California FAIR Plan Explained: What It Covers, What It Costs and When You Need It
A non-renewal letter from your home insurer is one of the more stressful pieces of mail a San Diego homeowner can get. For a growing number of households in Ramona, Alpine, Julian and the canyon neighborhoods closer to the coast, the fallback is California FAIR Plan insurance, the state’s insurer of last resort. It keeps a roof insured, but it works very differently from a normal homeowners policy.
This guide explains what the FAIR Plan covers and leaves out, what it costs after the 29.1% average rate increase taking effect October 15, 2026, how the “Difference in Conditions” policy fills the gaps, and how to tell whether you actually need it. All figures are based on publicly available information as of September 21, 2026, and rates, rules and program details can change at any time.
Quick Answer
The California FAIR Plan is a last-resort property insurer for people who can’t get coverage from a regular insurance company. Its basic dwelling policy covers only fire, lightning, internal explosion and smoke, with optional add-ons such as wind and vandalism, up to a $3 million policy limit. It does not include liability, theft or water damage, so many owners pair it with a separate Difference in Conditions (DIC) policy. The FAIR Plan’s average dwelling rate rises 29.1% for new and renewing policies from October 15, 2026, with the biggest increases landing on high wildfire-risk homes. You apply through a licensed broker, usually after the broker has searched the regular market and come up empty.
What Is the California FAIR Plan?
The California FAIR Plan is a property insurance pool created by state law in 1968, after the riots and brush fires of that decade. It exists so that Californians who can’t find fire insurance anywhere else still have a way to insure their homes and buildings.
Who runs it and who stands behind it
The FAIR Plan is not a state agency, and it is not funded by taxpayers. According to a January 2026 presentation by FAIR Plan President Victoria Roach to the Assembly Insurance Committee, it is a not-for-profit association that every licensed property insurer in California is required to join. The California Department of Insurance (CDI) regulates it, and by statute its rates are supposed to be actuarially sound.
The plan pays claims from the premiums it collects, from reinsurance, and, when necessary, by assessing its member insurers. That last step is not theoretical. The FAIR Plan levied a $1 billion assessment on member companies in February 2025 to keep paying claims after the Eaton and Palisades fires. The same presentation says the plan handled roughly 5,400 claims from those fires and paid about $3.5 billion to policyholders in the first year.
Why it has grown so fast
The FAIR Plan was designed to stay small. It hasn’t. The plan’s own Key Statistics page reports 696,562 dwelling and commercial policies in force as of June 2026, up 157% from September 2022. Total exposure, meaning the combined amount of insurance it has written, reached $768 billion.
The reason is simple: many insurers stopped writing or renewing homes in wildfire-exposed areas, and people had nowhere else to go. There are early signs that this is easing. CDI reported in May 2026 that the FAIR Plan added about 16,000 residential policies in the first quarter of 2026, compared with 35,000 to 50,000 per quarter between 2024 and September 2025. The FAIR Plan’s own data shows new business for the first nine months of its 2026 fiscal year running about 25% below the prior year’s monthly pace.
What California FAIR Plan Insurance Covers (and What It Doesn’t)
The single most important thing to understand is that a FAIR Plan dwelling policy is a named peril policy. It pays only for damage caused by the specific events listed in the policy. A standard homeowners policy (often called an HO-3) works the other way around for the structure, covering everything except what it excludes.
The three core perils
According to the FAIR Plan’s Dwelling page and its sample dwelling policy form (edition CFP 00 01, 05/2026), the base policy covers:
- Fire or lightning
- Internal explosion, meaning an explosion inside the dwelling or another covered structure
- Smoke, which the current form defines to include airborne or wind-driven combustion by-products such as soot, ash and char, while excluding smoke from fireplaces, barbecues, fire pits and similar intentional sources
That smoke definition matters in wildfire country. Smoke and ash from a nearby fire can damage a home that never burns, and the current form spells out that this kind of airborne residue is part of the covered peril.
