CALIFORNIA FAIR PLAN PROPERTY INSURANCE
The California FAIR Plan is an insurance program designed to provide basic property insurance coverage for homeowners and businesses that cannot obtain coverage through traditional insurers due to wildfire risk or other factors. It is considered an insurer of last resort and is backed by private insurance companies operating in California.
Key Features of the California FAIR Plan:
- Covers damage from fire, smoke, explosion, vandalism, and riot.
- Offers dwelling fire policies for homeowners and businesses.
- Provides limited coverage (it does not include liability, theft, or water damage).
- Allows policyholders to purchase additional coverage through a “Difference in Conditions” (DIC) policy from other insurers.
- Maximum coverage limit is $3 million for residential properties.
Eligibility:
- Available to homeowners, renters, and businesses unable to secure standard insurance.
- Property must meet basic safety and underwriting requirements.
- Located in high-risk wildfire areas or regions where insurers have pulled out.
