By James C.Q. Banh, Owner & Broker, Starwest Insurance Services
If you currently have coverage through the California FAIR Plan, prepare yourself for a significant premium increase.
The California Department of Insurance has approved a statewide average rate increase of 29.1% for residential California FAIR Plan policies, effective October 15, 2026.
For many California homeowners, especially those in wildfire-prone areas, the increase may be even higher.
If you’re already struggling with the rising cost of home insurance in California, this announcement could have a major impact on your household budget.
Why Is the California FAIR Plan Increasing Rates?
The California FAIR Plan was originally designed as an insurer of last resort for homeowners who could not obtain coverage through the traditional insurance market.
Over the past several years, major carriers such as State Farm, Safeco, Farmers, and others have reduced their appetite for high-risk properties, resulting in a dramatic increase in FAIR Plan enrollment.
Today, more than 663,000 California residential policyholders rely on the FAIR Plan for coverage.
As wildfire losses continue to increase, the FAIR Plan has requested higher rates to maintain financial stability and continue providing coverage throughout California.
Some Homeowners Could See Increases Far Above 29%
The statewide average increase is 29.1%.
However, homeowners located in areas with elevated wildfire exposure may experience much larger increases.
Factors that may impact your premium include:
- Wildfire risk score
- Brush and vegetation density
- Distance to fire stations
- Historical wildfire activity
- Property construction type
- Roof age and condition
- Defensible space around the home
For some properties, the wildfire portion of the premium could increase dramatically, potentially approaching double the current cost.
What Is the California FAIR Plan?
The California FAIR Plan provides basic fire insurance coverage for homeowners who cannot find coverage in the standard market.
However, many homeowners do not realize that FAIR Plan policies often require additional coverage through a Difference in Conditions (DIC) policy to provide protection for:
- Liability
- Water damage
- Theft
- Vandalism
- Personal property
- Loss of use
- Other important coverages
As a result, many FAIR Plan homeowners end up paying for two separate policies.
Is There an Alternative to the California FAIR Plan?
Possibly.
As the California insurance market evolves, several specialty carriers have expanded their underwriting appetite for higher-risk properties.
One example is MSI, which offers homeowners insurance solutions throughout California and may be able to provide coverage for properties currently insured through the FAIR Plan.
Depending on the property characteristics, homeowners may be eligible for:
- Comprehensive homeowners coverage
- Higher liability limits
- Replacement cost protection
- Broader coverage forms
- Competitive pricing compared to FAIR Plan + DIC combinations
Every property is different, so eligibility and pricing will vary.
Why You Should Shop Your Insurance Before October 2026
Waiting until your renewal arrives may limit your options.
By starting the process early, homeowners may:
✅ Explore alternatives before rates increase
✅ Compare multiple insurance carriers
✅ Improve insurability by addressing property concerns
✅ Review replacement cost calculations
✅ Avoid last-minute renewal surprises
Many carriers require inspections, underwriting review, or updated property information before offering coverage.
The earlier you start, the more options you may have.
How Starwest Insurance Services Can Help
At Starwest Insurance Services, we work with multiple homeowners insurance carriers throughout California and specialize in helping homeowners navigate difficult insurance situations.
Whether you currently have:
- California FAIR Plan
- FAIR Plan + DIC
- Non-renewal from State Farm
- Non-renewal from Safeco
- Non-renewal from Farmers
- High wildfire exposure
- Older home concerns
Our team can help explore available options.
We’ve been serving California families and businesses since 1995 and understand the challenges homeowners face in today’s insurance market.
Get a California FAIR Plan Review Today
If your FAIR Plan policy is renewing soon, now is the time to review your options.
A quick review could potentially uncover alternative coverage solutions before the October 2026 rate increase takes effect.
Contact Starwest Insurance Services
James C.Q. Banh
Owner & Broker
CA License #0B83846
Starwest Insurance Services
13752 Goldenwest St.
Westminster, CA 92683
Office: (714) 893-7271
Text: (714) 867-7799
Visit: www.StarwestInsurance.com
Related Articles
- California FAIR Plan vs Traditional Homeowners Insurance
- Help! I Can’t Get Home Insurance in California. What Are My Options?
- Why Did My Home Insurance Company Non-Renew My Policy?
- California Wildfire Insurance: What Homeowners Need to Know
- FAIR Plan + DIC Explained for California Homeowners
Disclaimer: Insurance eligibility, pricing, and underwriting guidelines vary by carrier and property. Coverage availability is not guaranteed and is subject to underwriting approval.