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California FAIR Plan Assessment: Insurers to Recover Costs Through Policyholder Fees

Wildfires are among forces of nature that cause huge devastation to humans and environment. wildfires have left little behind, turning communities to ashen, barren hills. Nearly every year, California experiences major wildfires that can be devastating to the environment and communities throughout the state.

The California property and casualty insurance market is facing significant financial adjustments as insurers prepare to recover up to half of a $1 billion assessment imposed by the California FAIR Plan.

FAIR Plan’s Share of California Residential Market Nearly Doubles Since 2017-18 Wildfires

Wildfires and insurance in CA

The California FAIR Plan’s share of the state’s overall residential policies in force rose to 3.1% in 2022, nearly double the 1.6% it held before wildfires in 2017 and 2018 caused tens of billions of insured losses, according to state Department of Insurance data.

California FAIR Plan Exec: Carriers ‘One Event Away’ from Assessment as Exposure Soars

Newsom to allow higher insurance rates

California FAIR Plan has $336 billion of property exposure on its books, backed up by just $200 million of capital and $700 million of cash on hand, according to President Victoria Roach.

California to Expand Last-Chance Fire Insurance for Homeowners

two silhouette on housefire background

As more companies refuse to provide fire insurance to homeowners in a state plagued by increasingly destructive blazes, California’s insurance commissioner said Thursday that a plan once meant to be a last resort will be expanded. “I am taking this action after meeting with thousands of California homeowners across the state who are struggling to… Continue reading California to Expand Last-Chance Fire Insurance for Homeowners