California Wildfire Insurance

The Nature Conservancy and WTW have launched a first-of-its-kind wildfire resilience insurance policy that accounts for forest fire mitigation efforts, structured for Tahoe Donner Association in Truckee, California. The $2.5 million coverage, developed in collaboration with UC Berkeley’s Center for Law, Energy and the Environment, demonstrates that ecological forest practices such as tree thinning and prescribed burns can reduce insurance costs. The policy covering 1,345 acres of forested and recreation land achieved a 39% lower premium and 89% lower deductible compared to properties without nature-based forest management. Globe Underwriting provided empirical analysis supporting the risk reduction assessment, offering a model for addressing California’s insurance crisis amid widespread policy non-renewals.