"The FAIR Plan is an insurance pool that provides policies to people who can't get private insurance because their properties are deemed too risky to insure. The number of homeowners forced onto the FAIR Plan has skyrocketed. With high premiums and basic coverage, the plan is designed as a temporary option until homeowners can find permanent coverage. But more Californians are relying on it than ever as increasingly devastating and destructive fires spark across the state, including in densely populated areas."
"That reality came true earlier this year after wildfires swept through Los Angeles and destroyed more than 17,000 structures. The plan faced a loss of roughly $4 billion and needed a $1 billion bailout from private insurers to pay out claims. Half of that cost is expected to be passed onto all policyholders. The law Newsom signed allows the FAIR Plan to request state-backed loans and bonds and spread out claims payments over multiple years after a disaster."
California Gov. Gavin Newsom signed a bipartisan bill Thursday to prevent the state's home insurer of last resort, the FAIR Plan, from running out of money after a major natural disaster. The FAIR Plan provides policies to homeowners who cannot obtain private insurance because properties are deemed too risky, and enrollment has surged to nearly 600,000 policies. Earlier wildfires in Los Angeles caused roughly $4 billion in losses and required a $1 billion private-insurer bailout. The new law allows the FAIR Plan to seek state-backed loans and bonds and to spread claims payments over multiple years instead of requiring insurers to pay full bailouts within 30 days.
Read at ABC30 Fresno
Unable to calculate read time
Collection
[
|
...
]