350kKCalifornians are now using the ‘insurer of last resort.’ What happens next?

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As the FAIR Plan has exploded in size, homeowners say they are now facing problems such as delays in mortgage closings or losing their coverage.

Introduced by Rep. Adam Schiff, the bill aims to protect homeowners from rising costs by creating a public catastrophic reinsurance program.

Several insurance carriers have left the state or stopped writing new policies, but even existing policyholders are being asked to pay more.

State regulators have accused auto insurers of aggressive tactics meant to delay drivers’ access to coverage. 

As Bay Area-based CSE pulls out of California, it will also drop policyholders in neighboring states.