Possibly. If you’re currently insured through the California FAIR Plan, whether you can move back to a traditional homeowners insurance policy depends on your property, location, wildfire exposure, insurance history, individual insurers’ underwriting requirements, and the programs currently available in your area. But there’s an important reason FAIR Plan policyholders may want to shop again in 2026: California’s homeowners insurance market is changing. If the FAIR Plan became your solution because you couldn’t find traditional homeowners insurance in the past, it may be worth checking the market again.
What Is the California FAIR Plan?
The California FAIR Plan provides basic property insurance to homeowners and other property owners who cannot reasonably obtain coverage through the traditional insurance market. It’s designed as an insurer of last resort. For homeowners who have been non-renewed, declined by traditional insurers, or who own properties in areas where insurance availability is limited, the FAIR Plan provides an important safety net — but it isn’t necessarily a permanent destination for every policyholder. If suitable coverage becomes available through the traditional market, homeowners may have an opportunity to consider other options.
Can You Leave the California FAIR Plan?
Yes, if you can obtain suitable replacement coverage elsewhere. There’s no requirement that a homeowner remain with the FAIR Plan simply because the property previously couldn’t obtain traditional coverage. The bigger question is whether an insurance company is willing to insure your property today.
Insurance markets change. Carriers may expand into areas where they previously limited new business. Underwriting guidelines can change. New insurance programs may become available. Homeowners can also make improvements to their properties that may affect how insurers evaluate risk. That’s why being unable to obtain traditional homeowners insurance a year or two ago doesn’t necessarily tell you what options are available now.
Why 2026 May Be a Good Time to Shop Again
Because California’s voluntary insurance market is showing real signs of expansion. California has been implementing changes intended to increase the availability of homeowners insurance, particularly in areas affected by wildfire risk, and those efforts are beginning to produce measurable results. In July 2026, the California Department of Insurance reported that 11 homeowners insurance groups had committed to grow in California: Farmers, Mercury, the Automobile Club of Southern California, CSAA, USAA, Liberty Mutual, Travelers, Pacific Specialty, California Casualty, Horace Mann, and new market entrant MS Transverse Insurance Group. The surge also included two major commercial insurers — Mercury and Zurich — expanding coverage for businesses, nonprofits, and homeowners associations (California Department of Insurance, July 23, 2026).
It’s worth noting that not every commitment takes effect immediately. Liberty Mutual’s expansion was still pending the Department’s approval as of the July 2026 announcement, USAA’s expanded access doesn’t take effect until January 2027, and MS Transverse’s approval took effect July 15, 2026 as a brand-new entrant to the state’s homeowners market. So this is a market in motion, not a market that has already fully opened back up.
Earlier in the year, the Department also reported that California’s second-largest home insurer had joined the state’s Sustainable Insurance Strategy (CDI, May 12, 2026), and separate CDI data released the same month showed a sharp slowdown in FAIR Plan residential policy growth compared to 2024 and 2025 — an early signal that the voluntary market may be regaining ground.
None of this means every FAIR Plan policyholder will qualify for traditional homeowners insurance. Every insurance company maintains its own underwriting requirements, and availability can vary significantly from one property to another. But it does mean the insurance market available today may be different from the one you encountered when you originally moved to the FAIR Plan — which is exactly why it may be worth shopping again.
What Could Affect My Ability to Get Traditional Homeowners Insurance?
It depends on the individual insurer’s underwriting guidelines — there’s no single checklist that guarantees a home will qualify. Depending on the property and insurer, factors may include:
- Property location
- Wildfire exposure
- Roof age and condition
- Construction type
- Replacement cost
- Claims history
- Overall property condition
- Surrounding vegetation
- Defensible space
- Home-hardening improvements
- Terrain and surroundings
- Other property-specific underwriting characteristics
One insurance company may evaluate these factors differently from another. That’s one reason having access to multiple insurance programs can be valuable — a property that doesn’t fit one company’s guidelines may potentially fit another company’s underwriting requirements.
What If My Home Is in a High Fire-Risk Area?
Elevated wildfire exposure can make traditional coverage harder to obtain, but it doesn’t automatically mean the FAIR Plan will always be your only option. California’s current insurance reforms are specifically intended to increase voluntary-market coverage in wildfire-distressed areas and reduce long-term reliance on the FAIR Plan, and insurance companies are beginning to announce expanded activity in parts of the state where coverage has been difficult to obtain.
Availability still depends on the individual property. Don’t assume traditional homeowners insurance will be available — but don’t automatically assume it won’t be, either. Check what’s available for your property.
Can Wildfire Mitigation Help?
It may, but it doesn’t guarantee anything. California has established wildfire mitigation standards intended to recognize homeowners who take steps to make their properties more resistant to wildfire, such as:
- Maintaining defensible space
- Managing vegetation around the home
- Improving roof and vent protection
- Using fire-resistant building materials
- Hardening vulnerable areas of the structure
- Maintaining the property and surrounding areas
These improvements can help reduce wildfire risk and may affect insurance discounts or how certain insurers evaluate a property. However, completing wildfire mitigation work does not guarantee that a particular insurance company will offer coverage. Think of mitigation primarily as a way to make your property more resilient, with potential insurance benefits depending on the insurer and program.
What If I Have a FAIR Plan + DIC Policy?
Some California homeowners combine FAIR Plan coverage with a separate Difference in Conditions (DIC) policy, which can provide additional protection for risks that may not be included in basic FAIR Plan coverage.
