Fire & Wildfire
California FAIR Plan
California's state-mandated insurer of last resort — a fire-only policy for homes the admitted market has declined or non-renewed.
The California FAIR Plan is a state-mandated association of licensed insurers that collectively write basic fire coverage for property owners who can't get a standard homeowners policy in the admitted market — typically because of high wildfire exposure. It exists so a home isn't literally uninsurable, not to compete with the standard market.
A FAIR Plan policy is narrower than a standard homeowners policy: it covers fire, smoke, lightning, and internal explosion, and excludes liability, theft, and water damage. Most owners pair it with a companion "Difference in Conditions" (DIC) policy to fill those gaps, and coverage is capped at $3 million combined across dwelling, other structures, and contents — anything above that goes to an excess/surplus-lines carrier.
Why it matters
- It's the fallback specifically for high-wildfire California properties the standard market is declining or non-renewing — a real signal about a property's risk profile, not just its insurance history.
- It's fire-only: budgeting the FAIR Plan premium alone understates the true cost to insure without a DIC wrap.
- There's no direct-to-consumer application — a FAIR-Plan-registered broker has to submit it, which adds a step (and often time) most buyers don't expect.
How CoverGuard uses this
A California CoverGuard Record models the combined FAIR Plan + DIC cost from the plan's published rate structure — labeled a modeled estimate, not a binding quote — for properties where the FAIR Plan is a realistic outcome.
Go deeper: read the full guide →
Where this shows up
Related terms
Wildland-Urban Interface (WUI)
The zone where homes sit adjacent to or intermixed with wildland vegetation — the geography insurers watch most closely for non-renewal.
Difference in Conditions (DIC) Policy
A supplemental policy that fills the coverage gap a narrower primary policy leaves — most commonly paired with the California FAIR Plan.
Non-Renewal
A carrier's decision not to renew a policy at its next term — distinct from a cancellation, and the leading edge of a market pulling back from a geography.
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