California is facing increasingly frequent and destructive fires due to climate change and urbanization. The consequences of these fires have been catastrophic, reflected in loss of property, injuries, and even loss of life. California has created the FAIR Plan, a specialized insurance program for those who cannot obtain a standard insurance policy to provide some kind of security for residents in fire-prone areas.
What Is California FAIR plan
The California FAIR Plan (Fair Access to Insurance Requirements) is a government insurance program intended for property owners who cannot find adequate insurance in the private market due to high fire risk. The program was created to provide basic coverage for residents in disaster areas even when commercial insurers refuse to provide insurance.
The FAIR Plan offers basic protection for assets, including coverage for fire, vandalism, explosion and similar risks. However the program does not cover all risks, such as floods and earthquakes, requiring additional policies.
Dramatic Increase of the FAIR Plan
According to the latest data the total exposure of the FAIR Plan reached $458 billion in September 2024 representing a dramatic increase of 61.3% compared to September 2023. These numbers clearly speak to the growing crisis of affordability of standard insurance in California.
A significant increase in the number of policies has been recorded:
- Residential policies have increased by 123% over the past four years.
- Commercial policies have seen a remarkable growth of 161% during the same period.
- In just the past year (up to September 2024), the total number of policies has risen by 41%.
California FAIR Plan: Insurance Options for Wildfire Victims 2 Financial indicators further highlight the dramatic change in the insurance market:
- Home insurance premiums have gone up 199% in the last four years
- Commercial insurance premiums show an even more dramatic increase of 496%
- In fiscal 2024, total written premiums increased by 60% compared to the previous year
Who Is Eligible For the FAIR Plan
The FAIR Plan is intended for property owners who:
- Cannot get insurance from private insurance companies because of the high risk of fire or location.
- Own property that is in reasonable condition, without serious security risks.
- Did not get insurance even after several attempts.
The program is available to homeowners, business owners, and tenants who want to insure their properties.
How Does the FAIR Plan Work
The FAIR Plan insurance covers basic risks and can be adjusted by supplemental policies for more comprehensive protection. Here’s what the process looks like:
- Application: The property owner contacts the FAIR Plan agency or agent.
- Risk Assessment: The property is examined to determine insurance eligibility.
- Obtaining a policy: After approval, a basic insurance policy is issued.
- Add-ons: Customers can add special policies for additional risks such as flooding or theft.
Largest Wildfires in History of California
- August Complex Fire (2020)
- Dixie Fire (2021)
- Mendocino Complex Fire (2018)
- Camp Fire (2018)
- Thomas Fire (2017)
How Can Bojat Law Group Help
Our wildfire lawyers at Bojat Law Group understands the challenges faced by fire victims in California. Insurance companies often try to reduce premiums or deny insurance claims altogether. We provide the following services:
Legal support in insurance disputes: Helping clients to obtain appropriate compensation for their losses.
Application: Counseling during the application process for the FAIR Plan.
Representation in third-party lawsuits: If a fire is caused by the negligence of a third party, we assist in filing a lawsuit.
Insurance policy analysis: Review and recommendation of the best options for additional policies.
We work on a contingency fee basis, which means we don’t charge anything until you get your compensation. In addition to legal representation, we assist you in communicating with FEMA and other government agencies, as well as in finding temporary housing.
Do not let the insurance company turn you down or offer you less than you deserve. Contact us today for a free consultation.
Skip to content