GRANTS PASS, Ore. — The state of Oregon has decided to continue buying insurance against the cost of fighting wildfires, even though it comes at a much higher premium and deductible.
Tim Keith of the Oregon Department of Forestry says the state bought the $25 million policy from Lloyd’s of London on Wednesday.
Once firefighting costs go over $50 million, the policy will pay up to $25 million, with the state and private timberland owners splitting the premium of $3.75 million. Last year, state wildfire costs were slightly over $75 million.
Keith says the policy — the only one of its kind in the country — gives Oregon important financial protection against wildfire costs.
He says one worry is that if Oregon taps the policy again this year, it would be three years in a row, and might mean the insurer refuses to offer a policy in the future.
