Big Increase in Premiums Ahead, Says Fair Plan, California’s Last-Resort Insurer

The provider of basic coverage has taken on thousands of new policies as other insurers have paused or halted coverage in the state.

A residence goes up in flames as the Mill Fire causes damage in the Lake Shastina subdivision northwest of Weed, Calif., on Sept. 2, 2022. Hung T. Vu/The Record Searchlight via AP

California homeowners insured by the Fair Plan will soon see a “substantial” increase in premiums after a flood of new policies issued by the last-resort insurer.

“In order to bring our rates up to the right level, there’s going to be a substantial increase. That’s as much as I can share,” Fair Plan President Victoria Roach told lawmakers at an April 25 Assembly Insurance Committee meeting.