The FAIR Plan provides basic fire insurance coverage for high-risk properties when traditional insurance companies will not provide coverage because the property has been determined to be located in a high-risk fire area.

Owners should always attempt to acquire a standard insurance policy before applying under the FAIR Plan since the FAIR plan only provides minimal coverages. An independent insurance broker should be consulted before applying for insurance under the FAIR Plan. While property owners may apply directly to the Fair Plan, applying through an independent insurance broker does not cost more.

The FAIR Plan is not a government agency and is not supported by tax dollars. It is a syndicated fire insurance pool comprised of all insurers licensed in the state to conduct property/casualty business in California. The FAIR Plan issues policies on behalf of its member companies. Each member company participates in the profits, losses, and expenses of the Plan in direct proportion to its market share of business written in the state.

FAIR Plan policies are named peril policies which means they cover damage caused by the specific causes of loss listed in the policy.

The California FAIR Plan does not cover many perils, including personal liability, water damage, theft, floods, earthquakes, vandalism, riots, and explosions. It is a last resort option for homeowners who can't obtain a standard insurance policy.

If you have or can only buy a FAIR Plan policy, ask us about flood coverage, earthquake coverage, and difference in conditions coverage. If you find that your only alternative is the FAIR Plan, your independent insurance broker will continue to shop for a more comprehensive policy because the insurance market changes over time.

Fire and Carbon Monoxide Safety Checklist