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Understanding the California FAIR Plan in 2024

Why do I need to go with the California Fair Plan?

As you may know, the current insurance market is a challenging environment, and many carriers are not accepting new business or have restricted the number of new policies being written. Our agency represents most of the A rated insurers in the state, however, none of the companies we represent will insure in certain areas.

What is California Fair Plan?

The FAIR Plan exists to provide insurance to Californians who cannot find coverage through no fault of their own.

What companies had you checked with before determining that California Fair Plan may be my only option?

Our agency represents most of the” A rated” carriers in California and before sending you the Fair Plan quote, we checked rates with Progressive, Nationwide, Hartford, Travelers, Bamboo , Safeco, Hippo, Berkshire Hathaway, Stillwater, Kemper, Mapfre, Farmers, Foremost, Lemonade, CSE, Arrowhead, American Modern, Aegis, AARP and many more.

Who owns the California FAIR Plan?

While many people believe the FAIR Plan is a government entity or state program, this is not the case. Taxpayers do not fund the program. The FAIR Plan is supported by all of the carriers who are licensed to do business in the state of California.

This arrangement spreads the risk between all the insurance carriers at once.

What does a California FAIR Plan policy cover in 2024?

The FAIR Plan covers property damage due to fire, lightning, smoke, or internal explosions. You can also purchase optional extended coverage for windstorms, hail, explosions, riots, aircraft, or vehicles, as well as for vandalism or malicious mischief. You can also get optional coverage for other structures, like storage sheds, swimming pools, detached garages, etc.

What is a Difference in Conditions (DIC) policy, AKA "Wraparound" policy?

DIC covers liability, medical payments to others, theft, and water damage. This, along with the FAIR Plan, will give you as close to a traditional homeowner’s insurance product as you can get.

What Is the Process for Purchasing the California FAIR plan in 2024?

1. Call our office at 949-352-4011 to start the application process and discuss coverage amounts.

Every home is different, first step is to make sure that your property has the correct coverage amount. Our agents will ask basic questions about your home and confirm square footage, number of bedrooms, bathrooms, number of stories, type of garage, interior finishes and more.

Replacement costs can be about $250/per square foot, and it goes up from there based on your actual finishes and improvements.

2. Get photos of your home.

To get a "formal" and approved quote with the Fair Plan, pictures are needed. Typically, we need the following pictures: front, back, both sides and a picture of the actual house number.

4. Get a quote from the FAIR plan.

The FAIR Plan then goes through your application, and you’ll get a customized quote that will be good for 30 days. Response time is usually 48-72 hours but in some instances it can take longer.

5. Agree to the quote and make your first payment.

What happens if I have questions and/or need help after I purchased my policy?

Direct Quote will act as your agent/broker, and we always have your best interest at heart! If you have any questions or need any help with your policy, we are always happy to hear from you!

Who is Direct Quote Insurance?

Direct Quote is a major California brokerage firm that has helped many Californians obtain coverage through the Fair Plan. Our team of professionals will guide you at every step of the way while obtaining your Fair Plan Policy. Although this process may feel “complicated” , you have nothing to worry about, your policy could be ready within days.