Wildfire mitigation saves money, says Megafire Action
Iain Hoey
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Wildfire costs and household bills
Megafire Action released a new primer in Washington, D.C. on 14 April stating that strategic investment in wildfire management can reduce costs linked to insurance, utilities and disaster recovery for American households.
The organisation said the report was issued ahead of the traditional start to the wildfire season and focuses on affordability alongside fire risk.
The primer states that wildfires cost the United States between $100 billion and $500 billion each year, including direct damage and longer-term economic effects.
It states that home insurance premiums rose by an average of $648, or 24%, nationwide between 2021 and 2024.
In high-risk Western states, many families have seen their insurance bills rise by more than 50%.
The report also states that wildfires increase electricity costs for ratepayers as utilities cover repairs, legal fees and rising insurance costs.
Spending and legislation in focus
According to the primer, spending on landscape resilience and home hardening can reduce future losses and recovery costs.
It states that every $1 spent on targeted forest management and fuels removal can save up to $7 in future damages and costs.
It adds that each $1 invested by the government in fire-risk reduction grants saves about $3 by avoiding more expensive disaster recovery efforts.
James Campbell, Megafire Action’s Director of Federal Affairs, said: “Investing in wildfire mitigation is smart across the board: it protects our wallets, our homes, and most importantly, our lives.
“As we head into another wildfire season, it’s imperative we tackle the dual wildfire and affordability crisis.
“The Fix Our Forests Act is a key step to address wildfire-driven spikes in insurance and utility bills that are draining family budgets.”
Congress is considering the bipartisan Fix Our Forests Act (S. 1462), which has passed out of committee with bipartisan support and is awaiting consideration by the full U.S. Senate.
If enacted, the bill would modernise forest management, streamline permitting for critical safety projects and establish a Wildfire Intelligence Center to improve inter-agency data sharing.
Megafire Action said the act is backed by governors, state agencies, conservation groups and businesses.
