By Jeff Collins | Orange County Register
Once debris from the Los Angeles County wildfires is cleared and rebuilding begins, attention will likely shift to the financial health of a small, but growing California fire insurance provider.
The California FAIR Plan has an outsized share of the state’s riskiest policies because it is the insurer of last resort for home and building owners who can’t get coverage elsewhere.
If the FAIR Plan is unable to pay all of its claims, virtually every insured homeowner in the state could end up paying a portion of the LA County fire losses.
The nonprofit “Fair Access to Insurance Requirements” Plan is a private insurance pool created by the state, but operated jointly by fully licensed property and casualty insurance providers in the state. It provides insurance for fire damage only. Homeowners must seek additional liability, theft and other homeowner coverage from separate “wraparound” policies from private insurers.
Last week, the FAIR Plan disclosed that it covers about 22% of structures in the Palisades Fire zone and 12% of structures in the Eaton Fire area.
Read more at: Daily Breeze