Is the FAIR Plan a state agency?
The FAIR Plan is a private association based in Los Angeles comprised of all insurers licensed to write property insurance in California. All insurers conducting property business in California must be a member of the Association. FAIR Plan profits and losses are shared by its members in direct proportion to their market share of property insurance written in California. There is no public funding, or taxpayers’ monies involved.
Where does the FAIR Plan write business?
Coverage is available to all California property owners, provided basic underwriting guidelines are met. Applicants must make a diligent search of the voluntary market before making a submission to the Plan.
Can I deal directly with the FAIR Plan?
Consumers can deal directly with the FAIR Plan, however, we strongly encourage applicants to contact any licensed insurance agent or broker in their area for assistance in preparing and obtaining a quotation at no additional cost.
What are the advantages of having an agent or broker as my insurance representative?
Your insurance representative (commonly called “Broker”) can assist in obtaining other coverages not offered by the FAIR Plan such as theft, liability and water damage due to pipe breakage; assist in determining adequate coverage amounts; explain any policy exclusions, and prepare/submit forms needed to obtain new business or mid-term policy coverage.
What does the FAIR Plan policy provide?
The FAIR Plan provides basic fire insurance coverage for residential and commercial structures, as well as personal property coverage for residential and business occupancies. There are also optional coverages available for both residential and commercial properties.
Can I obtain a price quote over the phone, or obtain an immediate binder for coverage?
The FAIR Plan does not provide quotes over the phone. The FAIR Plan does not have agents that can bind coverage, issue policies or commit the FAIR Plan in any way. Many FAIR Plan insurance brokers are registered via our online system, and can provide a quotation in a timely manner. However, coverage does not become effective until payment is received by the FAIR Plan.
Are the rates/premiums for FAIR Plan policies higher than the voluntary insurance market?
Like all other insurers, FAIR Plan’s rates are approved by the Department of Insurance and must be actuarially sound. This means that rates can not be excessive or discriminatory, and must be sufficient to reflect the risk exposure and historical loss experience.
How can I determine if my payment has been received?
We have a 24-hour online access system that provides policy status in real time. All remittances are posted to our system within two days from the actual received date. Call our toll-free number (800-252-0089) and press option 1 to access this feature. Payment status can be obtained in both English and Spanish.
Does the FAIR Plan accept credit card payments or online payments?
We will accept electronic payments from checking or savings accounts from brokers, policyholders or third parties for new business quotations, endorsements, or renewal payments via the button located on the website’s home page. The online system does not accept credit card or debit card payments. Refer to the Broker Bulletins link on this site for more detailed information pertaining to the online payments.