California's FAIR Plan seeks $1 billion for wildfire claims

California's FAIR Plan, designed to provide insurance for homeowners unable to obtain private coverage, has requested an additional $1 billion to pay claims stemming from the recent Los Angeles wildfires. This plan, which serves over 452,000 policyholders—more than double the number in 2020—has been significantly impacted by the Eaton and Palisades fires, which destroyed nearly 17,000 structures and resulted in at least 29 fatalities. Under a new policy, insurers will cover half of the costs while homeowners will face a one-time surcharge, although the specific amount has yet to be determined. This marks the first time in 30 years the FAIR Plan has sought additional funding, highlighting the growing reliance on this insurance pool as major insurers reduce coverage due to escalating wildfire risks. California Insurance Commissioner Ricardo Lara emphasized the need for stability and support for wildfire survivors. Consumer advocates have criticized the plan, arguing that homeowners should not bear the cost of the insurance industry's failures.