Coverage Offered
F.A.Q
Why isn’t the FAIR Plan listed in Best’s Rating Guide?
The FAIR Plan is a syndicated fire insurance pool comprised of all insurers authorized to write property insurance in California. It is not an insurance company, therefore it is not rated. All property and casualty companies are required by law to belong to the Association. The FAIR Plan issues fire insurance policies on behalf of its member companies and each such insurer is considered a direct insurer for its share in such writings. The FAIR Plan is stronger than any single insurer, since it is backed by the capital and surplus of all companies writing property insurance in the state.
What does the FAIR Plan policy provide, or not provide?
We offer a named-peril policy that provides basic fire insurance coverage for the structure(s) and personal property. Insurance is available for both residential and commercial properties that are owner or tenant-occupied. Some of the key perils not offered are theft, liability, and water damage due to pipe breakage. We also offer some optional coverages to enhance both residential and commercial policies. See the Coverages section for more information.
How can I determine if the policyholder’s 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.
Can I bind coverage in cases where escrow is pending?
No. Producers are not agents of the FAIR Plan, and can not bind coverage or commit the FAIR Plan in any way. We strongly caution producers not to submit Accord Evidence of Insurance forms to escrow, lenders, or your clients. Coverage does not become effective until monies are received by the FAIR Plan. Most real estate closings average between 30-45 days before completion. Therefore, you should advise your realtor/escrow contacts to give you adequate, early notice of pending new sales or refinance transactions to avoid the last-minute scramble to obtain insurance. Refer to our expedited escrow guidelines for more details.
Does the FAIR Plan accept credit card payments or online payments?
We will accept electronic payments from checking or savings accounts from producers, 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 Producer Bulletins link on this site for more detailed information pertaining to the online payments.
Do you have Direct Deposit for producers’ commissions?
We do not have a direct deposit option at this time.
Why does the FAIR Plan restrict me from charging a broker fee?
The California Department of Insurance Code of Regulations (Sections 2189.1 & 2189.3-b) prohibits producers from charging a broker fee when assisting their clients in obtaining FAIR Plan coverage. The FAIR Plan was designed as “the market of last resort”, and should only be utilized if you have been unable to place the client’s business elsewhere. Since the FAIR Plan is neither a competitive or preferred market carrier, it is against public policy to charge or justify broker fees for placing business in the residual market where minimal effort or work was required.
When Is the My Client’s Next Installment Payment Due?
The FAIR Plan has a 40-30-30 optional installment plan for policies with premium $251 or more. Forty-per cent (40%) is due to put the policy in effect. The second installment of 30% is due three months from the policy effective date, and the remaining payment is due three months from the due date of the second installment so that all premiums are paid within six months from policy inception date. The second and third installment billings are mailed 45 days before the due date.
Has the FAIR Plan considered increasing its coverage limits for residential policies?
For residential properties, our maximum combined limit is $1.5 million at any one location. Only 1% of our inforce policies are at that limit. Current real estate market prices are in a downturn from the past few years, and we have not seen any dramatic signs of unavailability for higher-priced homes within the voluntary insurance market.
Does the FAIR Plan provide rating manuals to producers?
Rating manuals are not provided. Most online dwelling applications will produce a quote real time and provide the information needed.