FAIR plan launches higher coverage limits for business and commercial properties
The California FAIR plan now offers increased coverage limits for business and commercial 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 to coverage limits for California FAIR Plan Association commercial programs offered to businesses.
The maximum building coverage limit for commercial policies is increased from $3 million to $5.6 million, and the maximum limit for all other coverage is increased from $1.5 million to $2.8 million. This represents a new combined limit of $8.4 million in total insurable value at one location, nearly double the previous limit.
For Business Owner policies, the maximum limit is increased from $2 million to $4 million, and the maximum limit for business personal property is increased from $1 million to $2 million. This represents a new combined limit of $6 million in total insurable value at one location.
The Fair Plan, with approximately 200,000 policyholders, serves as the state property insurer of last resort; all property insurers admitted in the state are members of the association.
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