California homeowners will face temporary fee increases to help cover wildfire insurance claims. The state’s FAIR Plan, which covers about 451,000 policies, has received $1 billion in additional funding to ensure consumer claims are paid.
The increase is a result of Commissioner Ricardo Lara’s approval of an assessment, which will temporarily raise fees for most California home and fire insurance customers. Insurance companies must submit filings with the Department before collecting the one-time fees from their customers.
Lara stated that his goal was to protect FAIR Plan policyholders and uphold the integrity of the state’s insurance market. He emphasized that wildfire survivors can cash FAIR Plan checks, but not “what ifs” for essential expenses like food and rent.
The Commissioner directed the FAIR Plan to hire additional staff to process and pay claims quickly, use all available funds, maintain a healthy reserve fund, and comply with laws applicable to other insurance companies. The increase is part of a larger effort to modernize the FAIR Plan, established in 1968 as California’s insurance safety net for property owners who cannot get coverage through regular insurers.
The FAIR Plan provides a safety net for policyholders who cannot secure coverage through traditional insurers. The plan has faced challenges in recent years, including devastating wildfires and stagnant regulations. Lara aims to increase the issuance of regular insurance policies in higher-risk areas and reduce reliance on the FAIR Plan.
Source: https://eu.desertsun.com/story/news/nation/california/2025/02/12/californias-fair-plan-gets-1-billion-bump-to-help-pay-for-wildfires/78473454007