Michelle Meyers, Partner at Singleton Schreiber in Sacramento and San Diego, recently wrote "California Pays for Insurance Struggles and FAIR Plan Dependence" which was published by Bloomberg Law on April 30th, 2025.
In the article, Ms. Meyers examines how thousands of California homeowners are increasingly being forced to rely on the state’s Fair Access to Insurance Requirements (FAIR) Plan, a program originally intended as a last-resort option for those unable to obtain coverage from private insurers. She argues that this growing dependence stems from a years-long exodus of insurers from wildfire-prone regions—particularly following PG&E’s 2019 bankruptcy, which left over $30 billion in wildfire liabilities tied to the Camp, Wine Country, and North Bay Fires. As a result, many homeowners have found themselves wrongfully dropped or denied coverage without legitimate cause, despite taking extensive fire prevention measures.
The article goes on to examine how increased reliance on the FAIR Plan has caused significant financial strain, pushing the program toward potential insolvency with only $377 million available to cover $900 million in projected wildfire claims. Ms. Meyers also highlights that FAIR Plan policies often lack essential coverage and that private insurers are expected to raise premiums, restrict coverage, or exit the California market entirely to preserve profits at the expense of consumers. She further argues that many private insurers are engaging in bad faith practices, including unjust claim denials, delayed processing, and refusal to pay fire victims what they are owed.
Ms. Meyers concludes by calling for urgent legislative action, urging lawmakers to:
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Require private insurers to remain in high-risk wildfire areas,
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Increase their financial responsibility to the FAIR Plan,
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And implement stronger enforcement against bad faith insurance practices.
