California's Insurance Department proposes three pathways for insurers to increase coverage in high-risk wildfire areas.

California's Insurance Department proposes three pathways for insurers to meet minimum requirements for writing policies in high-risk and very high-risk areas, addressing the state's insurance crisis due to wildfire risks. Insurers must write 85% of their statewide market share in high-risk areas, achieve a one-time 5% growth in the number of policies they write in these areas, or expand their number of policies by 5% by taking people out of the FAIR Plan. The plan, if adopted, will provide financial incentives for insurers to cover properties in wildfire-prone neighborhoods and help homeowners in distressed areas.

June 12, 2024
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