California FAIR Plan Insurance Ordered To Offer More Coverage
Sonora, CA – The state’s “insurer of last resort” has been ordered by California Insurance Commissioner Ricardo Lara to offer more comprehensive coverage for homeowners who can’t buy private insurance because they live in areas threatened by wildfires.
The California Fair Access to Insurance Requirements Plan sells insurance to homeowners who can’t purchase it through no fault of their own. The plan is mandated by state law and funded by insurance companies. The new order stems from a lawsuit against Lara after he wanted the plan to also cover other things like water damage and theft.
The FAIR Plan Association sued, arguing state law only requires them to provide “basic property insurance.” In July, a state judge ruled Lara had the authority to order the FAIR Plan to offer the coverage. On Friday, Lara ordered the plan to start offering extended coverage.
The FAIR Plan Association could appeal the judge’s decision. It has not been revealed yet whether it will take that step.
