Short answer
If admitted insurers won't write your California home, the California FAIR Plan can insure the dwelling for fire, lightning, internal explosion and smoke, with optional add-ons. A separate difference-in-conditions (DIC) policy can add what the FAIR Plan leaves out, such as liability, water damage and theft. FAIR Plan pricing is set property by property, so your location, wildfire risk score, construction, roof and the limits you pick all change the price. If neither the admitted market nor the FAIR Plan fits, a licensed broker can look at surplus-lines (nonadmitted) insurers, which come with disclosures the California Insurance Code requires.
Several large insurers have limited new California homeowners business since 2023, and many homeowners now get non-renewal letters or can't find a company willing to quote. That doesn't mean you have no options. This guide explains the three paths a California broker usually works through: the standard (admitted) market, the FAIR Plan paired with a DIC policy, and surplus lines. Questions about your home? Call (209) 670-1556. Se habla español.
Some insurers are sending policyholders notices about two claim rules that sit on top of a FAIR Plan or a standard home policy: SB 495 is already in effect, and SB 876 starts in 2028.
What is the California FAIR Plan?
The California FAIR Plan Association is the property insurer of last resort. California Insurance Code §10091 requires insurers licensed to write basic property insurance in California to participate in the association, which shares the losses. It is not a state agency, and it does not replace a full homeowners policy.
For homes, the FAIR Plan's residential dwelling limit is up to $3 million per location, according to the California Department of Insurance. If your rebuild cost is higher than that, the gap has to be handled another way, often with an excess or surplus-lines policy.
What a FAIR Plan dwelling policy covers, and what it doesn't
The FAIR Plan dwelling policy is a named-peril policy. It pays only for the causes of loss listed on your declarations page.
- Base perils: fire, lightning, internal explosion and smoke.
- Optional, for more premium: extended coverage (windstorm or hail, explosion, riot, aircraft, vehicles, volcanic eruption), vandalism or malicious mischief, dwelling replacement cost, other structures and Fair Rental Value.
- Fair Rental Value is not the same as additional living expense. According to the FAIR Plan's claims FAQ, it's based on what your home could have been rented for, not your hotel and meal bills. If you didn't buy it, 10% of the dwelling limit can be used for it, and any payment reduces the dwelling limit.
- Not covered: personal liability, theft, water damage such as a burst pipe, and medical payments to guests. The FAIR Plan doesn't sell the companion policy that covers these.
- Always separate: earthquake and flood. A DIC policy doesn't add them either unless it says so.
Pull out your FAIR Plan declarations page and check which boxes are marked. The optional coverages only apply if they're listed there.
What a DIC policy adds
A difference-in-conditions (DIC) policy, sometimes called a "wrap," is written by a private insurer to sit alongside a FAIR Plan dwelling policy. Depending on the form, it can add personal liability, theft, water damage, personal property, loss of use and other coverages a standard homeowners (HO-3) policy includes. Some DIC policies come from admitted insurers and some from surplus-lines insurers. Your paperwork will say which.
- You'll have two policies, two declarations pages, usually two deductibles and two renewal dates.
- Your broker should match the DIC to the FAIR Plan coverages you bought, so there isn't a gap or a double payment.
- If you have a mortgage, ask your lender what it needs to see. We send the declarations or evidence of insurance to your lender once both policies are issued.
What affects FAIR Plan cost by ZIP code
People often search for "FAIR Plan cost by ZIP code," but there's no single price for a ZIP. The FAIR Plan rates each property, and next-door neighbors can get different quotes. These are the main pricing factors:
| Factor | Why it matters | What you can do |
|---|---|---|
| Location and wildfire risk score | The FAIR Plan uses territory and property-level wildfire risk scoring. Homes near brush, on steep slopes or in historically fire-prone areas score higher, even inside the same ZIP. | Ask which risk score or territory your quote used. Check that the address and parcel are correct. |
| Fire protection | Distance to a responding fire station and access to hydrants affect how a fire loss is expected to go. | Give your broker the correct fire district. Rural addresses sometimes get mismatched. |
| Construction and roof | Roof class, siding, vents and year built all change the expected fire damage. | Document a newer Class A roof, ember-resistant vents and other upgrades. |
| Dwelling limit and valuation | A higher Coverage A limit, or replacement cost instead of actual cash value, raises the premium. | Insure to a realistic rebuild cost. Don't cut it just to lower the premium. |
| Deductible | A higher deductible usually lowers the premium. | Choose a deductible you could actually pay after a loss. |
| Optional coverages | Extended coverage, vandalism, other structures and Fair Rental Value each add premium. | Add the ones you need and coordinate them with the DIC so you don't pay twice. |
| Wildfire mitigation discounts | Under the Safer from Wildfires framework, the FAIR Plan offers up to 12 home-hardening and surroundings discounts on the wildfire portion of the premium. Its discount sheet says dwelling policyholders who qualify for all 12 may see up to 16.4% off that portion. | Keep receipts and photos of cleared vegetation, a Class A roof, ember-resistant vents and other work. Ask your broker to request the discounts, since an inspection may be required. |
CAL FIRE's Fire Hazard Severity Zone maps are a helpful way to understand your area, but the Department of Insurance has said those maps don't set insurance rates. Insurers and the FAIR Plan use their own risk models. For a price on a specific address, the only reliable way is a quote on that address.
