For hundreds of thousands of Californians who have already been pushed onto the state's insurer of last resort, another major housing cost is about to rise. And for homeowners in the highest fire-risk areas, the increase could be far steeper than the statewide average suggests.
Here's what to know
Starting Oct. 15, new and renewed California FAIR Plan policies will be priced under a rate change the state approved at a 29.1% average statewide, according to East County Magazine. That figure is an average across the program, not a uniform increase for every policyholder.
Where a home sits will matter a lot. Owners in fire-prone canyons, foothills, and brush-heavy areas are likely to absorb the largest increases, while some homes in lower-risk suburban and urban settings could get a smaller bump, none at all, or even a reduction depending on how the property is rated.
The FAIR Plan was meant to serve as a backstop for people shut out of the regular insurance market. It has taken on a much larger role as carriers have pulled back from wildfire-vulnerable parts of California.
The program had sought an even bigger increase — 35.8% in a September 2025 filing. Even after regulators trimmed that request, the approved change still exceeds the increases authorized in 2019, 2021, and 2023 and stands as the plan's biggest rate jump in years.
More background
A large share of FAIR Plan policyholders are there because private insurers either declined to write coverage in their areas or chose not to renew existing policies.
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That leaves many homeowners in Los Angeles, Ventura, Santa Barbara, Riverside, and San Bernardino counties with little room to maneuver. If they still cannot find a private insurer, the higher FAIR Plan bill may simply be unavoidable.
Part of the pressure comes from how quickly the plan has expanded. The number of policies climbed 44% in 2025 to roughly 668,600 by the end of the year, while total exposure reached about $768 billion, according to East County Magazine. Cash reserves, by contrast, remain only around $200 million to $400 million.
Fire damage has added to that strain. The January 2025 Los Angeles-area fires were expected to produce about $4 billion in FAIR Plan losses, prompting a $1 billion assessment on member insurers to pay claims. A June 2026 Stanford University study revealed California homeowners insurance premiums have risen 84% since 2020.
What can be done?
Anyone on the FAIR Plan should look closely at when their policy renews, because the new rates apply to coverage newly issued or renewed on or after Oct. 15. It may also be worth asking an agent or the plan itself which components of the premium are going up.
Customers also need to remember that FAIR Plan coverage is limited compared with a typical homeowners policy. It covers fire, smoke, lightning, and internal explosions, but not common losses such as theft, liability, vandalism, or water damage. Many households also buy a separate Difference in Conditions policy, which raises the overall cost of protection.
Some homeowners may be able to trim costs through mitigation work. The FAIR Plan offers wildfire discounts for qualifying improvements, including Class A-rated roofs, ember-resistant vents, and a five-foot noncombustible zone around the house.
Other help may be available locally. The Fire Safe Council of San Diego County offers free home wildfire risk assessments. Some lower-income homeowners may qualify for San Diego County's Home Hardening Program. Cal Fire has a defensible-space self-assessment tool homeowners can use to spot needed improvements.
In a statement, FAIR Plan said the approval "generally aligned with the Sustainable Insurance Strategy guidelines, which incorporate CDI-approved catastrophe modeling and account for the net cost of reinsurance," per East County Magazine.
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