FAIR Plan Renewal

What East Bay homeowners and heirs should check before October 15

First, what is the FAIR Plan?

If you're not familiar with it, the FAIR Plan is California's insurer of last resort. It's a state-created option for homeowners who can't get regular fire insurance — usually because their home is in a higher wildfire-risk area, or because a standard insurance company has already turned them down. According to the California Department of Insurance (the state agency that oversees insurance companies, sometimes shortened to “CA DOI”), the FAIR Plan is meant to be a backup, not a first choice. You're supposed to go through a licensed agent or broker first.



More than 675,000 homeowners statewide are covered by it right now, according to KQED. If you're one of them, this rate change is worth paying attention to — and even if you're not, it's a good reason to double check what you actually have.

Why this matters if you're settling an estate

If you're managing a house that's part of an estate — whether you're an heir, a fiduciary, or a family member helping a parent downsize — insurance is one of those costs that's easy to overlook until it shows up in the numbers. A jump in premiums affects carrying costs while a property sits on the market, and it can complicate the timeline if a policy needs to be reviewed or replaced before closing.



The 29.1% figure is a statewide average. Some homes will see a bigger jump, some smaller, and KQED reports that some urban Bay Area communities could actually see reductions. So the real number for any one property is going to vary — nobody can tell you your exact new premium except the FAIR Plan itself.

What the FAIR Plan does — and doesn't — cover

This is the part people often miss: the San Francisco Chronicle reports that the FAIR Plan only covers fire damage. It doesn't include things like water damage or liability coverage (say, if someone is injured on the property). For those, you need what's called companion coverage — a separate policy that fills in the gaps the FAIR Plan leaves open. If a home only has a FAIR Plan policy and nothing else, there could be real gaps in what's actually protected.

Why the FAIR Plan itself is under pressure

There's another piece worth knowing: the FAIR Plan is also under financial strain. KQED reports that as of mid-2026, the FAIR Plan's total exposure — the amount it could owe if disaster struck everywhere it insures — was $768 billion, while its actual cash on hand sat between $200 and $400 million. Its own leadership has told state lawmakers directly that the plan doesn't have much money in reserve. That gap is part of why rates are rising, and it's a reason to treat the FAIR Plan as a true last resort rather than a long-term plan, if a standard-market policy becomes available to you.

What to check before a renewal, listing, or transfer

• Confirm your actual new premium. Don't rely on the statewide average — call and get the real number for the property in question.
• Ask if you can move back into a regular insurance policy. Some homes that were pushed into the FAIR Plan may now qualify for standard coverage again.
• Check for companion coverage. Make sure water damage, liability, and anything else outside of fire is actually covered somewhere.
• If the property is being inherited or transferred, ask whether the policy carries over or lapses. This isn't automatic, and it isn't always the same answer — a surviving spouse is generally in a different position than a more distant heir, like a sibling, niece, or nephew. Don't assume; ask directly, and confirm before you need the coverage, not after.
•  Loop in an insurance professional before listing or closing — not after. It's a lot easier to fix a gap before a sale than during one.

Where I come in

I'm not an insurance professional, and I won't pretend to be one — but part of how I support clients through a sale, a downsizing move, or an estate transition is making sure they've got the right people in their corner. If you're not sure who to call, I can point you toward someone I trust.



If you're navigating any of this — a renewal that just landed in your mailbox, a property you're preparing to list, or an estate you're helping settle — reach out. I'm at 510-386-0547 or eloise@homesbyeloise.com, and I'm happy to help you figure out the next right step.