The California Department of Insurance is looking to improve the state’s property insurer of last resort, otherwise known as the California Fair Plan.
Following urban disturbances in the late 1960s, the FAIR Plan was established to make basic property insurance available in urban areas where a higher incidence of fires occurred.The majority of properties insured by the FAIR Plan are located in inner city/urban areas throughout the state, according to the association that oversees the plan. Brush areas were added due to the increased development of homes in the Santa Monica Mountains, and concerns about the unavailability of property insurance.
However, in recent interviews with KEYT3 Santa Barbara, property owners in Santa Barbara who lost their homes in May’s Jesusita and Tea fires lamented that coverage through the FAIR plan was unsufficient to cover their losses.
Based on such feedback, the DOI said it will be holding hearings on the FAIR plan at which it would seek information for possible improvements. “There are no proposals yet, but we are looking for feedback at the hearings (in Los Angeles and Santa Barbara) so we can determine what our next step should be,” said Darrel Ng, DOI spokesman.
For more information on the upcoming hearings, visit www.insurance.ca.gov.
Topics California
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