SHAVER LAKE, Calif. (FOX26) \u2014 Homeowners in wildfire-prone parts of California are bracing for another jump in insurance costs as the California FAIR Plan prepares to raise rates for hundreds of thousands of customers.<\/p>\n
The plan, known to be an insurer of last resort, has received approval for a 29.1% average statewide rate increase, effective Oct. 15. <\/p>\n
For existing policyholders, the new rates would take effect upon renewal on or after that date. <\/p>\n
The increase affects more than 675,000 FAIR Plan customers statewide, and it is among the highest rate bumps in recent history.<\/p>\n
In mountain communities such as Shaver Lake, where wildfire risk is high, residents say the bigger challenge is often finding any insurer willing to write a policy.<\/p>\n
\u201cWhen we came here, originally there were options and then one by one they began disappearing,\u201d said Don Mead, a Shaver Lake neighbor.<\/p>\n
While the FAIR Plan increase averages about 29.1%, the exact change will depend on the home and its location. <\/p>\n
Homeowners closer to high-risk wildfire areas could see significantly higher costs, potentially even double what they pay now.<\/p>\n
\u201cYou can be as low as say $3,000 to $5,000. If you are unlucky, it’ll be $15,000,\u201d Mead said.<\/p>\n
One community member in Shaver Lake told FOX26 she is already paying $9,000 a year for California FAIR Plan insurance. With a 29% increase, that could add about $2,600 more per year.<\/p>\n
Mead said the rising insurance bills are hitting at the same time as other household costs.<\/p>\n
\u201cPeople who are paying $10,000 a year for insurance are the same people who are paying $6-8 for gas, what about your auto insurance? That’s gone to the roof too, as well as food,” he said. “And all of this is a gift from the state of California.”<\/p>\n
Mead said he believes prices are only going to continue to rise.<\/p>\n
“At some point, we’ll be another $3,000 or $4,000 higher than we are now,\u201d Mead said. <\/p>\n