According to data from the Insurance Information Institute, California has more than 1.2 million homes at high risk of extreme wildfires. This is higher than any other. The institute also claims that the number of acres burned in California has been steadily on the rise.
Many homeowners in fire-prone areas are already unable to obtain insurance coverage. And this impacts new home purchases.
The California Fair Access to Insurance Requirements Plan is a state-run pool serving as the insurer of last resort. It is now facing pressure with the surge of enrollments. In 2022 enrollments in the plan reached 272,846 homes.
