At community events, we hear the same thing again and again: homeowners have insurance, but they aren't sure what it covers. That's especially true for families who were moved onto the California FAIR Plan.
This isn't legal or insurance advice, and your policy documents are the final word. But here is the general difference.
What the FAIR Plan is
The California FAIR Plan is a pool backed by insurers licensed in the state. It provides basic property coverage for homeowners who can't get it in the regular market. It is designed as a safety net, not a full replacement for a homeowners policy.
What a standard homeowners policy usually includes
A typical admitted-market homeowners policy bundles several coverages:
- The dwelling and other structures
- Personal property
- Loss of use (living expenses if you can't live at home)
- Personal liability
- Medical payments to others
The gap, and the DIC policy
A FAIR Plan policy is usually narrower, focused on fire and a limited set of perils. To fill the gap, many homeowners buy a difference in conditions (DIC) policy from another company, adding coverages like liability, theft and water damage.
| Coverage | Standard policy | FAIR Plan alone | FAIR Plan + DIC |
|---|---|---|---|
| Fire | Yes | Yes | Yes |
| Liability | Usually | Generally no | Usually |
| Theft and water | Usually | Generally no | Usually |
| Number of policies | 1 | 1 | 2 |
Why it matters
Two policies can mean two deductibles, two renewals and a higher combined premium. Coverage limits and exclusions vary, so it's worth reviewing both with a broker.
How to move back
The path back to a single standard policy usually runs through risk reduction: harden the home, document it, and shop the market. Read our step-by-step guide to leaving the FAIR Plan.
Coming soon. We're building a tool that reads your policy and explains what's covered in plain language. Until then, our specialists are happy to talk through your situation during a free assessment.
Frequently asked questions
Can I have both a FAIR Plan policy and a standard policy?
Many homeowners pair a FAIR Plan policy with a separate difference in conditions policy from another company. Your broker can explain the options in your area.
Is the FAIR Plan more expensive?
It depends on the property and coverage. Combined FAIR Plan and DIC premiums are often higher than a single standard policy, but your broker can compare.
How do I get off the FAIR Plan?
Reduce your home's risk, document it, and have a broker shop admitted carriers. Read our step-by-step guide to leaving the FAIR Plan.
