Homeowners insurance

California FAIR Plan: What It Covers, Cost & How to Leave

By the YourHomeCosts editorial team. Last updated October 28, 2026. General information, not financial, legal, or insurance advice.

The California FAIR Plan is the state's insurer of last resort for basic property insurance when the regular market will not write it. The dwelling fire policy is a named-peril policy for fire, lightning, internal explosion, and smoke, not a full homeowners policy. YourHomeCosts is not a licensed insurance agent or broker, and this page is general information, not insurance, legal, or financial advice.

How we checked this: Insurance Code chapter 9, the Department of Insurance pages and rate approval list, the association's dwelling, DIC, earthquake, payment, calculator, September 2026 statistics, clearinghouse, October 2025 discount sheet, and sample form CFP 00 01 (05/2026), plus the Insurance Information Institute, the CFPB, and 12 CFR 1024.17, were read on October 28, 2026. The example uses made-up amounts.

Educational information only. This is not financial, tax, legal, lending, insurance, or appraisal advice. Loan documents, state law, and your servicer or assessor control. Confirm every figure before you act.

What is the California FAIR Plan?

Fair plan insurance in California is basic property insurance from the California FAIR Plan Association. Insurance Code section 10091, checked October 28, 2026, gives the association that name and calls it a joint reinsurance association of insurers that write basic property insurance here. Section 10090 says the chapter keeps that coverage available, pushes buyers toward admitted insurers and licensed surplus line brokers, and spreads hard-to-place property among admitted insurers. The Department of Insurance FAIR Plan page, checked October 28, 2026, says insurers, not taxpayers, control day-to-day operations.

Section 10091's basic property insurance is direct loss at a fixed location from the fire policy, extended coverage, and vandalism, plus coverages the facility or commissioner adds. Homes and mobilehomes are in. Autos, commercial crops, livestock, and farm equipment are out. Sections 10094 and 10095 make insurers participate and share profits and losses. The how-to-apply page, checked October 28, 2026, calls this last-resort coverage when nothing else is reasonably available.

Who ends up on the California FAIR Plan?

People land here after the regular market says no. Section 10093, checked October 28, 2026, entitles a person who, after diligent effort, cannot buy from an admitted insurer or surplus line broker to an inspection. The residential insurance page, checked October 28, 2026, says to shop first, including after a non-renewal, then apply through a registered broker.

The key statistics page, checked October 28, 2026, through September 2026: 698,307 dwelling and commercial policies, $773 billion of exposure, and $2.04 billion of written premium, which it ties to wildfire risk and non-renewals. The count is not a premium. See also why a premium changed.

What does the California FAIR Plan cover, and what doesn't it?

What does the California FAIR Plan cover? Only listed causes of loss. The dwelling page, checked October 28, 2026, names fire and lightning, internal explosion, and smoke. Vandalism costs extra. It lists one- to four-unit homes, seasonal and annual rentals, renters' belongings, and condo belongings and improvements. The residential page says extended coverage is extra: windstorm, hail, explosion, riot or civil commotion, aircraft, vehicles, and volcanic eruption. The residential guide, checked October 28, 2026, says there is no liability or burglary coverage.

The table is the sample form CFP 00 01 (05/2026), file name effective March 17, 2026, marked sample, checked October 28, 2026. Declarations control the options. Land is excluded. A 10 percent draw for other structures or fair rental value reduces the dwelling limit unless a separate limit is checked. Payment starts at actual cash value. Checked replacement cost uses an 80 percent rebuild test. The association does not set that rebuild cost.

Sample dwelling form CFP 00 01 (05/2026), read October 28, 2026. The declarations control every option.
Cause of loss	On the sample dwelling fire policy
Fire or lightning	Named peril.
Internal explosion	Named peril. Not arcing, a broken water pipe, or your steam boiler.
Smoke	Sudden and accidental smoke. Not smudging, industrial smoke, fireplaces, fire pits, or barbecues.
Windstorm, hail, explosion, riot, aircraft, vehicles, volcanic eruption	Only if Extended Coverage is checked, for an added premium. Volcanic eruption excludes earthquake and land shock waves.
Vandalism or malicious mischief	Only if checked. Not theft. Building damage by burglars can be covered. A dwelling vacant more than 30 days is excluded.
Theft	Not a named peril.
Liability	Not in this property form.
Earthquake and other earth movement	Excluded, except ensuing fire or explosion.
Flood, surface water, waves, sewer or sump backup, groundwater	Excluded. Ensuing fire or explosion is covered. The association does not sell flood coverage.

