California FAIR Plan
The California FAIR Plan is an insurance program backed by the state of California that is used by property owners who cannot find private market insurance coverage.[1][2][3] The plans are typically more expensive and provide less coverage than commercial plans.[4]
If the FAIR Plan does not have the money to payout all claims, it collects money from insurance companies that operate in California.[4]
Between 2023 and 2024, the number of homes in the ZIP code affected by the Palisades fire covered by the FAIR Plan almost doubled.[4] As of January 8, 2025, the plan has around 6 billion dollars of exposure within Pacific Palisades.[5]
See also
[edit]- Citizens Property Insurance Corporation ("Citizens") similar to California's FAIR in Florida.
References
[edit]- ^ https://www.wsj.com/finance/homeowners-flock-to-last-resort-insurance-policies-a7ae9439
- ^ "L.A. consumer group calls FAIR Plan insurance reforms an industry 'bailout'". Los Angeles Times. July 30, 2024.
- ^ "State takes final step to fix California's troubled home insurance market". Los Angeles Times. December 30, 2024.
- ^ a b c Flavelle, Christopher (January 8, 2025). "California Wildfires Threaten Insurers Already Teetering From Climate Shocks" – via NYTimes.com.
- ^ https://www.theinsurer.com/ti/news/california-fair-plan-has-6bn-of-exposure-in-wildfire-hit-pacific-palisades-2025-01-08/