The California FAIR Plan is the state's insurer of last resort for property insurance: a private association, run day to day by insurance companies, that offers coverage to residents and businesses who cannot obtain it through a regular insurance company.
What the Department of Insurance says
The Department of Insurance page on the FAIR Plan says it was established more than 50 years ago, is created by the Governor and Legislature, and is a private association whose day-to-day operations are controlled by insurance companies, not taxpayers. The Department exercises oversight under California law. It is available to residents and businesses in urban and rural areas who cannot obtain insurance through a regular insurance company, and the page describes the policy as a limited fire policy.
How a person gets it
The Department recommends shopping the regular market first. If you still cannot get residential or commercial insurance, you apply through an agent or broker licensed to sell property insurance, or you can contact the FAIR Plan directly. The Department recommends a licensed broker registered to sell FAIR Plan coverage. Limits listed on the page are $3 million for residential policyholders and $20 million for commercial policies per location.
What it is not
It is not a state agency and it is not a replacement for a full homeowners policy. The Department says the current policy is limited to fire, and that a broader residential option is in progress. Many owners pair it with a separate difference in conditions policy for water damage, liability, and theft, which the Department also describes. See FAIR Plan for California homeowners, what the FAIR Plan does not cover, and leaving the FAIR Plan. Spanish: Plan FAIR. Index: glossary.
Sources, checked October 9, 2026: California Department of Insurance, California FAIR Plan; California FAIR Plan Association, About. The Department page is dated and its limits and rules change, so confirm current limits with the FAIR Plan before quoting a number.