WHAT IS THE FAIR PLAN?
Every year seems to be a record year for Wildfires in California, and the Insurance Industry has taken note. If you’re a buyer looking for a home near mother nature you need to know about this, and if you own a home on the edges of the city with brush or trees nearby you may have trouble finding affordable fire insurance.
But Fear not. The California Fair Access to Insurance Requirements Plan (or FAIR Plan) is an insurance pool established to guarantee the availability of fire insurance to California Homeowners, which is critical since most mortgage lenders require insurance.
You should exhaust all other avenues before going with a FAIR Plan policy, as it will cover losses due to fire and smoke, and satisfy your mortgage company’s fire insurance requirement , but it will not cover damages from earthquake, theft, vandalism or personal liability. Currently the FAIR Plan’s combined dwelling coverage limit is $3 million for residential dwelling policies.
For more complete coverage for your property, you can purchase a Difference in Conditions (DIC) policy which covers most perils not covered by the FAIR Plan policy.
For more information, visit CFPNET.com. This is a comprehensive website that should answer all your questions about the California Programs. There are links to the CEA (California Earthquake Authority) for info on Earthquake Insurance programs.
Of course, you should also talk to your current insurance company and perhaps a trusted insurance broker who can help you put it all together to protect your most treasured investment – your home – from all the dangers that we face here in California.
Recent Comments