California Expands FAIR Plan Coverage Limits Amid Insurance Crisis

California Insurance Commissioner Ricardo Lara has approved a significant increase in the California FAIR Plan's commercial property coverage limits, raising them to $20 million per building and $100 million per location. This change is part of Lara's Sustainable Insurance Strategy, aimed at addressing the state's ongoing property insurance crisis as traditional insurers retreat from high-risk areas. The expansion is expected to benefit homeowners associations, affordable housing developers, and business owners who have faced challenges in obtaining coverage due to rising costs and limited options. However, the FAIR Plan has faced criticism, as seen in a lawsuit from homeowners who allege the plan improperly denied their smoke damage claims after a wildfire. The FAIR Plan's growth reflects a broader trend of increasing reliance on last-resort insurance as the market struggles to adapt to climate-related risks. Lara's initiative seeks to stabilize the insurance landscape while improving access and competition for consumers in California.