FAIR Plan (insurer of last resort) Wildfire Insurance Review
The backstop when no one else will write you — basic fire coverage only.
Reviewed by Tom Hunt, Wildfire Risk Expert
Editorial independence: This is an independent review compiled from public information. FireRisk.ai is not affiliated with, endorsed by, or paid by FAIR Plan (insurer of last resort), and earns no commission from FAIR Plan (insurer of last resort). Any ratings, prices, or performance figures are attributed to their source and have not been independently verified by us — always confirm current details directly.
Founded
California’s FAIR Plan was established in 1968
Headquarters
Statewide pool administered in California (similar plans exist in other states)
Financial strength
See note
Channel
Insurer of last resort
California’s FAIR Plan has ballooned from roughly 124,000 policies in 2019 to about 684,000 policies and $750 billion in exposure as of early 2026.
FireRisk.ai rating
Our editorial scores for a wildfire-exposed home — appetite weighted heaviest. Not a financial rating; not carrier-supplied. See how all carriers rank →
Wildfire appetite & overview
A FAIR Plan is the insurer of last resort — available in California, Oregon, Washington, Arizona, Texas, and (new in 2025) Colorado. It provides basic fire coverage only, usually at a higher price for less protection, so you pair it with a Difference-in-Conditions (DIC) policy for liability, theft, and water damage. California’s plan has grown explosively as carriers retreated, and the state is now pushing carriers to "depopulate" it by writing those homes back onto the admitted market.
On financial strength: A FAIR Plan is a state-mandated risk pool, not a rated commercial carrier. California’s plan is backed by member insurers and state oversight.
Strengths
- +Available when everyone else declines
- +Guaranteed basic fire coverage
- +Residential dwelling cap raised to $3M (from $1.5M)
- +A genuine safety net
- +Can bridge you while you harden and re-shop
Watch-outs
- –Basic fire only — needs a DIC wraparound for theft, water, liability
- –Often costs more for less coverage
- –Filed a 35.8% rate increase in Oct 2025
- –Exposure to assessment surcharges if the pool runs short
- –Not a long-term strategy
Coverage highlights
Exclusions & limitations
Items that a standard homeowners policy — including FAIR Plan (insurer of last resort)'s — typically does not cover. Verify with your agent before binding.
- ✕Land and soil — the value of the land beneath your home is never covered; only the structure and its contents.
- ✕Vehicles — cars, trucks, and other motor vehicles are covered by your auto policy, not your home policy, even if destroyed in a wildfire.
- ✕Jewelry, art, and collectibles above sub-limits — standard policies cap payouts for valuables; a scheduled-property rider or floater is required for full value.
- ✕Business property and equipment — commercial inventory, business computers, and tools kept at home are typically excluded or capped.
- ✕Flood damage — water used to fight a wildfire (aerial drops, hydrant streams) can cause significant structural damage that a standard fire policy does not cover; a separate flood or DIC policy is needed.
- ✕Ordinance or law upgrades — if local codes require upgrading electrical, plumbing, or structural systems during a rebuild, those costs may not be covered without an ordinance-or-law endorsement.
FAIR Plan (insurer of last resort)-specific note
Because FAIR Plan (insurer of last resort) uses a managing general agent, reciprocal-exchange, or surplus-lines structure, the coverage form, sub-limits, and exclusions may differ from standard admitted policies. Read the declarations page and policy jacket carefully and ask specifically which carrier is issuing the policy and what its exclusions are.
Mitigation discounts & what saves you money
These are the hardening steps most widely recognized across the wildfire insurance market — including by FAIR Plan (insurer of last resort) where applicable.
- Class A roof: The highest fire-resistance rating for roofing materials — one of the most impactful factors in wildfire underwriting and pricing.
- Defensible space: Clearing and maintaining at least 30–100 feet of vegetation around the structure; required by law in many states and rewarded by virtually every carrier.
- Firewise USA community: Homes in NFPA-recognized Firewise communities often qualify for a documented discount at several carriers (USAA, AAA/CSAA, and others).
- Ember-resistant vents and screens: Vents are a primary ember-entry point; 1/8-inch or finer metal mesh screens meaningfully reduce ignition risk and are a common underwriting credit.
- Ignition-resistant siding and windows: Non-combustible or ignition-resistant exterior cladding and dual-pane or tempered-glass windows reduce heat and ember vulnerability and signal a hardened home to underwriters.
See also: how to improve your odds of being written — the FAIR Plan (insurer of last resort)-specific steps are in the qualifying section below.
What it costs
In October 2025 the California FAIR Plan filed for a 35.8% average rate increase on personal dwelling-fire policies, with new rates expected around April 2026. A FAIR Plan + DIC package frequently costs more than a standard policy for narrower protection.
How to improve your odds of being written
- 1Show you’ve been declined/non-renewed on the admitted market
- 2Apply through any licensed agent in a FAIR Plan state
- 3Add a DIC wrap immediately so you’re not left with fire-only coverage
How to apply — step by step
The typical process for getting FAIR Plan (insurer of last resort) coverage. Exact steps vary by state and distribution channel.