What does a FAIR Plan policy plus a DIC policy cover?

A DIC policy fills the gaps. The DIC page, modified December 31, 2025, and checked October 28, 2026, names water damage, theft, and liability as examples, so the pair can resemble a homeowners policy. The association does not sell a DIC. The Department's list, checked October 28, 2026, describes the same pairing. We name no company. A DIC is not flood or earthquake coverage unless that form says so.

The Department's FAIR Plan page, checked October 28, 2026, says a broader residential option is in progress. This page treats it as unavailable and names no date. The policies page says the association does not offer DIC, flood, or earthquake coverage. The earthquake page sells a California Earthquake Authority policy only alongside a dwelling fire policy. The sample excludes earth movement except ensuing fire or explosion.

Which contract the official pages name. A DIC is not a second fire policy, and it is not flood or earthquake coverage unless that form says so.
Coverage	FAIR Plan dwelling policy	Where the official pages point
Fire, lightning, internal explosion, smoke	Named perils	The FAIR Plan policy
Extended coverage and vandalism	Only if purchased	Still the FAIR Plan policy
Theft and liability	Not covered	A DIC. The association names both.
Water damage, as the association uses the example	Not a named peril	A DIC. This row is not flood.
Flood	Excluded on the sample	A separate flood policy
Earthquake	Excluded except ensuing fire or explosion	A separate California Earthquake Authority policy, with a FAIR Plan dwelling fire policy in force
Additional living expenses	Described by the Department as part of a comprehensive option still in progress	A DIC, for people who want that coverage now
Fair rental value	On the sample form if the declarations provide it	Not additional living expenses

How much does the California FAIR Plan cost?

The price is on the declarations page. This page does not quote one. The premium calculator, checked October 28, 2026, is not an offer. It asks for the location, construction, perils, deductible, occupancy, limits, fire-station distance, and a hydrant within 1,000 feet.

The Department of Insurance rate filing approval list, year to date September 30, 2026, checked October 28, 2026, shows the dwelling fire program approved at a 29.1 percent average rate change on April 6, 2026. That average is not your premium.

The payment page, checked October 28, 2026, lists full pay with no dwelling-fire installment fee, and three-pay or monthly plans at $4.50 per installment. ACH is free to process. Cards add 3.5 percent. A returned payment is $25. Section 10095.8 required the association to offer automatic payments by April 1, 2026, and bars canceling or nonrenewing a policy solely because the policyholder is not enrolled.

The discount sheet, revised October 2025, applies from November 15, 2025, and can change. All 12 discounts may cut up to 16.4 percent from the wildfire portion only. Safer from Wildfires, checked October 28, 2026, is the program name. Averages, not a price for a $400,000 house, are on the average cost of homeowners insurance page.

How does the California FAIR Plan affect mortgage escrow?

Lenders generally require proof of insurance. The CFPB, last reviewed August 8, 2024, and checked October 28, 2026, says homeowners insurance is sometimes called hazard insurance and is often paid through escrow. PITI includes that insurance. Hazard insurance is the statement line. Escrow holds the money. 12 CFR 1024.17 caps the monthly deposit at one-twelfth of expected bills and the cushion at one-sixth. The cushion is a cap, not a required balance. An escrow analysis separates a shortage from the new deposit.

A FAIR Plan bill and a DIC bill are two premiums. If escrow pays both, both change the twelfth. Ask the servicer whether that pair meets the mortgage. This page does not say every loan accepts it. If coverage lapses, the CFPB force-placed page, last reviewed September 4, 2020, says the servicer may buy a policy that often protects only the lender and usually costs more. That policy is not the FAIR Plan. The figures below are made up.

This is an example estimate, not a premium. Every dollar is made up. A $2,400.00 homeowners bill becomes a $4,800.00 FAIR Plan premium plus a $1,200.00 DIC premium. Tax stays $3,600.00. Escrow goes from $500.00 to $800.00, up $300.00, which is the $3,600.00 gap divided by 12. Stated principal $500.00 and interest $1,100.00 are not a rate, so the payment goes from $2,100.00 to $2,400.00. The cushion cap, one-sixth of $9,600.00, is $1,600.00. Shortage: $0.00. Estimates only; your lender's numbers win.

