Housing Affordability and Worsening Wildfires: Twin Crises

As wildfires grow more destructive, how far should states go to protect homes located in high-risk areas?

2 minute read

March 17, 2022, 7:00 AM PDT

By Diana Ionescu @aworkoffiction


California Wildfire

Jeff Turner / Wikimedia Commons

"The California Department of Insurance last month released new regulations that require insurance companies to reward homeowners who take steps to protect their home from wildfire, such as clearing brush and trees from the immediate vicinity of their home or putting on a fire-resistant roof." But as wildfires become more frequent and destructive, writes Emma Marris, "to what extent should we cushion the blow of these dangers, and is there a limit to how much, or how long, we pay?"

Insurers are scrambling to figure out their strategy for the future as more destructive fires wipe out their earnings. "Insurance companies are prohibited by state law from using models of future conditions to set their rates, but with the fires of the past five or so years, even backwards-looking risk calculations are beginning to prompt insurers to raise rates or refuse to renew policies."

"In 32 states, rejected homeowners can always get coverage through programs known as FAIR plans—insurance pools run collectively by every company offering homeowner’s insurance in the state." Critics of FAIR plans say "These policies send an unrealistic message to homeowners about how much risk they are taking on."

But raising FAIR premiums could have a negative impact on low-income households, notes Marris. "If people are exposing themselves to risk simply because they want to, using insurance policy to make it expensive or impossible to do so sounds like a great idea. But when people are moving to risky areas out of necessity, the same policies could instead seem cruel."

Experts urge community-level, "collective hardening actions—cleaning up fuels that encircle whole neighborhoods, sending a free truck around to remove woody debris from yards, ensuring enough water is available for firefighters when they crack open a hydrant."

Tuesday, March 15, 2022 in The Atlantic

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight