More California home buyers are finding that the only insurance available for the home they love is the California FAIR Plan. Stanford researchers found that in the first quarter of 2026, about 1 in 18 new California single-family home loans (5.6%) was originated with FAIR Plan coverage, and that share is higher in wildfire areas like the Sierra foothills.
The good news: you can still buy the home. You just need to plan for it. Here’s how it works.
Yes, you can get a mortgage with the FAIR Plan
Lenders generally accept the FAIR Plan as long as the coverage meets their requirements. What they care about is that the home is insured for enough, the deductible fits their rules, the lender is listed as the mortgagee, and the coverage is in force at closing.
Why you’ll usually need two policies
The FAIR Plan mainly covers fire. It doesn’t include personal liability, theft or water damage the way a standard homeowners policy does. So we pair it with a Difference in Conditions (DIC) policy from another insurer to fill those gaps. That means two applications, two policies, two bills and two pieces of evidence of insurance for your lender.
The FAIR Plan buyer’s timeline
- Get a quote before you make an offer. Know whether the home is likely to need the FAIR Plan, and what both policies will cost.
- Build in time. Ask your Realtor to allow enough time in your contingency period to finalize insurance.
- Apply as soon as you’re in contract. The FAIR Plan and DIC carrier may need photos, roof details and other information.
- Send your lender evidence of insurance for both policies, with the lender listed correctly.
- Confirm both policies start on your closing date.
Budget for the real cost
- Add both premiums, FAIR Plan plus DIC, to your monthly budget. Many buyers pay through their mortgage escrow account.
- Plan for the FAIR Plan rate increase. The FAIR Plan’s 29.1% average increase applies to new and renewing policies on or after October 15, 2026. See The 2026 FAIR Plan Rate Increase.
- Check the deductibles on both policies. Some lenders cap how high a deductible can be.
- Ask about mitigation discounts. A Class A roof, ember-resistant vents and defensible space can help.
Watch for these issues
- Coverage limits: Your dwelling limit should reflect the cost to rebuild, not the purchase price. See Are You Underinsured?
- High-value homes: The FAIR Plan has a maximum limit (currently $3 million combined), so larger homes may need additional coverage.
- Gaps between policies: Make sure the DIC policy is designed to work with the FAIR Plan, so there are no holes.
- Living expenses after a fire: The FAIR Plan has no Additional Living Expense coverage. It offers Fair Rental Value instead, and the DIC’s living expense coverage does not apply to a fire. Buy enough Fair Rental Value to cover a long rebuild. Learn how the FAIR Plan and DIC work together.
- Older roofs and systems can affect eligibility for the DIC policy too.
The FAIR Plan is a starting point
Buying with the FAIR Plan doesn’t mean you’re stuck there. After you close, we keep shopping your home every year and move you to a single admitted policy as soon as one is competitive. Read How to Get Off the California FAIR Plan.
For sellers and listing agents: get answers before buyers ask
Insurance surprises can derail an escrow. A walk-through before listing gives sellers and their Realtor clear answers about insurability, and captures the FAIR Plan photo requirements up front so a buyer is ready to apply.
Phil or a member of our team visits your property and looks at it the way insurance underwriters do, so you know where your home stands and what to do next.
- Reviews your home against carriers’ own underwriting guidelines
- Verifies your ISO mapping: the actual distance to the nearest fire station and hydrant
- Identifies and validates mitigation discounts, which are hard to sort out on your own
- Captures the photos and details carriers, and the FAIR Plan if needed, require up front
- Gives you clear next steps to put your home in its best position for coverage
Realtors: listing a home? We can complete a walk-through before you list and send the results to you directly to present to your seller, so insurance answers are ready when a buyer is.
This is an insurability review only. It isn’t a home inspection, an appraisal or a fire agency defensible space inspection.
Book a Walk-Through Email phil@gold.insureOur promise
- We shop admitted carriers first, every time.
- We show you every option we find: admitted, non-admitted, and FAIR Plan with a DIC policy, with the pros, cons and real costs.
- We tell you who’s behind each policy: the carrier, how it’s backed and how it’s rated.
- We don’t stop looking. If today’s best option is the FAIR Plan or a non-admitted carrier, that’s a starting point, not where we finish. We keep re-marketing your home until competitive admitted options return, and we move you when they do.
Buying a home that may need the FAIR Plan? Let’s get you a quote before you write the offer. Book a 30-minute review with me or request a free quote. Current clients with questions about an existing policy or renewal can reach our service team at team@gold.insure.
Specialists in California’s wildland-urban interface, where homes meet forest, brush and grassland.
Phil Irwin, President, Gold Insurance Solutions. CA License #6000540. General information as of October 2026, not legal advice. Coverage and pricing vary by carrier and home.