Posted on 05/21/2024
The City Council approved a resolution to support the California Fair Access to Insurance Requirements (FAIR) plan—the last resort insurance option for individuals who have been unable to obtain insurance through the private market.
The Resolution states that in recent years, communities across California have suffered through some of the most disastrous wildfires. As a result, insurance companies have sought to cancel a significant number of homeowners' policies and increase rates in higher-risk areas. For instance, State Farm Insurance announced that it would be canceling policies for 72,000 property owners starting this summer. Without homeowners' insurance, individuals cannot afford to rebuild or repair homes damaged in fires, which negatively impacts the economy and housing market.
The FAIR plan provides property owners with last-resort insurance, while the State Insurance Commissioner, responsible for regulating the private insurance industry, is currently considering a set of rules and policies to ensure homeowners in affected areas obtain adequate insurance.