California FAIR Plan Fire Insurance: What “Fire-Only” Really Covers

Named-peril, not all-risk

A standard homeowners policy is often written to cover most causes of loss unless excluded. The FAIR Plan’s dwelling policy works the other way: per the FAIR Plan’s own page it is “a named peril policy, which provides coverage only for damage caused by the specific causes of loss listed in the policy.” If a cause of loss isn’t named, it isn’t covered.

The perils listed

• Fire and lightning
• Internal explosion
• Smoke

The FAIR Plan adds that optional coverages, such as vandalism and malicious mischief, are available for an additional cost.

What to plan for

Theft, water damage, liability and loss-of-use/additional living expenses are not listed on the dwelling page. We are not saying they can never be added — only that they aren’t among the listed perils, so read the policy form and ask your broker. The California Department of Insurance recommends that people who want broader protection look at Difference in Conditions (DIC) coverage from separate insurers. The FAIR Plan itself also mentions DIC, flood and earthquake policies as supplements.

Costs and next steps

Because coverage is basic, the real-world cost is often the FAIR Plan premium plus a DIC policy. Our FAIR Plan + DIC calculator lets you estimate the combined cost, and our quote guide explains how the pieces fit.