Newsom OKs bills to help state's insurer of last resort

The legislation shores up the FAIR Plan's finances and beefs up oversight of it.

- BY LAURENCE DARMIENTO

THE FAIR Plan faces losses largely due to Palisades fire, shown, and Eaton fire.

(WALLY SKALIJ Los Angeles Times)

Gov. Gavin Newsom signed legislation Thursday intended to bolster California's property insurer of last resort, which was hit hard by January's wildfires.

The package of bills attempts to ease the California FAIR Plan's financial woes while also giving lawmakers more oversight over the carrier, which is operated by the state's licensed home insurers and offers coverage to property owners who can't get or afford it elsewhere.

"The kinds of climate-fueled firestorms like we saw in January will only continue to worsen over time. That's why we're taking action now to continue strengthening California's insurance market to be more resilient in the face of the climate crisis," Newsom said in a news release.

The FAIR Plan experienced an estimated $4 billion in losses, largely due to the Palisades and Eaton fires, after its rolls grew over the last several years as insurers withdrew from California's home insurance market.