If your California home is currently insured through the FAIR Plan, you may have more options than you did when you first purchased your policy.
California’s homeowners insurance market has faced significant challenges in recent years, particularly in areas with elevated wildfire risk. For some homeowners, finding coverage through the traditional insurance market became difficult or, in some cases, seemingly impossible.
That is where the California FAIR Plan has played an important role.
But the FAIR Plan is intended to serve as an insurer of last resort—not necessarily as a homeowner’s first or permanent insurance solution. The California Department of Insurance recommends that homeowners conduct a diligent search of the traditional insurance market before turning to the FAIR Plan (California Department of Insurance [CDI], n.d.-a).
And in 2026, California’s insurance market is showing signs of change.
If you purchased FAIR Plan coverage because other insurance wasn’t available at the time, it may be worth shopping the market again.
What Is the California FAIR Plan?
The California FAIR Plan provides basic property insurance when coverage is not reasonably available through the traditional insurance market.
According to the California FAIR Plan Association (n.d.-a), the FAIR Plan is an insurer of last resort established to provide basic property insurance to Californians when another reasonable option is unavailable.
The California Department of Insurance provides similar guidance, recommending that homeowners consider the FAIR Plan only after conducting a diligent search for coverage in the traditional market (CDI, n.d.-a).
For homeowners who have been non-renewed, declined by traditional insurers, or who own homes in areas where insurance availability is limited, the FAIR Plan can therefore provide an important insurance safety net.
However, homeowners should understand that a FAIR Plan policy is not necessarily equivalent to a traditional homeowners insurance policy.
What Does the California FAIR Plan Cover?
The FAIR Plan’s standard dwelling coverage provides protection against specific perils, including fire or lightning, internal explosion, and smoke. Additional coverage options may be available for an additional premium (California FAIR Plan Association, n.d.-b).
That can provide essential protection for a home, particularly when traditional insurance is unavailable.
However, there are important differences between basic FAIR Plan coverage and the broader protection commonly associated with a traditional homeowners policy.
For example, the California Department of Insurance has identified water damage, theft, and liability as examples of protections that may be available through a Difference in Conditions policy but are not part of the FAIR Plan’s basic coverage (CDI, n.d.-b).
Because every policy and homeowner’s situation is different, homeowners should review their actual policy documents and discuss their coverage with a licensed insurance professional rather than assuming they are protected against a particular type of loss.
What Is a Difference in Conditions (DIC) Policy?
Some homeowners who use the FAIR Plan also purchase a separate Difference in Conditions, or DIC, policy.
A DIC policy is designed to complement FAIR Plan coverage by providing protection for certain risks the FAIR Plan does not cover.
According to the California FAIR Plan Association (n.d.-c), DIC policies may provide coverage for risks such as water damage, theft, and liability. When combined with a FAIR Plan policy, a DIC policy can provide coverage more similar to comprehensive homeowners insurance.
The California Department of Insurance maintains information about insurers offering DIC policies that complement FAIR Plan coverage (CDI, n.d.-b).
Importantly, the California FAIR Plan itself does not sell DIC policies. These policies are obtained separately.
For some homeowners, a FAIR Plan + DIC arrangement may be an appropriate solution. For others, a traditional homeowners policy may be worth exploring if one has become available.
Are There Alternatives to the California FAIR Plan in 2026?
Potentially.
The answer depends on your individual property, location, wildfire exposure, insurance history, underwriting requirements, and the insurance programs currently available.
But California’s homeowners insurance market is beginning to show signs of increased availability.
The California Department of Insurance’s Sustainable Insurance Strategy is intended, in part, to increase insurance availability in wildfire-distressed areas and reduce reliance on the FAIR Plan by requiring participating insurers using certain new ratemaking tools to write more policies in those areas (CDI, n.d.-c).
There have also been notable developments during 2026.
The California Department of Insurance has reported growing participation in its Sustainable Insurance Strategy, with insurance groups making commitments intended to expand homeowners insurance availability across California, including in wildfire-distressed areas.
By July 23, 2026, the Department reported that 11 homeowners insurance groups had committed to grow in California, with additional activity aimed at increasing options in areas where homeowners have faced limited insurance availability.
