Posted on 10/04/2025 2:25:58 PM PDT by E. Pluribus Unum
The California FAIR Plan, the state’s home insurer of last resort, is seeking an average 35.8% rate hike, its largest in years, following billions of dollars of losses incurred in the January fire storms.
The Los Angeles-based insurance pool, operated and backed by the state’s licensed home insurers, filed this week for the dwelling policy rate hike, which must be reviewed and could be reduced by the state insurance commissioner.
“By statute, FAIR Plan rates must be sufficient to pay anticipated claims and expenses,” said FAIR Plan spokesperson Hilary McLean in a statement. “The FAIR Plan is working closely with the California Department of Insurance to ensure its rates reflect the current risk portfolio, expenses and growth as the state’s insurer of last resort.”
The plan, which has added hundreds of thousands of policyholders in recent years as insurers have pulled back from the market amid rising wildfires, has estimated losses of $4 billion from the January blazes. Those losses forced it to assess its member carriers $1 billion in order to pay all claims.
The rate hike would hit individual homeowners unevenly, with many experiencing greater increases and others seeing decreases if they live in neighborhoods that are not prone to wildfires. The new rates would apply in April and homeowners can seek discounts of up to 15% if they take steps to reduce the fire risks on their property.
The rate hike, if approved, would easily top increases of 20.3% in 2019 and nearly 16% in 2021 and 2023. However, the 2023 rate hike of 15.7% was cut down by Insurance Commissioner Ricardo Lara from the 48.8% initially sought by the plan.
The request for the increase is bound to be controversial given accusations over how the plan has handled smoke damage claims stemming...
(Excerpt) Read more at latimes.com ...
So sad what has happened to California. As a young man it was once the state I aspired to live in. Now I have little interest in even visiting there.
I lost EVERYTHING to fire and 5 years later in Oregon insurance is 3 times what it was. I can’t afford to live here anymore and have no where to go.
HOW MANY BUILDING PERMITS HAVE BEEN ISSUED???
Welcome to Las Vegas.
And what do you bet that said “insurer of last resort” will be “investing” in construction of Section 8 housing in Pacific Palisades?
36% ain’t nearly enough.
And … all the Chinese cash buyers will simply self-insure.
There was a posting on X that the Palisades was to get a new transit center, meaning developers could put up massive buildings.
Shocks the hell out of me. Pure Agenda 21.
My property insurance just went up 40.3%.
My wife and I were roller coaster enthusiasts in the 1990s. We used to fly our small airplane from Washington to the LA area frequently to go to amusement parks. For years we had annual passes to several. The prices for the passes were a tiny fraction of what they are these days and the car gas we burned in the plane was about a dollar a gallon, so it was cheaper than taking the airlines. We had the entertainment book and with the discount the rooms were typically about $25 with breakfast included.
Those were very good times, we had so many amazing adventures and met so many people. My wife used to look very similar to a popular movie star of the time; she was mistakenly identified even by actual celebrities. This led to all sorts of unusual and entertaining situations.
We never had any difficulties anywhere in California or Oregon. Now the entire West Coast has slipped so badly. The world we knew no longer exists.
You cannot build a new house on your existing plot of land that was burned down due to the democrats not doing brush clearance or filling up reservoirs or fixing fire hydrants or having enough fire engines and crews on duty and they also want to raise your insurance because of what THEY have done...!
.
So to Recap:
The State denies the private insurance companies request for rate hikes.
Private insurance companies stop issuing polices, or leave the State.
The State run insurance takes over and immediately demand a rate hike.
It was great in the 80s and 90s. When Newsom got involved in politics in the early 2000s the libs went into overdrive and destroyed it. Left in 2019 and do not miss it at all.
Now I have little interest in even visiting there.
Good idea there is NOTHING here to move for it’s one huge tax trap and a rear around resort for illegas free everything.
The state is as DEI as it can get if anything goes right it’s by accident.
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