California FAIR Plan
California’s insurer of last resort — what it covers, what it misses, what it costs, and your alternatives if you’ve been dropped.
Find insurers that cover high-risk CA homes →What is the California FAIR Plan?
The California FAIR (Fair Access to Insurance Requirements) Plan is a state-mandated shared market plan — a pool funded by all private insurers doing business in California. It exists to provide basic fire insurance to homeowners who cannot get coverage in the standard market. It is not a government program, and the state does not back its claims. It is, however, required by California law.
FAIR Plan enrollment has surged as major carriers — State Farm, Allstate, Farmers, and others — have paused or stopped writing new homeowner policies in California’s high-risk zones. As of 2024, the FAIR Plan insures over 450,000 California homes, up from roughly 200,000 in 2020.
Important: The FAIR Plan is fire-only coverage.
It does not include liability, personal property, or additional living expenses. Most homeowners need to purchase a separate Difference in Conditions (DIC) policy to fill these gaps.
What the FAIR Plan covers — and doesn’t
| Coverage | Included? | Note |
|---|---|---|
| Dwelling (structure) | ✓ Yes | Fire, lightning, internal explosion |
| Smoke damage | ✓ Yes | Covered under fire peril |
| Personal property | ✗ No | Not included — must buy a Difference in Conditions (DIC) policy separately |
| Liability | ✗ No | Not included — must be purchased separately |
| Additional Living Expenses (ALE) | ✗ No | Not included — ALE from displacement requires a DIC policy |
| Water damage (burst pipes) | ✗ No | Not included without a DIC rider |
| Theft | ✗ No | Not included |
| Earthquake | ✗ No | Not included |
How to get the California FAIR Plan
- 1
Contact a licensed California insurance agent
You must apply through a licensed broker — you cannot apply directly. The broker submits your application to the FAIR Plan on your behalf. Most agents who write surplus lines insurance can do this.
- 2
Get a FAIR Plan quote
Quotes are based on your home's replacement cost value, location, and construction type. Rates are set by the FAIR Plan Association — not by individual agents — so you won't find a better "deal" by shopping brokers. You can also request a quote at cfpnet.com.
- 3
Buy a Difference in Conditions (DIC) policy separately
The FAIR Plan covers only fire. To get liability, personal property, ALE, and water damage, you need a DIC policy from a separate insurer. Most homeowners who use the FAIR Plan need both policies — buy them at the same time.
- 4
Understand your coverage limit
The FAIR Plan increased its maximum coverage limit to $3 million per residential property as of 2023. High-value homes above that threshold require supplemental coverage from the surplus lines market.
- 5
Reassess every year
California is expanding the "Sustainable Insurance Strategy" (Insurance Code §675.1), which is designed to keep more private carriers writing in high-risk areas. Check each year whether a private carrier will now cover your address — private policies are typically more comprehensive than FAIR Plan + DIC combinations.
Alternatives to the FAIR Plan
The FAIR Plan should be a bridge, not a permanent solution. It costs more and covers less than a comparable standard-market policy. Here are your paths back to the standard market.
Surplus lines carriers
Non-admitted insurers (Lloyd's, Lexington, Scottsdale) are not bound by CDI rate approval and can write high-risk properties. Premiums are higher than standard but usually lower than FAIR Plan + DIC. Your broker can access these markets.
Admitted carriers still writing in CA
Despite high-profile exits, some admitted carriers continue writing in high-risk areas — particularly for homes with strong mitigation (Class A roofing, ember-resistant vents, 100-ft defensible space). A mitigation certificate can open doors.
Reduce your risk score
Mitigation — hardening your home's vulnerabilities — directly reduces your insurer's modeled risk. Homes with documented mitigation are more attractive to carriers. FireRisk can show you your exact risk score and where to focus.
Shop annually
The California insurance market is in flux. Carriers that paused writing in your ZIP may resume. Rate decisions that made a carrier non-competitive last year may change. Set a reminder to get a new quote 60 days before your renewal.
California FAIR Plan — frequently asked
Who is eligible for the California FAIR Plan?
Any California homeowner who has been unable to obtain coverage in the standard market — through no fault of their own — is eligible. You must document that you've been denied by (or can't obtain a reasonable quote from) at least one admitted carrier. Your broker handles this documentation as part of the application.
How much does the California FAIR Plan cost?
Costs vary significantly by location, home value, construction, and fire risk. Homes in very high fire hazard severity zones (VHFHSZ) may see FAIR Plan premiums that are 2–5× what standard market policies cost in the same area. The FAIR Plan sets rates statewide, and those rates have increased substantially in recent years. Adding a DIC policy adds further cost.
Is the FAIR Plan better than no insurance?
Yes — significantly. Going uninsured on a mortgaged property will trigger force-placed insurance from your lender (which is even more expensive and covers far less). Even FAIR Plan + DIC, while costly, is substantially better than the alternative. If you're having difficulty affording it, talk to your broker about ways to increase your mitigation and potentially qualify for standard market coverage.
Can my lender require me to have more than the FAIR Plan?
Yes. Lenders require at minimum that you carry insurance equal to the outstanding mortgage balance or the replacement cost of the structure, whichever is higher. If your FAIR Plan coverage limit is below your loan balance, your lender may require you to carry additional coverage. They can also require you to carry liability insurance (not included in FAIR Plan), which would need to come from a DIC policy.
What is the California FAIR Plan "Sustainable Insurance Strategy"?
California Insurance Commissioner Ricardo Lara's Sustainable Insurance Strategy, implemented under Insurance Code §675.1, requires carriers to expand their coverage in wildfire-distressed areas proportionally to their market share statewide. In return, carriers are allowed to use forward-looking catastrophe models (rather than historical data only) to set rates. The goal is to bring private insurance back to high-risk areas and reduce dependence on the FAIR Plan. Implementation is ongoing as of 2025.
What is a Difference in Conditions (DIC) policy?
A DIC (Difference in Conditions) policy fills the gaps left by the FAIR Plan. It typically covers personal property, liability, additional living expenses (ALE), water damage, and other perils not included in the FAIR Plan's fire-only coverage. You need both the FAIR Plan and a DIC policy to have comprehensive homeowner's insurance in California when using the FAIR Plan.
Find wildfire insurance in CA →
We match you with carriers still writing in high-risk California ZIP codes.
California wildfire insurance guide →
Full guide to California's insurance crisis, carriers, and options.
California wildfire risk map →
Check your exact address's risk score and FHSZ designation.
Get a mitigation certificate →
Document your home hardening to open more carrier options.
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This guide is for informational purposes. California FAIR Plan policy terms, rates, and eligibility rules change — verify current details at cfpnet.com or through a licensed California insurance broker. FireRisk.ai is not a licensed insurance agent.