"Homeowners across California will soon see a new charge on their monthly insurance bills to help pay claims arising from this year's devastating Los Angeles wildfires. Most of the temporary fees imposed by the state's largest insurance companies will be relatively small, a few dollars per month, averaging around $50 to $60 in total over two years, according to a review of regulatory filings by the Bay Area News Group."
"The surcharges, which are expected to affect the majority of the state's homeowners, are scheduled to take effect in the coming months. Although the charges, calculated annually, generally average around 1% to 2% of homeowners' premiums, policyholders may be hit with higher fees if they have more expensive plans. While the charges are unlikely to cause serious financial hardship for most homeowners, they've raised concerns that future catastrophic wildfires could lead to even higher fees,"
California homeowners will soon see temporary surcharges on monthly insurance bills to pay claims from this year's Los Angeles wildfires. Most fees will be a few dollars per month, averaging about $50 to $60 total over two years. The surcharges are expected to affect a majority of homeowners and generally amount to about 1% to 2% of premiums, with higher fees for more expensive plans. The charges fund a mandated $1 billion insurer bailout of the FAIR Plan after it ran out of money to cover roughly $4 billion in claims. Regulators allow insurers to recoup up to half the bailout cost from policyholders based on market share, and many individual surcharges have been approved.
Read at www.mercurynews.com
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