#2,748 - California FAIR Plan is running out of money; nearly all homeowners to help bail it out

After saying it would run out of funds by March, California’s last-resort fire insurance provider will impose a special charge of $1 billion on insurance companies — which will in turn pass the costs along to homeowners — the first such move in more than three decades.The state Insurance Department today approved a request from the provider, the FAIR Plan, to impose the charge and ensure it stays solvent as it covers claims from victims of the Los Angeles County fires, the department said in an order by Commissioner Ricardo Lara.Most California home and fire insurance customers will see temporary fees added to their insurance bills as part of the charge, known as an assessment — marking the first time insurance companies will have imposed an assessment directly on customers.The FAIR Plan is a pool of insurers required by law to provide fire insurance to property owners who can’t find insurance elsewhere. Its customer base has grown dramatically in the past several years as insurance companies have increasingly refused to write or renew policies in the state, citing increased risk of wildfires. It now has more than 451,000 policies.