In February 2025 the California FAIR Plan, facing on the order of $4 billion in Los Angeles fire losses, received approval for a $1 billion assessment on the admitted carriers that back it — the first special assessment of that size in more than three decades. State Farm General’s share was the largest, more than $165 million by later reporting.
The FAIR Plan is not a state budget line. It is funded by premium and, when premium is not enough, by the same companies that write HO-3s. Those companies then file to recoup a piece from their own customers. A Chula Vista homeowners policy that never saw a spark from Palisades can still pick up a temporary fee.
If you are on the FAIR Plan, keep paying and keep the DIC wrap current. If you are on an admitted HO-3, read the recoupment notice when it arrives so it does not look like a mystery rate hike.
If this is on your renewal, call the office at (619) 420-8600 or start a quote. We will tell you what the market will actually write.
Sources: Los Angeles Times on the FAIR Plan assessment; Center for Climate Integrity, Premiums on Fire update.