TEMPORARY SUPPLEMENTAL FEE FOR FAIR PLAN LOSS ASSESSEMENT TO BE CHARGED ON YOUR HOMEOWNER POLICY

Earlier this year, the California Department of Insurance (CDI) approved a request by the California FAIR Plan Association (FAIR Plan) to levy a $1 billion loss assessment, allocated to each member company based on market share of home premium. The loss assessment was necessary to enable the FAIR Plan to meet its obligations to its policyholders for claims related to the Palisades and Eaton wildfires in January 2025.

The CDI allows each company paying the allocated loss assessment to recover a portion of what they paid to the FAIR Plan via a small temporary fee charged to the company’s home policies. Insurers representing the vast majority of the California home insurance market have filed a plan with the CDI to implement a recoupment fee charged to their respective policyholders, including 19 of the top 20 personal property insurers in the state.