How Much Does the California FAIR Plan Cost?

Homeowners comparing a FAIR Plan quote against their old homeowners premium are usually comparing one line against four. Here is the whole bill.

The FAIR Plan filed for an average 35.8% dwelling fire and allied lines rate increase. Secondary sources report that the Department of Insurance approved a smaller average increase of 29.1%, effective for new and renewing policies from October 15, 2026.

Under Proposition 103, California property insurance rate changes require prior approval from the Department of Insurance. That is why FAIR Plan rate filings are public and are reported months before they reach anyone's renewal — and why the gap between what was filed (35.8%) and what was approved (reported 29.1%) exists at all.

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A temporary supplemental fee is a charge a private insurer adds to its own policyholders' bills to recover part of what it was assessed by the FAIR Plan. It is one of the most searched and most misunderstood items in California home insurance right now, so it is worth being precise.

Where it came from

After the Southern California wildfires, the FAIR Plan levied a $1 billion assessment on the insurers that fund it — its first in roughly three decades. Every insurer writing property coverage in California owes a share, based on its market share of dwelling and commercial policies from two years earlier. State Farm's share alone was reported at about $165 million.

The rules insurers must follow to pass it on

• Recovery is capped. Insurers may seek to recoup up to 50% of the assessment for amounts up to $1 billion, where not already covered by reinsurance or other reimbursement. Amounts above $1 billion may be recouped in full, on the same condition.
• CDI must approve it. Every recoupment request is filed with and approved by the Department of Insurance, under Bulletins 2024-8 and 2025-4.
• It must be itemised separately on a notice, bill or declarations page, with language explaining what it is.
• It is collected over a limited period — typically around 24 months — which is where "temporary" comes from.
• It is not treated as premium, and insurers cannot count the assessment as a loss in future rate filings.

As a published example, State Farm's filing set its fee at 1.13% of premium at each renewal for two renewal periods for homeowners and rental dwelling policies, 2.25% for one renewal period on other personal lines, and 0.26% for one renewal period on commercial policies. Other carriers filed their own figures.

The Plan prices on two things above all others: how likely the property is to burn, and how much it would cost to rebuild. That is why reported premiums span three orders of magnitude.

What raises it

• Coverage amount. Premium scales with the dwelling limit. Use rebuild cost, not market value — the Plan does not calculate this for you, and getting it wrong in either direction is costly.
• Fire-hazard severity zone and surrounding fuel. The dominant variable. CAL FIRE's zone designation, brush proximity and slope.
• Protection class. Distance to a responding fire station and to a water source.
• Construction. Roof material and age carry particular weight.
• Location by ZIP code. Published ZIP-level data shows the same coverage amount pricing very differently across the state.

What lowers it

• The wildfire mitigation discount. CDI confirms residential policyholders can receive a discount on the wildfire portion of their premium for hardening the property. It applies to that component, not the whole premium.
• Documented defensible space and home-hardening work — documented being the operative word.
• A higher deductible, chosen deliberately after checking for any separate wildfire deductible.
• An accurate rebuild figure, if your current limit was set years ago and never revisited.

The California Department of Insurance says Extended Coverage and Vandalism or Malicious Mischief can be added to a FAIR Plan policy for an additional premium. If you compare FAIR Plan quotes, check whether each one includes them — two quotes for the same house can differ simply because one carries these options. Theft and liability are not available from the FAIR Plan; those come from a separate DIC policy, which is priced on its own.

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 six perils: windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, and volcanic eruption. Vandalism or malicious mischief is a separate option. Under the form, interior damage from rain, snow, sleet, sand or dust is covered only if wind or hail first makes an opening in the building, and the vehicles peril excludes vehicles owned or operated by you or a resident of the home, and damage to fences, driveways and walks. The base policy’s explosion and smoke coverage also carry exclusions, such as electric arcing and smoke from fireplaces or agricultural operations. Source: California FAIR Plan, Dwelling Fire Policy (effective 3-17-26). What the separate wrap covers: DIC insurance in California.

No estimate is a quote. These tools help you sanity-check what a broker tells you.

• CDI’s Homeowners Insurance Comparison Tool compares general premium estimates across insurers for hypothetical homes. The tool itself warns that wildfire-related surcharges, which it says can range from 15% to over 300%, are not reflected in the premiums it shows — so treat it as a floor, not a quote, if your home is in a wildfire area.
• The FAIR Plan’s own premium calculator uses your address and construction details (linked under “Sources” below). It does not price a DIC policy.
• Our FAIR Plan premium calculator gives a budgeting range that adds an estimated DIC wrap.

Any FAIR Plan estimate — ours included — models a range from published reference data. It cannot see your parcel. The variables it cannot know are precisely the ones that matter most:

• Your exact fire-hazard severity zone designation and the fuel load around the structure
• Your protection class and distance to water
• Roof material and age, vent type, eave and siding construction
• Whether the Plan's current rates reflect the October 2026 change for your renewal date
• Any mitigation credits you qualify for

• The California FAIR Plan: eligibility, coverage and how to apply
• Finding a California FAIR Plan broker to get a real quote
• What is the California FAIR Plan? The short explainer