California’s state-supervised fire insurance provider of last resort received approval to levy a $1 billion assessment on private insurers to ensure it can continue paying claims from the devastating January 2025 wildfires.

In the aftermath of the Los Angeles fires, the FAIR plan gets a $1 billion bailout — the latest indication that California’s home insurance market is on shaky footing.

That’s enough to kick the plan’s strained finances further into crisis mode, increasing the chances that homeowners statewide will see insurance costs rise.

California's last-resort homeowners insurance plan seeks a $1 billion infusion from private insurers to help pay Los Angeles-area wildfire claims.

State regulators approved a $1 billion bailout of California's insurer of last resort so that it could continue paying claims.

The bailout will be funded by the state's private insurers, but a new rule says they they can pass up to half of the cost on to customers.