Typical 2026 ranges: FAIR Plan plus DIC, by home value and risk zone
People search for a FAIR Plan cost by ZIP code, and the bands below are the closest honest answer: typical 2026 ranges grouped by rebuild value and wildfire-risk zone, including urban and suburban ZIP patterns. FAIR Plan pricing is set by the association on a statewide fire-risk-adjusted rate. DIC wrap pricing varies by the private insurer. These are typical ranges, not a quote, and your premium depends on the factors in the table above.
| Home value and risk profile | FAIR Plan annual | DIC wrap annual | Combined, typical range |
|---|---|---|---|
| $500K, low-risk zone (urban Stockton, urban San Jose) | about $1,200 – $1,900 | about $900 – $1,500 | about $2,100 – $3,400 |
| $750K, moderate-risk zone (suburban Bay Area, suburban Sacramento) | about $1,800 – $3,500 | about $1,200 – $2,400 | about $3,000 – $5,900 |
| $1M, moderate-risk zone | about $2,800 – $4,800 | about $1,600 – $3,200 | about $4,400 – $8,000 |
| $1M, high-risk zone (wildland-urban interface, fire-history county) | about $4,500 – $8,500 | about $2,400 – $4,500 | about $6,900 – $13,000 |
| $1.5M or more, high-risk zone | about $6,800 – $12,500 | about $3,500 – $6,500 | about $10,300 – $19,000 |
The combined cost is usually higher than older standard-market pricing. That is a California market fact, not a broker add-on. The only number that applies to your home is a quote on your address.
The third option: surplus-lines (nonadmitted) insurers
When admitted insurers decline and the FAIR Plan doesn't fit well (the home is over the FAIR Plan limit, it's an unusual property, or you want broader coverage than FAIR Plan + DIC), a licensed broker may be able to place coverage with a surplus-lines insurer. California allows this under specific rules:
- Diligent search first. Insurance Code §1763 generally lets a broker place coverage with a nonadmitted insurer only after a diligent search among admitted insurers that actually write that type of coverage.
- Eligible insurers only. Under §1765.1, the nonadmitted insurer has to meet California's eligibility standards.
- A signed disclosure. §1764.1 requires a written notice, in large type, that the insurer isn't licensed by California, isn't subject to its financial solvency regulation and enforcement, and doesn't participate in the insurance insolvency funds created by California law. You sign it. If the signed notice isn't obtained, the law gives you a right to cancel for a pro-rata refund.
- Different oversight. Surplus-lines rates and policy forms aren't approved by the Department of Insurance the way admitted homeowners policies are, so read the exclusions and conditions carefully.
| Admitted homeowners | FAIR Plan + DIC | Surplus lines | |
|---|---|---|---|
| Who writes it | Insurer licensed in California | FAIR Plan association + a private DIC insurer | Eligible nonadmitted insurer, through a licensed broker |
| Rates and forms | Filed with the CDI | FAIR Plan rates filed; DIC depends on the insurer | Not approved by the CDI |
| California insolvency funds | Yes | FAIR Plan is backed by member insurers; DIC depends on the insurer | No (disclosed in writing) |
| Coverage shape | One package policy | Two policies that need to be matched | Varies by form; often broader limits or unusual properties |
Questions about a surplus-lines policy or a broker? The Department of Insurance consumer hotline is 1-800-927-4357.
Talk through FAIR Plan, DIC and surplus-lines options with a licensed broker. Have ready your non-renewal letter (if you have one), the property address, year built, square footage, construction and roof type, any updates, and your lender's information. We'll check the admitted market first, then explain the options that fit your home.
Call (209) 670-1556 San Jose HomeownersHow we work a non-renewal, step by step
- Review the notice and your current policy. We check the non-renewal date, your current limits and what the policy covers today.
- Shop the admitted market. A standard homeowners policy is usually the simplest outcome, so we look there first.
- FAIR Plan application. If admitted companies decline, we submit the FAIR Plan dwelling application with the optional coverages that make sense for your home.
- Match a DIC policy. We quote DIC coverage and line it up with the FAIR Plan coverages so gaps and overlaps are clear.
- Surplus lines if needed. For homes over the FAIR Plan limit or outside its guidelines, we explain surplus-lines options and the required disclosure before anything is bound.
- Lender paperwork and renewals. We send proof of coverage to your lender and re-shop at renewal, because the admitted market keeps changing.
Timing depends on the FAIR Plan, the insurers involved and whether an inspection is needed, so start as soon as you get a non-renewal letter.
Condos, rentals, mobile homes and renters
- Condos: the HOA's master policy covers the building. You usually need an HO-6 policy for your unit and belongings.
- Rental property: the FAIR Plan can write the dwelling-fire portion for a rental. Landlord liability comes from a separate policy. See our California landlord insurance guide.
- Mobile and manufactured homes: these usually go on a mobile-home policy rather than the FAIR Plan. See home and renters insurance.
