3 minute readHome
The California FAIR Plan is the state's insurer of last resort for basic property coverage when the standard market will not write your address. It covers fire and smoke, but it is not a full homeowners policy — so it is normally paired with a difference-in-conditions policy for liability, theft, water damage, and loss of use.
What you need to know
What it does cover
Fire, lightning, internal explosion, and smoke damage to the dwelling and contents, up to plan limits.
What it leaves out
Liability, theft, water damage, and most other perils are not included, which is why the wrap policy matters.
It is meant to be temporary
Availability changes. Rechecking the admitted market every year or two is worth the effort.
Common mistakes
- Insuring the home to market value or loan balance instead of today's rebuild cost.
- Leaving liability at the lowest available limit with no umbrella above it.
- Assuming flood and earthquake are included — both are separate in California.
- Never scheduling jewelry, art or other items that carry low special limits.
- Filing small claims that cost more in renewal pricing than they paid out.
When to talk to an agent
Talk to an agent when your premium jumps, when you renovate or rent out the home, when you are told you are being non-renewed, or any time you cannot tell from the declarations page what your policy would actually pay.
Frequently asked
This article is general information, not a policy or a promise of coverage. What your policy pays depends on its specific terms, limits and exclusions. Ask us to review your actual policy before making a decision.