The move will likely lead to higher costs for households across the state, and may push more insurers to leave, intensifying a home insurance crisis.

California’s plan that provides insurance to homeowners who can’t get private coverage needs $1 billion more to pay out claims related to the Los Angeles wildfires.

Harvey Rosenfield, Consumer Watchdogs, talks about the California FAIR Plan’s $1 billion bailout and the plan to impose a special charge on homeowners and insurance companies to cover L.A. wildfire costs.

The funds will help the state’s insurer of last resort pay claims to thousands of homeowners affected by the wildfires.

Bay Area homeowners will likely be on the hook for helping bail out California’s insurer of last resort to the tune of $1 billion after it ran out of money to pay claims from the devastating Los Angeles wildfires.

The state’s insurance of last resort is charging a $1 billion special assessment to private insurance providers, a move approved Tuesday by the state’s insurance commissioner after a record number of FAIR Plan claims were filed after January wildfires in Los Angeles County.