California’s insurer for people without private coverage needs $1B more for LA fires claims

California’s Fair Plan requires an additional $1 billion to cover claims from the Los Angeles wildfires, as stated by the state insurance department. The Fair Plan anticipates a loss of about $4 billion from the Eaton and Palisades Fires, which began on Jan. 7 and caused significant destruction.

Insurance Commissioner Ricardo Lara emphasized that the Fair Plan must pay claims like any other insurer, rejecting those wishing for the market’s failure.

Consumer Watchdog is considering legal action to prevent a bailout that could shift costs to consumers, according to Carmen Balber, the executive director.