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Insurance plan fights overhaul aimed at wildfire victims

The California FAIR Plan Association is arguing that an order from the state insurance commissioner could result in increased costs for property insurance.
Credit: AP/AP Photo/Noah Berger, File
FILE - This Nov. 15, 2018, aerial file photo shows the remains of residences leveled by the Camp wildfire in Paradise, Calif. The California Fair Access to Insurance Requirements Plan is a state-mandated insurance pool required to sell insurance policies to people who can't buy coverage through no fault of their own. FAIR Plan policies are often limited to fire damage. Homeowners must purchase an additional policy to cover other hazards. Last month, state Insurance Commissioner Ricardo Lara ordered the FAIR Plan to begin selling comprehensive plans next year, an order aimed at helping people who have lost their coverage because of the growing threat of wildfires. Friday, Dec. 13, 2019, the California FAIR Plan Association sued Lara, arguing his order was illegal because state law only requires the plan to sell basic property insurance. (AP Photo/Noah Berger, File)

CALIFORNIA, USA — A lawsuit is challenging California's authority to require insurance coverage for people who live in wildfire prone areas. 

People who can't buy property insurance in California usually get it from a state-mandated insurance pool called the FAIR Plan. The pool only sells fire insurance. Homeowners have to purchase a second plan to cover other hazards. 

Last month, state Insurance Commissioner Ricardo Lara ordered the pool to begin selling comprehensive policies next year. 

On Friday, the California FAIR Plan Association sued, arguing the order was illegal. 

They say it will result in increased costs for property insurance.

For more details, click HERE.

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