Californians could soon see new charges on their home insurance bills, even if they live nowhere near recent wildfires.
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After the devastating fires in Los Angeles County in January, the state’s backup insurer, the FAIR Plan, ran short on cash and billed insurance companies $1 billion to help cover claims.
Now, at least 10 companies are asking for permission to pass half of that burden onto their customers. That could mean an additional $40 to $60 surcharge for many, on top of already rising premiums.
The California FAIR Plan, which serves homeowners who can't get insurance on the traditional market, has already paid almost $2.8 billion to homeowners affected by the wildfires. That figure is expected to rise to $4 billion.
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