Optional add-ons you pay extra for
The same policy form lists optional coverages that apply only if they are checked on your declarations page:
- Extended Coverage, which adds windstorm or hail, general explosion, riot or civil commotion, aircraft, vehicles, and volcanic eruption
- Vandalism or Malicious Mischief, which covers deliberate damage but specifically excludes theft and pilferage, and does not apply if the home has been vacant or unoccupied for more than 30 days in a row
- Dwelling Replacement Cost and Personal Property Replacement Cost
- Ordinance or Law, which helps pay the extra cost of rebuilding to current building codes
- Higher limits for other structures, fair rental value and debris removal
Built-in limits worth reading twice
Several coverages are carved out of your main dwelling limit rather than added on top of it. Under the 05/2026 form, you may use up to 10% of your dwelling (Coverage A) limit for detached structures such as a garage or shed, and up to 10% of Coverage A for “Fair Rental Value.” Any money paid under those items reduces what’s left for the house itself unless you buy separate limits.
Fair Rental Value is the FAIR Plan’s version of loss-of-use coverage, but it is narrower than what most homeowners are used to. The form pays the rental value of the damaged part of the home and caps payments at one-twelfth of that coverage for each month the home is unlivable. United Policyholders, a nonprofit consumer group, points out that a standard homeowners policy’s “additional living expense” coverage typically also pays extra costs such as meals and mileage, which a FAIR Plan policy does not.
Actual cash value vs. replacement cost
Unless you buy the replacement cost option, the FAIR Plan settles dwelling claims at actual cash value. The current form is blunt about what that means for a total loss: it pays the actual cash value before the loss as measured by the fair market value of the covered property, up to the limit. For partial losses it pays repair cost minus depreciation.
For a 1970s house in East County, the gap between that figure and the real cost of rebuilding can be large. The replacement cost option pays to rebuild without deducting depreciation, but only in full if you insure the home for at least 80% of its full rebuild cost. After a declared state of emergency, the form gives you 24 months from the first payment to complete rebuilding and claim the replacement cost difference.
What’s excluded
The base policy does not cover earthquake, flood or surface water, sewer backup, water seeping through foundations, theft, or personal liability. The FAIR Plan does not sell liability coverage at all. The policy form also sets a one-year deadline to file a lawsuit after a loss, which is worth knowing if a claim goes badly.
| Coverage | FAIR Plan base policy | FAIR Plan optional add-on | Usually needs a DIC or other policy | Typical standard HO-3 |
|---|---|---|---|---|
| Fire, lightning, smoke | Yes | — | — | Yes |
| Wind and hail | No | Yes (Extended Coverage) | — | Yes |
| Vandalism | No | Yes (VMM) | — | Yes |
| Theft | No | No | Yes | Yes |
| Burst pipe / sudden water damage | No | No | Yes | Yes |
| Personal liability | No | No | Yes | Yes |
| Loss of use | Limited (Fair Rental Value) | Higher limit | Often | Yes (broader) |
| Replacement cost on the house | No (actual cash value) | Yes | — | Usually |
| Earthquake | No | Via CEA policy | CEA or private quake policy | No (separate policy) |
| Flood | No | No | Separate flood policy | No (separate policy) |
Sources: California FAIR Plan dwelling page and sample Dwelling Property Policy (CFP 00 01, 05/2026); California FAIR Plan DIC and Earthquake pages. Coverage depends on the exact policy; a licensed broker can confirm what yours includes.
Earthquake coverage through the FAIR Plan
San Diego sits in earthquake country, and a fire policy won’t touch quake damage. The FAIR Plan’s Earthquake page explains that, as a participating company of the California Earthquake Authority (CEA), it can sell CEA earthquake coverage to customers who already hold a FAIR Plan dwelling policy. It does not sell a stand-alone earthquake policy.
The DIC Policy: How People Fill the Gaps
A Difference in Conditions policy is a separate policy from a separate company, built to sit alongside a FAIR Plan policy. According to the FAIR Plan, DIC policies add coverages it doesn’t offer, such as water damage, theft and liability, so the two together look more like a full homeowners policy. The FAIR Plan itself does not sell DIC policies.
Where to find one
CDI maintains a public list of insurers that sell DIC products designed to pair with a FAIR Plan policy. When checked for this article, the list included companies such as Mercury’s California Automobile Insurance Company, CSAA Insurance Exchange, Farmers Insurance Exchange, Nationwide, Pacific Specialty, Travelers’ Standard Fire Insurance Company and Foremost, among others. The list changes, so it’s worth checking directly.
