California FAIR Plan Expands to Protect More Homes

Late-2025 reforms to the California FAIR Plan mark a major shift in wildfire-risk coverage:

• Greater Coverage Limits: Effective July 26, 2025, the FAIR Plan will temporarily increase coverage for high-value commercial properties, homeowners’ associations, and affordable housing developments—up to $20 million per building with a total cap of $100 million per location CalMatters+15California Department of Insurance+15San Francisco Chronicle+15.
• Enhanced Transparency: Starting July 1, 2025, the FAIR Plan must publicly disclose key operational data—policy counts, exposure levels, financials—to improve accountability and help guide regulatory oversight California Department of Insurance+1.
• Stabilizing the Market: These measures are part of Commissioner Lara’s Sustainable Insurance Strategy, aimed at reducing California’s over-reliance on the FAIR Plan and restoring a competitive private insurance marketplace, especially in wildfire-prone regions Newsweek+15California Department of Insurance+15ProgramBusiness+15.
• Claims Oversight & Accountability: The Department of Insurance is actively investigating the FAIR Plan’s handling of wildfire-related smoke damage claims and pushing for improved staffing, faster claims processing, and reduced consumer costs Wikipedia+3California Department of Insurance+3ProgramBusiness+3.
• New Financial Tools Ahead: Legislation (AB 226), co-sponsored by the Commissioner, would allow the FAIR Plan to access bonds, loans, or credit lines (with prior approval), giving it greater financial resilience while broader reforms take hold Lytespeed Learning+4California Department of Insurance+4ProgramBusiness+4.

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