The California FAIR Plan wants to lift premiums on personal dwelling fire and allied lines by 35.8% overall, according to a Sept. 29 filing with the state’s Department of Insurance.
The breakdown is sharp. A 29.3% increase on fire coverage. A 349.7% jump on allied lines.
The insurer of last resort pinned much of the request on wildfire risk, though it pointed out that policyholders can cut costs if they take on mitigation projects.
A FAIR Plan spokesperson said the figure represents an average across dwelling policies, not a blanket hike for every customer. Individual outcomes will vary.
Part of the request, the filing notes, is a carryover from its previous attempt, which regulators approved at a smaller number.
That last approved increase (+15.7%) came in 2023. Rising coverage limits and a growing policy count have added more pressure this time.
The filing leans on the Department of Insurance’s Sustainable Insurance Strategy. The SIS framework relies on catastrophe models vetted by regulators and adjusts for net reinsurance costs. FAIR Plan said without that framework, it would have sought an 80% increase.
Instead, the 35.8% figure is framed as a measured ask. The Plan also thanked Commissioner Ricardo Lara for pushing SIS forward as a tool to stabilize rates and broaden property insurance options.
Meanwhile, some carriers are attempting to ease FAIR Plan’s load. In August, CSAA Insurance Group said it was offering quotes to Northern California AAA members who currently sit on the FAIR Plan, part of a depopulation effort.
