California residents who lost their home insurance because of the threat of wildfires could soon buy comprehensive policies from a state-mandated plan funded by the insurance industry.

Private insurance companies have been dropping policies of many people who live in fire-prone areas as wildfires continue to threaten the state.

Most turn to the California FAIR Plan, an insurance pool mandated by state law that is required to issue policies to people who can’t buy them through no fault of their own.

But the FAIR Plan policies are limited. On Thursday, Insurance Commissioner Ricardo Lara ordered the plan to begin selling comprehensive policies by June 1. He also ordered the plan to double homeowners’ coverage limits to $3 million by April 1.

Associated Press

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2 Comments

  1. This is more California socialism and it’s just dishonest. You won’t make people live in fire resistant homes or neighborhoods so instead you force the insurance industry to sell plans that let the insanity continue. You treat drug addiction the same way.

  2. This does nothing for manufactured homeowners. Manufactured homeowner replacement coverage is excluded. A substantial financial loss should the home burn down. Actual cash value is all that is available under the CA Fair plan policy of insurance of last resort. Manufactured homeowners should be allowed to purchase replacement cost. This should have been addressed by the commissioner!

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