More Scrutiny Over HOA Insurance Issue
Due to the risk of wildfires and other factors, insurers are increasingly denying coverage to HOAs in California, leaving them with no choice but to turn to the state's "last resort" insurance option. The FAIR (Fair Access to Insurance Requirements) Plan, which offers "last resort" coverage for homes in wildfire-prone areas, has seen almost doubled participation in the last five years. “The plan was designed in statute as a life raft, intended to ferry folks back to the admitted market. It was not designed to be a cruise ship,” the President of the FAIR plan stressed. In an effort to address this issue, a State Assembly member and a state insurance representative recently met with a group of over 30 HOAs to discuss potential solutions and establish better lines of communication. However, it seems that finding effective solutions may take some time.