[93 / 1 / ?]
California is so mismanaged they stopped paying out insurance claims for the wildfire. They are broke.
The state charges a special tax to all private insurers to fund a state operated home owners insurance provider named FAIR. FAIR has stopped paying out claims to homeowners because they have no money. Peak Democrat policy right here, another wasted useless tax.
https://abc7.com/post/californias-insurer-people-private-coverage-needs-1-billion-more-la-fires-claims/15895227/
California's insurer for people without private coverage needs $1 billion more for LA fires claims
SACRAMENTO, Calif. -- California's plan that provides insurance to homeowners who can't get private coverage needs $1 billion more to pay out claims related to the Los Angeles wildfires, the state Insurance Department said Tuesday.
The FAIR Plan is an insurance pool that all the major private insurers pay into, and the plan then issues policies to people who can't get private insurance because their properties are deemed too risky to insure. The plans provide high premiums and basic coverage. There were more than 452,000 policies on the Fair Plan in 2024, more than double the number in 2020.
The plan says it's expecting a loss of roughly $4 billion from the Eaton and Palisades Fires, which sparked Jan. 7, destroyed nearly 17,000 structures and killed at least 29 people. Roughly 4,700 claims have been filed as of this week, and the plan has already paid out more than $914 million.
All insurers doing business in California will have to bear half the cost and can pass on the rest to all policyholders in the form of a one-time fee as a percentage of premiums. Insurers can collect that cost in the next two years. The state Insurance Department must approve those costs.
The plan also expects to receive $1.45 billion in reinsurance to help pay out claims.
The state charges a special tax to all private insurers to fund a state operated home owners insurance provider named FAIR. FAIR has stopped paying out claims to homeowners because they have no money. Peak Democrat policy right here, another wasted useless tax.
https://abc7.com/post/californias-insurer-people-private-coverage-needs-1-billion-more-la-fires-claims/15895227/
California's insurer for people without private coverage needs $1 billion more for LA fires claims
SACRAMENTO, Calif. -- California's plan that provides insurance to homeowners who can't get private coverage needs $1 billion more to pay out claims related to the Los Angeles wildfires, the state Insurance Department said Tuesday.
The FAIR Plan is an insurance pool that all the major private insurers pay into, and the plan then issues policies to people who can't get private insurance because their properties are deemed too risky to insure. The plans provide high premiums and basic coverage. There were more than 452,000 policies on the Fair Plan in 2024, more than double the number in 2020.
The plan says it's expecting a loss of roughly $4 billion from the Eaton and Palisades Fires, which sparked Jan. 7, destroyed nearly 17,000 structures and killed at least 29 people. Roughly 4,700 claims have been filed as of this week, and the plan has already paid out more than $914 million.
All insurers doing business in California will have to bear half the cost and can pass on the rest to all policyholders in the form of a one-time fee as a percentage of premiums. Insurers can collect that cost in the next two years. The state Insurance Department must approve those costs.
The plan also expects to receive $1.45 billion in reinsurance to help pay out claims.
