Sacramento, California
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The Department of Insurance said Tuesday that the California project, which provides insurance to homeowners who could not get private coverage to pay for claims related to the Los Angeles Wild Fire.
The fair plan is an insurance pool in which all major private insurance companies are paid, and after the project issues policies to those who cannot get private insurance because their property is too much risk to insurance Understanded With high premium and basic coverage, the project is designed as a temporary option unless landowners can find permanent coverage, but more California is relying on it more than ever. In 2024, there were more than 452,000 policies on the fair plan, which was doubled in 2020.
The project states that it is expected to expect a loss of about $ 4 billion from the Eaton and Pales Fire, which gave birth to January 7, destroying approximately 17,000 structures and less At least 29 people were killed. About 4,700 claims have been filed this week, and the project has already paid more than $ 914 million.
Under the request of a fair plan approved on Tuesday, all business insurers in California will have to bear the cost and they can transfer all other policy holders to one -time fees. Insurance companies can collect this cost in the next two years. The State Insurance Department will have to approve these costs.
State officials did not immediately have details about how big the fee would be. In the approval of the application, the state allowed the project to send notices and raise funds from the marketplace insurance companies within 30 days.
This is the first time the Fair Plan has sought the approval of an additional amount in more than 30 years, the department said.
Insurance Commissioner Ricardo Lara said in a statement, “I took this necessary action to protect consumers in keeping with a goal: a fair project will have to pay claims like any insurance company.”
“I reject people who are expecting the failure of our insurance market, spreading fear and doubt,” said Lara. “People who survive forest fire cannot cash ‘what IFS’ for food and rent pay, but they can check a fair plan.”
The project is expected to receive 45 1.45 billion in insurance to help pay the claims. It is expected to have about $ 400 million remaining by July.
According to the plan, 45 % of the claims filed so far have been reported as a total loss, 45 % as partial losses and 10 % as the cost of the appropriate fare.
On Tuesday, insurance companies said they were determined to help in the maintenance process after the fire, and that some cost restoration capacity from payers would prevent companies from leaving the state.
“It is important to prevent even more tensions on California’s already -balanced insurance market and avoid widespread policies cancellations, which for millions of California,” said Mark Scannan of the American Property California Insurance Association. Will endanger. ” And business insurance.
But a user watchdog group, which opposed a rule that allows insurance companies to eliminate policy holders, said it would challenge the effort.
“If an insurance company tries to pay users, Consumer Watch Dog Executive Director Carmen Balber said in a statement.
California has tried a year long to stabilize its insurance market in 2023 either after stopping or restricting new business in the state, which pushed hundreds of thousands of landlords to a fair plan Give Due to climate change, forest fires are becoming more common and destructive in California, and insurance companies say it makes it difficult to truly cost the risk of property.
According to the California Department of Forest and Fire Protection, 15 of the top 20 most destructive forest fires in the state history have occurred from 2015.
The state now provides insurance companies to increase premiums in exchange for issuing more policies in high -risk areas. It also includes rules and regulations when insurance companies are allowed to consider climate change when pricing their pricing and California users are allowed to eliminate insurance costs.
