California Expands FAIR Plan Commercial Property Coverage

California Insurance Commissioner Ricardo Lara has approved the increase of commercial property coverage limits for businesses covered by California’s FAIR Plan. He calls it a “key element” of his Sustainable Insurance Strategy.

Commercial property limits for Division I Commercial Property accounts will go to $20 million per building with a total of $100 million maximum coverage per location.

“This targeted FAIR Plan expansion helps meet the urgent needs of homeowners associations, affordable housing developers, farmers, builders, and business owners who are being priced out or left without coverage altogether,” Lara said in his news release. “It is a short-term solution with long-term benefits — providing necessary insurance access while we continue implementing comprehensive reforms to restore a competitive and reliable market in California.”

The expansion is part of Lara’s modernization agreement from July of last year. He calls it the most “significant” reforms for insurance since Proposition 103.

“We are moving urgently but responsibly to create lasting reform,” Lara said. “Every part of my Sustainable Insurance Strategy is designed to deliver stability now and restore competition and choice for California consumers in the future.”

Source link: California Department of Insurance — https://bit.ly/4jjeBCV