FAIR Plan Rates to Rise by 31% in Orinda, Affecting Nearly 663,000 Policyholders Starting in October, customers on the California FAIR Plan will face the largest rate hike in years, with premiums rising by an average of 31% in the ZIP code covering Orinda. This increase will push the average premium in the community to just under $7,000. The overall rate hike for the FAIR Plan’s nearly 663,000 residential policyholders will be just under 30%, though the exact percentage varies depending on a homeowner’s specific circumstances. About half of all customers will see their rates increase by 30% to 50%, while a quarter will experience decreases of up to 80%. The remaining quarter will face hikes below 30% or between 50% and 200%. Policyholders can expect to see their new premium at their first renewal date after October 15. Among the hardest-hit ZIP codes is Grizzly Flats in the Sierra Nevada foothills, where nearly 150 customers will see their annual premium rise from an average of $2,671 to $5,485. In the 94563 ZIP code covering Orinda, the average premium will climb to just under $7,000. In San Francisco, most policyholders are expected to see their rates decrease. A spokesperson for the FAIR Plan explained that the largest component of the increase relates to wildfire risk, with policyholders whose properties are at significant wildfire risk facing higher hikes. Some customers will see their premiums decrease due to factors like improved risk assessments or mitigation efforts. This is the first statewide rate increase for the FAIR Plan since 2023, when premiums rose by 15.7% overall. The FAIR Plan is required to submit updated rate filings every two years, as mandated by state regulations. Since its last increase, California’s insurance crisis has driven the FAIR Plan’s residential policy count to double.#california #fair_plan #orinda #grizzly_flats #ricardo_lara
