California Seeks $1 Billion to Bolster FAIR Plan After Devastating Wildfires

California Insurance Commissioner Ricardo Lara has requested $1 billion from member insurers to reinforce the state's FAIR Plan following wildfires near Los Angeles in January. The fires, which burned an area comparable to Washington, D.C., resulted in 29 deaths and damage to over 16,000 structures. As of February 9, the FAIR Plan received 3,469 claims for the Palisades Fire and 1,325 for the Eaton Fire, disbursing over $914 million. The FAIR Plan, designed for property owners unable to secure private coverage, has been directed to increase staffing and utilize all available resources. The additional funding aims to ensure the FAIR Plan can meet its obligations to policyholders. KCC estimates insured losses from the Los Angeles wildfires at approximately $28 billion.