California FAIR Plan

Fire insurance for California homes with high wildfire risk

California wildfires have become more commonplace over the last several years. The Woolsey, Thomas, and Dixie fires, among others, destroyed millions of acres of land across the Golden State. In 2020 alone, 10.1 million acres of land burned. Among this devastating destruction was property damage or total loss for many homeowners. As a result of these wildfires, the market for home insurance has narrowed.

Some home insurance carriers have increased premiums, sometimes 4 or 5 times the original rate, or are non-renewing polices for homes located in high-risk areas from wildfires. This has placed tremendous stress on homeowners looking to protect one of their biggest assets. And with fire damage claims ranking third highest for home insurance claims (and most expensive), it's vital for homeowners to have some fire protection.  

That's where the California FAIR Plan comes in.

What is the California FAIR Plan? 

The California FAIR Plan aids California homeowners who can't get insurance through the traditional marketplace. It was established in 1968 as an insurance placement facility. All property and casualty insurance companies licensed in California are members and share the risk of California homeowners who do not qualify for other coverage. A FAIR Plan policy provides basic dwelling fire protection for owner-occupied, seasonal, or rental homes in addition to condominium owners and renters.

What does the FAIR Plan cover?

The FAIR plan provides limited coverage. It is a named peril policy, meaning it will only cover the loss for what's actually listed on your policy. The causes of loss covered thru the FAIR plan are fire and lightening, internal explosion, and smoke. You can add other coverages at an additional cost, like vandalism and malicious mischief. 

So you might be wondering, how do I get coverage for losses not related to fire? You can get more complete coverage for your home through a difference in condition policy. This separate policy can provide you the coverage, like lability, theft of contents, and limited water damage, you would have from a traditional home, condo or renters policy. 

How to get coverage with the FAIR Plan?

We understand the idea of not going through the traditional insurance market can seem daunting. But we’re here to help. Our personal lines agents can work with you to provide a FAIR plan quote and difference in conditions policy to get you the most optimal coverage for your home.

Contact us today, and we'll help you protect what matters most.

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