California FAIR Plan Homeowners Insurance: Do You Need a DIC Policy?
Searching for “FAIR Plan homeowners insurance” can mislead: the FAIR Plan’s dwelling policy is a basic named-peril policy, not a full homeowners package. A DIC policy is how many homeowners close the gap.
This is the short version. For the full guide — what a DIC policy covers and excludes, what it costs, who sells it, how the two-policy claims process works, and when surplus lines removes the need for one entirely — see DIC insurance in California.
What a DIC policy is
“Difference in Conditions” coverage is a separate policy, written by a different insurer, that is meant to sit alongside basic coverage and respond where the basic policy doesn’t. The FAIR Plan’s own page says “Difference in Conditions, Flood, or Earthquake policies” may supplement basic coverage for additional perils, and the California Department of Insurance tells FAIR Plan applicants who want more coverage to see its DIC page and contact the listed insurers.
Why it matters with the FAIR Plan
The FAIR Plan dwelling policy names fire and lightning, internal explosion, and smoke. Anything outside the listed perils needs another source. A DIC policy is one way homeowners — and often their mortgage lenders — fill that gap. What a given DIC policy actually covers varies by insurer, so compare the forms, not just the price.
Questions to ask a DIC insurer
- Which perils does the DIC policy cover that the FAIR Plan doesn’t — theft, water damage, liability, additional living expenses?
- How do the two policies’ deductibles interact after a fire?
- Does the DIC policy count as proof of coverage for my mortgage servicer?
- What happens at renewal if the FAIR Plan policy changes?
Budgeting for both
Plan for two premiums. Our quote guide walks through what a FAIR Plan + DIC wrap involves, and our calculator helps you estimate the combined cost before you call a broker.
Watch for changes
The California Department of Insurance has described a more comprehensive FAIR Plan residential policy as in progress; if it becomes available for your home, a separate DIC policy may overlap or become unnecessary. Check cfpnet.com and ask your broker.
Frequently asked questions
- Is the FAIR Plan a homeowners policy?
- Its dwelling policy is a named-peril policy covering the listed perils, not a full homeowners package. A DIC policy is commonly used to supplement it.
- Who sells DIC policies?
- Separate insurers; the California Department of Insurance maintains a DIC page listing companies.
- Do I have to buy a DIC policy?
- Not as a rule of the FAIR Plan, but your mortgage lender may have its own insurance requirements, so confirm with your servicer.
Next steps
Use our state guides and calculators to turn this into a plan.