California law has established the FAIR plan [1] which is insurance of last resort for people who can't otherwise get fire insurance coverage for their home. It's a mandatory association of insurers who are operating in California.
It's my understanding that FAIR plans are very expensive compared to market-provided homeowners insurance. I presume this is because of adverse selection--if you buy FAIR insurance you're in the same risk pool as people who live in very high fire risk areas and have no other insurance options.
Comments
California law has established the FAIR plan [1] which is insurance of last resort for people who can't otherwise get fire insurance coverage for their home. It's a mandatory association of insurers who are operating in California.
It's my understanding that FAIR plans are very expensive compared to market-provided homeowners insurance. I presume this is because of adverse selection--if you buy FAIR insurance you're in the same risk pool as people who live in very high fire risk areas and have no other insurance options.
[1] https://www.cfpnet.com/