What the California FAIR Plan covers — and the long list it doesn't
Fire, lightning, smoke, and explosions inside the home are in. Water damage, theft, falling trees, and someone getting hurt on your property are out — unless you buy a second policy.
By the TMRW Team · Published September 2, 2026
The short answer
- The FAIR Plan covers exactly four things: fire, lightning, smoke, and explosions inside the home (wind and hail can be added as an option).
- It does not cover water damage, theft, falling trees, someone getting hurt on your property, or a place to live while you rebuild — the things most insurance claims are actually made of.
- Most homeowners restore those with a second, gap-filling policy (the industry calls it a DIC policy) at extra cost — roughly 20–40% on top of the fire-only premium.
Covered vs. not covered
| FAIR Plan | Standard home policy | |
|---|---|---|
| Fire, lightning, smoke | Covered | Covered |
| Explosion inside the home | Covered | Covered |
| Someone hurt on your property (liability) | Not covered | Covered |
| Water damage (burst pipe, leaks) | Not covered | Covered |
| Theft & vandalism | Not covered | Covered |
| Falling trees and objects | Not covered | Covered |
| A place to live while you rebuild | Not covered | Covered |
Covered items per the FAIR Plan's own description [1]. A gap-filling policy restores most of the right-hand column — see the real cost.
The gap people discover at claim time
The pattern brokers see: a homeowner lands on the FAIR Plan, keeps paying premiums that feel like full insurance, and finds out at claim time that a burst pipe, an injury lawsuit, or the hotel bill during a rebuild was never covered. The FAIR Plan is not a home policy with a different logo — it is fire insurance, full stop.
There's a second, structural gap: the payout itself. If a normal insurance company goes broke, a state safety-net fund steps in and pays its customers' claims, up to $500,000 each. The FAIR Plan isn't covered by that safety net. Its only backup is ordering the state's insurance companies to chip in more money — which is exactly what happened after the January 2025 fires, when the state's insurance regulator found it in "substantial danger of insolvency" (their words) and ordered a $1 billion cash infusion so claims kept getting paid. The full guide lays out that record.
Common questions
TMRW is an independent wildfire-mitigation company. We are not affiliated with, endorsed by, or connected to the California FAIR Plan Association or any state FAIR Plan, wind pool, or insurance program.
This page is educational. TMRW is not an insurance agent, broker, or producer, and nothing here is insurance advice, a coverage recommendation, or an offer of insurance. Talk to a licensed agent or broker about your coverage.
Sources
- FAIR Plan coverage description and dwelling limit — California FAIR Plan Association, accessed 2026-09-02
- Gap (DIC) policy coverage and the 20–40% combined-cost range — Coverage Cat, accessed 2026-09-02
- Order 2025-1: the $1B cash infusion and the insolvency-danger finding — California Department of Insurance, accessed 2026-09-02
Keep reading
The California FAIR Plan, explained
What the California FAIR Plan is, what it really costs with the second policy you'll need, what happens if it runs out of money — and how homeowners get back to real insurance.
What the California FAIR Plan really costs
What the California FAIR Plan actually costs in 2026 — by risk level, with the 29.1% October increase, and the second policy that turns a $5,000 premium into an $8,000 bill.
Alternatives to the California FAIR Plan
Four real alternatives to the California FAIR Plan — including the one that fixes the underlying problem: documented fire-risk reduction that brings regular insurers back.