The gap between two policies
The risk with a two-policy setup is that something falls between them. United Policyholders suggests comparing how each policy defines covered perils and exclusions, making sure the DIC’s wording complements the FAIR Plan’s, and checking whether the DIC has a coinsurance clause that could reduce a claim if the home is underinsured. Many people in this situation ask a broker to lay the two policies side by side before binding either one.
What the FAIR Plan Costs in 2026
There’s no single price. Premiums depend on location, wildfire exposure, rebuild value, construction, roof type, deductible and which add-ons you choose.
The 29.1% rate increase
In September 2025 the FAIR Plan asked CDI for a 35.8% average increase on dwelling policies. As reported by KQED and by the Orange County Register (republished by InsuranceNewsNet), CDI approved a 29.1% average increase instead, effective October 15, 2026, for new and renewing policies. The increase applies at your renewal date on or after that day, not retroactively.
That 29.1% is an average. A FAIR Plan spokesperson told the Register that the largest part of the increase falls on the wildfire portion of premiums, so homes with significant wildfire risk will see bigger jumps and some lower-risk policyholders will see decreases. KQED reported that some customers will see the wildfire portion of their premium double.
For context, the FAIR Plan’s January 2026 presentation shows its two previous dwelling rate filings were cut back sharply: a 48.8% request was approved at 15.7% in September 2023, and a 40.8% request was approved at 15.6% in 2021.
What an “average” FAIR Plan premium looks like, and why sources disagree
You’ll see different average premium figures quoted online. They differ mainly because of what they include and when they were measured.
| Figure | Source | What it measures |
|---|---|---|
| About $2,930 per policy per year | Calculated for this article from California FAIR Plan Key Statistics ($2.04 billion written premium ÷ 696,562 policies, June 2026) | A blended ballpark across residential, commercial and business owner’s policies; not the average for a single-family home |
| About $3,000–$3,200 per year | Latent Insurance Services, a California brokerage, citing September 2025 data | A statewide residential average before the October 2026 increase |
| About $5,000–$12,000 per year | Latent Insurance Services, based on its 2025–2026 brokerage portfolio | “Typical” range it reports for San Diego backcountry homes such as Ramona and Julian; a broker estimate, not official data |
The official FAIR Plan numbers mix very different policy types, which pulls the blended figure around. The broker figures focus on homes but come from a single brokerage’s experience and predate the new rates. Neither will tell you what your own renewal will be. Only a quote on your address can do that.
Payment plans and fees
The FAIR Plan’s Payment Plan Option page lists three plans. Be careful with secondary sources here; at least one broker guide we reviewed described payment options that don’t match the FAIR Plan’s own page.
| Plan | How it works | Installment fee (dwelling policies) |
|---|---|---|
| Full Pay | One payment of the annual premium | None |
| Triannual (3-Pay) | 40%, then 30%, then 30% | $4.50 per installment |
| Monthly (11-Pay) | 16.67% up front, then 10 equal payments | $4.50 per installment |
The page also notes no processing fee for ACH bank payments, a 3.5% third-party fee for credit or debit cards, and a $25 fee for a returned payment. Autopay is available for eligible policies if you opt in to emailed billing.
Wildfire hardening discounts
For dwelling and commercial policies with an effective date of November 15, 2025 or later, the FAIR Plan offers up to 12 wildfire-mitigation discounts, applied to the wildfire portion of the premium. According to its discount flyer, a dwelling policyholder who earns all 12 may see up to 16.4% off that wildfire portion. The discounts fall into four groups:
- Community: the home is in a Firewise USA site in good standing or a Board of Forestry Fire Risk Reduction Community
- Immediate surroundings: clearing under decks, clearing combustibles within five feet of the house, noncombustible fences and gates within five feet, sheds moved away from the house, and trimmed trees and defensible space that complies with state and local law
- Structure: a Class A fire-rated roof, enclosed eaves, ember- and fire-resistant vents, multi-paned windows or shutters, and six inches of noncombustible material at the base of exterior walls
- Completion: an extra discount for meeting all 10 surroundings and structure items
The FAIR Plan in San Diego County
San Diego’s mix of coastal canyons, inland mesas and brush-covered backcountry makes the FAIR Plan a local issue, not just a Sierra foothills story.
