ALPINE, Calif. (KGTV) — With non-renewals and coverage drops, many Californians are insured against fire through the California FAIR Plan. However, the plan is on rocky ground after the LA fires.
"We replaced all the windows on the second floor with double pane windows, they were all single pane," said Paul Felber. "That was for insulation and for fire protection."
Felber is describing all the ways he's fireproofed his home.
He's lived in Alpine for 11 years but he's experienced the instability of the homeowners insurance market.
"If I was new buyer, I'd be hesitant to even buy because I wouldn't know whether I could maintain my mortgage over the next five or ten years," said Felber.
Right now, he's on the FAIR Plan.
But after the Los Angeles County fires, this FAIR Plan may go through a bailout.
The plan helped insure homes in the Pacific Palisades Area and for that fire, it could pay out just under $6 billion.
According to Karl Susman, an insurance expert, people would still have coverage even with a bailout. It just might take more time to pay off their claims.
"For all of the heartache that Fair plan is going through, and their books being out of balance, and things of that nature, at least we can know, and we are seeing it, they are paying their claims, they are doing what they were designed to do," said Susman. "It just might not be in the fastest fashion like we might see from a private insurance company, but they're getting there."
As for Felber, he's continuing to do what he can to protect his home.
"You're going to have to use every technique you can to protect the house from fire and if that means the house is going to be more expensive, that's okay, that's just the way it's going to have to be," said Felber.
The FAIR Plan was created by the California legislature in 1968.
It's paid for by private insurance companies approved to do business in California.
