---
title: "California FAIR Plan Insurance [Updated 2026]"
description: "The California FAIR Plan is an insurer of last resort for California homeowners in high risk areas. They focus on selling basic fire coverage when other companies cannot, and provide coverage for residential and commercial property."
canonical: "https://www.coveragecat.com/reviews/california-fair-insurance"
last-updated: "2026-08-13"
---

# California FAIR Plan Insurance [Updated 2026]

### <a id="introduction"></a>Introduction to the California FAIR Plan

The California Fair Access to Insurance Requirements, or FAIR Plan was created in 1968 by the California Legislature. The FAIR Plan established a fire insurance pool of all admitted insurers in California, and issues policies on their behalf. This means that the FAIR Plan is financially supported by private insurers, not the state government or taxpayers.

Since its inception, the FAIR Plan has grown from a temporary safety net to a substantial segment of California's property insurance market. [(California Assembly, "FAIR Plan Background", 2026)](https://ains.assembly.ca.gov/system/files/2026-01/1.28.26-fair-plan-background-final.pdf) found that California FAIR Plan policies rose by 276 percent from 2018 through 2024, while premium jumped to $1.4 billion in 2024, up more than 15 times higher than the $87.2 million recorded in 2018. By September 2025, the plan's exposure rose to over $696 billion, an increase of more than 52 percent year-over-year, according to [(Artemis, "California FAIR Plan returns with $200m target for second Golden Bear Re wildfire cat bond", 2026)](https://www.artemis.bm/news/california-fair-plan-returns-with-200m-target-for-second-golden-bear-re-wildfire-cat-bond/).

### <a id="typesof"></a>What Kinds of Insurance Does the California FAIR Plan Offer?

The California FAIR Plan provides basic Dwelling Fire Policies (also known as DP-1, DP-2, and DP-3) for home and business owners. Unlike traditional homeowner's insurance policies (also known as HO-3 or HO-5) that protect against a wide range of perils, Dwelling Fire policies protect against just three named perils: **Fire & Lightning, Internal Explosion, and Smoke**. 

FAIR Plan customers can also add Earthquake coverage through the California Earthquake Authority, although the FAIR plan cannot provide standalone earthquake policies. To purchase Earthquake coverage, you must also purchase a FAIR plan. 

### <a id="sellprimary"></a>Does the California FAIR Plan Sell Homeowners Insurance?

Yes, the California FAIR Plan sells home insurance policies - but they provide significantly less coverage than a traditional HO-3 (homeowners), or HO-6 (condo) policy. A FAIR Plan policy provides **basic property insurance -** only your dwelling and personal property are automatically covered. 

According to [(California Department of Insurance, "California FAIR Plan", 2026)](https://www.insurance.ca.gov/01-consumers/200-wrr/California-FAIR-Plan.cfm), coverage limits now reach $3 million for residential policyholders and $20 million for commercial policies per location. The California Department of Insurance reports that a comprehensive residential policy option is currently in progress to cover water damage, liability, theft, and additional living expenses.

### <a id="howdoesitwork"></a>What does the California FAIR Plan cover? 

A standard California FAIR Plan policy only covers your Dwelling and Personal Property against a small number of perils: Smoke, Fire & Lightning, and Internal Explosion. It is also an Actual Cash Value (ACV) policy. A FAIR Plan policy can be modified to include more coverage, for a higher premium. Some of those endorsements include:

* Other Structures coverage 
* Fair Rental Value coverage 
* Dwelling Replacement Cost Value (RCV) coverage  
* Personal Property RCV coverage 
* Ordinance/law coverage 
* Vandalism and malicious mischief coverage 
* Debris removal coverage 
* Inflation guard protection 

Some customers also fill in the gaps left by a FAIR Plan by purchasing a **Difference in Conditions (DIC) policy**. DIC policies exclude Smoke, Fire & Lightning, and Internal Explosion, but cover other perils typically covered by an HO-3 policy and provide liability insurance. Only some carriers, like [Bamboo](/reviews/bamboo), carry DIC policies. You can also find a list of additional providers [here](https://www.insurance.ca.gov/01-consumers/105-type/5-residential/carriersDICpolicies.cfm).  