How fast it’s grown here
The FAIR Plan’s county-level report counts residential, commercial and business owner’s policies at each fiscal year end (September 30).
| Date | FAIR Plan policies in San Diego County | Change from prior year |
|---|---|---|
| Sept. 30, 2021 | 12,326 | — |
| Sept. 30, 2022 | 16,009 | +30% |
| Sept. 30, 2023 | 22,172 | +38% |
| Sept. 30, 2024 | 37,375 | +69% |
| Sept. 30, 2025 | 59,063 | +58% |
Source: California FAIR Plan, Policy Growth by Fiscal Year, Data by County (figures as of 09/30/2025).
That’s close to a five-fold increase in four years. You may see slightly different historical numbers elsewhere. KPBS reported in 2024, citing CDI data, that San Diego County FAIR Plan policies rose from 5,385 in 2018 to 16,679 in 2022. The FAIR Plan’s own report shows 16,009 at September 30, 2022. The gap likely comes from different reporting periods and categories (CDI’s figures versus the FAIR Plan’s fiscal-year counts that include commercial policies), so it’s best to compare numbers only within the same source.
Where the pressure is heaviest
Local brokers consistently point to the backcountry and wildland-urban interface: Ramona, Julian, Alpine, Jamul, Descanso, Pine Valley, Valley Center and Fallbrook, plus canyon-edge suburbs such as Scripps Ranch, Rancho Bernardo and Poway that burned in 2003 and 2007. That’s a pattern described by brokers, not an official ranking. The FAIR Plan publishes ZIP-code-level policy counts on its Key Statistics page if you want to check your own area.
KPBS’s 2024 reporting put a face on it. An Alpine couple who had paid about $1,500 a year with a private insurer, and had spent upward of $60,000 hardening their home, ended up on the FAIR Plan at roughly $5,500 a year. A local real estate broker told KPBS that up to a quarter of his office’s escrows in high-risk areas had fallen through over insurance problems.
The 2025 fire hazard maps
Fire hazard severity zones help shape how insurers view a property and what defensible-space rules apply. The City of San Diego adopted the State Fire Marshal’s updated 2025 Local Responsibility Area fire hazard map by ordinance, effective August 30, 2025. Under state law, the city could add areas or raise hazard levels but could not lower what the State Fire Marshal recommended. The city’s map viewer lets you look up your address.
Buying a home in a fire-prone ZIP
Your lender will require proof of insurance before closing. In high-risk areas, many buyers in this situation start getting insurance quotes as soon as an offer is accepted, or even before, because finding coverage and a DIC policy can take time. The FAIR Plan premium also feeds into your monthly payment if it’s paid through an escrow account.
Worked Examples: Two San Diego Households
These examples use realistic but hypothetical numbers to show how the pieces fit together. Your own figures will differ, and a licensed broker can tell you what applies to your property.
Example 1: A Ramona homeowner facing the October 2026 renewal
Maria owns a 1990s single-story house in Ramona. A contractor estimates the rebuild cost at $750,000. Her current FAIR Plan premium, with Extended Coverage, is $5,600 a year, and her renewal date is November 1, 2026.
Step 1: The rate increase. If her renewal lands exactly on the 29.1% average, the premium becomes about $7,230. Because she’s in a high wildfire-risk area, her real increase could be higher, since the increase is concentrated in the wildfire portion.
Step 2: Hardening discounts. Suppose the wildfire portion is 75% of her premium, or about $5,420. (That split is an assumption for illustration; the FAIR Plan doesn’t publish a standard ratio.) If she qualified for all 12 discounts, the maximum 16.4% would cut about $890, bringing the premium to roughly $6,340.
Step 3: The DIC policy. Latent Insurance Services estimates DIC policies typically add 25% to 60% of the FAIR Plan premium. On $6,340, that’s roughly $1,590 to $3,800.
| Item | Low estimate | High estimate |
|---|---|---|
| FAIR Plan after 29.1% average increase | $7,230 | $7,230 |
| Maximum hardening discount (illustrative) | –$890 | –$890 |
| FAIR Plan premium after discounts | $6,340 | $6,340 |
| DIC policy (broker estimate, 25%–60%) | $1,590 | $3,800 |
| Estimated total per year | $7,930 | $10,140 |
Step 4: Cash flow. On the 11-pay plan, her first payment would be about $1,057 (16.67%), followed by ten payments of about $528, plus $4.50 per installment. Paying in full avoids the installment fees.
