Tangipa explained that California’s Proposition 103 has kept insurance rates low for decades while home prices have soared, and the high cost of rebuilding after a loss has outpaced premiums — until premiums were allowed to be increased in recent years. During his recent conversations with insurance executives, he has been told that homeowners can expect increases of between $4,000 and $11,000. This will make homeowners insurance unattainable for most of us. He told us that while California’s FAIR Plan was created by the state decades ago, it is operated and controlled by insurance companies, making the FAIR plan “fair” for the insurance companies — not the consumer.
