Who funds the California FAIR Plan?
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The California FAIR Plan is not a state agency and is not funded by taxpayers. It is an association of all insurers licensed to write property insurance in California. It is funded primarily by the premiums its policyholders pay, plus reinsurance. When losses exceed its resources, member insurers share the shortfall based on their California market share — as with the $1 billion assessment approved by the Insurance Commissioner after the January 2025 Los Angeles wildfires, under which insurers may recoup part of the cost from their own policyholders. Compare private-market, specialty-market, and residual-market options with a licensed insurance agent.