SACRAMENTO, Calif. — The state’s insurance provider for individuals lacking private insurance is seeking an additional $1 billion to settle claims related to the recent fires in Los Angeles.

The California Fair Plan Association, which offers coverage to those who cannot obtain private insurance, is facing significant financial pressures as a result of the destructive wildfires that have affected the region.

Officials from the association expressed that the catastrophic damage caused by these fires has led to an unprecedented surge in claims, outpacing the current funds available to adequately cover the losses experienced by policyholders.

In light of these extraordinary circumstances, the organization is urgently requesting additional financial support to ensure they can fulfill their obligations to claimants. Many residents affected by the fires are now relying on this insurer to recover and rebuild following the devastation.

The ongoing situation underscores the broader challenges related to climate change and its impact on insurance markets, particularly in states like California that frequently encounter natural disasters.

As the association navigates this financial crisis, it remains committed to providing necessary assistance to those who have been impacted, but it is clear that without the requested funding, the road to recovery for many will be significantly more difficult.