FAIR Plan Launches Higher Coverage Limits for Commercial, Business Properties
The California FAIR Plan is now offering increased coverage limits for commercial and business properties.
The higher limits are being made available in response to customer requests for FAIR Plan coverage of higher value commercial properties. California Insurance Commissioner Ricardo Lara in March approved increases in the limits of coverage to the California FAIR Plan Association’s commercial programs offered to businesses.
The maximum building coverage limit for commercial policies increases from $3 million to $5.6 million, and the maximum limit for all other coverages increases from $1.5 million to $2.8 million. This represents a new, combined limit of $8.4 million in total insurable value at a single location, nearly double the previous limit.
For Businessowner policies, the maximum limit is increased from $2 million to $4 million, and the maximum limit for business personal property increases from $1 million to $2 million. This represents a new, combined limit of $6 million in total insurable value at a single location.
The Fair Plan, with about 200,000 policyholders, serves as the state’s property insurer of last resort; all admitted property insurance companies in the state are members of the association.
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