FAIR Plan (insurer of last resort) wildfire insurance review
The backstop when no one else will write you — basic fire coverage only.
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
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
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.
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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.
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.