California Fair Plan

Finding homeowners insurance can be difficult for California residents

Many will need to rely on California’s high-risk pool, known as the FAIR Plan.  Created by the Governor and Legislature, the FAIR Plan is a private association whose day-to-day operations are controlled and funded by various insurance companies, not taxpayers.  The FAIR Plan is available to California residents and businesses in urban and rural areas who cannot obtain insurance through a regular insurance company or through the standard channels.   FAIR Plan coverage was created and exists to allow all California homeowners and businesses to have access to basic fire insurance protection.

The FAIR Plan covers property damage due to fire, lightning, smoke, or internal explosions. You can also purchase optional extended coverage for windstorms, hail, explosions, riots, aircraft, or vehicles, as well as coverage for vandalism or malicious mischief.  Coverage can also be purchased for other types of structures, like storage sheds, farm buildings, and various types of commercial structures.

Keep in mind that although these policies are accessible to all, a Fair Plan policy covers less than a traditional homeowners’ or property insurance policy.  These varying coverage types and coverage extensions are just a couple of new reasons why working with your broker to understand where you have coverage, and where there might be a coverage gap, has become paramount for insured around California.

In many cases we have access to additional coverage types and policies that can bridge most coverage gaps.   It is important to note that insurance regulations and policies can change over time, so it is always a good idea to check with the California FAIR Plan Association or a licensed insurance agent to get the most up-to-date information on coverage options and requirements.

If you think a Fair Plan policy is required for your property, please reach out to our team and we will talk through your options.