If you own a home in California, you’ve probably heard the California FAIR Plan mentioned more often lately. Sometimes it comes up after a non-renewal. Other times it’s framed as a “backup” option when standard insurance becomes harder to find.
Either way, the FAIR Plan doesn’t need to feel confusing or alarming. It’s simply one of the ways home insurance can be structured in California today.
This article is meant to walk through the differences between standard home insurance and the California FAIR Plan, explain how they’re often used together, and help you understand where each fits.
Standard home insurance, in simple terms
Standard home insurance is what most homeowners are familiar with. It’s typically a single policy that covers your home, belongings, liability, and additional living expenses if you’re displaced after a covered loss.
When a home qualifies for standard coverage, it’s usually the simplest setup. Everything lives under one policy, issued by one carrier, and it tends to feel straightforward.
Many homeowners still qualify for standard coverage — even in today’s market — but availability can vary more than it used to. Location, property characteristics, and changing carrier guidelines all play a role.
What the California FAIR Plan actually is
The California FAIR Plan exists to make sure homeowners can still insure their property when standard insurance isn’t available. It’s a state-mandated program, not a private insurance company, and it serves a very specific purpose.
The FAIR Plan primarily provides fire coverage and certain related perils. On its own, it isn’t meant to function as a complete homeowners policy. Because of that, it’s often paired with an additional policy called a Difference in Conditions (DIC) policy.
This is an important distinction, and one that’s often misunderstood.
How the FAIR Plan & a DIC policy work together
Rather than being an either-or decision, many California homeowners use a two-policy approach.
In this setup, the FAIR Plan handles fire-related risk, while the DIC policy fills in the remaining pieces — things like liability, theft, water damage, and other non-fire coverages.
When coordinated properly, these two policies work together in a way that closely resembles a traditional homeowners policy. It’s not an unusual structure, and it doesn’t mean something is wrong with the home. It simply reflects how coverage is being built in today’s California insurance environment.
Why some homes need this structure
Homes may need a FAIR Plan–based setup for a variety of reasons. Sometimes it’s related to wildfire exposure or location. Other times it’s tied to changes in carrier underwriting guidelines or broader pullbacks that have nothing to do with the homeowner or how well the property is maintained.
In many cases, these factors are outside a homeowner’s control. They reflect how insurance companies are adjusting their risk appetite, not the quality of the home itself.
Why coordination matters more than ever
Because coverage is split between two policies, the way they’re coordinated matters.
It’s important that there aren’t gaps between policies, that deductibles and limits make sense together, and that the home is insured for realistic rebuild costs. It also matters that everything is reviewed ahead of renewal deadlines, rather than rushed at the last minute.
This is where guidance can make the process feel much more manageable.
How we help
We help coordinate both sides — standard home insurance and the FAIR Plan paired with a Difference in Conditions (DIC) policy — so coverage works together cleanly and intentionally.
Because we’re independent, we’re able to look at standard-market options when they’re available, explain when a FAIR Plan structure makes sense, and talk through trade-offs clearly. Just as importantly, we plan ahead so homeowners have time to understand their options and make informed decisions.
Our role isn’t to push one solution over another. It’s to help homeowners understand how coverage can be structured and feel confident in the setup they choose.
A steady way forward
California’s insurance market continues to change, but homeowners still have paths forward.
With the right structure and a little planning, it’s possible to put coverage in place that fits your situation — even when things feel more complex than they used to.
If you’re navigating this now, or simply want to understand how your current coverage is set up, we’re always happy to talk it through.
We help coordinate both sides — standard coverage and the FAIR Plan — so you’re not left piecing things together on your own.
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Cord & Nicole
Cord Insurance Broker