California — FAIR Plan Growth & Two Insurers Raise Homeowners Rates

As you know, California’s FAIR Plan is the state’s insurer of last resort. In four short months, from September last year to December 31st, the FAIR Plan grew by 4%. The increase followed a 39% rise in policies for the fiscal year that ended on September 30th.

The increases bring the number of FAIR Plan properties insured to 668,609. In the first three months of 2025 written premiums went from $1.93 billion to $1.96 billion. By the end of September last year the total exposure for residential properties jumped 50% to $645.23 billion.

Commercial exposure rose 82% to $49.5 billion.

With all that said, the FAIR Plan is now asking the California Department of Insurance for an average rate hike of 35.8%. If approved, it will be the first increase granted under wildfire catastrophe models.

Two of California’s largest homeowner insurers will raise their rates an average of 6.9% this year. CSAA wants the 481,800 homes it insurers to pay an average of 6.9% starting in March. Mercury Insurance is going to implement the same percentage in March for the 650,000 homes it insurers.

Both companies are working with the California Department of Insurance to expand coverage in wildfire-prone areas.

Source link: Insurance Business America — https://bit.ly/3LK4tb4

Source link: Insurance Journal — https://bit.ly/4qvOnAP