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California FAIR Plan · Difference in Conditions

FAIR Plan plus DIC, set up without gaps.

The California FAIR Plan is the state’s insurer of last resort for fire when admitted carriers won’t write your home. A difference-in-conditions (DIC) policy covers most of what it leaves out, such as liability, theft and water damage. Two policies from two insurers, coordinated by one broker.

Quick answer Alishahi Insurance, Sam Alishahi's independent brokerage in Beverly Hills (CA License #4348151), quotes difference-in-conditions (DIC) policies from admitted and surplus lines insurers to pair with the California FAIR Plan, which does not sell DIC itself.

  • The California FAIR Plan is the state's insurer of last resort for fire when admitted carriers won't write a home.
  • The California FAIR Plan covers fire or lightning, internal explosion and smoke, with optional add-ons, up to $3 million of dwelling coverage for a residential property.
  • A difference-in-conditions (DIC) policy typically adds personal liability, theft, water damage, and broader coverage for belongings and additional living expenses to a FAIR Plan policy.
  • The FAIR Plan and a DIC policy have separate premiums, deductibles and renewal dates, so a broker should set them up together and line the dates up.
  • Alishahi Insurance sets up the FAIR Plan and a DIC policy together from its Beverly Hills office for homes across Los Angeles County.

By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched

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Quick answer
  • Who sells a DIC policy to pair with the FAIR Plan in Los Angeles? Independent brokers such as Alishahi Insurance (Beverly Hills, CA License #4348151) quote DIC from admitted and surplus lines insurers; the FAIR Plan itself does not sell one.
  • The FAIR Plan covers fire or lightning, internal explosion and smoke, with optional add-ons, up to $3 million of dwelling coverage for a residential property.
  • A DIC policy typically adds personal liability, theft, water damage, and broader coverage for belongings and additional living expenses.
  • The two policies have separate premiums, deductibles and renewal dates, so a broker should set them up together and line the dates up.
How it works

Two policies doing one job

The California FAIR Plan is the state’s insurer of last resort. It writes a basic, named-perils policy focused on fire, and it isn’t meant to replace a full homeowners policy on its own.

A difference-in-conditions policy is written to sit alongside it. Set up well, the pair comes close to a standard homeowners policy. Set up carelessly, it leaves gaps you find out about after a loss.

  • FAIR PlanFire or lightning, internal explosion and smoke, with optional add-ons such as extended coverage and vandalism. Dwelling coverage up to $3 million for a residential property.
  • DIC policyTypically personal liability, theft, water damage, and broader coverage for belongings and additional living expenses.
  • Two sets of termsSeparate premiums, deductibles and renewal dates, which should be aligned.
  • Your lenderNeeds evidence of insurance showing the dwelling coverage and the mortgagee clause correctly.
Where these setups go wrong

What I watch for on every placement

Renewal dates that don’t match

If the two policies renew on different days, a lapse on one can leave a window without coverage. I line them up.

Limits set in isolation

DIC limits and deductibles need to be set against what the FAIR Plan actually pays, not chosen separately.

Homes above the limit

When rebuild cost is higher than the FAIR Plan’s dwelling limit, the difference needs excess coverage. High-value home insurance

Paying twice for fire

A DIC policy shouldn’t duplicate what the FAIR Plan already covers. That’s premium with no benefit.

No plan to leave

The FAIR Plan works best as a bridge. I re-market the home at renewal as carrier appetite and your mitigation change. Wildfire non-renewal guide

Lender questions late in escrow

Most lenders accept the structure when limits meet their requirements. I confirm that early, not the week before funding.

Before you call

What underwriters will ask

Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.

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  • Current paperwork: declarations page and the non-renewal or cancellation notice, if you have one.
  • The home: address, year built, square footage and construction type.
  • Roof: material and the year it was replaced.
  • Mitigation: dated photos or records of defensible space, vents and other upgrades.
  • Rebuild cost: your best estimate, or the dwelling limit on your current policy.
  • Mortgage: lender name and loan number for the mortgagee clause.

How the $3 million cap really works

The $3 million figure gets repeated a lot, and it is easy to read as a dwelling limit. The California Department of Insurance's residential shopping tips say the maximum the FAIR Plan writes on a residential property is $3,000,000 for all coverages combined. Whatever you insure with the FAIR Plan, the house, other structures and belongings, shares that one ceiling. On a larger home I set the split on purpose, so the dwelling doesn't use up the whole limit and leave nothing for contents.

