Cost of Living In The Commiefornia Hellscape Is About To Go Way Up
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After saying it would run out of funds by March, California’s last-resort fire insurance provider will impose a special charge of $1 billion on insurance companies — which will in turn pass the costs along to homeowners — the first such move in more than three decades.
The state Insurance Department today approved a request from the provider, the FAIR Plan, to impose the charge and ensure it stays solvent as it covers claims from victims of the Los Angeles County fires, the department said in an order by Commissioner Ricardo Lara.
Most California home and fire insurance customers will likely see temporary fees added to their insurance bills as part of the charge, known as an assessment — marking the first time insurance companies will have imposed an assessment directly on customers.
The FAIR Plan is a pool of insurers required by law to provide fire insurance to property owners who can’t find insurance elsewhere. Its customer base has grown dramatically in the past several years as insurance companies have increasingly refused to write or renew policies in the state, citing increased risk of systemic corruption, lack of forest management, the cutting of fire department funding and the consequences that stem from insane dangerous radical policy.
Many LA fire victims have insurance through the FAIR Plan. Residents of the Pacific Palisades, where thousands of structures burned last month, held 85% more FAIR Plan policies in September than they had a year prior.
Under new regulations that took effect this year as part of Insurance Commissioner Ricardo Lara’s effort to address the growing difficulty of finding property insurance in California, insurance customers will now have to shoulder 50% of any assessment through a temporary fee added to their premiums. Before the new rules went into effect, the plan would have gotten all the additional funds directly from its member companies, which would have then tried to recoup that money by raising premiums.
Leave it to a State run by a Democrat majority. They ruin everything they take control over.
https://calmatters.org/economy/2025/02/homeowners-insurance-costs-rising-in-california-fair-plan/