The devastating wildfires in Los Angeles have left communities in ruins, claiming lives, destroying over 15,000 structures, and causing an estimated $275 billion in damages. Insurers are staring at $30 billion in claims, and many are likely to pull out of California and other climate-vulnerable states. Homeowners face skyrocketing insurance costs, pushing some toward defaulting on mortgages. But one group has largely escaped the blame: oil and gas companies.

For decades, these companies knew their products could lead to catastrophic climate events. Internal warnings from Exxon scientists date back to the 1970s. Yet, instead of acting, they misled the public and policymakers while quietly planning to continue fossil fuel production. Now, as temperatures rise and drought conditions worsen, fueling these deadly fires, it’s time to hold them accountable.

Here’s the argument: these highly profitable companies should compensate communities, homeowners, businesses, and even insurers for the losses. While it sounds ambitious, states and local governments can start taking action now. Private insurers can’t keep up with the increasing frequency and severity of climate-driven disasters. Premiums are becoming unaffordable, and many Californians are already relying on state-backed insurance programs.

The Fair Access to Insurance Requirements (FAIR) plan, California’s last-resort insurance program, is already under strain. Claims from the LA fires will likely exceed its reserves, leaving all policyholders in the state to cover the gap through higher assessments and premiums.

It’s clear that we can’t keep ignoring the role of oil and gas companies in this crisis. By holding them financially responsible, we can help communities rebuild and protect homeowners from bearing the brunt of the damage.