If you are in an area that is at high risk for wildfire, some insurance companies may not be willing to insure you. This puts more money in your pocket at the end of the year. This is typically either an “Excess” or “Difference in Conditions” policy. According to the California FAIR Plan website, the program will not cover: Long-term vacant or unoccupied homes. The FAIR Plan is a private association based in Los Angeles comprised of all insurers licensed to write property insurance in California. But at least there is some insurance available. • Any location in the state subject to limited underwriting guidelines including: Home must be in insurable condition Home cannot be vacant for more than a year No illegal activities can take place at property • FAIR Plan has policies in every county in the state. All insurers conducting property business in California must be a member of the Association. First, you need to know what the FAIR Plan is - or more appropriately – what it isn't. As we say above, some states like New Jersey provide $200,000 worth of coverage for personal property. The Fair Access to Insurance Requirements (FAIR) Plan is a state-mandated program that provides fair access to insurance for individuals who are having trouble insuring their property due to the fact that insurers consider them high risk. The DIC policy covers items such the CFP doesn’t such as water damage (the #1 … What if the only alternative your agent offers is the California FAIR Plan? According to the Insurance Information Institute, "All FAIR plans cover losses due to fire, vandalism, riot and windstorm. Brokers are the best source of information about this important supplemental coverage. Curious to learn more about this unique coverage option? CFP policies cover damage from fire, wildfire, smoke, wind, hail, riot, vandalism, explosion, a vehicle and aircraft. The FAIR Plan is an association of all property insurers licensed to conduct business in California. To supplement a FAIR Plan Dwelling policy, a Difference in Conditions (DIC) policy, sometimes called a companion policy, should be considered. A California Fair Plan (CFP) policy can cover damage from Fire, Lightning, Internal Explosion, Smoke, Wind, Hail, Riot, Vandalism, Malicious Mischief, Aircraft and Vehicles. Replacement Cost coverage can be added for most homes. What should you do if your policy is non-renewed? 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. California Fair Plan also offers policies if a property is your primary residence, second home, a rental, a vacation rental or vacant. Congress paved the way for the creation of FAIR plans in the late 1960s after three … 3 The FAIR Plan does not offer DIC policies . The California Fair Plan also has major gaps in coverage that many customers may not be aware of. The FAIR Plan Dwelling Fire Policy is a named peril policy. We highly recommend pairing the CFP policy with a Difference In Conditions (DIC aka Wrap-Around) policy. What does a FAIR Plan dwelling fire policy cover? Specifically, FAIR policies are designed to offer coverage for the threats that those in California are at high risk for—namely wildfires. More often than not, their coverage is less expensive and always better than the FAIR Plan's bare bones, fire only policy. About a dozen states have some form of a standard homeowners policy, which includes liability. A CFP policy DOES NOT cover losses due to theft, burglary, liability and bursting of pipes. The California Fair Access to Insurance Requirements (“FAIR”) Plan was created in July 1968 following the 1960’s brush fires and riots. just for the structure of the home. How Much Does a Fair Plan Cover? Home insurance through FAIR plans. In California, the plan covers brush fires. As stated above, the California Fair Plan provides coverage for fire, wildfire, lightning, internal explosion and smoke. The existence of those types of policies does not impact the coverage provided under the Dwelling policy. In California, for example, people may be able to get wildfire insurance coverage through the California Fair Plan. There is no public funding, or taxpayers’ … FAIR Plan profits and losses are shared by its members in direct proportion to their market share of property insurance written in California. Then please read on. There are times when an insured will purchase an additional insurance policy in addition to the FAIR Plan policy. Where does FAIR Plan write? FAIR plans (short for Fair Access to Insurance Requirements) are the safety net for homeowners who have been turned down for home insurance. In cases like this, you may need to look at a Fair Plan home insurance option. If more than 50% your home's building area has been vacant or unoccupied for at least one year, you won't qualify for a new fire insurance policy or renewal through the FAIR Plan. Homes that are close to brush/fire zones often have no other option but to have insurance through California Fair Plan as many insurance carriers require 1000 foot clearance from brush areas. We find most FAIR plans provide coverage around $500,000 to $600,000 maximum for dwelling coverage i.e.