California’s Last-Resort Insurer Boosts Coverage Amid Strain
- Deal with FAIR plan will raise limits on commercial properties
- Commissioner says agreement will help consumers in short term
Homes in Oakland, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
California plans to extend its last-resort insurance program to cover higher-value properties in areas prone to wildfire, adding new potential liabilities for the already stressed plan.
The FAIR plan, which provides coverage to customers who can’t find it elsewhere, will raise limits for commercial properties such as condominiums, the California Department of Insurance said Friday in outlining an agreement with the program. The deal also mapped out how losses will be shared in a catastrophe and beefed up the plan’s public reporting requirements.