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 proogram, 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. Its almost like a co-op. Peterson & Grantham Insurance Brokers has extensive experience with he 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. Thats where P&G Insurance Brokers in Roseville comes in. 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.