As Washington state reels from a devastating wildfire that destroyed hundreds of homes in Spokane last weekend, experts say the disaster has cast newfound uncertainty over a property insurance market that had just begun to stabilize.
Across the country, insurance companies have withdrawn coverage or raised premiums in areas threatened by climate-fueled disasters. In some places, such as California, those trends have triggered a full-blown crisis, with private companies abandoning disaster-prone areas and leaving state-backed “last resort” insurance plans to assume more and more risky policies.
Now, officials and consumer advocates worry that Washington ratepayers could be the latest to face financial repercussions in the wake of disaster…