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Established in 1968 by statute (California Insurance Code sections 10090 et seq.), the FAIR (Fair Access to Insurance Requirements) Plan is a syndicated basic fire insurance pool comprised of all insurers licensed to conduct property/casualty business in CA.
This is not a government agency, yet a collective, private association of insurers.
Eligible properties include,
but may not be limited to:
Owner-occupied residences, both single family and multi-family
Rental properties
Seasonal rentals
Condominiums
Renters
Basic policy typically covers damages caused by:
Fire
Lightning
Internal explosion
Smoke
Examples of what is NOT covered by the FAIR plan:
Theft
Personal liability
Water damage
Earthquakes
Floods
Falling objects
To obtain additional coverage, combine the FAIR Plan with a DIC (Difference in Conditions) policy from a private insurer.
Here, the DIC “wraps around” your FAIR Plan coverage to add protection from what the FAIR Plan does not cover.
The FAIR Plan does NOT offer DIC policies.
For more information, learn more here or contact your insurance agent/broker.
A DIC includes coverage for a wider selection of instances, such as theft, and may provide liability insurance, all while typically offering coverage for landslides, mudflows, earthquakes and floods. However, not every insurer in CA offers this kind of coverage, yet here the CA Department of Insurance maintains a list of providers that offer it.
What you should pay special attention to when purchasing a DIC policy:
How covered & excluded instances are defined
How exclusions are defined
How much your home is actually insured for
Coinsurance
Most DIC policies do not have a coinsurance requirement, but it is important to either make sure it does not OR make sure you fulfill the requirement. Coinsurance is a common provision in standard home insurance forms that penalizes the insured if their asset is not insured to a specified percentage of the total value of that asset (typically 80%).
A coinsurance provision in a DIC policy could affect the amount of recovery at the time of a loss.
Homeowners should carefully assess their needs and consider supplemental policies to ensure comprehensive protection.
A FAIR Plan home insurance policy may possibly be modified with these following endorsements;
doing so will increase the cost of coverage:
Other structures coverage:
protects against covered damage to detached structures like a garage, porch, shed or fence.
Fair rental value coverage:
available for rental properties, this endorsement covers lost income if the unit is rendered unlivable due to damage sustained from a covered peril.
Dwelling replacement cost coverage:
covers the dwelling at its RCV (Replacement Cost Value);
not at its ACV (Actual Cash Value)
Personal property replacement cost coverage:
insures personal belongings at RCV, replacing items at their current replacement value without depreciation factored in.
Ordinance/law coverage:
after a covered loss, this endorsement pays to make structural upgrades to a home so it meets residential building codes.
Vandalism and malicious mischief:
financial protection if your home’s physical structure and personal belongings are damaged due to vandalism or malicious mischief or both.
Debris removal coverage:
pays to clean up debris on the property after a storm.
Inflation guard protection:
automatically raises coverage limits based on inflation, without paying out-of-pocket for more coverage.
Plants, shrubs and trees coverage:
includes up to $250 of coverage for landscaping losses.
Outdoor radio and TV equipment, awnings and signs coverage:
covers outdoor equipment, signs and awnings from covered incidents, with the exception of wind or hail storms.
Improvements, alterations and additions coverage:
available for condo owners and covers damage to improvements or alterations in your unit.
Earthquake insurance is NOT available through the FAIR Plan.
Instead, you may purchase a separate earthquake insurance policy through the California Earthquake Authority (CEA)
Flood insurance is NOT available throught the FAIR Plan.
Instead, you may purchase a separate flood insurance policy through
Similar to standard home insurance, FAIR Plan premiums vary based on a number of rating factors, including the location, construction type, age and condition of the home, its proximity to a fire station, the types and amount of coverage, and the deductibles chosen.
To obtain the most accurate quotes on the costs associated with the FAIR Plan:
please contact
a licensed insurance agent/broker
or
from the CA Department of Insurance allows you to find insurance companies and licensed insurance agents/brokers that are appointed with the CA Department of Insurance who have been identified to sell homeowners, renters, condominium, or mobile home insurance.
Additional information about Fair Plan:
FAQs About the California Fair Plan
Homeowners should carefully assess their needs and consider supplemental policies to ensure comprehensive protection.
How to apply FAIR Plan brochure
All information is deemed reliable but not guaranteed.
Buyers and sellers should conduct their own due diligence and consult with qualified professionals before making decisions.