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Fair Plan

All articles tagged with #fair plan

public-policy3 months ago

California Implements Reforms to Stabilize Insurance and Address Rate Hikes

California Governor Gavin Newsom signed bipartisan legislation to bolster the state's home insurer of last resort, the FAIR Plan, by allowing it to request state-backed loans and spread out claims payments after disasters, aiming to prevent insolvency amid increasing wildfire risks due to climate change. Additionally, new laws expand oversight of the FAIR Plan board to improve transparency and stability in California's insurance market, which is under pressure from rising wildfire damages and insurer withdrawals.

via AP News|
#california#climate-change#fair-plan
insurance1 year ago

"Homeowners Face Growing Insurance Crisis Across the U.S."

Many Californians are struggling to afford homeowners insurance as insurers abandon fire-prone areas, leaving residents either uninsured or reliant on costly last-resort options like the FAIR Plan. The state's regulatory system under Proposition 103 complicates rate adjustments, contributing to the crisis. Lawmakers and officials are considering measures to incentivize fire-hardening homes and streamline insurance regulations to stabilize the market.

via Los Angeles Times|
#california#fair-plan#homeowners-insurance
insurance1 year ago

State Farm's Home Insurance Exodus: Impact on California Residents

State Farm is not renewing home insurance policies for thousands of homeowners in upscale neighborhoods in Los Angeles County, including Bel-Air and Pacific Palisades, due to financial concerns and high wildfire risk. This move adds to the existing home insurance crisis in California, prompting some residents to turn to the FAIR Plan as a last resort. State officials are proposing new rules to address the crisis, including allowing insurers to raise rates to cover reinsurance costs and projected losses from catastrophic fires while requiring them to provide coverage for more homes in high-risk areas.

via Los Angeles Times|
#california#fair-plan#home-insurance
insurance1 year ago

State Farm's Decision Not to Renew 72,000 California Insurance Policies Exacerbates State's Crisis

State Farm General Insurance will not renew 72,000 homeowner insurance policies in California, citing the need to maintain adequate claims-paying capacity and comply with financial solvency laws. The decision has raised concerns about the company's financial situation and comes amid a statewide insurance crisis, with thousands of property owners struggling to find affordable coverage. The lack of options has led many to turn to the FAIR Plan, putting a financial strain on the state insurer. Insurance Commissioner Ricardo Lara has proposed new rules to address the crisis, aiming to align insurance rates with risk and provide coverage for more homes in high-risk areas.

via Los Angeles Times|
#california#fair-plan#insurance
insurance1 year ago

California's Last-Resort Home Insurer Faces Insurance Crisis: Solutions and Challenges

Enrollment in California's FAIR Plan, the state's last-resort insurance option, is surging as traditional insurers scale back coverage due to climate change-related risks, prompting concerns about the plan's financial stability. The plan, funded by insurers doing business in California, has seen a record increase in policyholders and now faces a total risk exposure of $311 billion. State officials are grappling with an insurance crisis, with major companies dropping customers in areas prone to wildfires, flooding, and hurricanes. Proposed regulations aim to modernize the insurance marketplace by allowing insurers to use catastrophe modeling that accounts for climate change impacts, but consumer advocates argue that this could limit transparency and lead to price-gouging.

via Los Angeles Times|
#california#climate-change#fair-plan
insurance1 year ago

"California Faces Insurance Crisis as Companies Leave, Rates Soar"

The California FAIR Plan, the state's last option for homeowners seeking fire insurance, has seen a significant increase in policyholders, with over 350,000 homes now covered. However, homeowners like Bill King are facing steep premium increases and administrative challenges, leading to concerns about economic well-being and potential relocation. The plan's rapid growth has raised solvency risks, prompting the California Insurance Department to propose new regulations to encourage insurers to resume writing fire policies in the state. Despite recent changes and agreements, policyholders continue to experience difficulties with payments, cancellations, and customer service, highlighting ongoing challenges within the FAIR Plan.

via The San Francisco Standard|
#california#fair-plan#fire-insurance
insurance2 years ago

"California Homeowners Struggle to Find Insurance Coverage Amidst Market Turmoil"

Farmers Insurance has joined Allstate and State Farm in limiting coverage for homes in wildfire-prone areas of California due to rising costs and severe weather events. As a result, homeowners seeking new coverage may need to turn to the FAIR Plan, which offers insurance of last resort but may not provide sufficient coverage for large homes or full replacement. Additionally, the California Earthquake Authority is also limiting payouts for earthquake insurance. Homeowners are advised to review their coverage, consider extended replacement cost endorsements, document their belongings, and ensure their evacuation plans include provisions for pets.

via KTLA Los Angeles|
#california#fair-plan#farmers-insurance