inmates-fight-calif...
A wholesale "do not prescribed burn" is not sensible. Determining which areas are high and low value and then concentrating what resources you have on the highest value areas is.
In the end though the only one we're truly hurting is ourselves and our desired life style when it burns out of control.
If insurers were allowed to and incentivized to price accurately, homes in dangerous areas (flood plains, fire hazards) would be too expensive to buy, and people... wouldn't.
Especially given that if you can't get insurance, you can't get a mortgage, which drastically limits your buyers.
Is this caused by regulations or the insurers approach?
Genuinely ignorant here.
Artificially forcing blended home insurance rates lessens the pricing signal that this particular area might be too risky to build in.
At the end of the day, it's developers and the city/county making money while offloading the risk to insurance companies and government mortgage buyers.
The same has happened with auto insurance rates (men and women have different accident rates, so used to have different rates), and, glaringly, medical insurance rates.
The problem is people come to the legislature screaming about being charged a rate that actually reflects the risk. The legislature eventually responds by making insurance spread the costs over it's policy base. This results in people to screaming to the legislature because their rates are skyrocketing to pay for the idiots in the danger zone. The legislature eventually responds by not allowing insurance companies to charge enough--and they walk.
By the time you reach the point of the insurance companies walking you've already had many chances to fix the problem. But we never learn, people are determined to have their cake and eat it also.
Our house is not fire engineered--but still it has very few spots that could ignite. That's simply because we have stucco walls and a concrete tile roof. There is some exposed wood but not much. Nor are the vents spark proof.
Unfortunately, concrete tile roofs aren't suitable in many places (they don't like hail) and can't be retrofit onto most houses due to the weight.
Even in the case of an emergency firebreak, if there aren't enough firefighters to cut one large one, there aren't enough firefighters to cut lots of small ones with a greater total length.
Though, 3 issues I see with complete disengagement: (1) there are whole towns that would burn down, avoidably so if some fires were not suppressed
(2) modern fires are rangers and turn the landscape into Savannah. This is not necessary. Healthy forests would be fire resistant and more fires could just run their course (in other words, not suppressing fires can lead to CA forests being removed)
(3) kinda related to (2), the wet/dry seasons creates a lot of burnabke grasses and bushes that pop up. Prescribed burns would tamp that down, giving forests more time to age and be fire resistant
CA Insurance Claims USFS Wildfire
Year and Settlements Management Budget
2018 $13.6 billion $2.5 billion
2019 $2.8 billion $2.4 billion
2020 $3.5 billion $2.35 billion
2021 $4.75 billion $2.4 billion
2022 (unknown) $2.65 billion
2023 (unknown) $2.97 billion
The expensive part of forest fires is paying back homeowners who lost their homes in places guaranteed to be lit on fire, at prices for homes as though the fires didn't exist. The way we chose to do this is by saying it was PG&E's fault, and in exchange, PG&E gets to recoup those payments via permanently higher rates.It is a little complicated, but it isn't that complicated. The simple question is, should the government pay a safe home's price for a burnt down home?
PS: I heard the thing California does, however, is putting a cap on insurance premiums, so insurers just avoid some regions, and owners cannot find insurance to buy. It's kinda the same thing -- owner's responsibility.
California FAIR is the insurance of last resort so what you’re saying isn’t totally accurate.
There has to be an insurance option because you can’t get a mortgage without insurance. And owner occupied real estate prices do not go up without mortgages.
California bends over backwards to make owner occupied real estate risk free.
More provocative questions: what is the difference between someone who lost a home in a place guaranteed for the home to eventually burn down, and someone who doesn’t own a home at all? In that moment: nothing, right? Why is sunk cost a fallacy all the time, except that time?
Is someone who pays less in taxes deserving of less, more or equal government assistance? No, right? Now replace taxes with “compulsory payments” like home insurance: does your answer change?
This should illuminate for you why CA wildfire bailout policy is so inequitable. These communities are not an escape valve from overpriced real estate in California cities, they ARE the overpriced real estate all the same.
Note that a lot of the property insurance regulation stems from a 1988 voter proposition. I suppose it has worked fine from then until now but the CA drought and greatly increased fire risk was an unexpected shock.
FWIW I would guess that we won't see extreme fire events for some time going forward - probably not until a "big drought" comes back to CA 30-40 years from now. The reinsurance market will settle down and mutual insurance companies will end up issuing refunds eventually.
If the fire had been caused by someone without the funds to pay for damages (e.g. a homeless encampment (Day Fire) or college students improperly extinguishing an illegal bonfire (Tea fire)), then there might be criminal charges, but insurance companies will be on the hook.
People will not start doing proper inspections until you punish the individual harshly, instead of the company.
1. torts often fail to make people whole, and even when they do, they aren't always a good deterrent.
2. The comment I was replying to implied that SCE was a scapegoat for the Camp Fire; all evidence strongly suggests that this is not the case.
Prescribed burns are expensive now because we haven't done them for so long. California banned the indigenous practice of cultural burns before it was even a state! But the more we work on restoring this practice the cheaper it'll be for everyone in the long term