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California FAIR Plan
In a state where wildfires are both seasonal and unpredictable, many Californians find themselves caught between their location and their ability to get reliable homeowners insurance. This is where the California FAIR Plan comes in. It is a safety net for those turned away by traditional insurers. CA Fair Plan is not a California program, however, it is only for CA properties. This program is not mandated. The Fair Plan is funded by all the home insurance carriers in CA. Each carrier puts in a % based on their size. There is no state or federal funding. It’s almost like a co-op. Peterson & Grantham Insurance Brokers has extensive experience with the CA FAIR Plan.
The California FAIR Plan (Fair Access to Insurance Requirements) is a state-mandated insurance program designed to provide basic fire coverage to property owners who can’t obtain insurance through the traditional market—often due to wildfire risk or location
What’s Covered in California FAIR Plan?
The FAIR Plan provides basic coverage only, which means it covers:
- Fire
- Lightning
- Smoke damage
- Internal explosion
However, it does not include:
- Liability
- Theft
- Water damage
- Falling objects
- Personal property
This gap leads many homeowners to purchase a Difference in Conditions (DIC) policy to round out their protection.
Legal Update: Smoke Damage Redefined
A major legal update has broadened what qualifies as “smoke damage.” Now, lab results indicating microscopic or chemical traces of smoke—even without visible signs—can validate a claim. This shift could mean greater access to coverage but also possible increases in premiums moving forward.
If you’ve received rejection letters from insurers or live in a ZIP code routinely flagged for wildfire risk, the FAIR Plan might be the only viable path to protecting your home. It offers peace of mind—but only if paired wisely with supplemental coverage.
Home Insurance Claims
Our insurance policies are tailored to provide Californians basic fire coverage when this coverage is not available from a traditional carrier. Despite widespread misconceptions, the FAIR Plan is not a government- or taxpayer-funded program. Instead, it’s supported by all carriers licensed to operate in California, creating a shared pool. This structure ensures that every insurer bears a portion of the financial exposure, allowing homeowners in high-risk areas access to essential fire insurance coverage.
Walking through the essential building blocks of a solid policy is something every homeowner should do. That’s where P&G Insurance Brokers. We can help you to determine what coverages are important for your home in the Roseville area.
Final Thoughts
The California FAIR Plan isn’t perfect, but for thousands of homeowners, it’s the difference between being insured and being exposed. If you’re considering it, make sure to work with an experienced broker who can help layer the right DIC coverage on top.
If you are not sure if you have the correct homeowners insurance, give us a call. Let’s make sure you have the right insurance in place first! P&G in Roseville is here to help. Contact us today by clicking HERE. Follow us on Facebook for news updates and specials.
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How the FAIR Plan and a Difference in Conditions Policy Work Together
The FAIR Plan is a strong tool, but it is only half of a full home policy. On its own, it covers fire and a few related perils. It leaves out liability, theft, water damage, and more. That is why most homeowners do not stop at the FAIR Plan.
To fill those gaps, we add a Difference in Conditions policy, often called a DIC or a wrap-around policy. The FAIR Plan handles the fire side. The DIC handles most of the rest. Put together, the two act much like a standard homeowners policy. We build both parts for you and check them for gaps, so you are not left exposed.
Who Needs the California FAIR Plan?
You may be a good fit for the FAIR Plan if any of these sound familiar. You received a non-renewal notice and cannot find a new policy on the normal market. You live in a zip code that carriers flag for wildfire risk. Your home has been turned down by more than one standard insurer. Or you bought a home and learned that the usual carriers will not cover it yet.
If that is you, the FAIR Plan may be your path to coverage. If you have a non-renewal notice in hand, start with our non-renewal help page, then call us.
How We Help With FAIR Plan Placement
Getting a FAIR Plan policy is not always simple, and the coverage it provides has real limits. Our job is to make it work for your home.
First, before we ever turn to the FAIR Plan, we shop your home to standard carriers. Many homes can still find normal coverage, which is almost always the better deal. We handle this as part of our regular homeowners insurance work.
If the standard market cannot help, we place your FAIR Plan fire policy and pair it with the right DIC policy. We handle the paperwork, line up the two policies so they fit, and review everything at renewal. When the standard market opens back up for your home, we help you move back to it. You are never stuck on the FAIR Plan longer than you need to be.
Frequently Asked Questions
What is the California FAIR Plan?
The California FAIR Plan is the state’s insurer of last resort for basic fire coverage. It exists for property owners who cannot get insurance on the normal market, often because of wildfire risk. It is not a government or taxpayer program. It is funded by all insurance companies licensed in California, which share the risk like a pool.
What does the California FAIR Plan cover?
The FAIR Plan covers basic fire perils: fire, smoke, lightning, and internal explosion. It protects the structure of your home against these risks. You can add some optional coverages, but the base policy is built around fire.
What does the FAIR Plan not cover?
On its own, the FAIR Plan does not cover liability, theft, water damage, falling objects, or personal property the way a full home policy does. Because of these gaps, most homeowners pair it with a Difference in Conditions policy to round out their protection.
Is the California FAIR Plan government funded?
No. Despite a common misunderstanding, the FAIR Plan is not funded by the state or by taxpayers. Every insurance company licensed to sell home coverage in California helps fund it, based on its size. It works like a shared pool, so high-risk homeowners still have a path to fire coverage.
How much does the California FAIR Plan cost?
The cost depends on your home’s value, location, and risk. Because the FAIR Plan is a last-resort option, it often costs more than standard coverage, and you also pay for the DIC policy that goes with it. We shop the standard market first to try to save you money, and we give you a clear quote before you commit.
Do I need a Difference in Conditions policy with the FAIR Plan?
For most homeowners, yes. The FAIR Plan alone leaves out liability, theft, and water damage. A Difference in Conditions policy fills those gaps. Together they act much like a standard home policy. If you have a mortgage, your lender may also expect this broader protection.
How do I get a California FAIR Plan policy?
You work with a licensed broker. We handle FAIR Plan placement every week. We check the standard market first, then place your FAIR Plan and DIC policies if needed, and manage both for you. Call Peterson & Grantham at (916) 431-0400 to start.
Can I leave the FAIR Plan later?
Yes. The FAIR Plan is meant to be a bridge, not a life sentence. As the market changes, standard carriers may become willing to write your home again. We recheck the market at renewal and help you move back to a standard policy when one becomes available.
Closing CTA (add or refresh at the end)
The California FAIR Plan is not perfect, but for many California homeowners it is the difference between being insured and being exposed. The key is to pair it wisely and to work with a broker who does this every day. Call Peterson & Grantham at (916) 431-0400 or request a quote. We will review your home, shop the standard market first, and build the right coverage if the FAIR Plan is your best path.