California FAIR Plan could be on the hook for up to $24 billion in L.A. fire losses

By Free Republic | Created at 2025-01-12 01:52:12 | Updated at 2025-01-12 05:16:01 3 hours ago

California FAIR Plan could be on the hook for up to $24 billion in L.A. fire losses
San Francisco Chronicle ^ | Megan Fan Munce

Posted on 01/11/2025 5:44:09 PM PST by MinorityRepublican

Experts have predicted that the fires blazing through several parts of Los Angeles County could easily become the most costly wildfire event in the U.S. One insurer alone faces potential losses of up to $24 billion: the California FAIR Plan.

The FAIR Plan is a state-created but privately run insurer of last resort, providing fire insurance for residents and businesses unable to secure a policy on the private market. The FAIR Plan is not funded or financially backed by the government — instead, if the FAIR Plan runs out of money to pay claims, it’s private insurers and their customers who end up with the bill.

Experts worry that if the FAIR Plan is overwhelmed, it could both financially strain policyholders across the state and their insurance companies, which could motivate more companies to rethink doing business in California.

But there are several steps before that would happen.

First, the FAIR Plan would have to blow through all of its reserves — a possibility that seems increasingly likely as strong winds continue to spread the uncontrolled fires. Over the summer, FAIR Plan President Victoria Roach disclosed to the Chronicle that the insurer only had about $385 million in unreserved funds available to pay claims.

(Excerpt) Read more at sfchronicle.com ...

TOPICS: US: California
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To: MinorityRepublican

“California FAIR Plan could be on the hook for up to $24 billion in L.A. fire losses”

that could really devastate all the freebees for their millions of illegal aliens ...

2 posted on 01/11/2025 5:46:20 PM PST by catnipman ((A Vote For The Lesser Of Two Evils Still Counts As A Vote For Evil))

To: MinorityRepublican

24 billion?

It’s Jan 11.

Hope there aren’t any more disasters this year...............

3 posted on 01/11/2025 5:49:06 PM PST by Tzimisce ( )

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