CALIFORNIA FAIR PLAN

The FAIR Plan is an association located in Los Angeles comprised of all insurers authorized to transact basic property insurance in California. Coverage is available to all California property owners, provided submission guidelines are met.

 

The FAIR Plan provides insurance as a last resort, and should be used only after a diligent effort to obtain coverage in the voluntary market has been made.

 

We recommend that all FAIR Plan policyholders shop for a different insurance carrier at least annually in order to search for coverage that is more comprehensive than that offered by the FAIR Plan. Visit the California Department of Insurance web site for help in searching for residential insurance in California.

 

The California FAIR Plan does not estimate the fair market value of your property, the cost to rebuild your property, or the cost of labor and materials in your (or any other) area, or determine the appropriateness of the coverage you request. Instead, those are your responsibilities.

 

The California Fair Access to Insurance Requirements (“FAIR”) Plan was created in July 1968 following the 1960’s brush fires and riots. It is an insurance pool established to assure the availability of basic property insurance to people who own insurable property in the State of California and who, beyond their control, have been unable to obtain insurance in the voluntary insurance market.

 

There is no public funding, or taxpayers’ monies involved. The FAIR Plan is not a state agency.

SUBMISSION GUIDELINES
 

The CA Fair Plan now requires photos of each property prior to submission.  The photos cannot be Google map photos, or real estate listing photos.  They must be new photos take with a time stamp and delivered within 1 week from the date they were taken.  

Because of the photo requirements AND the amount of time it takes to bind a policy, we recommended that new business applications be submitted well ahead of the date the coverage is needed.

 

The application is the basis for the acceptance or rejection of coverage. It is the responsibility of the broker and the applicant to ensure that the information submitted is in all respects accurate. Inspections, where made, are for the purpose of determining the physical condition of the property, occupancy or for the presence of a brush/wildfire exposure (Commercial only). They are not for the purpose of correcting omissions or inaccuracies in the information submitted on the applications for insurance. Inspectors hired by the FAIR Plan do not make any determination of the value of the property, the adequacy of the insurance requested by the applicant.
 

As an insurer of last resort, the FAIR Plan receives applications for many varied types of buildings. Following are several of the more common factors that can impact the insurability of and the cost of insuring a building.
 

  • Existing Building Damage

  • Vacant Buildings

  • Violation of Federal, State, or Local Law
     

The above items do not represent our complete Underwriting Guidelines. Other factors could impact the insurability of and cost of insuring the building(s).

DIFFERENCE IN CONDITIONS

 

The FAIR Plan Dwelling Fire Policy does not include coverage for many common and important causes of loss that are typically included in a standard homeowners policy, such as theft, water damage and liability.

The FAIR Plan Dwelling Fire Policy does not include coverages for many common and important causes of loss that are typically include in a standard homeowners policy, such as theft, water damage and liability.

To supplement a FAIR Plan Dwelling policy, a Difference in Conditions (DIC) policy, sometimes called a companion policy, should be considered. The FAIR Plan does not offer DIC policies. Brokers are the best source of information about this important supplemental coverage.

The Department of Insurance maintains a list of companies that offer DIC policies. That list can be found here.

The illustration below is intended as an overview only. Please read the applicable forms for complete terms, including definitions, conditions and exclusions.

The FAIR Plan Dwelling Fire Policy does not include coverage for many common and important causes of loss that are typically included in a standard homeowners policy, such as theft, water damage and liability.

The FAIR Plan Dwelling Fire Policy does not include coverages for many common and important causes of loss that are typically include in a standard homeowners policy, such as theft, water damage and liability.

To supplement a FAIR Plan Dwelling policy, a Difference in Conditions (DIC) policy, sometimes called a companion policy, should be considered. The FAIR Plan does not offer DIC policies. Brokers are the best source of information about this important supplemental coverage.

The Department of Insurance maintains a list of companies that offer DIC policies. That list can be found here.

The illustration below is intended as an overview only. Please read the applicable forms for complete terms, including definitions, conditions and exclusions.