The California FAIR Plan has raised its coverage limits for commercial properties and introduced a new high-value policy to help businesses that struggle to find insurance elsewhere. This move targets businesses like condominiums, farms, and wineries that cannot get coverage from the regular or excess insurance markets.
Under the new rules, the FAIR Plan now offers up to $20 million in coverage per building, with a maximum of $100 million in total coverage per location. This is a significant increase that aims to provide better protection for high-value commercial properties across the state.
Last year, the California Department of Insurance and the FAIR Plan struck an agreement for the plan to offer this high-value policy for at least three years. In March, Insurance Commissioner Ricardo Lara approved the updated coverage limits, officially greenlighting the changes.
These adjustments come at a time when many commercial property owners face challenges finding affordable insurance. The raised limits offer a much-needed option for those who were previously left without coverage, helping them protect their investments and keep their businesses running smoothly.