Step 5: The coverage check. With $750,000 of Coverage A, the built-in Fair Rental Value would be up to $75,000, paid at no more than $6,250 a month. If she buys replacement cost coverage, she needs to insure at least 80% of rebuild cost, or $600,000, to get full replacement cost on a partial loss. Many owners in her position also look at whether Ordinance or Law coverage is worth adding, since the base policy excludes code-upgrade costs.
Example 2: A Clairemont landlord with a lower-risk rental
David owns a rental house in Clairemont that backs onto a canyon. His private insurer left the market, and he’s now on the FAIR Plan at $2,400 a year. The home is not in a high wildfire zone.
Because the increase is weighted toward wildfire risk, his renewal could land below the average. If it matched the 29.1% average, he’d pay about $3,100. If his area is re-rated downward, he could pay less; a 10% decrease would bring it to $2,160. Only his renewal notice will tell him which.
As a landlord, David cares about rental income. With $650,000 of Coverage A, the built-in Fair Rental Value provides up to $65,000, or about $5,400 a month at most, which would cover his $3,500 monthly rent while repairs are underway. The policy pays fair rental value minus expenses that stop while the home is empty. He’d still need liability coverage, typically through a DIC or landlord policy, since the FAIR Plan provides none.
When You Need the FAIR Plan (and When You Don’t)
The FAIR Plan describes itself as a temporary safety net. Its How to Apply page says a broker should first do a diligent search of the regular market, and that if coverage is available there, the FAIR Plan isn’t the right fit.
Signs the FAIR Plan may be your best available option
- You’ve been non-renewed and several brokers can’t place you with a regular (admitted) insurer or a surplus lines company
- You’re buying in a high-risk area and need proof of fire coverage to close escrow
- Your home is hard to place for another reason, such as a vacant property (the dwelling policy covers vacant homes for up to one year, according to the FAIR Plan’s 2026 presentation)
Options to check first
The FAIR Plan’s own presentation lays out the order: first the admitted market (118 insurers, by its count), then surplus lines companies (132), then the FAIR Plan. Admitted insurers are licensed and rate-regulated in California. Surplus lines insurers can write risks admitted insurers won’t, often with less regulation and different policy terms. High-value homes may fit specialty programs.
The regular market is also shifting. CDI reported in May 2026 that Farmers eliminated its monthly cap on new homeowners business and is marketing to at least 300,000 policyholders in wildfire-distressed areas. CDI also listed Mercury, CSAA, USAA, AAA of Southern California, Travelers, Horace Mann, Pacific Specialty and California Casualty as companies that have filed or committed under the state’s Sustainable Insurance Strategy.
If you just got a non-renewal notice
Read the expiration date first. Then check whether you’re protected by a moratorium. Under Senate Bill 824, after the Governor declares a wildfire emergency, CDI identifies ZIP codes in or next to the fire perimeter, and insurers can’t cancel or non-renew residential policies there because of wildfire risk for one year. CDI’s moratorium page lists the fires and ZIP codes covered. If your ZIP is on it and you received a non-renewal, CDI says to contact your insurer and, if needed, file a Request for Assistance.
How to Apply for the FAIR Plan, Step by Step
1. Find a licensed broker registered with the FAIR Plan
FAIR Plan customer service staff can’t legally advise you on coverages or limits. You apply through a licensed broker, and the FAIR Plan says there’s no extra cost for using one. Not every broker is registered with the FAIR Plan, and CDI’s online tool lets you look brokers up.
2. Let the broker search the regular market
Ask the broker to show you what they checked. Many people in this situation contact more than one broker, which the FAIR Plan itself suggests.
3. Set your own limits
The FAIR Plan says clearly that it does not estimate your home’s value or rebuild cost; that’s your responsibility with the broker’s help. A current rebuild-cost estimate from a contractor or appraiser is a common starting point.
4. Choose add-ons and a deductible
Decide on Extended Coverage, vandalism, replacement cost, Ordinance or Law, and higher limits for other structures or Fair Rental Value. Your lender may require certain coverages.
5. Line up the DIC, earthquake and flood policies
Try to bind the DIC at the same time as the FAIR Plan policy so there’s no gap. Earthquake coverage can be added through the FAIR Plan’s CEA partnership, and flood insurance is a separate policy.
