The California Fair Access to Insurance Requirements (FAIR) Plan (California Insurance Code Section 10090 et seq.) was created by the Legislature in 1968 after the brush fires and riots of the 1960's made it difficult for some people to purchase fire insurance due to hazards beyond their control. The FAIR Plan is designed to make property insurance more readily available to people who have difficulty obtaining it from private insurers because their property is considered "high risk."
The FAIR Plan is an insurance industry-sponsored property insurer. As a syndicated Association, the FAIR Plan is composed of all property insurers licensed to write business in California. The FAIR Plan offers a standard fire insurance policy for both the structure and contents. This is a basic property policy that has coverage limitations. No coverage is provided for liability or coverage for other perils such as burglary. Read the policy carefully for a detailed description of coverages. A "wrap around" policy or other supplemental coverage offered by private insurers should also be considered when purchasing a FAIR Plan policy. Be sure to discuss these coverages with you agent or broker.
FAIR Plan insurance coverage is generally available in specifically designated urban, inner city and brush fires areas in California. Specific areas may also be designated as eligible for FAIR Plan coverage if, after diligent effort (evidenced by written rejections from three insurers), the person wishing to insure the property has been unable to obtain insurance through the normal insurance market. Commissioner's Order of August 24, 2004 (pdf, 337 kb). As the insurer of last resort, the FAIR Plan should only be used after a diligent search for coverage in the voluntary market.
Ask your agent or broker to seek insurance coverage from a California admitted insurance carrier before applying for a FAIR Plan policy.
If you are having trouble locating an insurance company, the California Department of Insurance's
Homeowners Premium Survey can assist you in locating an insurance company in your area.
If, after diligent effort (evidenced by written rejections from three insurers), the person wishing to insure the property has been unable to obtain insurance through the normal insurance market they may contact the FAIR Plan in writing and request expansion of the FAIR Plan. The request shall include copies of the written rejections, the name of the agent or broker and the reason for the rejections.
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