FAIR Plan Must Pay Fire Survivors’ Claims Before Lara Hikes Rates

The FAIR Plan, the insurance pool of last resort for homeowners forced out of the traditional market by insurance company nonrenewals, sought a 35% rate increase last week. Consumer Watchdog Executive Director Carmen Balber issued the following statement.
 
“A 35% rate hike would be devastating to all the homeowners already paying too much for too little at the FAIR Plan. But it’s a punch in the face for survivors of the L.A. fires whose claims the Plan isn’t paying fairly today. The Department of Insurance has an 8-year-old enforcement investigation pending against the FAIR Plan for illegally denying homeowners’ claims, including smoke damage payouts so inadequate that consumers can’t return to their homes. Commissioner Lara must make the FAIR Plan meet its obligations to policyholders before approving any increase.”