June 28, 2026

FAIR Rates Going up 29% and What to Do About it

  • FAIR rates are Going up, up to 29% for Select Properties
  • Not All Properties will see this increase
  • California FAIR market share continues to grow as people can’t find option
  • New Nonadmitted Insurers are coming into the market to provide relief
  • A few admitted insurers have stated they are opened back up

The FAIR Scare:

Numerous news sources have reported that the California FAIR plan is raising rates: “29.1% for certain homeowners starting Oct. 15” [Source1.] However that is not the average rate increase for the typical consumer. The FAIR plan is the insurer of last resort in the state of California. It is primarily used when an insured has no other good options to secure coverage. Many Californians were recently forced onto the FAIR plan when numerous insurers either nonrenewed them or left the state.

In the past several years, with admitted insurers withdrawing from the market, the California property insurance market has undergone a massive transformation. Increased Premiums, Increased Deductibles, Decreased Coverages, and Limited Terms and Endorsements are several of the chanages to existing and renewed policies that consumers have seen. Many residents have been cancelled or non renewed by their insurer.

The California FAIR plan has born the brunt of those policies. Nonadmitted or Surplus Lines insurers have also taken on many of those new policies. The FAIR plan is often quoted as being too expensive. However the reality is that is not always the case. This office has seen numerous situations when FAIR plans are below admitted market pricing.

What to Do About an Increasing FAIR Premium:

If you are a consumer and on the FAIR plan, I highly suggest going back to your broker for a new insurance quote. Many Agents / Brokers will push back. But its at least worth the question. The reason is that several new nonadmitted insurers and platforms have entered the market in the past 14 months. New Options, New Coverage Levels, and Increased competition. Unofficially the property insurance market seems to be softening.

Staying on FAIR?

If you are staying on FAIR either because you want to or still have no other competitive options, there are still a few things to do:

  • Confirm that your Main Building Coverage A is still sufficient
  • Evaluate your deductible
  • Consider all of the other coverages
  • Explore the new discounts

Yes there are new discounts. In the past year Cal FAIR has added a bevy of new discounts. A list of discounts can be found on the renewal. Adding any of these discounts might trigger a new inspection. An example of one of the new discounts is for having a Class A Roof. Many peoples roofs are class A. Numerous other discounts exist, please read your renewal.

Shopping New Nonadmitted Insurers:

If you are currently with the California FAIR plan, its likely a good idea to consider insurance options from insurers that are not backed up by the state guarantee fund, known as Nonadmitted or Surplus Lines insurance policies. These policies, typically an All in One Policy [as opposed to the FAIR plan] have the look and feel of a typical home insurance policy to some degree. They are often more expensive than traditional HO3 policies but sometimes less expensive than the combination of the FAIR plan and DIC Companion.

More About the California FAIR Premium Increases:

The new higher rates begin October 15th of 2026. The highest rates are expected to top out at 29.1% or potentially more. The exact numbers are a bit unclear from differing media reports. The highest rates will NOT hit all FAIR consumers. One Media repor states “half of homeowners seeing rate increases between 30% and 50%” while ” quarter of policyholders having their rates decrease by up to 80% ” Originally the FAIR plan had requested a rate hike of almost 36%! But they did not get it. According to news reports “Rates will be highest for those in high-risk, fire prone areas.” However consumers should be careful assuming that they either are in or not in a high-risk fire area. Different insurers use different models.

The Department of Insurance believes that they might be seeing signs of improvement.

News Sources Used in this blog post

Source1 [https://insurancenewsnet.com/oarticle/california-fair-plan-rates-going-up-29-1-in-late-2026]

Source2 [https://uphelp.org/california-fair-plan-set-to-increase-rates-for-most-policyholders/]



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