These developments do not mean every FAIR Plan policyholder will qualify for a traditional homeowners policy.
They do mean that the insurance market available to a homeowner today may not necessarily be identical to the market that was available when that homeowner originally moved to the FAIR Plan.
That is why shopping again can make sense.
Imagine that your previous homeowners insurer non-renewed your property two years ago.
At the time, your insurance agent searched available companies but couldn’t find an acceptable traditional homeowners policy. You ultimately obtained FAIR Plan coverage, perhaps along with a DIC policy.
That decision may have been entirely appropriate based on the market at the time.
But insurance markets change.
Carriers can change underwriting guidelines. New programs can become available. Insurers can expand into areas where they previously limited new business. Your property’s characteristics can also change.
California’s current regulatory strategy is specifically intended to increase voluntary-market insurance availability, including in wildfire-distressed areas (CDI, n.d.-c).
Shopping your insurance again doesn’t mean you should cancel your FAIR Plan policy.
It simply means checking whether another option is now available before assuming the FAIR Plan remains your only choice.
Can I Get Off the California FAIR Plan?
Possibly—but there is no guarantee.
Whether traditional homeowners insurance is available depends on the property and the underwriting requirements of the insurers being considered.
Factors may include:
- Property location
- Wildfire exposure
- Roof condition and age
- Construction characteristics
- Claims history
- Replacement cost
- Defensible space and vegetation
- Home-hardening improvements
- Other insurer-specific underwriting requirements
A licensed insurance agent or broker can review available programs and determine whether another insurer may consider your property.
In fact, the California FAIR Plan itself recommends that policyholders shop around, ask their broker to look for more comprehensive coverage, and review their insurance needs regularly (California FAIR Plan Association, n.d.-d).
So even if the FAIR Plan was the best—or only—option available when you originally purchased it, it may be worth checking again.
What About Homes in High Wildfire-Risk Areas?
Living in an area with elevated wildfire exposure can make obtaining homeowners insurance more challenging, but it does not automatically mean the FAIR Plan will always be your only option.
California is actively working to increase insurance availability in wildfire-distressed areas.
Under the Sustainable Insurance Strategy, insurers using certain catastrophe-modeling and reinsurance provisions are required to increase writing in wildfire-distressed areas, with the broader goal of increasing voluntary-market availability and reducing FAIR Plan dependence (CDI, n.d.-c).
Homeowners may also want to consider wildfire mitigation.
California’s Safer from Wildfires program identifies actions homeowners can take to reduce wildfire risk, including improvements to the structure, its immediate surroundings, and the surrounding community. The Department states that qualifying mitigation actions can result in insurance discounts, although discounts and underwriting practices vary by insurer (CDI, n.d.-d).
These measures do not guarantee that a particular insurer will offer coverage, but improving a property’s wildfire resilience can be an important part of managing both physical risk and insurance options.
Should I Cancel My FAIR Plan Policy Before Shopping?
No.
Finding out whether alternatives are available is different from canceling existing coverage.
You can have a licensed insurance professional review your current situation and investigate other available insurance programs while your existing coverage remains in place.
If another policy is available, compare the policies carefully before making a change.
Price should not be the only consideration.
Compare important factors such as:
- Dwelling coverage
- Personal property coverage
- Liability protection
- Additional living expenses
- Deductibles
- Covered and excluded perils
- Wildfire-related provisions
- Optional endorsements
- Replacement-cost provisions
- Overall premium
If you currently have a FAIR Plan policy combined with DIC coverage, compare the complete protection and cost of that arrangement against any alternative—not simply one portion of your current insurance.
Never cancel existing insurance until new coverage has been confirmed and you understand when the replacement policy becomes effective.
The California Home Insurance Market Is Changing
California’s homeowners insurance challenges have not disappeared.
Wildfire risk remains significant, and many homeowners may continue to need the FAIR Plan.
But there are signs of movement in the voluntary insurance market.
The California Department of Insurance reported in May 2026 that FAIR Plan residential policy growth had slowed substantially during the first quarter of the year. Approximately 16,000 residential policies were added during Q1 2026, representing approximately 2.4% growth from the previous quarter. The Department contrasted that with quarterly increases ranging from approximately 35,000 to 50,000 policies during 2024 through September 2025 (CDI, 2026a).
