How to Compare a CA FAIR Plan Setup With Private Homeowners Insurance
Many California homeowners on the FAIR Plan carry two policies: the FAIR Plan dwelling policy and a separate Difference in Conditions (DIC) policy. When a private homeowners quote becomes available, comparing the two is not as simple as comparing one price to another.
Add up the total cost
Combine the FAIR Plan premium, the DIC premium and any policy fees. That combined figure is what you compare against a private homeowners quote, which usually includes dwelling, personal property and liability in one policy.
Compare coverage, not just limits
The FAIR Plan is a basic fire policy. Liability, theft and water damage typically come from the DIC policy, if you have one. Check that a private policy's dwelling limit reflects a realistic replacement-cost estimate, and compare personal property, loss of use and liability limits line by line.
Look at every deductible
Some policies have separate deductibles for wildfire, wind or water losses. A lower premium with a much higher wildfire deductible may not be a better deal for a home in a high fire risk area.
Read the exclusions and limitations
Water damage coverage in particular varies — many policies exclude gradual leaks, mold, flood and sewer backup unless endorsed. No policy covers every type of loss. Ask your agent to point out the differences between your current arrangement and the proposed replacement.
Get help reviewing the options
An independent agent can review your FAIR Plan declarations, check whether private markets available to the agency may consider your property, and lay the options side by side. Eligibility depends on each carrier's underwriting.
Related articles
Do I Need Earthquake Insurance in California?
How California homeowners should think about earthquake insurance: fault proximity, percentage deductibles, CEA vs private carriers and retrofit discounts.
CA Fair Plan vs. Standard Homeowners Insurance: What's the Difference?
What the California FAIR Plan covers, what it leaves out, why you need a difference-in-conditions wrap, and how to get back to the standard market.
Talk it through with an agent
Surequest is an independent agency in San Jose. We will compare California carriers for your specific property and tell you plainly what we would do.
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