The California FAIR Plan.
The California FAIR Plan is the state's insurer of last resort, designed to provide basic property coverage when insurance is not available through the standard market. It is not equivalent to a standard homeowners policy and is generally used when other options are not available.
Because the FAIR Plan provides more limited protection, many homeowners pair it with a separate companion policy — often called a DIC (Difference in Conditions) policy — to help fill gaps. We help you understand how the two-policy structure works and whether it may be appropriate for your property.
The FAIR Plan is structured differently from a standard homeowners policy. Understanding what it generally provides — and what it may not — helps set realistic expectations before coverage is placed.
Insurer of Last Resort
The FAIR Plan is designed for properties that cannot obtain coverage through the standard market.
Basic Property Coverage
The FAIR Plan generally provides basic dwelling coverage for fire and certain other perils, subject to policy terms.
Limited Perils
The FAIR Plan typically covers a narrower set of perils than a standard homeowners policy.
No Liability by Default
The FAIR Plan generally does not include personal liability coverage; a separate policy may be needed.
Inspections
The FAIR Plan may require an inspection of the property before coverage is placed or renewed.
Coverage Limits
The FAIR Plan has coverage limits that may differ from standard market policies.
Higher Deductibles
FAIR Plan policies may carry higher deductibles than standard homeowners coverage.
Why a companion policy is often needed.
Because the FAIR Plan generally covers a narrower set of perils, it may leave gaps that a standard homeowners policy would typically fill. A separate companion policy — often called a DIC (Difference in Conditions) policy — may be used to add those coverages.
The two policies are designed to work together: the FAIR Plan addresses certain perils, and the companion policy may add coverage for theft, water damage, liability, and other exposures the FAIR Plan does not include.
What the FAIR Plan Provides
Basic property coverage for fire and certain named perils, subject to policy limits and exclusions.
What It May Not Provide
Coverage such as theft, certain water damage, and personal liability may not be included in the FAIR Plan.
The DIC / Companion Policy
A Difference in Conditions (DIC) policy may add coverages the FAIR Plan does not include, such as theft, water damage, and liability.
How They Work Together
The FAIR Plan and companion policy are structured to complement each other, with each policy covering different perils.
Basic coverage — not a full homeowners policy.
The FAIR Plan is intended as a safety net when standard coverage is not available. It generally provides more limited protection, may require an inspection, and often does not include liability or certain perils.
Pairing it with a companion policy may help provide broader protection, but the structure, availability, and terms can vary. We help you understand how the pieces fit together for your specific property.
The FAIR Plan is a starting point — not always the whole solution.
Understanding the California FAIR Plan.
What is the California FAIR Plan?
The California FAIR Plan is the state's insurer of last resort, designed to provide basic property coverage when insurance is not available through the standard market.
When is the FAIR Plan typically used?
It is generally used when a property cannot obtain coverage through the standard market — often due to wildfire exposure, prior losses, or other eligibility issues that limit standard-market options.
What does the FAIR Plan generally cover?
The FAIR Plan generally provides basic dwelling coverage for fire and certain other named perils, subject to policy terms, limits, and exclusions.
What does the FAIR Plan typically not cover?
Coverage such as theft, certain water damage, and personal liability may not be included. A separate companion policy may be needed to help fill those gaps.
What is a DIC or companion policy?
A Difference in Conditions (DIC) policy is a separate policy that may add coverages the FAIR Plan does not include, so the two policies together may provide broader protection.
Is the FAIR Plan required for wildfire-area homes?
Not always. Some specialty carriers may offer coverage for wildfire-exposed properties. The FAIR Plan is one option, generally used when standard markets are unavailable.
Understand your FAIR Plan options.
If you've been told the FAIR Plan may be your only option, we can help review whether it's truly necessary and how a companion policy may round out your coverage. Tell us about the property and we'll walk through the structure.