6. Document hardening for discounts
Photos, receipts and inspection records for your roof, vents, defensible space and Firewise status support discount requests. Your broker submits them.
Common Mistakes to Avoid
- Treating the FAIR Plan as full homeowners insurance. Without a DIC or similar coverage, you have no liability protection and no theft or water damage coverage.
- Staying on actual cash value by default. For a total loss, the base policy pays based on fair market value of the covered property, which can fall well short of rebuild cost.
- Under-insuring to save premium. The replacement cost option works fully only if you insure at least 80% of rebuild cost, and the policy form says choosing adequate limits is your responsibility.
- Assuming Fair Rental Value works like standard loss-of-use coverage. It’s capped monthly and narrower in scope.
- Letting two policies overlap badly. Compare the FAIR Plan and DIC wording side by side.
- Forgetting earthquake and flood. Neither is covered by the FAIR Plan or most DIC policies.
- Never shopping again. United Policyholders urges FAIR Plan customers to keep checking the private market, and the market is changing month to month.
Ways to Lower What You Pay
Harden the home and document it
The FAIR Plan’s 12 discounts reward work many people are already doing: a Class A roof, ember-resistant vents, a clear five-foot zone around the house. The same improvements can also make a property more attractive to regular insurers.
Adjust the deductible thoughtfully
A higher deductible generally lowers premium. The trade-off is more out-of-pocket cost when you claim, so it helps to keep that amount in savings.
Pay in full or by ACH
Full payment avoids the $4.50 installment fees, and ACH avoids the 3.5% card fee.
Re-shop every renewal
With more insurers filing to expand under the Sustainable Insurance Strategy, a quote that didn’t exist last year might exist now. Starting 60 to 90 days before renewal gives a broker time to look.
Right-size, don’t guess
An accurate rebuild estimate helps you avoid both under-insuring and paying for coverage you can’t use.
What’s Changing: Rules and Bills to Watch
The October 15, 2026 rate change. It applies at each policy’s renewal on or after that date, so check your renewal notice carefully.
AB 1680, the “Make It FAIR Act.” Announced by Commissioner Lara and Assemblymember Lisa Calderon in February 2026, the bill aims to strengthen CDI oversight of the FAIR Plan and its claims handling. According to reporting by Houseberry, it passed the Senate 39–0 on August 31, 2026 and was awaiting action by the Governor, who has until September 30, 2026 to sign or veto. It was not yet law when this article was written.
SB 1301. The same report describes a bill that would require 90 days’ notice before a homeowners policy is non-renewed and give owners time to fix correctable issues, with most provisions operative January 1, 2028 if enacted. Its status should also be checked after September 30.
Market depopulation. CDI says it will keep publishing FAIR Plan growth data to track whether homeowners are moving back to the regular market.
Frequently Asked Questions
Is the California FAIR Plan a government program?
No. It was created by state law and is regulated by the California Department of Insurance, but it is a not-for-profit association of all licensed property insurers in California. It is not a state agency and is not funded by taxpayers. It is funded mainly by premiums, backed by reinsurance and, if needed, assessments on member insurers.
What does the California FAIR Plan cover?
The base dwelling policy covers fire, lightning, internal explosion and smoke. Optional add-ons include wind and hail, vandalism, replacement cost, ordinance or law coverage, and higher limits for other structures and fair rental value. It does not cover liability, theft, most water damage, earthquake or flood. Many owners add a separate DIC policy for the missing coverages.
How much does the California FAIR Plan cost?
It depends heavily on location, wildfire risk and home value. Official FAIR Plan data works out to roughly $2,930 per policy across all policy types in June 2026. One California brokerage reports typical backcountry San Diego home premiums of $5,000 to $12,000. A 29.1% average increase applies to renewals from October 15, 2026.
When does the 2026 FAIR Plan rate increase take effect?
The California Department of Insurance approved a 29.1% average dwelling rate increase effective October 15, 2026, for new and renewing policies. It applies at your renewal date on or after October 15. High wildfire-risk homes will generally see larger increases, while some lower-risk policyholders may see decreases.
Do I need a DIC policy with the FAIR Plan?
It isn’t legally required, but without one you have no liability, theft or most water damage coverage. The FAIR Plan says DIC policies are designed to combine with its policy to resemble a full homeowners policy. The California Department of Insurance keeps a list of insurers that sell them. A licensed broker can tell you whether a DIC fits your situation.
