A recent rule change could cause a spike in insurance premium for homeowners across California, as the costs of the Los Angeles area wildfires are passed onto them in a way that was not allowed in the past.

Natural disasters, such as wildfires and coastal flooding, raise questions about what insurance will cover (and what it won’t).

"The FAIR Plan, a not-for-profit catastrophe insurer, has the payment mechanisms in place to ensure all covered claims will be paid."

California's Fair Plan, the state's insurer of last resort, may be unable to pay billions in claims arising from the Los Angeles fires and may require a bailout that could ultimately be paid by homeowners statewide.

"Californians deserve a reliable insurance market that doesn't retreat from communities most vulnerable to wildfires and climate change." California issues new mandate that will have a major impact on homeowners' insurance: 'This is a historic moment' first appeared on The Cool Down.