The California Department of Insurance published a press release announcing the approval of an increase in the commercial property coverage limits provided by the state’s FAIR plan.
The FAIR Plan’s Division I Commercial Property coverage limit has been increased to $20 million per building and a total of $100 million per location. Under California law, these new limits must be available for new policies and renewals within 120 days of the approval date (3/28/25).
California Insurance Commissioner Ricardo Lara believes that the increased limits will help meet the needs of homeowners associations, affordable housing developers, farmers, builders, and business owners who may have been unable to obtain coverage in the voluntary market. However, Commissioner Lara sees this as a short-term solution as California is going through an insurance crisis, with a long-term goal of implementing more insurance reforms and stabilizing the market.
The press release can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.