In high wildfire-risk areas many insurers aren't writing new policies. The usual solution is the California FAIR Plan (basic fire coverage) plus a DIC policy (Difference in Conditions) that fills the gaps, which together come close to a full homeowners policy. Start shopping as soon as you're in contract, because your lender needs coverage in force at closing.
Start early
Begin as soon as you are in contract; wildfire areas can take a week or two.
Gather documents
Exterior photos from all sides, the inspection report and roof age.
FAIR Plan + DIC
When the standard market declines, this combination satisfies most lenders.
Read the full explanationHide the full explanation
What FAIR Plan and DIC are
- State-established basic fire program
- Covers fire and smoke
- No liability, theft or water damage
- Paid on the FAIR Plan website, usually by card
- Fills what FAIR Plan leaves out
- Liability, water damage, theft
- Written by a separate insurer
- Together they approximate a full policy
What makes coverage harder to get
Roof age
Many insurers pay only actual cash value on an aging roof, while lenders usually require replacement cost. Review the roof inspection before you buy.
Solar panels
Panels must be removed to replace a roof, which affects timing and underwriting.
Construction or remodeling
Most standard insurers won't cover a home under construction or major remodel; that needs a Builder's Risk policy.
Prior water claims
They affect eligibility and price; keep repair records.
Lender requirements
Coverage must start on the closing date with the lender's mortgagee clause on the policy, and co-borrowers are usually named insureds. Insurers don't send renewals to your lender automatically; your agent issues an EOI when the lender asks.
A real case: wildfire area, closed on time
A client buying in a wildfire-risk area was declined by several standard insurers. We placed FAIR Plan plus DIC, added the lender's mortgagee clause before payment, and set the effective date to closing. The purchase closed on schedule.
Results depend on individual circumstances. Identifying details removed.
Frequently asked questions
Can I switch from FAIR Plan to a regular policy later?
Yes. If a standard insurer will write the home later, you can switch and FAIR Plan refunds pro rata.
Does homeowners insurance cover earthquakes?
No. Earthquake coverage is separate; in California it is commonly written through the CEA.
My lender asked for new proof of insurance. Will my insurer send it?
No. Lenders usually request it each year; your agent issues an EOI.
This article is general information for California and is not a promise of coverage or claim payment. Coverage, pricing and terms depend on each insurer's policy and underwriting.