State Sen. Scott Wiener has introduced a bill that would create a pathway for Californians affected by fires, floods and other climate disasters to sue fossil fuel companies for damages. The bill would also let insurers do the same to recover costs.

Senate Bill 222, introduced Monday by the San Francisco Democrat and state Sen. Sasha Renée Pérez, D-Pasadena, accuses gas and oil companies of deceiving the public about the impact of their products on climate change. Supporters argue it would provide relief from California’s home insurance crisis by explicitly allowing insurers to recoup costs from fossil fuel companies, rather than solely by raising their rates.

“Californians are paying a devastating price for the climate crisis, as escalating disasters destroy entire communities and drive insurance costs through the roof,” Wiener said in a statement. “By forcing the fossil fuel companies driving the climate crisis to pay their fair share, we can help stabilize our insurance market and make the victims of climate disasters whole.”

While a number of state officials have filed lawsuits against oil companies in recent years, it’s much rarer for non-officials to attempt the same. Erik Mebust, a spokesperson for Wiener’s office, said that SB222 would “provide a clear legal recourse for victims and insurers.”

California Environmental Voters, an environmental nonprofit, originally pitched the bill to Wiener’s office, which worked with Extreme Weather Survivors and the Center for Climate Integrity on the legislation, according to Mebust. But there’s one group that wasn’t directly consulted on the bill — insurance companies themselves.

“Certainly, it’s a very important question to ask — if there is sort of a conflict of interest for insurance companies,” Mebust said.

One potential complication is that U.S. insurers often invest in fossil fuel companies, a 2023 analysis published by the Coalition for Environmentally Responsible Economies showed. Such investments generally make up a fairly small percentage of insurers’ portfolios, but they still totaled more than half a trillion dollars nationally in 2019. Dave Jones, director of the Climate Risk Initiative at UC Berkeley, said in a recent New York Times column that since it is unlikely insurers would sue fossil fuel companies on their own, states should require them to do so as a condition of rate increases.

Insurance companies have reduced coverage in California in recent years, saying the state’s regulations — which have kept prices relatively low for consumers — make it too difficult to remain financially sustainable. That has left many homeowners and companies scrambling to find coverage, often at much higher costs, despite state officials launching a slate of reforms this month that allow companies to raise prices more easily.

With the Los Angeles fires rattling California’s insurance industry and leaving some homeowners without enough money to rebuild, proponents say SB222 is a way to reduce costs on both insurers and residents while holding fossil fuel companies accountable. The bill would also open the door for the FAIR Plan, the state-created and privately run insurer of last resort, to sue companies on behalf of policyholders affected by large wildfires and other climate disasters.

It was not immediately clear whether the FAIR Plan would choose to do so.

A 2015 investigation by Columbia University and the Los Angeles Times found Exxon, one of the largest oil companies in the world, has for years downplayed the effects of climate change while simultaneously incorporating climate risk into its internal analyses. In the years following, dozens of cities and states, including California, have sued major oil companies for allegedly denying or minimizing their roles in causing climate change, though much of litigation is still in progress and has not produced big payouts.

Reach Christian Leonard: christian.leonard@sfchronicle.com