FAQs

Are there disadvantages to a FAIR insurance plan?

A FAIR (Fair Access to Insurance Requirements) Plan is a state-mandated program that provides insurance to homeowners who cannot get coverage in the traditional market (often due to high wildfire or hurricane risk). While it is a vital safety net, it is considered a “last resort” for several reasons:

• Higher Premiums: Because FAIR Plans cover high-risk properties, the cost is typically much higher than a standard homeowner’s policy.
• Limited Protection: Most FAIR Plans only cover “named perils” like fire, lightning, and wind. They often exclude theft, water damage, and personal liability.
• The Coverage Gap: A FAIR Plan protects the structure of your home (the lender’s interest), but it may leave you personally vulnerable to lawsuits or loss of personal property.

Our Recommendation:

We strongly advise trying to maintain your own homeowner’s policy to protect your interests adequately. If you must use a FAIR Plan though, we strongly suggest speaking with your agent about a “Difference in Conditions” (DIC) policy. This supplemental insurance “fills the gaps” by adding back coverage for theft, liability, and other risks not included in the basic FAIR Plan.