Certain homeowners in California's areas with high wildfire risks have difficulty finding regular fire insurance due to insurers not wanting to take on high risks. But homeowners can turn to California FAIR Plan Wildlife Insurance if they qualify. Here's a look at how the FAIR plan, which is a bit more expensive than a regular fire insurance plan.
The FAIR Plan states on its website that it is a "syndicated fire insurance pool" consisting of insurers that are licensed in the state to conduct property/casualty business. The PAIR Plan encompasses all insurance agencies that write basic property insurance in their membership. This California Fair Plan Wildfire Insurance serves as a last resort for homeowners who are unable to secure the necessary fire coverage.
The FAIR Plan is meant to be a short-term safety net for homeowners until they find sufficient coverage from a conventional insurance company. The plan may not be needed in the future if insurers decide to take on more risk with homeowners who live in areas with a history of wildfires.
It's a basic policy that essentially covers damage to the home from fire and smoke, lightning, and internal explosions. It doesn't cover vandalism, which should already be covered in a standard homeowners policy.
In 2021 California Insurance Commissioner Ricardo Lara ordered the FAIR Plan Association to allow more traditional coverage options, such as water damage, theft, and loss of use. It's an attempt by the state to help protect homeowners who rely on minimal insurance coverage against disasters.
It helps to start with an experienced insurance broker who networks with other insurance companies. If you cannot find regular fire insurance through these channels, your broker can determine if you are eligible for the state's FAIR Plan, which has minimal requirements. After submitting your application, a representative from the plan might request you to schedule a home inspection.
The FAIR Plan, on average, costs California homeowners about $3,200 per year. Its high price reflects high risk, but premiums for the FAIR Plan are different for each policyholder. Monthly premiums take into account factors such as your home's distance to a fire station, types and amount of coverage, and claims history.
No, you can be a seasonal renter or a condo owner to be eligible for the FAIR Plan. It's also available to owners of manufactured homes, as well as businesses. The plan, however, does not cover vacant homes that are unoccupied over half the year.
Tell us about your needs for California FAIR Plan Wildlife Insurance. Our agents here at Jack Stone Insurance Agency will connect you with the right coverage for your needs. Contact us today to find out more about various types of insurance to protect your assets.
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