Topic: California Fair Plan

The California Department of Insurance reports that private insurers declined to renew 2.8 million policies between 2020 and 2022 due to wildfire risks. Insurance Commissioner Ricardo Lara has implemented a moratorium on non-renewals, forcing many residents onto the California Fair Plan, which now covers over $450 billion in property. The hosts argue that state-imposed rate caps and a lack of fire mitigation are driving insurance companies to exit the California market entirely.