California insurance crisis stalls state fire station project

FRESNO, Calif. (FOX26) — It's no secret that insurance companies have bailed on homeowners living in the mountains of California because the fire risk is too high.

The state government is now experiencing that same frustration.

Recently Cal Fire struck out trying to get fire insurance for a fire station.

Cal Fire operates the Ishi Conservation Camp in the foothills of Tehama County. It's roughly 325 miles north of Fresno.

Inmates at the camp learn firefighting skills and then provide fire protection to four counties in the region.

Recently a State Senate budget committee learned from Victor Lopez with the Department of Finance that an $11 million project to replace the kitchen at Ishi Conservation Camp stalled because fire insurance couldn't be obtained.

"They weren't interested in selling insurance policies in the region due to the perceived fire risk in the area," said Lopez.

Cal Fire turned to Fair Plan, a state program that all California property owners have access to.

Since the project is being paid with bond money, Fair Plan couldn't provide sufficient coverage to meet the requirements of the bond underwriters.

Senator Brian Dahle is a member of the Senate committee. "It really daylights the fact how messed up California is where we have a fire station that's gonna have firefighters and train them and we can't get fire insurance for it.

That's how bizarre California is right now," said Dahle.

So how does the kitchen project continue? The deputy director for the Dept. of Finance Buck McGinness says the cost adds to the state budget deficit.

"So when this happens we swap the project over to cash funding in the case general fund as we're unable to sell the bond to get that financing," McGinness said.

After the hearing, Senator Dahle heard from insurance companies who said they might be able to help California.

"I'm gonna put them in contact with the Dept. of General Services and see if we can't come up with a product to get the bonds moving. We need these firehouses to protect our communities," Dahle said.

It's not just the private sector experiencing the wildfire insurance crisis, Cal Fire now understands how it feels to be rejected by insurance companies.

There are other Cal Fire projects that may also have difficulty getting fire insurance.