Why a Cal Fire camp couldn't get fire insurance as California's crisis continues
TEHAMA COUNTY - We are continuing our coverage of the insurance crisis in California after one of Cal Fire's conservation camps was unable to obtain fire insurance.
Cal Fire previously requested $11 million to replace a kitchen at the Ishi Conservation Camp in Tehama County. It was originally denied because it did not meet the underwriting requirements for fire insurance.
"Even fire houses ran by the state can't get fire insurance. That's how unmanaged our state government is right now," Senator Brian Dahle said.
Dahle represents the county where the fire camp is located.
"It's affected things like California Department of Forestry when we're trying to get fire protection and buildings built in California and we can't," Dahle said.
The Ishi Conservation Camp did not meet the underwriting requirements for fire insurance and only needed it in the first place because the funding came from bonds as opposed to the state's general fund.
We wanted to know exactly what that means.
"Normally, the state does not require insurance on these facilities because we self-insure. If the state pays for them through the general fund, out of the state budget receipts, then we're on the hook for covering the cost associated with insurance or damage or things like that," said H.D. Palmer, deputy director of the State Department of Finance.
Palmer said the issue that can arise with selling bonds for funding is that there is a risk factor.
"Part of the agreement to sell bonds to finance a facility of this kind, the people who are buying the bonds or holding the bonds want some type of assurance that if there's damage or destruction involved with those facilities that they won't suffer financial damage," Palmer said.
Needing fire insurance is no longer a problem for the Ishi Conservation Camp.
"We've been able to resolve that by moving the funds for that particular fire camp from bond funds to the state's general fund," Palmer said.
The Ishi Conservation Camp is one of 12 Cal Fire projects identified across the state where the same issue has come into play.
- Two have received insurance.
- Two have switched from bond funding to the state's general fund.
- As for the other eight, Palmer said they will continue to work with the Insurance Department to potentially be able to expand the types of insurance coverage.
Dahle said this doesn't change anything. He said the issue is that they couldn't get insurance in the first place even if they ultimately don't need it now.
Dahle said California Insurance Commissioner Ricardo Lara needs to do something immediately.
"[Lara] did come and meet with us and said it's going to take up to 18 months. We don't have 18 months. People are getting canceled and we need to fix this problem in California," Dahle said.
Wade Anglin lives right down the street from the fire camp. He's worried that if a fire station has issues easily getting fire insurance, what's the future for his community?
"They have firefighters on scene and without them, we won't be able to get any insurance," Anglin said.
We reached out to the insurance commissioner asking if he wanted to provide a statement and we have not heard back.