#### CA Fair Plan Vs. Traditional Home Insurance (HO-3)

| Coverage Feature | CA FAIR Plan | Traditional HO-3 Policy |
|------------------|--------------|-------------------------|
| Property Coverage Scope | Dwelling and Personal Property only | Dwelling, Other Structures, Personal Property, Loss of Use, Personal Liability, Medical Payments |
| Covered Perils | Named perils only: smoke, fire & lightning, internal explosion | Open-peril on Dwelling and Other Structures; 16 named perils on Personal Property |
| Valuation Method | Actual Cash Value (ACV) | Replacement Cost on home; ACV on Personal Property (upgrade available) |
| Liability Protection | Not included | Personal Liability and Medical Payments are standard |
| Maximum Coverage Limits | $3 million residential, $20 million commercial | Varies by carrier, often higher limits available |

**Who is eligible for the California FAIR Plan?**

The California FAIR Plan is a last-resort insurer that won't work for every customer or property. Customers must show that they've been denied coverage in the private insurance market more than once, and [can only purchase policies through a licensed insurance broker in California](https://www.cfpnet.com/find-a-broker/). [(United Policyholders, "The lowdown from UP on the California FAIR Plan", 2023)](https://uphelp.org/buying-tips/the-lowdown-from-up-on-the-california-fair-plan-the-last-resort-option-for-insuring-your-home/) confirms that any person who has made diligent but unsuccessful effort to buy home insurance can turn to the FAIR Plan.

Fair Plan Dwelling policies can cover: owner-occupied dwellings in 1-4 unit properties, seasonal rentals, rentals with 1-4 units, tenants renting an apartment or single/multi-unit building, condo unit owners. As of 2019, FAIR Plan policies can cover homes with a rebuild cost of up to $3 million.  

**Who is not eligible for the California FAIR Plan?**

The California FAIR Plan is not available to homes that are: 

* Vacant and/or unoccupied for 50 percent or more of the year. 
* Damaged, with pending repairs 
* Tied to illegal activity as defined by state and federal law

**How do you Buy a California FAIR Plan policy?**

If you've shopped for insurance for a home and can't find coverage through standard carriers, the California FAIR Plan provides an alternative option. [You can only buy FAIR Plan coverage through a licensed broker or agent](https://www.cfpnet.com/find-a-broker/).

If your broker determines you're eligible for coverage, they'll help you fill out the application, choose coverage, and determine your premium estimate. If you've upgraded your home's safety features with home-hardening or other fire mitigation, you can also qualify for discounts through the FAIR Plan. [(City of Orinda, CA, "California Fair Plan", 2026)](https://www.cityoforinda.gov/642/California-Fair-Plan) reports three wildfire-mitigation discounts: up to 5 percent Immediate Surroundings Discount, 10 percent Structure Protections Discount, and 10 percent Firewise Community Discount.

### <a id="proscons"></a>Pros And Cons of the California FAIR Plan

<div class="grid">
  <div class="column">
    <p><b>Pros</b></p>
    <ul>
      <li>Provides essential coverage for certain
      high-risk locations or for properties that other insurance
      companies won't cover.</li>
      <li>Purchasing a FAIR Plan policy can prevent
      expensive lapses in coverage if you've been dropped or
      canceled by your current carrier.</li>
      <li>Customers can upgrade their coverage through
      some endorsements, for an additional premium.</li>
      <li>Wildfire mitigation discounts are available for homeowners who harden their properties against fire risk.</li>
    </ul>
  </div>
  <div class="column">
    <p><b>Cons</b></p>
    <ul>
      <li>The California FAIR Plan is typically more
      expensive than traditional homeowners insurance.</li>
      <li>Coverage through a FAIR Plan policy is extremely
      limited with a focus on fire coverage, and no liability
      protections.</li>
      <li>Significant increases in demand have increased
      wait times for FAIR Plan applications, claims, and payment
      processing.</li>
      <li>Recent regulatory scrutiny over smoke damage claim denials and consumer protection violations.</li>
    </ul>
  </div>
</div>

### <a id="claims"></a>California FAIR Plan Claims and Recent Controversies

The January 2025 Southern California wildfires exposed significant challenges in the FAIR Plan's claims handling. [(California Department of Insurance, "Commissioner Lara takes action to ensure FAIR Plan can continue paying consumer claims after the Southern California wildfires", 2025)](https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/release015-2025.cfm) reports that the FAIR Plan received 3,469 claims from the Palisades fire and 1,325 claims from the Eaton fire as of February 2025. By February 9, 2025, the FAIR Plan had paid $914 million in claims, prompting Commissioner Ricardo Lara to approve a $1 billion assessment—the first FAIR Plan assessment in over 30 years.

