In 2015, California and other western states faced severe droughts, with many areas experiencing extreme or even exceptional droughts. As of August 4 California has declared a state of emergency and a blaze north of San Francisco is reported to be at historic proportions. While not as flashy as hurricanes and tornadoes, droughts can affect the insurance industry as well, first with wildfires and then with losses to crops, soil erosion, and other issues.

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