As a Real Estate agent, we are now verifying if our buyers can obtain property insurance prior to getting into contract due to the high fire zones, cost of insurance and simply, insurance providers pulling out of the market. Well-known companies like Allstate and State Farm have announced they will no longer provide home insurance for new clients. This can be very unsettling, especially with the lack of available inventory. A dream home could be unattainable if insurance cannot be secured. Luckily, California established and association back in 1968 to provide basic fire insurance when access to coverage in the traditional market is not available and/or temporary options are required.
The California FAIR Plan Association was established to meet the needs of California homeowners unable to find insurance in the traditional marketplace. The FAIR Plan is not a state agency, nor is it a public entity. There is no public or taxpayer funding.
The FAIR Plan is a syndicated fire insurance pool comprised of all insurers licensed to conduct property/casualty business in California. The FAIR Plan was established by statute (California Insurance Code sections 10091 et seq.) in August, 1968 as an insurance placement facility.
All licensed property/casualty insurers which write basic property insurance required by Insurance Code sections 10091(a) and 10095(a) are members of the FAIR Plan. The FAIR Plan issues policies on behalf of its member companies. Each member company participates in the profits, losses and expenses of the Plan in direct proportion to its market share
of business written in the state.
Read on to find out more about the FAIR plan
https://www.cfpnet.com/about-fair-plan/
The FAIR Plan has not been rated or evaluated by A.M. Best.
Compass
16268 Los Gatos Blvd.
Los Gatos, CA 95032
CA DRE# 01955771
Susan Ward