SACRAMENTO – Assembly Republican Leader James Gallagher (East Nicolaus) and Assemblyman David Tangipa (Clovis), Vice Chair of the Assembly Committee on Insurance, criticized recent changes to the FAIR Plan that may result in higher insurance rates for California homeowners.
Yesterday, Insurance Commissioner Ricardo Lara announced that the FAIR Plan was approved to seek $1 billion from insurance companies to cover mounting wildfire-related claims, with up to 50% of the cost potentially passed to policyholders. The California FAIR Plan was established to serve as a last resort for wildfire insurance for Californians living in areas at risk for wildfires but where no insurance plans are available.
“Forcing working families to pay for the failures of California’s insurance market is not a real solution,” said Assemblyman James Gallagher. “The real fix starts with reducing wildfire risk—clearing excess fuel, improving forest management, and hardening homes. Until the state takes wildfire mitigation seriously, we’ll continue to see insurers leave and costs rise for Californians.”
“This is just another band-aid to a broken system,” said Assemblyman David Tangipa. “California needs to address the problem instead of just treating symptoms. We must focus on risk mitigation, such as vegetation management, and clear regulatory hurdles that prevent the implementation of proper safety measures.”
In recent years, the FAIR plan has become a crucial part of the state’s insurance landscape, especially as wildfire risks have increased and insurance providers have canceled plans or left California entirely.
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Assembly Republican Leader James Gallagher represents California’s 3rd Assembly District, which includes Butte, Glenn, Sutter, Tehama, Yuba, and parts of Placer counties.
Assemblyman David Tangipa represents California’s 8th Assembly District, which includes Calaveras, Inyo, Madera, Mariposa, Mono, Tuolumne, and portions of Fresno county.