A few other points from the FAIR Plan's own pages shape how I build the pair:

  • Named perils only. The dwelling policy covers only the causes of loss it lists: fire and lightning, internal explosion and smoke. Vandalism and malicious mischief are offered as an optional coverage at an additional cost.
  • Who it is written for. Owner-occupied 1 to 4 unit dwellings where the owner lives in one unit, seasonal rentals, 1 to 4 unit rentals leased for at least a year, renters' belongings, and condo owners' belongings and improvements.
  • No rebuild estimate. The FAIR Plan says it does not estimate the cost to rebuild your home. You work out that number with your broker, so bring a recent estimate.
  • Other perils on separate policies. The dwelling page points you to Difference in Conditions, flood or earthquake policies to cover additional perils beyond its named-peril policy. See earthquake with the FAIR Plan.

I check the current limits at every renewal. CDI also keeps a list of insurers that offer a DIC product designed to complement a FAIR Plan policy. CDI notes that it is not a list of insurers selling DICs to enhance a traditional homeowners policy.

The wildfire credits the FAIR Plan lists by name

The FAIR Plan publishes a one-page sheet listing its wildfire hardening credits (last revised 11/2025). It covers Dwelling Fire and Commercial policies with an effective date of November 15, 2025 or later. Policyholders may qualify for up to 12 credits, applied to the wildfire portion of the premium. The sheet groups them this way:

  • Immediate surroundings (5). Vegetation and debris cleared from under decks. Vegetation, debris, mulch and other combustible materials cleared within 5 feet of the dwelling. Only noncombustible materials in any improvements, including fences and gates, within 5 feet. Combustible sheds and other outbuildings more than 30 feet from the dwelling, or as far away as possible within the area you control. Trees trimmed, brush and debris removed, and the property in compliance with state and local defensible space rules such as Public Resources Code 4291.
  • Structure (5). A Class A fire-rated roof; the sheet names asphalt fiberglass composition shingles, stone, concrete or clay tile, and metal. Also enclosed eaves, ember- and fire-resistant vents with approved wire mesh, multi-paned windows or functional shutters, and 6 inches of noncombustible material at the bottom of all exterior walls.
  • Completion (1). An additional credit when all 10 items above are met.
  • Community (1). The dwelling or structure is in a Fire Risk Reduction Community listed by the Board of Forestry, or in a Firewise USA site in good standing. Either one earns it; the sheet says meeting both counts for more.

The list closely tracks CDI's Safer from Wildfires actions. CDI's Sustainable Insurance Strategy FAQ says homes and businesses complying with that regulation receive priority when transitioning back to the normal insurance market. Before an application goes in, I collect dated photos of each item, so the same evidence is ready for the FAIR Plan review now and for a private-carrier submission later. The sheet says the credits are subject to change.

Zone 0 and the 100-foot rule

California's defensible space law, Public Resources Code 4291, applies to anyone who owns, leases, controls, operates or maintains a building in the state responsibility area. It requires 100 feet of defensible space from each side and from the front and rear of the structure, but not beyond the property line, except in the limited cases the statute allows.

The same section calls for an ember-resistant zone within 5 feet of the structure, often called Zone 0. The specific requirements come from regulations adopted by the Board of Forestry and Fire Protection, and the statute ties that rulemaking to a deadline in Executive Order N-18-25. The statute sets the timing this way:

  • New structures. The 5-foot requirement does not take effect until the Board updates its regulations and guidance.
  • Existing structures. It takes effect three years after the effective date for new structures. Existing and new structures must meet the same standard, but the regulations must allow existing homes to stage the work.

Whatever the rulemaking schedule, two of the FAIR Plan's credits and CDI's Safer from Wildfires actions already center on that 5-foot ring. Clearing mulch and combustibles there, and replacing wood fencing connected to the house with noncombustible material, is work I would do now rather than wait on the Board. My California wildfire insurance checklist walks through the photo set I ask for.

Outside California, defensible space and mitigation rules vary by state. For another state's approach, see Colorado wildfire risk score rights.

