Policyholder of California Fair Plan pays more after living in a fire danger zone

BOULDER CREEK, Calif. (KION-TV) -- One homeowner voices frustration over unexpected changes to his insurance plan.

Don Baker, a homeowner in boulder creek for over 13 years, was originally with farmers insurance.

He says he was forced to switch providers under the California Fair Plan as his home is in a fire danger zone.

“I have a son in college trying to help him out with his rent and indifferent expenses right now it’s the worst time to be hit with a $7000 bill and they required the money paid in full so this wasn’t to be any payments with very little notice," Baker said.

Baker mentions that last year, he was allowed to put a 30% down-payment and pay the rest in installments. 

This year, he was only allowed to pay the annual fee without installments with a 60% down-payment.

“Two weeks before the full amount was due, I received a small invoice very little information, just they will not renew if it’s not paid in full," Baker said."

Baker says his insurance jumped up to four thousand dollars the first year on the California Fair Plan.

Then on his renewal date July 1st, the amount jumped to seven thousand dollars.

“That money is got a stretch me until the end of the year and I'm gonna have to rely on credit lines of credit to get through the rest of this year," Baker said.

“Last year, the CDI approved the fair plan’s rate which included a 15.7% overall rate increase for dwelling coverage,"  Hilary McLean on behalf of California Fair Plan said. "Renewal offers issued in and after October of 2023 reflect this recently approved rate. It is important to note that some fair plan customers will receive an increase and others will receive a decrease in their rates, determined by a range of factors specific to their individual policy.

In fire prone areas, homeowners are still tackling insurance issues as companies continue to drop out.