Insurance guide
California FAIR Plan and DIC Coverage Explained
Understand how FAIR Plan fire coverage and a Difference in Conditions policy may work together.
The California FAIR Plan can provide basic property coverage when traditional insurers are unwilling to insure a property because of wildfire exposure or another underwriting concern. It is designed as an insurer of last resort and is not the same as a comprehensive homeowners policy.
A Difference in Conditions policy may supplement a FAIR Plan policy with coverages such as liability, theft, water damage, loss of use, and other non-fire protections, depending on its terms. The two policies should be reviewed together because coverage, limits, and deductibles may not match automatically.
Eligibility and available coverage vary. Confirm which policy covers each peril, review exclusions, and provide both policies to the lender when the property is financed.