The FAIR Plan insures both residential and commercial properties located in brush and wildfire areas. Due to the increased risk of loss, properties in brush and wildfire areas may receive a premium higher than one for a property in an urban, non brush/wildfire area. This increased risk of loss is included in the overall premium for Dwelling policies. Following is the specific brush/wildfire rating program for Commercial policies.

Brush/wildfire charges are based on the insured value of the property as well as the distance of the brush/wildfire fuel base to the insured property.  The roof type and fire protection of the area are also rating factors.  The rates are based on each $100 of insurance, in addition to the base policy premium.

A brush/wildfire charge may be applied regardless of whether the insured property is in what would be considered a “traditional” brush area (e.g.. Malibu, Topanga Canyon, etc.) or if the property is situated in a forest (e.g., Big Bear, Lake Arrowhead, Julian, etc.).

A physical inspection of the subject property will determine whether a brush/wildfire charge will be applied. The cutback of trees or native brush surrounding the property can decrease or eliminate any brush/wildfire charge.

Brush/Wildfire Inspection – New Business

The FAIR Plan determines the brush/wildfire charge on all Commercial new business submissions based on various rating factors. A brush/wildfire inspection will be required unless we have current rating information from a recent inspection on file. The applicant is not notified unless the inspection company representative cannot observe the distance of the brush/wildfire exposure to all structures at risk. The inspector must review the entire perimeter of the property to determine the distance to the brush/wildfire exposure, and all structures that may be impacted.

Brush/Wildfire Inspections – Renewal Business

All inforce Commercial policies covering properties in a potential brush/wildfire area will be inspected every five years. The purpose is to determine whether the rate currently charged (if any) is appropriate for the current brush/wildfire exposure.

Brush/Wildfire Operational Procedures

Commercial property owners that are subject to a brush/wildfire charge will be given sufficient time to correct the situation before an endorsement is issued and additional premiums are imposed. The following are Operational Procedures for both new business and renewal policies:

New Business

If the Brush/Wildfire Advisory letter is sent within the first 60 days of the policy period, the insured will have 90 days from the date of the letter to clear the brush/wildfire exposure before an endorsement billing is issued. Fifty per cent of the additional premium must be paid to avoid equity Notice of Cancellation for non payment of premium.

If the Brush/Wildfire Advisory letter is sent after the first 60 days of the policy period, the insured will have until the renewal date to clear the brush/wildfire exposure. If clearing is not secured, the renewal will be sent with the appropriate brush/wildfire charge.

Renewals

Commercial policies in brush/wildfire areas are reviewed approximately every five years to confirm the brush/wildfire exposure. If an exposure exists, the insured is typically notified at least six months in advance of the renewal date that a brush/wildfire exposure exists to provide ample time to clear the exposure. If clearing is not secured, the renewal will be sent with the appropriate brush/wildfire charge.

Brush/Wildfire Area Charges

Subject to what is noted below, the California FAIR Plan brush/wildfire charge varies according to the Protection Class of your geographic area and the shortest distance from any structure on your property to the nearest part of the brush/wildfire exposure. Your insurance representative can tell you the Protection Class of your geographic area. Wildfire areas are subject to the same charges as properties in designated brush areas.

In Protection Classes 1 through 8, the maximum brush/wildfire charge is made where the brush/wildfire exposure is less than 30 feet from the structure. The brush/wildfire charge is then reduced in graduated steps for clearance of 30, 60, 100, or 200 feet. Brush/wildfire charges are removed at 200 feet or more.

In Protection Classes 9 and 10, the maximum FAIR Plan brush/wildfire charge is made where the brush/wildfire exposure is less than 100 feet from a structure. The brush/wildfire charge is eliminated at 200 feet or more. Refer to the brush/wildfire area charges table for more specific details.

Measurement is made parallel to the ground from that portion of the structure closest to the brush/wildfire exposure. If the brush/wildfire exposure is on a down slope below the structure of over 30 degrees, only half the measured distance will be counted.

Removal of native brush, combustible trees, etc, from the property lessens the possibility of the neighborhood being involved in a brush/wildfire conflagration. A cooperative effort by all neighboring property owners is recommended to minimize the brush/wildfire hazard. Refer to the Brush/Wildfire Hazard Abatement section of this website for clearance guidelines.

