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Dropped in California? How the FAIR Plan works

Updated September 28, 2026· Sources verified September 28, 2026· Educational information, not legal advice

Short answer

The California FAIR Plan is for homeowners who can't get coverage from a regular insurer. Its policy is built around fire — so most people pair it with a separate "difference in conditions" policy for liability, theft and water damage. You apply through a licensed broker registered with the FAIR Plan, or directly, after shopping the regular market.

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What the FAIR Plan covers

  • Fire-focused dwelling coverage, with optional extended coverage and vandalism for an added premium.
  • Residential limits up to $3 million, according to the Department of Insurance.
  • Not included: liability, theft, water damage and additional living expenses — those come from a separate Difference in Conditions (DIC) policy sold by regular insurers.

Compare the total, not just the FAIR Plan premium

A FAIR Plan policy plus a DIC policy is the fair comparison with a regular homeowners policy — both on price and coverage.

Who can apply

The FAIR Plan serves California residents and businesses who cannot obtain insurance from a regular insurer. The Department of Insurance recommends shopping the regular market first, then working with a licensed broker registered to sell FAIR Plan coverage, or calling the FAIR Plan at 800-339-4099.

California FAIR Plan

Described in state law as the insurer of last resort providing basic property insurance when coverage is not available in the voluntary market. FAIR Plan policies may not cover liability, theft or water damage; a separate Difference in Conditions (DIC) policy can add coverage.

MyNonRenewal does not assess eligibility. The FAIR Plan and a licensed agent or broker can explain requirements.

California requires non-renewal notices to include information about the FAIR Plan:

California rule · What a non-renewal notice must include

California's published rule says a non-renewal notice must state the specific reason or reasons, give the insurer's phone number for consumer questions, explain that you may have the matter reviewed by the California Department of Insurance, and include information about the California Home Insurance Finder and the FAIR Plan.

Cal. Ins. Code § 678

Steps

  1. Ask a broker to shop the regular market first

    Bring mitigation records — they help with regular insurers too.

  2. Apply to the FAIR Plan if nothing is available

    Through a registered broker or directly.

  3. Add a DIC policy

    For liability, theft, water damage and living expenses.

  4. Line up the start date with your old policy's end date

    And send proof to your mortgage servicer.

  5. Keep shopping at renewal

    The FAIR Plan is meant as a temporary solution; regular insurers may return.

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Official sources

Rules can change. Check the official source before relying on it.

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MyNonRenewal provides educational information and document summaries. It does not provide legal advice, insurance advice, representation, or recommendations regarding specific insurance products.