California FAIR Plan Insurance Ordered To Offer More Coverage
Insurance Commissioner Ricard Lara speaks in Sonora
Sonora, California – The state’s “insurer of last resort” has been ordered by California Insurance Commissioner Ricardo Lara to offer more comprehensive coverage to homeowners who cannot purchase private insurance because that they live in areas threatened by forest fires.
The California Fair Access to Insurance Requirements Plan sells insurance to homeowners who cannot purchase it through no fault of their own. The plan is mandated by state law and funded by insurance companies. The new order stems from a lawsuit against Lara after he wanted the plan to cover other things like water damage and theft as well.
The FAIR Plan Association has filed a lawsuit, arguing that state law only requires them to provide “basic property insurance.” In July, a state judge ruled that Lara had the power to order the FAIR plan to offer the cover. Lara on Friday ordered the plan to start offering extended coverage.
The FAIR Plan Association could appeal the judge’s decision. It has not yet been revealed if he will take this step.