California homeowners struggling to find or keep their insurance after several years of catastrophic wildfire seasons may get some relief from state Insurance Commissioner Ricardo Lara in 2020.
“In the wake of devastating wildfires, insurance non-renewals are on the rise across the state,” Lara said Thursday morning during a news conference.
When homeowners lose their insurance, or are unable to get a policy due to the danger of wildfire, they can turn to the Fair Access to Insurance Requirements (FAIR) Plan — a state-mandated program for difficult-to-insure properties.
“What we’ve been seeing is, essentially, insurance companies dropping folks, sending them to the FAIR Plan and the FAIR Plan not being a comprehensive product that consumers can rely on,” Lara said.
Starting April 1, the coverage limit will increase from $1.5 million to $3 million — a move that state officials say makes sense in California’s real estate market as homeowners often find that actual wildfire damage is exceeding their coverage.
State law requires the FAIR Plan to offer a comprehensive homeowners policy as an “insurer of last resort.”
Amy Bach, executive director of the insurance advocacy nonprofit United Policyholders, called it a “take all comers” policy.
Her organization has been hearing from homeowners unable to find affordable insurance through traditional channels.
“The good news is we do have a safety net in California,” Bach said.
In addition to increased coverage limits, Lara has also pushed the FAIR Plan to provide additional transparency around their meetings, and to allow the participation of the state Department of Insurance.
15 comments
Get ready to pay big bucks for this. Surprised that Corruptifornia hasn’t offered this “subsidized” to ensure people don’t move out of state.
The deductible on earthquake insurance is quite high the last time I checked. That’s why many don’t buy it.
I can’t wait for all of the folks whining about this start telling Trump to stop bailing out the farmers who are being gutted by the Trump Tariff War…
Right?
Such selfishness.
So if you literally cannot afford it – it is, therefore, their problem when they don’t buy it?
Let that one simmer for a while – LOL.
No one is getting relief from state Insurance Commissioner Ricardo Lara in 2020. They will be getting relief from the taxpayers and homeowners who pay the govt. and the insurance companies. These P.O.S. politicians need to stop giving themselves credit for everything.
One reason they stay in power is that they hand out overly generous benefits and pay to govt. workers, basically leaving taxpayers on the hook to support them when they retire at 55 with full medical benefits and pensions. And then they complain because they say they could have made more money in the private sector. Do some research on the unfunded pension liabilities in the state of cali. It is actually unbelievable but very true.
In the private sector, the company would have gone bankrupt and fines levied and jail time served. But they’re politicians, so they can commit crimes and lie because they make the rules. And all the idiots that vote them in are deserving of all of the problems.
A homeowner cannot always get insurance. Nearly half of my neighbors (Plumas county) have had their insurance cancelled at renewal. We, thankfully, have not (yet) been cancelled but our rates have tripled in the last year. The FAIR plan will provide fire insurance for the dwelling only. Homeowners must buy wraparound plans for other perils and for coverage for contents. The final cost is generally above $20,000 for a 2000 square foot home. And generally no liability coverage, that would be even more.
We keep our fingers crossed and evacuation bags packed.
Well if the fire coverage is now out of control because PG&E has not maintained their equipment, THEY should have to subsidize. And do so without raising rates on the rest of us. The real crazies are the folks who live in Hurricane places and we have to pay for them and their houses year after year after year.
It is everyone’s responsibility to carry coverage for their items. the public should not have to subsidize their poor planning. Same goes for the homeless. If you keep living beyond your means and do not have adequate savings, too freaking bad. Deal with it on your own.
Rob, adequate property insurance is part of the expense of homeownership. If one can’t afford to insure the dwelling of their choice, they can’t afford the dwelling.
Reaping the results of years of forestry management by the Courts, supposed conservationists, liberal politicians as well as non elected and unaccountable liberal bureaucrats.
Here’s what happens when rational forestry management practices are not interfered with.
‘ Where the biggest wildfire in Arizona history died ‘
https://www.azcentral.com/story/news/local/arizona-wildfires/2017/07/12/biggest-wildfire-arizona-history-couldnt-burn-fort-apache-reservation/437892001/
‘ Experts: Managing tribal forest helped stop Wallow Fire at reservation ‘
http://cronkitenewsonline.com/2011/12/experts-decades-of-logging-treatments-helped-stop-wallow-fire-at-reservation/
The state could help without shelling out taxpayer dollars by assuring that neither the state nor municipalities restrict property owners from establishing a defensive perimeter around their properties.
Rollo Tomasi – so then what was Prop 13 all about?
These prices go up after people own their home – clearly, if you can’t afford the property taxes – even long after buying the home you should simply seel the property – correct?
If taxpayers can spend taxpayer dollars bailing out farmers over Trump’s stupid tariff war – that apparently is not easy to win – LOL…
Surely taxpayers can help these folks.
Oh and by the way – funny how when Conservatives were calling the bailout of the Auto Industry “socialism” – they are suddenly quiet when TWICE the amount (so far) is being spent to bail out farmers…
The Chinese are paying billions in tariffs and are buying what American farmers have to sell.
You a farmer?
Actually, there are a lot of insurance companies who are declining to renew policies in areas with a high fire score. Those homeowners will have to depend on state assistance for coverage, which will still require them to get a separate policy for their belongings, like renters insurance. A good friend who lives in the Oakland Hills had this happen to her.
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