California FAIR Plan vs. Private Insurance: Which One’s Right for You?

When a wildfire non-renewal notice hits your mailbox, your first option is usually the California FAIR Plan (CFP). But is it really protecting homeowners? Or has it become a temporary bandage on a broken market?
Let’s look at the numbers and realities so you can decide what’s best for your home or rental.

What the FAIR Plan Covers

• Fire & smoke damage only

• No liability, no water damage, no theft protection

• Requires a separate DIC policy for full coverage

Average premium (2025): $2,600/year for a $500k home (Source: California Dept. of Insurance).

[Insert Infographic: Two-column comparison – FAIR Plan vs Private Policy coverage features and cost]

The Financial Problem No One Talks About

Recent wildfires have created a massive funding gap.

In 2024, the FAIR Plan reported a $1 billion shortfall after major Los Angeles County fires (Source: ProgramBusiness 2024).

Because it’s not a state-backed fund but a pool of private insurers, CFP has limited reserves.
If a catastrophic season hits, claims can be delayed or assessments passed back to member insurers – and ultimately, policyholders through higher rates.

[Insert Graph: FAIR Plan Claims vs Funding Capacity – Bar Chart showing growing gap 2020-2025]

Private & Light E&S Alternatives

“Light E&S” markets available through brokers like Quotsy offer broader coverage at competitive pricing for homes with some fire-hardening.
They include:

• Liability and water damage coverage

• Flexible deductibles and replacement cost options

• One policy (no need for a separate DIC)

[Insert Photo: Fire-hardened home with metal roof and cleared yard]

How Quotsy Bridges the Gap

Our platform lets you compare FAIR Plan, DIC, and E&S alternatives in minutes – with human review to ensure you’re not overpaying for under-coverage.

Every policy includes a $10 donation to the Housing Stability Fund, supporting families displaced by wildfires, floods, and other crises across California.

[Insert Infographic: Flowchart – “How Quotsy Bridges the Coverage Gap” from FAIR Plan → E&S → Private]

Internal link: → Compare California FAIR Plan Alternatives
External links: → California Dept. of Insurance FAIR Plan Data | ProgramBusiness Report on FAIR Plan Funding Gap

Compare your coverage options and help families rebuild.
Get your personalized quote at Quotsy.io.
Every policy donates $10 to support housing stability for California families affected by wildfires and floods.