FAIR Plan Companion & High-Risk Property Insurance

What the California FAIR Plan generally provides

The FAIR Plan is a last-resort source of basic property insurance when coverage is not reasonably available in the traditional market. Its basic dwelling policy covers specified fire-related losses, including fire or lightning, internal explosion, and smoke. It is not the same as a comprehensive homeowners policy.

Review the actual policy, any optional endorsements, limits and exclusions. Do not assume that a FAIR Plan policy addresses all of your property or liability needs.

Why companion / DIC coverage matters

A separate Difference in Conditions (DIC) policy may address certain gaps, such as eligible water damage, theft or personal liability, depending on the insurer and policy. The FAIR Plan does not sell DIC policies. Companion DIC coverage is separate and does not replace the FAIR Plan policy’s fire coverage.

Companion policies are not interchangeable. Coverage, exclusions, deductibles and underwriting requirements differ; a combination of policies does not guarantee that every gap is covered.

Questions to review together

Consider rebuilding costs, personal belongings, loss-of-use needs, personal liability, water damage, theft, deductibles and lender requirements. Check how the effective dates, limits and exclusions of separate policies work together. Flood and earthquake may require their own coverage.

Potential alternatives and higher-value homes

Depending on the property and available markets, specialty or excess and surplus lines options may be worth exploring. Wildfire exposure, construction, roof condition, access and replacement cost can affect underwriting. No alternative, companion policy or acceptance is guaranteed.