California insurers set to charge homeowners for L.A. County fire costs

"California homeowners face surcharges averaging $50 to help insurers recoup costs from January's devastating Los Angeles County wildfires. State Farm and other major insurers received approval to charge customers for portions of a $1 billion FAIR Plan assessment. Consumer Watchdog sued Insurance Commissioner Ricardo Lara, calling the surcharges an illegal bailout of the insurance industry."

"Residential policyholders across California could be paying several hundred million dollars to help cover the costs of claims arising out of the January firestorms in Los Angeles County. Multiple insurers, including State Farm General, the largest in California, have received approval from the Department of Insurance to charge their customers for a portion of a $1-billion assessment they were hit with due to the financial problems of the state's insurer of last resort."

"The California FAIR Plan Assn., operated and backed by the state's licensed home insurers, was overwhelmed with an estimated $4 billion in residential and commercial claims stemming largely from the Palisades and Eaton fires that damaged or destroyed nearly 13,000 homes. Unable to pay those claims, it assessed its member carriers the $1-billion charge in February, half of which they could seek to recoup from their residential and business customers across the state under regulations enacted last year by Insurance Commissioner Ricardo Lara."

California homeowners face surcharges averaging roughly $50 on standard homeowner policies as insurers attempt to recoup parts of a $1 billion assessment tied to January firestorm claims. Approved surcharges to date total more than $150 million, with amounts varying by carrier and premium and payable in monthly installments over up to two years. The California FAIR Plan Association reported about $4 billion in residential and commercial claims from the Palisades and Eaton fires that damaged or destroyed nearly 13,000 homes. Member insurers were assessed pro‑rata, with State Farm General receiving the largest share, and Consumer Watchdog has sued Insurance Commissioner Ricardo Lara over the recoveries.

Read at Los Angeles Times