[throwup238]

> However as of this year it's got ~$600B of exposure and $400MM in funds.

The California FAIR plan only has $377 million in liquid funds because it pays premiums for $5.75 billion worth of reinsurance. Roughly 1% of their clientele (by value) would have to lose their homes to put the plan under strain. That's what may happen with the Palisade/Eaton fires, for the first time in nearly sixty years. Current estimates are $5-9 billion in claims, so the current worst case scenario is a multibillion dollar bailout by the state (not federal!) which is well within the state's budget.

Also a nitpick: (almost?) no one is receiving $3 million on a FAIR plan even in the Palisades or Malibu. That's the theoretical maximum but since it doesn't cover the value of the land, the actual coverage is much lower.

I have a lot more to say about the circumstances of these latest fires (several of my friends lost their homes in both neighborhoods) but suffice it to say I don't think this disaster is representative of future liabilities.