If you’re considering moving from a FAIR Plan + DIC arrangement to traditional homeowners insurance, compare the entire insurance package — not just the price of the FAIR Plan portion. Consider:
- FAIR Plan premium
- DIC premium
- Total annual insurance cost
- Dwelling coverage
- Personal property coverage
- Liability protection
- Additional living expenses
- Deductibles
- Covered perils
- Exclusions
- Replacement-cost provisions
- Optional endorsements
A traditional homeowners policy may simplify the insurance arrangement in some situations, but the coverage and cost should be compared carefully. The lowest-priced option isn’t necessarily the option that best fits your insurance needs.
Should I Cancel My FAIR Plan Before Shopping?
No. You don’t need to cancel your FAIR Plan policy just to find out whether other options are available. Keep your existing insurance in place while exploring alternatives. If another homeowners policy becomes available, compare it carefully with your existing coverage before making a decision. Most importantly, avoid creating a gap in coverage — before replacing existing insurance, confirm that the new policy has been issued, verify its effective date, and understand what the new policy does and does not cover.
How Do I Shop for an Alternative to the FAIR Plan?
Start by having a licensed insurance agent or broker review your current situation and property information. Be prepared to provide information such as:
- Property address
- Current insurance information
- FAIR Plan declarations page
- DIC policy information, if applicable
- Roof age and condition
- Construction information
- Square footage
- Prior claims
- Replacement-cost information
- Wildfire mitigation improvements
- Photos or other property information requested by an insurer
Accurate information helps an insurance professional identify programs that may be appropriate for your property. And don’t be discouraged if one company isn’t an option — different insurance companies have different underwriting requirements. The goal is to determine what’s actually available in the current market, rather than assuming the answer will be the same as it was when you first obtained your FAIR Plan policy.
The California Home Insurance Market Is Changing
California’s homeowners insurance challenges haven’t disappeared. Wildfire exposure remains a significant issue, and many properties may continue to rely on the FAIR Plan. But there are indications that the voluntary market is beginning to change: in 2026, the Department of Insurance reported both slowing FAIR Plan residential policy growth and commitments from multiple insurers to increase homeowners insurance activity in California, including activity involving wildfire-distressed areas.
That’s an important distinction. It doesn’t mean California’s homeowners insurance problem has been solved, and it doesn’t mean every FAIR Plan customer can move to traditional insurance. It means someone who couldn’t find traditional homeowners insurance before may have a reason to check again.
Don’t Assume the FAIR Plan Is Still Your Only Option
If you originally purchased a FAIR Plan policy because traditional homeowners insurance wasn’t available, that may have been the appropriate solution at the time — and it may still be the appropriate solution today. But insurance markets change. Your property may have changed. Available insurance programs may have changed. And an insurer that wasn’t accepting properties like yours previously may evaluate your property differently today. You won’t know unless you check.
Already on the FAIR Plan? Let a Sky-Agent® Shop for Alternatives.
You don’t have to cancel your current insurance or make any changes just to see whether another option may be available. A licensed Sky-Agent® can review your property and shop available homeowners insurance programs to determine whether an alternative may fit your situation. If the FAIR Plan remains the appropriate available solution, you’ll have a better understanding of your current options. If another homeowners insurance option is available, you’ll have an opportunity to compare it with your existing coverage before deciding what works for you.
Let a Sky-Agent® Shop for Alternatives
Call 1-800-771-7758 or visit SkyBlue.com.
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Frequently Asked Questions
Can I get off the California FAIR Plan?
Possibly. If suitable homeowners insurance is available through the traditional market and your property meets an insurer’s underwriting requirements, you may be able to replace your FAIR Plan coverage.
Am I required to stay on the FAIR Plan?
No. The FAIR Plan is intended as insurance of last resort when appropriate traditional-market coverage isn’t reasonably available. Homeowners can explore other insurance options if the market changes.
Can I get traditional homeowners insurance in a wildfire area?
Possibly. Wildfire exposure can affect eligibility, but insurance companies have different underwriting requirements. Availability depends on the property, location, insurer, and current market conditions.
Will home hardening get me off the FAIR Plan?
Not automatically. Wildfire mitigation can improve a property’s resilience and may provide insurance benefits with certain companies, but it does not guarantee eligibility for a traditional homeowners policy.
Should I cancel my FAIR Plan before getting other quotes?
No. Keep your existing insurance in place while exploring alternatives. If you decide to replace your coverage, verify that the new policy has been issued and confirm its effective date before canceling existing insurance.
What if I’ve already been declined by other insurance companies?
A previous decline doesn’t necessarily mean the result will always be the same. Insurance programs and underwriting requirements can change. A licensed agent can check currently available programs to determine whether another option may now exist.
When should I shop my FAIR Plan coverage?
A practical time to review your options is before renewal. This gives you an opportunity to see whether the insurance market or your available options have changed without waiting until your existing policy is about to expire.
References
- California Department of Insurance. (2026, May 12). California’s second largest home insurer joins Sustainable Insurance Strategy. California Department of Insurance.
- California Department of Insurance. (2026, July 23). Insurance surge expanding options for Californians in wildfire distressed areas. California Department of Insurance.
- California FAIR Plan Association. (n.d.). How to Apply. California FAIR Plan Association.
- California FAIR Plan Association. (n.d.). Difference in Conditions (DIC). California FAIR Plan Association.
Disclosure: AI was used to assist with research for this article. The content was subsequently fact-checked and edited by Stephen G. LaCroix, a licensed insurance agent in all 50 states (CA License #0E67458, NPN 8344418).