- 1Get a quote online or through an agent. FAIR Plan (insurer of last resort) is typically available online at the carrier's website — enter your address, home details, and coverage needs to receive a real-time quote.
- 2Provide your home details. Be ready with your home's square footage, year built, roof type and age, construction material, distance to the nearest fire station, and any hardening features (ember-resistant vents, defensible space clearance, Class-A roof, ignition-resistant siding). More detail means a more accurate quote and fewer surprises at underwriting.
- 3Schedule an inspection if required. Higher-value homes and high-hazard ZIPs commonly trigger an in-person or virtual inspection before coverage is bound — especially at FAIR Plan (insurer of last resort). Have documentation of recent upgrades (permits, photos, receipts) ready to share.
- 4Review, then bind coverage. Read the declarations page carefully: confirm your dwelling limit covers a full rebuild at current labor and material costs, check the loss-of-use and personal-property sub-limits, and ask about any wildfire-specific exclusions or endorsements. Once you're satisfied, pay the first premium installment and your coverage is in force.
Recent developments
What's changed lately — dated so you can judge how current it is.
California raised the FAIR Plan residential dwelling cap to $3M (from $1.5M).
Colorado launched a new FAIR Plan; California carriers began "depopulation" programs (Mercury, CSAA) to move homes back to the admitted market.
California FAIR Plan filed for a 35.8% average rate increase on dwelling-fire policies; new rates expected ~April 2026.
Best for
Homeowners who’ve been declined or non-renewed everywhere on the admitted and surplus markets.
How to get a quote
Through any licensed agent in states that operate a FAIR Plan; states without one (NV, ID, MT, UT, WY, NM) rely on surplus-lines instead.
Bottom line
Use it as a backstop, not a destination. Pair it with DIC, then keep hardening your home and re-shopping the admitted market to get back off it.
Compare FAIR Plan (insurer of last resort) against carriers that fit your ZIP
Tell us about your home and we'll match you with licensed agents and carriers who still write wildfire home insurance in your area — including ones that cover homes others decline. Free, no obligation.
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FAIR Plan (insurer of last resort) wildfire insurance FAQ
Does FAIR Plan (insurer of last resort) cover homes in high fire-risk areas?
A FAIR Plan is the insurer of last resort — available in California, Oregon, Washington, Arizona, Texas, and (new in 2025) Colorado. It provides basic fire coverage only, usually at a higher price for less protection, so you pair it with a Difference-in-Conditions (DIC) policy for liability, theft, and water damage. California’s plan has grown explosively as carriers retreated, and the state is now pushing carriers to "depopulate" it by writing those homes back onto the admitted market.
Is FAIR Plan (insurer of last resort) financially strong enough to pay a wildfire claim?
A FAIR Plan is a state-mandated risk pool, not a rated commercial carrier. California’s plan is backed by member insurers and state oversight. Confirm the actual underwriting company and its current financial-strength rating before buying.
Who is FAIR Plan (insurer of last resort) best for?
Homeowners who’ve been declined or non-renewed everywhere on the admitted and surplus markets. Use it as a backstop, not a destination. Pair it with DIC, then keep hardening your home and re-shopping the admitted market to get back off it.
What does FAIR Plan (insurer of last resort) cover in a wildfire?
A standard FAIR Plan (insurer of last resort) homeowners policy covers direct fire and smoke damage to the dwelling structure, attached structures (like a garage), personal property inside the home, and loss of use — meaning additional living expenses if you're displaced by an evacuation order or because the home is uninhabitable. Debris removal is typically included, though it may be a sub-limit. Always confirm the specific endorsements and coverage limits on your quote, as policy terms vary by state and product.
How do I qualify for FAIR Plan (insurer of last resort)'s best wildfire rate?
The biggest factors that influence your rate and eligibility with FAIR Plan (insurer of last resort) are your home's location (ZIP-level wildfire hazard score), the construction type and age of your roof, the amount of defensible space you maintain, and whether your home has ember-resistant vents, ignition-resistant siding, and dual-pane or tempered windows. Documenting and demonstrating those hardening steps — and mentioning any Firewise USA community membership — will put you in the best position for the lowest available rate. Bundling auto with home is also a common discount where FAIR Plan (insurer of last resort) offers both.
What's not covered by FAIR Plan (insurer of last resort)'s standard policy?
Like almost all homeowners policies, a standard FAIR Plan (insurer of last resort) policy does not cover land value, vehicles (covered by auto insurance), flood damage including water dropped or pumped during firefighting, or jewelry and art above sub-limits without a scheduled-property endorsement. Business property and ordinance-or-law rebuild upgrades may also be excluded or capped. If you're pairing FAIR Plan (insurer of last resort) with a California FAIR Plan, add a Difference-in-Conditions (DIC) policy to fill the liability, water, and theft gaps.
Disclosure: This is an independent, research-based editorial review. FireRisk.ai is not affiliated with, endorsed by, or acting on behalf of FAIR Plan (insurer of last resort). The company name and any AM Best rating are used for identification and comparison only. This is not insurance or financial advice, and we are not a licensed insurance agency. Availability, appetite, ratings, and pricing change and vary by ZIP and home — verify everything directly with the carrier before purchasing. We may be compensated when you request quotes through a partner.