California has blown through its firefighting budget in seven of the past 10 years. Now, some state leaders are proposing a novel way to pay for those overruns.

Insurance Commissioner Ricardo Lara and state Sen. Bill Dodd unveiled legislation Thursday that would pave the way for California to take out an insurance policy for disasters, including the devastating wildfires that have ripped through numerous communities in recent years.

"It works just like your home insurance but for our actual state. You pay a premium each year, and we are protected," Lara said. "If a disaster strikes, once you cover the deductible, the plan pays you back for your losses."

Dodd noted that California spent $947 million fighting wildfires over the fiscal year that ended last July — $450 million more than state leaders budgeted.

He argued that letting an insurance company carry more risk could free up state resources for preventing wildfires.

“Rising wildfire suppression costs can strain California’s financial resources and threaten cuts to critical programs,” said Sen. Dodd, D-Napa.

“As climate change continues to contribute to devastating infernos, we need a strategy to reduce the pressure on state and community coffers.”

The proposal wouldn’t require the state to take out an insurance policy, but would authorize the governor, insurance commissioner and treasurer to explore the possibility. Similar programs have been embraced by the state of Oregon and the Federal Emergency Management Agency.

At least one large insurance group said it would back the bill.

“Insurers understand the need for new products and strategies to finance the mitigation and recovery from these unprecedented wildfires," Armand Feliciano, vice president for the American Property Casualty Insurance Association, said in a written statement. "We look forward to working with the legislature and statewide elected officials to consider and develop innovative ways to prevent and fight future wildfires. “