By Jason Ayala, licensed agent (CA #0G67764) · October 22, 2026
Short answer: the California FAIR Plan is the state’s insurer of last resort. It provides basic property coverage, mainly fire, when no regular carrier will write your home. It doesn’t cover theft, most water damage or liability, so we pair it with a difference-in-conditions (DIC) policy to fill those gaps.
Homeowners insurance · call 888-391-5981.
What each policy covers
| Coverage | FAIR Plan | DIC policy |
|---|---|---|
| Fire and smoke | Yes | No (FAIR covers it) |
| Theft | No | Yes |
| Water damage (like a burst pipe) | No | Yes |
| Personal liability | No | Yes |
Exact coverage varies by DIC carrier. We review the details with you before you buy.
How we set it up
- We check regular carriers first. Some still write homes in brush areas.
- If none will, we apply to the FAIR Plan for the dwelling.
- We place a DIC policy with a separate carrier for theft, water damage and liability.
- For a purchase or refinance, we send both to escrow and your lender.
Lower your premium
Roof type, defensible space and home-hardening updates like ember-resistant vents can affect pricing and eligibility. Tell us what’s been done to the home.
Source: California FAIR Plan, Difference in Conditions.
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Frequently asked questions
Does the FAIR Plan cover liability?
No. That’s why most homeowners pair it with a DIC policy that includes personal liability.
Will my lender accept the FAIR Plan?
Usually yes, when the limits and mortgagee clause meet the lender’s requirements. We confirm before closing.
Request a quote or call 888-391-5981