What Is the California FAIR Plan? Coverage, Exclusions and Who Qualifies

What is California FAIR Plan insurance?

According to the California Department of Insurance (CDI), the FAIR Plan is a private association established more than 50 years ago to provide property insurance for Californians who can’t get coverage through regular insurers. CDI notes that although it was created by the Governor and Legislature, it is “a private association whose day-to-day operations are controlled by insurance companies, not taxpayers.” CDI reported that, as of 2020, it covered less than 3% of California residents — a share that has changed since, so check current figures with CDI or the FAIR Plan.

What the dwelling policy covers

The FAIR Plan describes its dwelling policy as “a named peril policy, which provides coverage only for damage caused by the specific causes of loss listed in the policy.” The listed perils on its dwelling page are fire and lightning, internal explosion, and smoke. Optional coverages — such as vandalism and malicious mischief — are available at additional cost.

What isn’t on the list

Theft, water damage, liability, and additional living expenses are not among the perils listed on the FAIR Plan’s dwelling page. Confirm exact policy terms with the FAIR Plan or a licensed broker before relying on any of them. Many homeowners pair the FAIR Plan with a separate “Difference in Conditions” (DIC) policy to fill these gaps — see our DIC explainer.

Does the California FAIR Plan cover wind?

Not in the base policy. Per the FAIR Plan’s dwelling policy form effective March 17, 2026, the standard policy covers fire or lightning, internal explosion and smoke. Windstorm and hail are covered only if Extended Coverages are added on your declarations page, and that wind coverage has limits. Ask your broker whether a DIC policy should fill the gaps.

Extended Coverages add windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles and volcanic eruption, and vandalism or malicious mischief is a separate option. Even with them, interior damage from rain, snow, sleet, sand or dust is covered only if wind or hail first makes an opening in the building. Source: California FAIR Plan, Dwelling Fire Policy (effective 3-17-26).

What it costs

Reported statewide averages for a FAIR Plan dwelling policy run around $3,000–$3,200 a year for fire-only coverage, and individual premiums have been reported from about $92 to over $32,000. Wildfire exposure and rebuild cost drive nearly all of that spread.

The premium is not the whole bill. Most policyholders also need a separate DIC policy, commonly estimated at a further 25% to 60% of the FAIR Plan premium. The Plan’s multi-payment plans add $4.50 per installment on Dwelling Fire policies, and paying by card adds a 3.5% third-party processing fee, while ACH has none. A “temporary supplemental fee” on a bill is not a FAIR Plan charge at all: it is a private insurer recovering its share of the FAIR Plan’s assessment. The full breakdown is in California FAIR Plan cost and rates, and the FAIR Plan calculator estimates a premium with the DIC policy included.

Pairing it with a DIC policy

A Difference in Conditions (DIC) policy is a separate policy from a separate carrier that wraps around the FAIR Plan’s fire-only policy to cover what it excludes, principally water damage, theft, personal liability and loss of use. The FAIR Plan does not sell it. The California Department of Insurance keeps a list of insurers that write DIC coverage, and you place it through a broker. Because the two are separate contracts, each has its own carrier, premium, deductible and renewal date.

Lenders often need the combination. Because a FAIR Plan dwelling policy excludes water damage, theft, liability and loss of use, many servicers will not accept it as the only policy, although Fannie Mae’s servicing guidelines do accept FAIR Plan coverage in defined circumstances. Ask your servicer what it will accept before you bind anything. More in DIC insurance in California.

Limits, and when to use it

The FAIR Plan is guaranteed-issue: if your property is eligible, it cannot decline you. Residential dwelling limits run up to $3 million per location. You apply through a licensed broker or contact the Plan directly at 800-339-4099.

It works best as a backstop. Going straight to the insurer of last resort when an admitted carrier would have written you means paying more for narrower coverage, so re-shop the admitted market and ask a broker about surplus lines first. The four markets, in the order to try them.

Who can apply

The FAIR Plan’s site lists owner-occupied dwellings of up to four units, seasonal rentals, rental dwellings of up to four units, renters’ personal property and condominium unit owners. CDI says it serves California residents and businesses “who cannot obtain insurance through a regular insurance company.” Apply through a licensed broker or contact the FAIR Plan directly (CDI lists 800-339-4099).

What’s changing

CDI’s FAIR Plan page described a more comprehensive residential policy option — adding water damage, liability, theft and additional living expenses — as “currently in progress” at the time we checked in October 2026. Check cfpnet.com for whether it is available to you before you buy.