By July, the Department reported further insurer commitments to expand California homeowners insurance availability, including in wildfire-distressed areas (CDI, 2026b).
These are encouraging developments, but homeowners should interpret them carefully.
An improving statewide insurance market does not mean coverage will be available for every individual home.
What it does mean is that homeowners who previously had difficulty finding traditional insurance may have a reason to check the market again.
Already on the California FAIR Plan? Let a Sky-Agent® Shop for Alternatives.
If you’re currently insured through the California FAIR Plan—or you were previously told the FAIR Plan was your only realistic option—you don’t have to assume that nothing has changed.
SkyBlue Insurance works with homeowners to shop available insurance options and identify coverage that may fit their individual property and needs.
A licensed Sky-Agent® can review your situation and check available homeowners insurance programs to see whether another option may now be available.
There is no need to cancel your existing FAIR Plan coverage simply to find out what’s available.
Let a Sky-Agent® Shop for Alternatives
Call 1-800-771-7758 or visit SkyBlue.com to get started.
SkyBlue Insurance
More options. Better choices.
Frequently Asked Questions
Is the California FAIR Plan regular homeowners insurance?
Not exactly. The FAIR Plan provides basic property insurance and serves as California’s insurer of last resort when reasonable traditional-market coverage is unavailable. Its basic dwelling coverage does not include all of the protections typically associated with comprehensive homeowners insurance (California FAIR Plan Association, n.d.-a; CDI, n.d.-b).
Does the California FAIR Plan cover theft and liability?
Basic FAIR Plan coverage does not provide certain protections such as theft and liability coverage. A separate DIC policy may provide these and other complementary coverages (California FAIR Plan Association, n.d.-c).
Can I replace my FAIR Plan policy with traditional homeowners insurance?
Possibly. Availability depends on the property and insurers’ underwriting requirements. Because California’s voluntary insurance market is changing, homeowners currently using the FAIR Plan may want to periodically shop available alternatives.
Should I cancel my FAIR Plan before getting quotes?
No. Keep your existing insurance in force while exploring alternatives. If you find replacement coverage, confirm the new policy’s coverage and effective date before making changes to existing insurance.
Can homeowners in California wildfire areas still get traditional insurance?
In some cases, yes. Availability varies significantly by property and insurer. California’s Sustainable Insurance Strategy is intended to increase voluntary-market coverage in wildfire-distressed areas, and the Department of Insurance reported multiple insurer expansion commitments during 2026 (CDI, 2026b).
Can wildfire mitigation help with homeowners insurance?
It may. California’s Safer from Wildfires program requires insurers to recognize specified wildfire mitigation measures through discounts. Underwriting eligibility and the amount of any discount vary by insurer (CDI, n.d.-d).
References
California Department of Insurance. (n.d.-a). Home/residential insurance. California Department of Insurance.
California Department of Insurance. (n.d.-b). List of insurers that sell Difference in Conditions (DIC) policies. California Department of Insurance.
California Department of Insurance. (n.d.-c). Sustainable Insurance Strategy. California Department of Insurance.
California Department of Insurance. (n.d.-d). Safer from Wildfires. California Department of Insurance.
California Department of Insurance. (2026a, May 12). California’s second largest home insurer joins Sustainable Insurance Strategy. California Department of Insurance.
California Department of Insurance. (2026b, July 23). Insurance surge expanding options for Californians in wildfire distressed areas. California Department of Insurance.
California FAIR Plan Association. (n.d.-a). How to apply. California FAIR Plan Association.
California FAIR Plan Association. (n.d.-b). Dwelling. California FAIR Plan Association.
California FAIR Plan Association. (n.d.-c). Difference in Conditions (DIC). California FAIR Plan Association.
California FAIR Plan Association. (n.d.-d). Policies. California FAIR Plan Association.
Insurance availability and eligibility vary by carrier, property, location, underwriting requirements, and other factors. Coverage descriptions are general and are not a substitute for the terms, conditions, limitations, and exclusions contained in an insurance policy. Contact a licensed insurance professional for information regarding your individual insurance needs.
