Pacific Palisades, an affluent community sandwiched between the Pacific Ocean and the Santa Monica Mountains, is expected to encounter challenges rebuilding.will test California’s efforts to stabilize the state’s insurance marketplace after many insurers stopped issuing residential policies due to the high fire risk.. The vast property damage in a disaster-prone state with high real estate prices and an uncertain insurance landscape could make coverage more expensive and even harder to find.
That has made it extremely difficult for homeowners in high-risk areas to obtain or afford insurance.What happens to residents who can't get regular home insurance? The plan was designed to be a temporary solution, but more Californians are relying on it than ever. The number of FAIR residential policies issued in the state more than doubled between 2020 and 2024, reaching nearly 452,000 policies.Policies sold to FAIR customers primarily fund the plan, but insurers would have to pay into the fund if it becomes insolvent or to keep it from insolvency.
The mean home value in Pacific Palisades and its surrounding areas hovers around $3.3 million, according to real estate company Redfin. Owners of the most valuable properties probably are not relying on the FAIR Plan because of the coverage limit, said Jamie Court, president of nonprofit organization Consumer Watchdog.