California FAIR Plan Seeks $1 Billion for Wildfire Claims Amid Insurance Crisis

California needs an additional $1 billion for its FAIR Plan to cover wildfire claims, affecting many homeowners relying on this insurance option.

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California’s insurer for people without private coverage needs $1 billion more for LA fires claims

CNBC

California's insurer for people without private coverage needs $1 billion more for LA fires claims

Associated Press

FAIR Plan to assess insurers $1 billion for L.A. fires; consumers may be on the hook for nearly half

Los Angeles Times

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Overview

A summary of the key points of this story verified across multiple sources.

California's FAIR Plan aims to raise $1 billion to cover claims from the recent Los Angeles wildfires, driven by an unprecedented increase in policyholders. The plan, which provides coverage for those unable to get insurance due to high-risk properties, expects $4 billion in losses from the wildfires that destroyed thousands of structures. Insurers are required to share the costs, but they may pass on half to policyholders. This request marks the first additional funding sought by the FAIR Plan in over 30 years, reflecting the ongoing challenges in California's insurance market amidst rising wildfire risks.

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