In order to lower or remove any existing brush/wildfire charge, a written request must be submitted to the FAIR Plan for a re-inspection of the property once the brush/wildfire exposure has been cleared. Please note the following:

1. The brush/wildfire exposure must be cleared the minimum distance on all sides of the structure in order to reduce/eliminate a brush/wildfire charge (based on the tables below). Clearance is defined as follows: The exposure is thinned and cut to no more than 12 inches off the ground, and, in the case of trees, trimmed up 6 feet off the ground (or one third of the tree height if the tree is less than 18 feet tall). In addition, tree branches must be trimmed to provide a 10 foot clearance to the roof line.
2. Brush/wildfire charges are applicable even if the brush/wildfire exposure is not on the same lot (property) as the building to be insured.
3. If the brush/wildfire exposure is on a down slope of over 30 degrees, only half of the cleared distance down the slope will be counted. For example, if the brush/wildfire exposure distance from the top of the slope is 300 feet, the brush/wildfire exposure distance will be counted as 150 feet to meet the minimum clearance requirements.
4. Brush/wildfire charges will apply until the brush/wildfire fuel base has been cleared to 200 feet. If the brush/wildfire fuel base has been cleared, a written request for inspection must be sent to the California FAIR Plan. The name and phone number of the person to be contacted to arrange for the reinspection needs to be included in the request if the insured or his representative wishes to be present during the reinspection.

TABLES OF ANNUAL BRUSH/WILDFIRE CHARGES - COMMERCIAL

Premium per $100 of Coverage

1. APPROVED ROOF:

Exposure Distance (in feet)	Protection Class
	1 - 4	5 - 6	7 - 8	9 - 10
Under 30'	0.63	0.75	1.01	2.01
30' - 59'	0.44	0.57	0.88	2.01
60' - 99'	0.31	0.38	0.50	2.01
100' - 199'	0.13	0.19	0.38	1.76
Over 199'	0.00	0.00	0.00	0.00

 

Approved Roof Types:
* Approved U.L. treated shingles or shakes
* Composition
* Concrete
* Glass
* Metal
* Rocks/Stone/Gravel on top surface of Composition
* Tile

 

2. UNAPPROVED ROOF:

Exposure Distance (in feet)	Protection Class
	1 - 4	5 - 6	7 - 8	9 - 10
Under 30'	0.79	0.94	1.26	2.52
30' - 59'	0.55	0.71	1.10	2.52
60' - 99'	0.39	0.47	0.63	2.52
100' - 199'	0.16	0.24	0.47	2.20
Over 199'	0.00	0.00	0.00	0.00

 Unapproved Roof Types:
* Building in Course of  Construction (roof type not known)
* Fiberglass
* Grass
* Untreated wood shingles
* Untreated wood shake
* Wood

 

California Insurance Code (Section 10100.2) states that, “If the FAIR Plan policy of a property owner would be subject to a surcharge solely because of an adjacent property owner’s failure to comply with the applicable law, ordinances, and regulations regarding brush clearance requirements, the surcharge shall instead be imposed on the policy of the adjacent property owner if the adjacent property owner is also insured through the FAIR Plan.”

Commercial policyholders may provide us with the names and addresses of the adjacent property owners (if there are structures on their lots) so that we can determine if these properties are insured with the FAIR Plan. If the properties are not insured with the FAIR Plan, then the original policyholder is responsible for the brush/wildfire charge.

An authorization form to release a copy of the inspection report must be completed, signed, and sent by the policyholder to the FAIR Plan in order to determine if adjacent properties are insured with the FAIR Plan. The policyholder’s name and policy number will be deleted from the brush/wildfire inspection report before it is submitted to neighboring property owners.

The adjacent property owner will receive a copy of the insured’s brush/wildfire inspection and be advised that the neighbor’s brush/wildfire premium will be added to the adjacent property owner’s policy. The adjacent property owner will be given 90 days to clear the exposure (unless it is a future renewal date). On the 91st day, any premium will be added to the adjacent property owner’s policy unless we are notified that the brush/wildfire exposure has been cleared prior to that date. This added premium will be shared equally among as many adjacent property owners as are insured by the FAIR Plan and whose properties are causing the surcharge.