Updated August 17, 2026
The California FAIR Plan is the state's insurer of last resort, providing basic property coverage — centred on fire and related perils — to properties that cannot obtain insurance in the admitted market.
It is not a full commercial package. Owners typically pair FAIR Plan coverage with a separate difference-in-conditions policy to cover liability, water damage, theft and other perils a lender expects. Premiums generally run well above what an admitted carrier would have charged.
Since the January 2025 fires the FAIR Plan has carried a growing share of LA County habitational risk. Its Commercial High Value programme, effective July 26, 2025, raised limits to $20 million per building and $100 million per location as a pilot through July 2028 — the change that made FAIR Plan coverage workable for mid-size apartment buildings.
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