More troubling, [(California Department of Insurance, "Commissioner Lara takes legal action against FAIR Plan for denying smoke damage claims", 2025)](https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/release054-2025.cfm) reveals that the California Department of Insurance received more than 220 smoke-related consumer complaints against the FAIR Plan post-January 2025 fires. Following an investigation, CDI filed an Order to Show Cause after uncovering at least 418 violations of California's consumer protection laws. In May 2025, CDI deemed the FAIR Plan's "permanent damage" policy language unlawful and unenforceable, and in July 2025, legal action including a cease and desist order with penalties was filed.

| Wildfire Event | Claims Received | Amount Paid (as of Feb 2025) | Estimated Total Exposure |
|----------------|----------------|------------------------------|--------------------------|
| Palisades Fire | 3,469 | Part of $914M total | $4 billion (combined) |
| Eaton Fire | 1,325 | Part of $914M total | $4 billion (combined) |
| **Total** | **4,794** | **$914 million** | **$4 billion** |

[(Better Business Bureau, "California FAIR Plan Association - BBB Business Profile", 2026)](https://www.bbb.org/us/ca/los-angeles/profile/insurance-consultant/california-fair-plan-association-1216-98002217) shows the organization is not BBB Accredited, with 2 complaints filed against the business that were not resolved. Customer reviews on ConsumerAffairs and BBB cite billing issues, late premium notices, and difficulty reaching customer service.


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### <a id="support"></a>Get Customer Support For Or File A Claim With The California FAIR Plan

The California FAIR Plan offers a claims form for policyholders to use [here](https://action.cfpnet.com/#/report-claim). You can also contact them M-F, 8:30 a.m. - 4:00 p.m. at (800) 339-4099 or (213) 487-0111. 

### <a id="faq"></a>Frequently Asked Questions

**Should I Buy a California FAIR Plan policy?**

Buying a California FAIR Plan policy should only be your last resort, after you've considered traditional homeowners policies. But, if you haven't been able to find coverage for your home, have a home that's temporarily difficult to insure, or just need basic fire coverage - the FAIR Plan could be your best option. The cost of a FAIR Plan policy can vary based on factors like location and coverage limits, so it's best to get a quote first. [Get home insurance quotes for FAIR Plan alternatives online](https://app.coveragecat.com/umbrella) or [contact a FAIR Plan broker](https://www.cfpnet.com/find-a-broker/) if you're ready to buy a policy. 

**How much does a California FAIR Plan cost?**

In 2022, [the average cost of a FAIR Plan policy combined with a difference in conditions policy was $3,200](https://www.kcra.com/article/california-fair-plan-wildfire-insurance-what-is-it-how-can-i-get-it/40574517#). Like any insurance, the cost of a California FAIR Plan policy can vary significantly depending on where you live, your property, the coverage, and additional endorsements. Typically, FAIR Plan policies cost more than standard homeowners insurance and their cost can increase even more if you purchase additional coverage through a difference in conditions policy. 

**Is the California FAIR Plan good insurance?**

The California FAIR Plan serves a specific purpose as last resort insurance for homeowners who cannot obtain coverage in the standard market. However, its limitations are significant: coverage is restricted to fire-related perils, the plan operates on an Actual Cash Value basis unless upgraded, and no liability protection is included. Recent regulatory action over smoke damage claim denials and consumer protection violations raises concerns about claims handling practices. If you can qualify for traditional homeowners insurance, that remains a better option than the FAIR Plan.

**Is Using the California FAIR Plan Worth It?**

Using the California FAIR Plan is worth considering if you've exhausted all other options for obtaining property insurance and cannot find coverage through regular insurers due to high-risk factors such as location or property history. While it may come with higher costs and limited coverage compared to traditional insurance, the FAIR Plan provides a vital option for homeowners who otherwise might be uninsured. Given recent claims handling controversies and the need to purchase supplemental DIC coverage for comprehensive protection, work with an experienced broker to understand your total costs and coverage gaps.

Overwhelmed by your homeowners or landlord insurance options? [Try Coverage Cat for easy, online quotes](https://www.coveragecat.com/intake) and get expert guidance on your FAIR Plan alternatives. 

**Sagnik** in **CA** saved thousands a year on property insurance

<div class="grid customer-review">
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    <p>Principal @ Esseltek</p>
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  <div class="column">
    <p><b>Literally the most seamless experience ever. No
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