- Renters: renters policies cover belongings and liability and don't depend on the dwelling market.
FAQ: California FAIR Plan, DIC and surplus lines
What does the California FAIR Plan cover?
The FAIR Plan dwelling policy covers fire, lightning, internal explosion and smoke. Extended coverage (such as windstorm and hail), vandalism, dwelling replacement cost, other structures and Fair Rental Value can be added for more premium. It doesn't cover liability, theft or water damage, and earthquake and flood need separate policies.
How much does the FAIR Plan cost in my ZIP code?
There's no single price for a ZIP code. The FAIR Plan rates each property based on location and wildfire risk score, fire protection, construction and roof, the dwelling limit and valuation, the deductible, the optional coverages you choose, and any wildfire mitigation discounts. Neighbors can get different quotes. A typical range, not a quote: a home around $750,000 in a moderate-risk zone (suburban Bay Area or suburban Sacramento) usually runs about $1,800–$3,500 a year for the FAIR Plan plus about $1,200–$2,400 for a DIC wrap, or about $3,000–$5,900 combined. High-risk zones are usually about 50% to 100% higher. Other typical 2026 bands on the same scale: about $1,200–$1,900 for the FAIR Plan and about $900–$1,500 for the DIC (about $2,100–$3,400 combined) on a $500,000 home in a low-risk urban zone such as urban Stockton or urban San Jose; about $2,800–$4,800 and about $1,600–$3,200 (about $4,400–$8,000 combined) on a $1 million home in a moderate-risk zone; about $4,500–$8,500 and about $2,400–$4,500 (about $6,900–$13,000 combined) on a $1 million home in a high-risk wildland-urban interface or fire-history area; and about $6,800–$12,500 and about $3,500–$6,500 (about $10,300–$19,000 combined) on a home around $1.5 million or more in a high-risk zone. FAIR Plan pricing is set by the association on a fire-risk-adjusted rate, and DIC pricing varies by the private insurer. Your premium depends on those factors, and the only number for your address is a quote on that address.
What is a DIC policy?
A difference-in-conditions (DIC) policy is a separate private policy written to go with a FAIR Plan dwelling policy. Depending on the form, it can add personal liability, theft, water damage, personal property and loss of use. It should be matched to the FAIR Plan coverages you bought.
Does the FAIR Plan have to accept my home?
The FAIR Plan is the insurer of last resort for properties the admitted market won't write, but it has its own guidelines and can ask for corrections, such as clearing vegetation or repairing a roof, or decline a property. Nobody can promise acceptance before the application is reviewed.
What is surplus-lines homeowners insurance?
It's coverage from a nonadmitted insurer, placed through a licensed broker. California Insurance Code section 1763 generally requires a diligent search among admitted insurers first, and section 1765.1 requires the insurer to meet California eligibility standards. Surplus-lines rates and forms aren't approved by the Department of Insurance the way admitted policies are.
What happens if a surplus-lines insurer becomes insolvent?
Surplus-lines insurers don't participate in the insurance insolvency funds created by California law. Insurance Code section 1764.1 requires a written notice saying so, and you sign it before or when the policy is placed. If the signed notice isn't obtained, the law gives you a right to cancel for a pro-rata refund.
What if my home costs more to rebuild than the FAIR Plan limit?
According to the California Department of Insurance, the FAIR Plan's residential dwelling limit is up to $3 million per location. Coverage above that has to come from another policy, often an excess or surplus-lines policy that a broker coordinates with the FAIR Plan.
Can I lower my FAIR Plan premium?
Premiums depend on your property's factors, but hardening work can help. Under Safer from Wildfires, the FAIR Plan offers up to 12 discounts on the wildfire portion of the premium, and an inspection may be required. Choosing a higher deductible and re-shopping the admitted market at every renewal are other options.
Will my mortgage lender accept FAIR Plan plus DIC?
Lenders set their own insurance requirements, so ask yours what it needs to see. Many lenders review a FAIR Plan policy and a DIC policy together. We send proof of both policies to your lender once they're issued.
Call (209) 670-1556 or visit one of our offices in Stockton, San Jose or San Rafael. CA Lic #6003045. No broker fees on standard policies at our Stockton and San Jose offices only. Se habla español. Leer en español: Plan FAIR de California en español.
The steps above stay on this page. Check if you qualify for one admitted policy. If you were non-renewed, start with how to get homeowners insurance after a nonrenewal. East Bay hills addresses: Oakland hills homeowners insurance. Santa Rosa, Sonoma, and Napa addresses: Santa Rosa homeowners insurance. Earthquake is separate: is earthquake insurance worth it in California.
Related California homeowners guides
- Check if you qualify for one admitted policy
- What the FAIR Plan doesn't cover (en español), a closer look at DIC coverage
- San Jose homeowners insurance, Santa Clara County coverage and FAIR Plan questions
- Stockton home insurance, San Joaquin County homeowners
- San Rafael and Marin County home insurance, North Bay wildfire areas
- Is earthquake insurance worth it in California?
- Homeowners insurance in California: HO-3 coverage and cost
- California landlord insurance
