Property Owners Could Be Billed for Fire Service
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This cash-strapped city is mulling a plan to bill a property owner’s insurance company $2,500 for every house or business fire extinguished by the Fire Department.
Insurance officials warn that the fee probably would lead to higher insurance premiums, and may well be illegal in California.
City officials said the fee is designed to take advantage of existing insurance policies, and is a small price to pay compared with the losses that firefighters prevent.
The city’s $32-million budget for 2002-03 includes $30,000 in estimated income from the fee.
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