California’s FAIR Plan Is Getting More Expensive

For many California homeowners, finding affordable property insurance has become increasingly difficult.

The California FAIR Plan exists as a last-resort source of property insurance when coverage isn’t available through the regular market. The California Department of Insurance specifically advises homeowners to shop the traditional market before turning to the FAIR Plan.

Now another change is coming.

The California Department of Insurance approved a 29.1% average rate increase for the FAIR Plan’s dwelling-fire program, after the FAIR Plan had requested a 35.6% increase.

But there’s an important catch: 29.1% is an average, not everyone’s increase.

The actual change depends on factors including the property’s location, wildfire risk and other rating characteristics. Some homeowners could see a larger increase, while some could see less or even a decrease.

The new rate is scheduled to take effect October 15, 2026.

And the FAIR Plan isn’t a normal homeowners policy.

The FAIR Plan primarily covers fire, lightning, internal explosion and smoke.

It does not automatically provide all the protection found in a conventional homeowners policy.

The Department of Insurance notes that homeowners may need a separate Differences in Conditions policy, commonly called a DIC policy, to cover gaps such as theft and liability.

That means the number on your FAIR Plan bill isn’t necessarily your entire insurance cost.

If you’re on the FAIR Plan, don’t wait until the renewal paperwork arrives to look at your coverage. Review:

1. 1

   Your current premium

   Know what you’re paying now so you can see what changed.

2. 2

   Your coverage limits

   Make sure they still match what it would cost to rebuild.

3. 3

   Your deductible

   Understand what you’d pay out of pocket after a loss.

4. 4

   Your DIC or supplemental coverage

   Check whether gaps such as theft and liability are covered.

5. 5

   Whether private-market coverage has become available

   The regular market may have options that weren’t there before.

Don’t treat an insurance renewal as paperwork to file away.

When the bill changes, find out why it changed and exactly what you’re getting for the money.

And before assuming the FAIR Plan is your only option, ask an insurance agent or broker to check the regular market.

• 29.1% is an average, not everyone’s increase — some homeowners could see more, less, or even a decrease.
• The FAIR Plan is not a conventional homeowners policy — it primarily covers fire, lightning, internal explosion and smoke.
• The number on your FAIR Plan bill isn’t necessarily your entire insurance cost.

And if you’re not on the FAIR Plan, it can still be useful to understand what’s happening because California’s insurance market continues to change.

1. SCHEDULED

   October 15, 2026

   The approved 29.1% average dwelling-fire rate increase is scheduled to take effect October 15, 2026.

California Department of Insurance; California FAIR Plan rate filing information:

• California Department of Insurance — residential insurance information (insurance.ca.gov)