California orders more insurance options for homeowners in fire-prone areas – CBS San Francisco


SACRAMENTO (AP) – California Insurance Commissioner Ricardo Lara has ordered the state’s “insurer of last resort” to offer more comprehensive coverage to homeowners who cannot purchase private insurance because ‘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.

RELATED: Insurance Commissioner Says Residents Near Wildfires Will Not Lose Insurance

Most of their coverage only applies to damage caused by fires and other disasters. But Lara wants them to cover other things too, like water damage and theft. 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 coverage.

The FAIR Plan Association could appeal the judge’s decision. A representative of the association did not respond to a request for comment on Friday.

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