California Insurance Regulations July Update
July 30, 2024
We’ve been heard!
After extensive negotiations and countless discussions with legislators, the Governor’s office and the Insurance Commissioner’s office, I am happy to report that Commissioner Ricardo Lara has announced an agreement with the California FAIR Plan Association that will assist homeowner and condo associations in getting expanded insurance coverage.
While not a perfect solution, it is a stopgap measure until the Commissioner achieves other reforms to address fundamental problems in the market, such as carriers staying or returning to the California market.
This agreement will allow associations to access up to $20 million in coverage per structure, up to an aggregate of $100 million per location. Currently, the FAIR plan only authorizes up to $20 million per location. This expansion will better enable individual buildings and the association overall to obtain more appropriate, and often necessary, additional coverage. The agreement also modernizes the FAIR plan’s financial structure and improves reporting and oversight.
Because this effort will increase the stability of the FAIR plan and provide associations with more coverage options, CACM is in support. That said, we will continue to urge the Commissioner and the insurance industry to look for additional ways to address the fundamental insurance issues facing associations as we aim to stabilize the integrity of the insurance market for the long term.
We will continue to advocate for a better insurance marketplace for your HOA clients!
Tom Freeley, CEO
Previous CDI communications about Insurance/ Insurance bill/ State Farm’s California Coverage Changes:
CDI Invitation to Workshop (March, 2024)
CDI Workshop Draft (March, 2024)
CDI Consumer Alert (March, 2024)
AB-2996 introduced by Assembly Member Alvarez
State Farm Pulls Out of California