Wildfire Risks Spark Insurance Woes for Utility Companies | Insurify [Video]

Homeowners aren’t the only ones facing high insurance rates and difficulty finding coverage because of wildfires. Power companies are also feeling the heat.

Utilities in states affected by wildfires are struggling to find affordable insurance — if they can find it at all, according to Bloomberg.

“The trouble comes after power companies from Hawaii to Texas have collectively faced tens of billions of dollars in damages from wind-driven wildfires linked to their equipment,” Bloomberg reports.

Power lines spark wildfires

Power lines can cause wildfires in multiple ways, according to the Texas Wildfire Mitigation Project. If a power line falls and fail-safe systems fail, a live line can lay on the ground and arc for “multiple tens of minutes.” Lines that come into contact with vegetation may cause a branch to ignite. Circuit components may fail, or conductors may slap into each other, all creating conditions that could lead to a fire.

Climate change has …