Arizona lawmakers are deliberating a bill aimed at shielding utilities from lawsuits related to wildfires, complicating the already strained relationship between utilities, homeowners, and insurance. This proposed legislation would ease the burden of proof required to hold utilities accountable for fire damage caused by equipment failures. While utilities must provide a wildfire risk mitigation plan biennially, they remain protected even in cases of negligence. Critics argue such measures may lead to elevated insurance premiums and reduced coverage for homeowners already facing steep rate hikes as wildfire incidents rise in the state.
The bill would make it harder to prove that utilities are to blame for wildfires started by faulty or poorly maintained equipment while also limiting damages. In exchange for reduced liability, utilities would need to file plans every two years detailing the steps they're taking to limit the risk of wildfires.
There's no free lunch in this. You're either going to pay in higher insurance premiums or you're going to pay in higher utility costs.
Some homeowners in Arizona have seen their rates triple this year while others have had their coverage dropped.
The Arizona bill is being mooted as states throughout the Western U.S. grapple with the threat - and fallout - of wildfires made worse.
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