The California Department of Insurance announced this week an increase in coverage limits for agricultural and winery properties under the state’s insurer of last resort. The new limits for the California FAIR Plan will nearly double, from $4.5 million to $8.4 million.

“With a tighter insurance market due to wildfire risks, many farmers and vintners need more coverage than they can currently get,” said Insurance Commissioner Ricardo Lara.

He has been working with the California Farm Bureau on solutions to farms losing coverage. This follows Gov. Gavin Newsom signing Senate Bill 11, which enables the plan to insure farm structures.

“This isn’t just talk. It’s moving forward with conviction to address the challenges facing agriculture and collaborating on solutions,” said Farm Bureau Federation President Jamie Johansson.

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The department also released data on insurance loses for farms and wineries. Wine country fires from 2017 to 2020 accounted for 45% of statewide losses, though the region represents just 8% of the market for commercial agricultural and farmowners insurance.