Can I apply to the FAIR Plan directly?
You apply through a licensed insurance broker registered with the FAIR Plan. FAIR Plan staff can’t advise you on coverage or limits. The FAIR Plan says there is no additional cost for using a broker and suggests contacting more than one broker to see if regular insurers can cover you first.
What is the maximum coverage limit on a FAIR Plan policy?
The residential dwelling fire policy has a $3 million policy limit. Commercial policies have a $20 million limit per building and up to $100 million per location, according to the FAIR Plan’s January 2026 presentation to the Assembly Insurance Committee. Homes worth more to rebuild may need additional coverage from another insurer.
Does the FAIR Plan cover earthquake damage?
No, the dwelling policy excludes earthquake. However, the FAIR Plan participates in the California Earthquake Authority and can sell a separate CEA earthquake policy to customers who already have a FAIR Plan dwelling policy. It does not sell a stand-alone earthquake policy to people without FAIR Plan coverage.
Can I get off the FAIR Plan later?
Yes. The FAIR Plan calls itself a temporary safety net, and nothing stops you from switching when a regular insurer offers coverage. CDI reports several major insurers have committed to write more policies in wildfire-distressed areas. Many policyholders ask a broker to re-shop the market before every renewal.
What discounts does the FAIR Plan offer?
Dwelling policies effective November 15, 2025 or later can earn up to 12 wildfire-hardening discounts, including for a Class A roof, ember-resistant vents, enclosed eaves, cleared five-foot zones and Firewise USA community status. Earning all 12 may cut up to 16.4% off the wildfire portion of the premium.
The Bottom Line on California FAIR Plan Insurance
California FAIR Plan insurance does one job: it keeps a home insured against fire when the regular market won’t. It does that job with narrow coverage, actual cash value settlements unless you pay for more, and premiums that are rising, especially in the San Diego backcountry. For most households, it works best as one piece of a plan that also includes a DIC policy, earthquake and flood coverage where needed, and a standing habit of re-shopping.
A sensible next step is to pull out your current declarations page, get a fresh rebuild-cost estimate, and ask a licensed broker to quote both the regular market and a full FAIR Plan-plus-DIC package before your next renewal. A licensed agent or broker can tell you which options apply to your property.
Sources
- California FAIR Plan Association. “Key Statistics & Data.” https://www.cfpnet.com/key-statistics-data/ (accessed September 21, 2026)
- California FAIR Plan Association. “Policy Growth by Fiscal Year (Residential, Commercial and BOP Lines), Data by County.” https://www.cfpnet.com/wp-content/uploads/2025/11/CFP-5-yr-PIF-County-FY25-All-251114.pdf (accessed September 21, 2026)
- California FAIR Plan Association. “Dwelling.” https://www.cfpnet.com/policies/dwelling/ (accessed September 21, 2026)
- California FAIR Plan Association. “Dwelling Property Policy, sample form CFP 00 01 (05/2026).” https://www.cfpnet.com/wp-content/uploads/2026/01/Dwelling-Fire-Policy_effective-3-17-26.pdf (accessed September 21, 2026)
- California FAIR Plan Association. “Difference in Conditions (DIC).” https://www.cfpnet.com/difference-in-conditions-dic/ (accessed September 21, 2026)
- California FAIR Plan Association. “Earthquake.” https://www.cfpnet.com/policies/earthquake/ (accessed September 21, 2026)
- California FAIR Plan Association. “How to Apply.” https://www.cfpnet.com/how-to-apply/ (accessed September 21, 2026)
- California FAIR Plan Association. “Payment Plan Option.” https://www.cfpnet.com/payment-plan-option/ (accessed September 21, 2026)
- California FAIR Plan Association. “Wildfire Hardening Discounts for Dwelling Fire & Commercial Policies.” https://www.cfpnet.com/wp-content/uploads/2025/11/Wildfire-Hardening-Discounts-for-Dwelling-Fire-Commercial-Policies-2025.11.15.pdf (accessed September 21, 2026)
- California State Assembly Insurance Committee. “California FAIR Plan Update, presented by Victoria Roach, President (January 28, 2026).” https://ains.assembly.ca.gov/system/files/2026-01/fair-plan-oversight-hearing-powerpoint.pdf (accessed September 21, 2026)
