3 minute readCalifornia Insurance
The California FAIR Plan is a shared-risk pool created by state law to provide basic fire insurance to property owners who cannot get coverage in the standard market. It is not a state-funded program and not a full homeowners policy — it is a fire-focused backstop meant to be paired with a wrap policy.
What you need to know
Who qualifies
Property owners who have been declined or non-renewed by the admitted market.
Coverage scope and limits
Fire, smoke, lightning, and internal explosion, with plan maximums that may require additional excess coverage.
The difference-in-conditions wrap
A companion policy restores liability, theft, water damage, and loss of use.
Common mistakes
- Assuming a non-renewal means you did something wrong.
- Accepting a FAIR Plan policy without a difference-in-conditions wrap.
- Skipping mitigation work that affects eligibility and pricing.
- Never rechecking the admitted market after being placed in a surplus-lines policy.
- Leaving loss of use limits too thin for a long California rebuild.
When to talk to an agent
Talk to an agent as soon as you receive a non-renewal notice, when your renewal price jumps, or when you are being told the FAIR Plan is your only option — there are usually more options than one carrier can see.
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.