How the law steers you back to private carriers

The FAIR Plan is meant to be a temporary stop, and the Insurance Code builds in ways back out. Section 10095 requires the plan to encourage people to secure coverage through normal channels, from an admitted insurer or a surplus line broker, by telling them what steps to take. Two other rules matter here:

  • Clearinghouse. Under 10095(i), the FAIR Plan had to set up a homeowners clearinghouse on or before July 1, 2021, and 10095(j) set July 1, 2024 for commercial. Participating insurers may offer coverage to FAIR Plan policyholders through the policy's agent or broker of record, if there is one. Nonadmitted insurers can be included only if admitted insurers have the first option.
  • Your data, your choice. Under 10095(k), policyholders must get notice of how their information will be shared to facilitate private offers, and a way to opt out. The FAIR Plan's clearinghouse disclosure page has the opt-out link. If you stay in, member insurers can review some of your policy information and may offer to place your policy in the standard market.

Under 10095(h), when a member insurer denies an application or cancels or non-renews a policy, it must give you the FAIR Plan's website and toll-free number. The FAIR Plan's application steps say your broker searches the traditional market first, and that if coverage is available there, the FAIR Plan is not right for you. CDI's shopping tips also suggest asking whether coverage can be obtained from a surplus lines insurer.

Because a clearinghouse offer can come through the broker of record, I review it against the DIC you already have before anything changes. More detail is in the clearinghouse explained and non-renewal notice rules. FAIR plan rules vary by state; see Connecticut's FAIR Plan for one example.

Questions

FAIR Plan and DIC, answered

What is a FAIR Plan wrap-around policy?

Wrap-around policy is another name for a difference in conditions (DIC) policy. It wraps around a California FAIR Plan fire policy to add coverage the FAIR Plan doesn’t include, such as personal liability, theft and water damage. The two policies together work much like a homeowners policy.

Does the FAIR Plan cover liability?

No. Personal liability isn’t part of a FAIR Plan dwelling policy, which is one of the main reasons to pair it with a DIC policy.

Will I be on the FAIR Plan permanently?

Not necessarily. Carrier appetite and your home’s mitigation both change. I shop the home again ahead of each renewal.

Does a DIC policy cover earthquake?

Not by default. Earthquake is generally a separate policy, whether your fire coverage comes from the FAIR Plan or a standard carrier.

Can a Los Angeles insurance broker set up the FAIR Plan and a DIC policy together?

Yes. A licensed broker can submit the FAIR Plan application and quote a DIC policy from other insurers at the same time, so the effective dates and limits line up. Alishahi Insurance does this from its Beverly Hills office for homes across Los Angeles County.

How do I apply?

Applications are usually submitted through a licensed broker or agent. I prepare the FAIR Plan application and the DIC policy together so the terms line up.

Official sources

Related

Often placed alongside this

Guide

Cancelled or non-renewed?

Your rights and a step-by-step plan to get the home insured again.

Read the guide Guide

Non-renewed in a fire zone?

What your notice means and what to do before your policy expires.

Read the guide Coverage

High-value homes

Replacement-cost coverage for estates, placed in admitted and specialty markets.

See coverage Question

What the California FAIR Plan does not cover

No liability, no theft, no water damage — and what a DIC policy puts back.

Read the answer Data

Home insurance non-renewals by ZIP code

Look up how often homeowners policies were not renewed in your ZIP, 2020 to 2023.

Look up a ZIP Data

Home insurance non-renewals by county

Department of Insurance figures for all 58 counties, 2020 to 2023: non-renewals, FAIR Plan and DIC growth.

See the data

By place: Altadena

Questions people ask: Who insures homes in wildfire areas in California? My homeowners insurance wasn’t renewed. What now? What the California FAIR Plan does not cover What is a FAIR Plan and which states have one? What is a difference in conditions (DIC) policy? Can you get earthquake insurance with the California FAIR Plan? FAIR Plan vs. Surplus Lines Home Insurance

Also covered with this: FAIR Plan and DIC insurance in Los Angeles High-value home insurance in Beverly Hills Home insurance in Bel Air Home insurance in Brentwood Home insurance in Calabasas Home insurance in Hollywood Hills Home insurance in Topanga Guaranteed vs extended replacement cost: what’s the difference? What is ordinance or law coverage, and why do older or expensive homes need it? Comprehensive personal liability (CPL)

Non-renewed or cancelled

Send the notice the day it arrives.

The more time before your expiration date, the more markets I can try before we settle on the FAIR Plan.

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Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.

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