California's FAIR Plan Seeks 36% Rate Hike Amid Rising Wildfire Losses

California's FAIR Plan, a state-managed insurer of last resort, is seeking an average 36% rate hike following significant losses from recent wildfires, intensifying financial pressure on homeowners with limited insurance options. This development highlights a national trend where private insurers are withdrawing from high-risk disaster areas, shifting greater risk responsibility to state plans and policyholders. Currently, 35 states plus the District of Columbia operate FAIR or Citizens Plans to provide coverage when private market options are unavailable, but these plans often offer limited coverage at high premiums, reflecting their original design as temporary solutions. The increasing frequency and intensity of natural disasters challenge the sustainability of these state programs, as they face growing claims and subsequently levy assessments on private insurers based on market share to replenish reserves. This dynamic signals future challenges for homeowners in disaster-prone regions who may encounter reduced private insurance availability and elevated costs, while states must navigate maintaining these safety net options under evolving climate risks.