California FAIR Plan Endorses Bill Expanding Coverage to Farms April 8, 2021
The California FAIR Plan Association is publicly supporting a bill to amend the California Insurance Code to allow the FAIR Plan to write commercial coverage for permanent structures on farms.
The California Fair Access to Insurance Requirements, or FAIR, Plan is an insurance pool established by law to assure the availability of basic property insurance to people who own insurable property in California and who are unable to obtain insurance in the private insurance market.
Senate Bill 11, authored by state Sen. Susan Rubio, D-Los Angeles, comes after a wave of historic wildfires that have led to some farms facing non-renewal and unable to turn to the FAIR Plan for coverage because the California Insurance Code specifically excludes the FAIR Plan from covering farms.
Fire insurance for California farmers? cbs8.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from cbs8.com Daily Mail and Mail on Sunday newspapers.
After reliably obtaining homeowners insurance on the voluntary market for more than 30 years, Laurence Stewart’s coverage was not renewed last year due to high fire risk.
Since then, she’s been forced to purchase insurance from the FAIR plan, California’s insurer of last resort, at triple the cost for substantially diminished coverage.
“When you’re retired, it’s just terrible,” Stewart said at the time. “I’m sure next year it’s just going to be more expensive.”
This month Stewart’s prediction came true when FAIR plan president Anneliese Jivan announced its rates would increase statewide by an average of 15% starting Jan. 1, with rates in rural areas expected to increase even more. The insurer just under two years ago increased rates by an average of 20%.
FAIR Plan rates to rise mtdemocrat.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mtdemocrat.com Daily Mail and Mail on Sunday newspapers.