SAN FRANCISCO (KGO) — What happens if the California FAIR Plan goes under in the wake of the devastation in Los Angeles? And what impact could it have on the 8.7 million policyholders across the state?
“Why should people in San Francisco pay for a fire that was insured by a consortium of insurance companies that are legislatively mandated to pay for that fire?” said Jamie Court, president of Consumer Watchdog. “It’s not fair.”
Those are both key questions as we’re learning the estimated insured losses are now expected to be around $30 billion, according to Wells Fargo and Goldman Sachs.
So if the California FAIR Plan goes bankrupt, what does that mean for the average consumer? And how likely is that to happen?
“You can bet that if the FAIR…
