The California Dept. of Insurance will allow insurance companies to charge customers to make up costs during certain major disasters. A consumer group objects.
SACRAMENTO, Calif. — The state’s Insurance Commissioner Ricardo Lara announced changes to the California FAIR Plan – the so-called ‘insurer of last resort’ – Friday.
The California FAIR Plan will be expanding the amount of coverage it can offer to large commercial policyholders, including HOAs.
Currently capped at $20 million, Friday’s agreement with the FAIR Plan will allow Division I Commercial Property Insurance policies up to $100 million of coverage – $20 million per building, up to five buildings. The FAIR Plan has up to eight months to make these new limits available for commercial customers, so Friday’s news just gets the ball rolling.
“The FAIR Plan appreciates the Insurance Commissioner’s attempts to seek balance in addressing consumer needs and gaps in the insurance marketplace while protecting the financial stability of the FAIR Plan,” said FAIR …