- California Department of Insurance. “List of Insurers that Sell Difference in Conditions (DIC) Policies.” https://www.insurance.ca.gov/01-consumers/105-type/5-residential/carriersDICpolicies.cfm (accessed September 21, 2026)
- California Department of Insurance. “Mandatory One Year Moratorium on Non-Renewals.” https://www.insurance.ca.gov/01-consumers/140-catastrophes/MandatoryOneYearMoratoriumNonRenewals.cfm (accessed September 21, 2026)
- California Department of Insurance. “California’s second largest home insurer joins Sustainable Insurance Strategy” (May 12, 2026). https://www.insurance.ca.gov/0400-news/0102-alerts/2026/California-s-second-largest-home-insurer.cfm (accessed September 21, 2026)
- KQED. “California FAIR Plan Announces 29.1% Rate Hike for Homeowners This Fall” (August 11, 2026). https://www.kqed.org/news/12094860/california-fair-plan-announces-29-1-rate-hike-for-homeowners-this-fall (accessed September 21, 2026)
- InsuranceNewsNet (Orange County Register). “California FAIR Plan rates going up 29.1% in late 2026” (May 20, 2026). https://insurancenewsnet.com/oarticle/california-fair-plan-rates-going-up-29-1-in-late-2026 (accessed September 21, 2026)
- KPBS. “Home insurance crisis forcing thousands of San Diego homeowners onto costly FAIR Plan” (April 25, 2024). https://www.kpbs.org/news/economy/2024/04/25/california-insurance-crisis-san-diego-homeowners-fair-plan (accessed September 21, 2026)
- City of San Diego Fire-Rescue Department. “Local Responsibility Areas (LRA) 2025 Updated FHSZ Map – Effective August 30, 2025.” https://www.sandiego.gov/fire/community-risk-reduction/fire-zone-map (accessed September 21, 2026)
- United Policyholders. “The lowdown from UP on the California FAIR Plan, the last resort option for insuring your home.” https://uphelp.org/buying-tips/the-lowdown-from-up-on-the-california-fair-plan-the-last-resort-option-for-insuring-your-home/ (accessed September 21, 2026)
- Latent Insurance Services. “California FAIR Plan Cost: 2026 Premium Guide.” https://www.latentinsure.com/california-fair-plan/cost (accessed September 21, 2026)
- Houseberry. “Eleven Housing Bills Now Sit With Newsom Until September 30” (September 2, 2026). https://www.houseberry.com/blog/california-housing-bills-newsom-september-30/ (accessed September 21, 2026)
Disclaimer
Disclaimer: This article is for general information and educational purposes only. It is based on publicly available information believed to be accurate at the time of writing, and rates, rules, products and eligibility requirements change frequently. It is not financial, insurance, tax or legal advice, and no advisor-client relationship is created by reading it. We are not licensed financial advisors, insurance agents, tax preparers or attorneys, and nothing here is a recommendation to buy, sell or hold any product, policy or security. Your own situation is different from the examples used here, so please consult a licensed financial advisor, insurance agent, tax professional or attorney before making any decision. We make no warranty as to the accuracy or completeness of the information and accept no liability for any loss arising from its use. Some links may be to third-party sites we do not control.
Internal Link Ideas
- Homeowners insurance in San Diego: average costs by ZIP code (link from “What the FAIR Plan Costs in 2026”)
- Earthquake insurance in San Diego: CEA vs. private policies (link from “Earthquake coverage through the FAIR Plan”)
- Flood insurance in San Diego: do you need it outside a flood zone? (link from “What’s excluded”)
- Non-renewed by your home insurer? A San Diego action plan (link from “If you just got a non-renewal notice”)
- Home hardening in San Diego: costs, Zone 0 and insurance discounts (link from “Wildfire hardening discounts”)
External Authoritative Links
- California FAIR Plan, Key Statistics & Data: https://www.cfpnet.com/key-statistics-data/
- California Department of Insurance, List of Insurers that Sell DIC Policies: https://www.insurance.ca.gov/01-consumers/105-type/5-residential/carriersDICpolicies.cfm
- California Department of Insurance, Mandatory One Year Moratorium on Non-Renewals: https://www.insurance.ca.gov/01-consumers/140-catastrophes/MandatoryOneYearMoratoriumNonRenewals.cfm