Part 8/13:
Major companies like State Farm and Farmers Insurance previously accounted for a significant portion of California's market share. Recently, State Farm announced it would cease issuing new policies altogether, prompting concern that homeowners could be left with limited options.
In response, the California FAIR Plan, a state-mandated insurer of last resort, has seen explosive growth—from historically around 125,000 policies to over 600,000. Last year, FAIR Plan policies increased by roughly 20,000 per month. While this helps provide coverage for high-risk areas, it is an unsustainable trend, as the plan operates with limited funds and depends on assessments from member insurers, which can lead to higher costs for consumers.