Wildfire risk drives FAIR Plan insurance hikes in California – NBC Bay Area

Homeowners in wildfire-prone areas of California insured through the FAIR Plan could soon see higher insurance premiums.

The FAIR Plan, which stands for Fair Access to Insurance Requirements, was created by the state as an insurer of last resort for homeowners unable to get coverage on the private market, often because they live in areas at high risk for wildfires.

Starting in October, FAIR Plan rates are expected to rise by some of the largest amounts in years, with some of the biggest increases expected in Orinda.

The San Francisco Chronicle reports premiums in Orinda are expected to increase by an average of 31%, which could mean homeowners paying hundreds or even thousands of dollars more each year.

A spokesperson for the California FAIR Plan Association said not every customer will see increases that large, but policyholders whose homes face significant wildfire risk are expected to see the steepest hikes.

NBC Bay Area’s Bob Redell has more in the video above.