August 30, 2026
FAIR Rates are Indeed Going Up – Get Ready for 10/15/2026
The California FAIR plan is indeed raising rates starting 10/15/2026.
Average Rate increase of about 29%
These start October 15th of this year.
The October FAIR Rate Increase:
California Agents and Brokers received a recent email dated 08/10/2026 stating that “an application for a rate increase” … “will take effect for all new and renewal business on October 15, 2026.” [Marindependent wrote a brief article about this very subject just a few months ago.] They state that the “rate increase is needed to support CFP’s long-term financial stability…” and to “ensure we can continue meeting our obligations to our policyholders.”
These rate increases come at an interesting time as numerous new nonadmitted [surplus lines] policy options are now available for California homeowners and landlords.
The email states that ” the number of CFP policies in force have continued to grow while traditional insurance companies have continued to withdraw…” which is a long way of saying that more and more consumers are purchasing the FAIR plan as more insurers issue nonrenewals and or stop writng insurance policies. In past publications the FAIR plan
Other FAIR Rates Increase Details:
Additional information received in this very email.
- “Overall average premium change: +29.1%”
- New pricing starts “October 15, 2026.”
- “first renewal offers containing the new rates will be sent on August 17, 2026.”
- ” adopting the updated ISO Public Protection Class structure with its new and updated classes”
What to do about the FAIR Rate Increase:
So we now know with certainty that the FAIR rates are going up. There is no question that the state’s insurer of last resport needs to increase rates and take other steps to balance the book.
But What Should Consumers Do about their FAIR rate increase: Simple – find an all in one nonadmitted insurer that will take the entire risk, if possible. Marindependent has never seen more nonadmitted insurers willing to write these FAIR plan policies than now. The time is ripe to shop for a homeowners insurance policy in a high risk area.
