Proposal would limit FAIR Plan fire coverage to $750,000

The proposal would set a $750,000 maximum FAIR Plan liability for covered property damaged or destroyed by fire. The provision concerns property in a fire department’s service area. It names departments rated eight through ten and well-staffed and well-equipped departments rated one through seven, including similar ratings from a nationally recognized insurance service. The property must be insured under a FAIR Plan. The text joins two descriptions of fire departments with “and,” but gives them different, non-overlapping rating ranges, so it is unclear how the descriptions work together. The maximum would apply when insured property is subsequently damaged or destroyed by fire.