FAIR Plan

CALIFORNIA PUSHES INSURERS TO COVER MORE HOMES IN SPECIFIC AREAS

California can’t legally require insurers to write either residential or commercial property policies. But the state expects insurers to comply with the options unveiled Wednesday in part because they get something they want in return: catastrophe modeling.
 

By Levi Sumagaysay, Cal Matters
 
CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters.
 
Photo: Firefighters battling a fire in Valley Center, one of the zip codes designated as "high-fire-risk," where officials would encourage more policies to be written, 2010 file photo
 
June 18, 2024 (Sacramento) -- California Insurance Commissioner Ricardo Lara unveiled Wednesday an effort to force insurers to resume writing policies in high-fire-risk areas — part of an overall plan to address the state’s insurance crisis. 
 
It consists of three different ways insurers can meet minimum requirements for writing policies in areas deemed “high risk” or “very high risk” by the department, which aligns with Cal Fire’s identification of hazard zones. Insurance Department regulators said this hybrid approach takes into account the state’s complex geography as well as the different risk levels that big and small insurers can afford to assume. Lara said this should help homeowners who have lost coverage or been forced to turn to the last-resort FAIR Plan.
 
Insurance companies would have these three options:

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CALIFORNIA FIRE INSURANCE: FAIR PLAN GOING THROUGH GROWING PAINS

By Levi Sumagaysay, CalMatters

CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters

File photo: Fire in Grossmont area

February 2, 2024 (California) -- The fire-insurance premium for Bill King’s home has risen 145% since 2017 — from $399 to $979 — under the California FAIR Plan, the state’s last option for homeowners seeking fire insurance.


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COMMISSIONER LARA APPROVES NEW COVERAGE OPTIONS FOR FARMS AND AGRICULTURAL BUSINESSES UNDER FAIR PLAN

Insurance coverage will be available starting February 1st for farm owners, wineries, and other outdoor businesses previously ineligible  

East County News Service

January 21, 2022 (Sacramento) -- Acting to address the growing needs for a competitive insurance market for farm owners, wineries, ranchers and other outdoor agricultural businesses, Insurance Commissioner Ricardo Lara today approved the FAIR Plan to offer new commercial coverage for farm structure risks starting February 1, 2022. The FAIR Plan is an association made up of all admitted insurance companies to be the state’s property “insurer of last resort.”


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