FAIR Plan coverage caps at $3 million: Here’s why experts are worried about Bay Area housing market

Concerns are rising about the California FAIR Plan's $3 million coverage cap as wildfire victims turn to it for insurance. With estimated losses from recent wildfires in Los Angeles County reaching $30 billion, many Bay Area homes, averaging over $2 million, may not be adequately covered. Experts warn this could slow the housing market, as high premiums and limited policies deter buyers. Additionally, homeowners may hesitate to invest in renovations due to insurance caps. The insurance crisis is expected to worsen, impacting consumers and the market for years.