(UPDATED April 20, 2015)
The state of Oregon decided to buy the wildfire insurance from Lloyd’s of London. The policy was purchased through the Oregon Department of Forestry, and provides $25 million in coverage. The coverage will kick in when firefighting costs exceed $50 million, with the policy providing as much as $25 million to cover these costs. Premiums for this coverage are being split between state and private timberland owners, whom have agreed to pay $3.75 million into the policy.
(Originally published April 4, 2015)
For decades the state of Oregon has purchased insurance from Lloyd’s of London to help defray the costs of suppressing wildfires, the only state that does so according to OregonLive. This year the company has almost doubled the annual premium from $2 million to $3.75 million while increasing the deductible from $20 million to $50 million.
If the state decides to accept Lloyd’s offer, up to $25 million of their costs of suppressing wildfires will be reimbursed.
The last two consecutive bad fire seasons had state officials rightfully worried that they would have to pay more for the policy this year, especially after spending $75 million on managing wildfires in 2014.