29.1%average increase on FAIR Plan dwelling policies
Oct 15starts at your first renewal on or after this date
~675KFAIR Plan customers, per KQED

What happened

The California FAIR Plan is the insurer of last resort. When no regular insurance company will cover your home, the FAIR Plan will, usually for fire and smoke damage only.

In September 2025, the FAIR Plan asked the California Department of Insurance (CDI) for an average increase of 35.8% on its dwelling policies. Regulators approved most of it. The final number is an average of 29.1%, and it starts October 15, 2026, for both new customers and renewals.

That's a big jump compared to recent history. Regulators cut the FAIR Plan's last two requests, in 2021 and 2023, to about 16% each.

Why it's happening

The FAIR Plan is covering far more homes, and far more risk, than it was built for. By June 2026 it had $768 billion in total exposure, up 250% since September 2022. Years of wildfire losses and higher rebuilding costs pushed regular insurers out of high-risk areas, and a lot of those homeowners landed on the FAIR Plan.

What it means for you

Don't plan around 29.1%. That's a statewide average. Your number depends on where your home is, how well it's protected from fire, and the home itself.

  • High wildfire-risk area: expect the biggest increase. Some customers will see the wildfire part of their premium double.
  • Lower-risk area: your change may be small. KQED reported that some urban Bay Area customers may even see a reduction.
  • Timing: the new price shows up at your first renewal on or after October 15. It doesn't change in the middle of your current policy.

Also remember what a FAIR Plan policy covers. It's basic: fire, lightning, smoke, and a few other perils. Things like theft, water damage, and liability usually need a second policy, often called a "difference in conditions" or DIC policy. If you have one, check that bill too.

There's some good news in the background. CDI says FAIR Plan growth slowed to 1.9% in the second quarter of 2026, the smallest increase since 2022, and about 24,000 policies left the plan in April and May. More insurers have committed to writing homes again, so more people may be able to move back to a regular policy.

What to do

  • Find your renewal date. It's on your declarations page, the summary page at the front of your policy. That's when the new rate hits.
  • Compare your renewal notice to this year's bill. Look at the total and at each line, so you know exactly what changed.
  • Ask about wildfire discounts. The FAIR Plan offers discounts for fire-hardening your home and for community wildfire programs, following California's Safer from Wildfires standards. Things like ember-resistant vents and a cleared zone right around the house can count.
  • Shop the regular market 45 to 60 days before renewal. CDI tells FAIR Plan customers to shop regularly and compare several insurers. You can ask more than one insurer, or a licensed agent or broker, for quotes, and ask which companies are writing new policies in your area.
  • Never let coverage lapse while you shop. A gap can make your next policy harder to get. If you have a mortgage, your lender can buy coverage for you, and it's usually expensive.
  • Check your second policy. If you carry a DIC policy, make sure it still lines up with your FAIR Plan coverage after renewal.

Sources

  1. KQED: California FAIR Plan announces 29.1% rate hike for homeowners this fall (Aug. 2026)
  2. Insurance Business: Jane Kim's plan to remake California insurance draws fire as FAIR Plan increase nears (Sept. 24, 2026)
  3. California Department of Insurance: FAIR Plan growth slows below 2% (Aug. 3, 2026)
  4. AM Best: California FAIR Plan approved for 29.1% dwelling rate increase (May 27, 2026)

This article is general information about California insurance, checked against the sources above as of October 13, 2026. It isn't advice for your situation. Your policy documents and a licensed professional are the final word. Spot an error? Tell us and we'll correct it.