This bill enacts a new section of the FAIR Plan Act that establishes a maximum insurable value for properties insured under the FAIR Plan that are damaged or destroyed by fire. Specifically, it sets the maximum limit of liability at seven hundred fifty thousand dollars ($750,000) for properties located in the service area of a fire department. The bill differentiates between fire departments based on their class ratings, allowing for this maximum limit to apply to properties serviced by departments rated eight, nine, or ten, as well as those with a class rating of one through seven, provided they are well-staffed and well-equipped.

Additionally, the bill defines "nationally recognized insurance service" as an organization that evaluates fire departments based on various criteria, including emergency communication systems, staffing and training, water supply availability, and community risk reduction programs. This new legal language aims to clarify the insurance limits for properties under the FAIR Plan, ensuring that coverage is appropriately aligned with the capabilities of local fire departments.