California FAIR Plan in San Diego: What It Covers and When Buyers Use It
The California FAIR Plan is a state-created insurance pool that offers property coverage to people who cannot get a policy from a regular insurer. It is meant as a safety net, and its basic policy covers fire and smoke, so many buyers who use it also look at a second policy for other risks. If you are buying a home in San Diego County, it helps to understand it before you write an offer.
The short answer
- The FAIR Plan has existed for more than 50 years as a safety net for people who cannot find coverage elsewhere.
- The California Department of Insurance says to shop the regular market first, then apply through a licensed agent or broker.
- At the time this article was written, residential policies can go up to $3 million per location.
- The basic policy offers limited fire and smoke coverage, so water damage and liability usually need a separate policy.
What the FAIR Plan is
The FAIR Plan was created by the Governor and the Legislature, but it is a private association, and insurance companies control its daily operations. The California Department of Insurance describes it as coverage for people who can't get insurance from a regular company. It is not meant to be the first stop.
As of 2020, the Department says the FAIR Plan covered less than 3% of California residents. That share can change over time, so ask your agent how common it is in the neighborhood you are looking at.
How to apply
The Department's steps are simple. First, shop the regular market. If you still cannot find coverage, apply through a licensed agent or broker who sells property insurance, or call the FAIR Plan at 800-339-4099. The Department recommends working with a broker who is registered to sell FAIR Plan coverage.
- Ask an insurance agent or broker for quotes from regular insurers first.
- If you are turned down, ask the agent whether they are registered to sell FAIR Plan policies.
- Apply for the FAIR Plan policy and ask what it covers and what it leaves out.
- Ask whether a second policy is available for the gaps.
Do this early in escrow. Insurance quotes can take time, and your lender will want proof of coverage before closing. My guide to the steps of buying a home in San Diego shows where insurance fits.
What the policy covers
At the time this article was written, the Department said the FAIR Plan offers limited fire and smoke coverage. Water damage, liability and other risks need an additional policy, which costs more. Read the actual policy form, because the details decide what is paid.
| Question | What the Department says |
|---|---|
| Who is it for? | People who cannot get coverage from a regular insurer. |
| What does the basic policy cover? | Limited fire and smoke coverage. |
| Are water damage and liability included? | No, those need an additional policy. |
| Residential limit | Up to $3 million per location. |
| Monthly payments | Allowed without a fee. |
Why many buyers add a second policy
A policy that covers fire and smoke leaves out other things a mortgage lender and a homeowner usually care about, such as water damage and personal liability. The Department points buyers to Difference in Conditions policies, also called DIC policies, for those gaps. It also says the Commissioner is working on a comprehensive residential FAIR Plan policy that would cover water damage, liability, theft and additional living expenses, but it is still in progress, so ask your agent whether it is available when you apply.
If you buy with a loan, ask your lender early what proof of insurance it needs. I list good questions in my guide on what to ask a mortgage lender.
Discounts and ways to lower the cost
The Department says FAIR Plan residential policyholders can get a discount on the wildfire portion of their premium for hardening their property. I explain the actions behind that in my guide to wildfire safety discounts, and the yard work involved is in my guide to defensible space.
What this guide cannot promise
I cannot tell you whether you will qualify, what a policy will cost or what a claim will pay. Coverage rules change, and each insurer and broker reads a property differently. A licensed agent or broker can quote you real numbers for the home you want.
My advice for San Diego buyers
- Ask for homeowners insurance quotes as soon as your offer is accepted, not at the end of escrow.
- Use a broker who is registered to sell FAIR Plan coverage if regular insurers decline.
- Ask exactly what is covered, and what needs a second policy.
- Tell your lender early if you plan to use the FAIR Plan.
- Ask about wildfire discounts once you own the home.
A note on advice
I am a REALTOR®, not an insurance agent, attorney or financial advisor, so this guide is general information. A licensed insurance agent or broker can tell you what coverage and prices apply to a specific home.
Call or text me at (619) 402-4614 or send me a message.
Call or text (619) 402-4614Contact Trevor LandressRelated guides
- Wildfire Safety Discounts for San Diego Homeowners: The 10 Actions That Can Lower Your Premium
- Defensible Space for San Diego Homeowners: The Zones and Distances Explained
- Homeowners Insurance Nonrenewal in California: What Happens If Your Insurer Drops You
- Earthquake Insurance for San Diego Homeowners: What It Covers and How Deductibles Work
- How Much Are Closing Costs When Buying a Home in San Diego?
- How Much Income Do You Need to Buy a Home in San Diego?
Frequently asked questions
What is the California FAIR Plan?
It is a state-created insurance pool, run by insurance companies, that offers property coverage to people who cannot get a policy from a regular insurer.
How do I apply for the FAIR Plan?
Shop the regular market first. If you cannot find coverage, apply through a licensed agent or broker, or call the FAIR Plan at 800-339-4099.
What does the FAIR Plan cover?
At the time this article was written, it offered limited fire and smoke coverage. Water damage, liability and other risks need an additional policy.
What is the residential limit?
The California Department of Insurance lists $3 million per location for residential policies.
Can I get a discount on a FAIR Plan policy?
Residential policyholders can get a discount on the wildfire portion of their premium for hardening their property.
About the author
Trevor Landress is a San Diego REALTOR® with Coldwell Banker West (DRE# 02126901). He was born and raised in San Diego and has been licensed since 2021.
Trevor helps homeowners sell, guides first-time buyers through the home buying process and assists investors with their next acquisition. His work includes negotiating offers, analyzing market trends, building pricing strategies and running marketing campaigns for his listings.
He serves clients across San Diego County, from coastal communities like La Jolla, Del Mar and Carlsbad to neighborhoods inland.
Trevor is part of the Campbell Group, a three-generation real estate team, and he and the Campbell Group consistently rank as a top producing team at Coldwell Banker West each month. He writes these guides to help San Diego buyers and sellers navigate an ever-changing market. To talk through your plans, call or text (619) 402-4614 or contact Trevor Landress.
How I help San Diego home buyers
I help buyers sort out their budget, understand their loan options with a lender, search for homes, write and negotiate offers, keep track of inspection and contingency deadlines and stay organized through closing.
How I help San Diego home sellers
I help sellers price their home, prepare it for the market, market it to buyers, review and negotiate offers and manage the steps from an accepted offer to closing.
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