More California homeowners turning to state’s ‘insurer of last resort’ for wildfire coverage

LOS ANGELES (CAB) – Many Southern California residents live in neighborhood fires. They may also risk losing their insurance policy.

Some homeowners are aware that they may have to pay a higher premium to protect their employees.

Consumers will depend on insurance as California goes through a period of severe fires and losses increase. But for some it is very difficult to get that coverage.

Billy Dim now buys a house.

“They said they could not provide coverage when we went to our long-term insurance agency,” said Dim.

“I had a client who was trying to buy this house, and it was very difficult to find someone to prove it,” said Bianca Torres. “And when you find someone, it’s not affordable.”

Some private insurance companies have stopped writing policies or have left the state. The only option for property owners is a fair government plan. But some say this provides very expensive and poor coverage.

“As California’s growing population is the last resort, insurance must turn to a fair plan to meet their and their family’s insurance needs,” said Ricardo Lara, the state’s insurance commissioner.

Lara held a hearing on Wednesday to discuss what to do. The fair plan is made by California insurers.

From Consumer Wachdog Harvey Roszenfield is important to these insurers.

“What is needed here is law enforcement. They have to respect the law,” Rosenfield said. “The commissioner must use all the tools to achieve this.”

Fair planning officials say the police guarantee vulnerable property and therefore the cost is higher.

“Unlike the private market, a fair plan does not have the ability to select and select which assets will go into the risk pool as a last resort,” said Fair Planner Phil Irwin. “The result is a high level of concern, a lot of focus.”

Copyright © 2022 KABC Television, LLC. all rights reserved.

Articles You Might Like

Share This Article