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.

Lara’s plan enacts an insurance industry wishlist to reduce scrutiny of rates, make homeowners across the state bail out insurers for potential billions in FAIR Plan losses, and charge consumers for the cost of insurance that insurers buy in the global, unregulated reinsurance market.

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

The California FAIR Plan, the state’s insurer of last resort, had just $377 million available last week to pay claims that could reach billions, officials said.

The devastating wildfires burning in Southern California could have financial ramifications for residents across the state.

The Los Angeles fires have cast uncertainty over when the insurance crisis buffeting the entire state will ease, California Insurance Commissioner Ricardo Lara told the Chronicle during an interview Saturday in Santa Monica,

California Insurance Commissioner Ricardo Lara discusses the complex insurance system as homeowners look to rebuild after LA's fires.