The Fair Plan covers property damage due to fire, lightning, smoke, or internalexplosions. You can also purchase optional extended coverage for windstorms, hail, explosions, riots, aircraft, or vehicles, as well as for vandalism or malicious mischief.
While many people believe the FAIR Plan is a government entity or state program, this is not the case. Tax payers do not fund the program. The FAIR Plan is supported by all the carriers who are licensed to do business in the state of California.
This arrangement spreads the risk between all the insurance carriers at once. It does cover less than traditional homeowners’ insurance policies. For example, the FAIR Plan does not offer coverage for theft, falling objects, freezing, water damage, or personal liability.
It is important to pay close attention to what your specific coverage includes orexcludes so you can stay prepared. You can sometimes make up the gaps with a Difference in Conditions or Comprehensive Premises Liability Policy.
Difference in Conditions (DIC) policies provide coverages that are not available through the FAIR Plan, such as water damage, theft and liability coverage. They are designed to combine with the FAIR Plan policy to provide you with coverage similar to that of a comprehensive homeowner's policy.
If you should have any questions, please feel free to call us at (951) 296-9995.