Example escrow result with made-up premiums. Not a servicer's statement and not a quote.

Example loan EXAMPLE-0000. The FAIR Plan piece is $4,800.00 and the DIC piece is $1,200.00. Both are made up. Principal and interest are stated inputs, not a rate.

Line	Before	After	Monthly change
Insurance premium	$2,400.00	$6,000.00	+$300.00
Property tax	$3,600.00	$3,600.00	$0.00
Escrow deposit	$500.00	$800.00	+$300.00
Principal	$500.00	$500.00	$0.00
Interest	$1,100.00	$1,100.00	$0.00
Total payment	$2,100.00	$2,400.00	+$300.00

Annotation. The highlighted escrow deposit rises by $300.00 because the made-up annual premium rises by $3,600.00. One-sixth of the new $9,600.00 disbursement total is $1,600.00, the cushion cap in this example. The shortage in this example is $0.00.

Estimates only; your lender's numbers win.

How do you get California FAIR Plan coverage?

Use a licensed broker. The how-to-apply page, checked October 28, 2026, says customer service cannot advise on limits, a broker can, and there is no additional cost for using a broker. Not every broker is registered. If the regular market will write the risk, the FAIR Plan is the wrong policy. You and the broker choose the limit. The association does not price the rebuild.

The association's Find a Broker link opens the Department of Insurance Home Insurance Finder. That page, checked October 28, 2026, says the Department is not endorsing anyone listed.

How do you get off the California FAIR Plan?

Leaving means an admitted insurer offers a policy. Section 10095(i) required a clearinghouse by July 1, 2021 so those insurers can offer homeowners policies to FAIR Plan policyholders. The clearinghouse disclosure, checked October 28, 2026, says the association may share information for that purpose and that you can opt out. Sharing is not an offer.

The policies page says to shop other insurers and to ask about flood, earthquake, or a DIC. No section we read gives a number of days. A wildfire discount is not a move to an admitted insurer. Alternatives to the California FAIR Plan, when a broker can place them, are an admitted policy or a DIC beside the fire policy. This page does not rank them or predict a premium.

What is high-risk homeowners insurance outside California?

Other states use their own residual markets. The Insurance Information Institute, checked October 28, 2026, says FAIR plans operate in nearly three dozen states and D.C., and names Florida's Citizens Property Insurance Corporation for homeowners who cannot find private coverage, including in high-risk areas. California's perils are the table above.

FAQ

What is the CA FAIR Plan?

Insurance Code section 10091 names the association. It sells basic property insurance after diligent effort fails in the regular market. The dwelling policy names fire, lightning, internal explosion, and smoke. It is not a full homeowners policy.

What are three things that are not covered by homeowners insurance?

The CFPB says a standard homeowners policy does not cover earthquake or flood. On a FAIR Plan dwelling policy, which is not a homeowners policy, the Department says liability and burglary are also uncovered. The declarations control.

How does a fire insurance claim work?

Sample form CFP 00 01 (05/2026) requires prompt notice, protection of the property, and a sworn proof of loss within 60 days after the association asks. Payment follows agreement, judgment, or appraisal. Your edition controls. This is not legal advice.

How much is homeowners insurance on a $400,000 house?

This page does not price a $400,000 house. The average cost of homeowners insurance page reports averages, not a quote and not a FAIR Plan premium.

Is it hard to get homeowners insurance after being dropped?

Section 10093 does not grade the difficulty. After a non-renewal you show diligent effort, then apply. If a traditional insurer will write the policy, the association says the FAIR Plan is not the right one.

Why is my homeowners insurance so high?

This page does not explain one renewal. Why homeowners insurance went up does not promise a lower price. A FAIR Plan discount, if you qualify, applies only to the wildfire portion.

How long does it take to get off high-risk insurance?

No section we read states a number of days. The clearinghouse lets admitted insurers offer a homeowners policy. Sharing your information is not an offer. A licensed broker does the shopping.

Sources checked October 28, 2026

A short note when the guides change

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