A California FAIR Plan policy can help you obtain fire coverage when other insurers decline your property. But it is usually only part of the insurance picture. At StarWest Insurance Services, we help California homeowners and rental property owners compare FAIR Plan coverage with a companion Difference in Conditions (DIC) policy—and check whether a single policy is available instead.
What does the California FAIR Plan cover?
The FAIR Plan is a source of basic property insurance for Californians who have difficulty obtaining coverage through the regular market. Its dwelling fire policy covers only the causes of loss named in that policy. It should not be assumed to provide everything included in a traditional homeowners policy.
Why add a DIC policy?
A DIC policy is designed to fill certain gaps in FAIR Plan coverage. Depending on the insurer and policy selected, it may provide coverage for water damage, theft, and personal liability—risks the FAIR Plan policy does not cover in the same way as a traditional homeowners policy. The two policies work together, but their terms and limits need to be reviewed as a pair.
For example, if a pipe bursts, the question is whether the DIC policy’s water damage terms cover that loss. If someone is injured on the property, you would look to the liability coverage in the companion policy. Each claim depends on its facts and the final policy language.
Why work with an agent experienced with both policies?
Buying two policies means checking more than two prices. We review:
- Dwelling limits and the estimated cost to rebuild
- Deductibles and water damage limits
- Personal property, loss of use, and liability coverage
- The property’s occupancy, including owner occupied homes, rentals, and condos
- Effective dates, so the policies start when coverage is needed
- Underwriting requirements, such as property details and photographs
We also look for a suitable single homeowners or landlord policy when one is available. The FAIR Plan itself encourages consumers to work with a broker to determine whether FAIR Plan coverage and supplemental insurance fit their needs.
Can I use the FAIR Plan for a rental or condo?
The FAIR Plan describes dwelling options for owner occupied and tenant occupied properties with up to four family units, as well as personal property coverage options for condo owners. The appropriate FAIR Plan and companion policy depend on what you own, what the association insures if it is a condo, and how the property is used.
Get help comparing your options
If your California home or rental property has been declined or nonrenewed, StarWest Insurance Services can help you review available markets and, when appropriate, put together a California FAIR Plan + DIC proposal.
Call (714) 893-7271 or email jb@starwestinsurance.com. Send us the property address and your current declarations page, if available, and we’ll start with the coverage you have today.
StarWest Insurance Services, LLC
CA License #0B83846
Quotes and coverage are subject to underwriting approval and the final policies’ terms, limits, exclusions, and deductibles. A quote does not put coverage in force.