What Is The California FAIR Plan?

​The California FAIR Plan Association was established to meet the needs of California homeowners unable to find insurance in the traditional marketplace. The FAIR Plan is not a state agency,  it is also not a public entity. There is also no public funding.
 
The FAIR Plan is a fire insurance pool composed of all insurers licensed to conduct property/casualty business in California. All licensed property insurers who write basic property insurance are members of the FAIR Plan. The FAIR Plan issues policies on behalf of its member companies. Each member company participates in the profits, losses, and expenses of the Plan in direct proportion to its market share of business written in the state.

The FAIR Plan is a Temporary Safety Net
Californians have been turning to the FAIR plan more in the last 10 years as wildfires devastate the countryside and more traditional markets don’t offer protection. For most homeowners, the FAIR Plan is a temporary safety net – here to support them until coverage offered by a traditional carrier becomes available.

What Dwellings are Covered by The FAIR Plan?
If you are unable to purchase coverage on the traditional market, the FAIR Plan offers a temporary solution for the following home types:

• Duplexes in which one or more of the units are occupied by the owner
• Seasonal Rentals
• Rental Homes
• Condominium Units

What is Covered by The FAIR Plan?
The FAIR plan is a policy that covers damage from specific causes like lightning, fire, internal explosions, and smoke. You can also add to the policy for coverage from vandalism and malicious mischief.

What is a DIC policy?
A DIC (difference in conditions) policy is an insurance policy you can purchase that is created to supplement or fill in gaps between what a FAIR Plan policy covers and what a standard home insurance policy covers. If you have a standard home insurance policy, you don’t need a DIC. When the FAIR Plan is your only choice, you should strongly consider buying a DIC policy to fill coverage gaps.

Review the definitions of the perils covered in your policy. A few keywords can mean the difference between thinking you’re covered and actually being covered. Be sure to reach out to us at Schneiderman Insurance if you have any questions!

At Schneiderman Insurance Agency, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get insurance that fits your needs. You can get more information about our products and services by calling our agency at (818) 322-4744. Get your free quote today by CLICKING HERE. Any coverage discussed is not guaranteed. Please contact us today to go over your policy to ensure your needs are met! We are here and happy to help.