• It is not intended to replace standard homeowner’s insurance for properties that can be insured in the regular market.

• Because of increasing wildfire risk, reduced willingness of insurers to write in high‐risk zones, properties in wildfire‐prone or catastrophically exposed areas are increasingly using the FAIR Plan.

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Types of properties:

• Residential owner‐occupied dwellings (up to 4 family units) and renters/condo owners (personal property).

• Commercial properties including habitational, retail, manufacturing, farms, wineries, office buildings.

• Provides a safety net for property owners who otherwise would have no insurance because traditional carriers won’t insure.

• Backed by all licensed property/casualty insurers in California (they share the risk) — so the risk is spread.

• Recent reforms increasing limits and offering wildfire‐hardening discounts give some enhancements.

• Coverage is limited compared to standard homeowner’s policies (fewer perils covered, fewer extras) that may be purchased on a separate Difference in Conditions policy to give you full coverage.

• If you are in a high fire‐risk zone, please consider property hardening and risk reduction — it may help with eligibility, pricing, and moving back into standard market.

• Because many lenders require full homeowner’s insurance, the FAIR Plan policy alone may not meet lender requirements — sometimes lenders may require “wrap” or “Difference in Conditions” policies to cover missing risks.