The California FAIR Plan Association (FAIR Plan) has partnered with the California Department of Insurance (CDI) to offer increased commercial coverage limits of up to $20 million per location.
This change, effective as of November 1, represents a substantial enhancement from the previous maximum of $8.4 million per location for commercial coverage.
In addition to the commercial coverage limit increase, business owners’ policy property coverage limits will also rise to $20 million, effective December 14.
Notably, these enhanced limits come without any additional underwriting requirements, making it easier for businesses to secure the coverage they need, the FAIR Plan said.
There is no need for additional documentation beyond the previously established requirements for commercial applications and endorsements.
The FAIR Plan is dedicated to ensuring that all Californians have access to fundamental property coverage, helping to provide peace of mind during challenging times. As insurance availability challenges persist in the state, more and more consumers are turning to the FAIR Plan to secure the protection they require.
As of September 2023, the FAIR Plan reported 330,101 policies in force, marking a substantial 21% increase since the start of the year.
“The FAIR Plan appreciates the continued efforts of Governor Newsom, Insurance Commissioner Lara, and the Legislature to improve market conditions and address the insurance unavailability crisis in California. The FAIR Plan is committed to working with all stakeholders in efforts to stabilise the insurance market in California and improve consumer access to competitive insurance coverage options,” the FAIR Plan noted.
