• Property Management Company
February 21, 2024 TQuinn

Insurance Alternatives: Can the California FAIR Plan Help You?

Over the past few years, California has seen its share of wildfires, heavy rains, and subsequent flooding and landslides, all of which have affected property owners’ ability to secure traditional insurance coverage.

This is when the California FAIR Plan can help property owners if they have been turned down by conventional insurance plans. The FAIR Plan was established in 1968 following the riots and brush fires of the 1960s. The California FAIR Plan Association was established as an insurance alternative, to meet the needs of homeowners in the Golden State who are unable to find insurance in the traditional marketplace.

The FAIR Plan is not a state agency, nor is it a public entity. There is no public or taxpayer funding. The FAIR Plan is the state’s insurer of last resort, providing access to fire coverage for California homeowners unable to obtain it from a traditional insurance carrier.

A syndicated fire insurance pool, the FAIR Plan is comprised of all insurers licensed to conduct property/casualty business in California. Established by statute (California Insurance Code sections 10091 et seq.) in August of 1968 as an insurance placement facility, the FAIR Plan was established so that all California property owners have access to basic fire insurance when access to coverage in the traditional market is not available through no fault of the property owner.

All licensed property/casualty insurers who write basic property insurance required by Insurance Code sections 10091(a) and 10095(a) are members of the FAIR Plan. The FAIR Plan issues policies on behalf of its member companies. Each member company participates in the profits, losses, and expenses of the Plan in direct proportion to its market share of business written in the state.

In the last decade, more Californians have turned to the FAIR Plan as wildfires have devastated the state and some insurers have pulled back from these markets. While the group can support homeowners regardless of a property’s fire risk, unlike traditional insurers, their goal as a secondary or alternative insurer is attrition.

For most homeowners, the FAIR Plan is a temporary safety net to support them until coverage offered by a traditional carrier becomes available. The Association leads with customers’ interests at heart and reaches success when the Plan is no longer needed.

While J & H guides our clients to select the ideal coverage for their properties and residents, the FAIR Plan provides alternative access to basic property coverage when it’s needed, ensuring that all Californians, including those who live in rural areas threatened by wildfire, have access to the coverage and peace of mind they deserve.

For more information, visit www.cfpnet.com.

Contact

Let's Work Together.

J & H Asset Property Management
22880 Savi Ranch Pkwy
Yorba Linda, CA 92887
(714) 974-0397
jandh@jandhmgt.com

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