Wildfire risks in California are shifting from rural to urban areas, driven by climate change and technological advancements. Homeowners and insurers face new challenges in managing risks, leading to higher premiums and policy non-renewals.
Summary: Insurance Commissioner Ricardo Lara introduces California’s Sustainable Insurance Strategy to protect consumers, address climate change challenges, and ensure long-term insurance market sustainability by prioritizing high-risk areas.
The California FAIR Plan was meant to be a temporary safety net, providing basic fire coverage until traditional property coverage could be obtained. However, with recent regulatory changes and an ongoing hard property market, the FAIR Plan can be the least expensive option available, even though most Californians have access to the same coverage through the traditional, competitive market.