The California Fair Plan, the last home policyholder, averages an average of 35.8% of the standard hike, the biggest loss of a year, after a billion dollars in January fire storms.
Located in Los Angeles, the Insurance Fund, owned and supported by the state licensed home insurers, made a statement this week on a housing policy rate that needs to be reviewed and could be reduced by the State Insurance Commissioner.
“According to the Statute, the standards of a fair plan must be sufficient to pay the expected claims and expenses,” Hilary Mclean, a Fair Plan spokesman, said in a statement. “A fair plan is closely cooperating with the California Insurance Department to ensure that its rates reflect the current risk portfolio, expenditure and growth as the last way out the insurer.”
Read more: The last way out the insurer was growing. Then La Fire’s victims paid the price
The plan that has added hundreds of thousands of policyholders in recent years, when insurers have retreated from the market, with the rise of fires, estimated that the Blazes losses have been $ 4 billion since January. These losses forced him to assess his members’ carriers $ 1 billion to pay all the claims.
The cost hike would rise to individual homeowners unevenly, many have experienced a greater increase, while others see that they are reduced if they live in the vicinity that are not prone to fires. New prices will be applied in April and homeowners can look for up to 15% of discounts if you take measures to reduce fire risk to your property.
If confirmed, if approved, 2019 Would easily increase by 20.3% and almost 16% 2021 and 2023. However, the insurance commissioner Ricardo Lara, 48.8%, initially searched for 2023.
The request for increase will be contradictory, taking into account the accusations of the plan for the smoke damage claimed on January 7th. Blazes and other fires dating back to the last decade.
Read more: The last way out the insurer faces questions about claims for smoke damage
This plan faces homeowners’ altadena, Pacific Palisad and nearby communities that claim to refuse to try the plan properly, and to correct the homes that have been penetrated by smoke, soot and ash. June The Supreme Court judge issued an important decision announcing the smoke damage policy of the plan has violated state law, although he has since changed its legal justification.
Quoting more than 200 complaints from the state from the policyholders, last month, Gavin Newsom, the head of government, sent a letter to the plan asking him to process smoke damage claims arising from the January fires “promptly and honestly”.