California’s FAIR Plan — Homeowners Looking at 29.1% Premium Increases

California’s insurer of last resort, the FAIR Plan, is raising rates. As of October 15th, most of the plan’s 675,000 customers will see their rates going up. Some as much as 29.1%. Who gets hit hardest depends on where the homeowner lives.

Those dwelling in higher wildfire risk areas will see the full increase. People in low risk areas on the FAIR Plan might even see a decrease.

Actually, the 29.1% is much better than the 35.9% the FAIR Plan asked the California Department of Insurance to approve.

Stanford University researchers said this is another hard hit for a state struggling with homeowners’ insurance. Research done in June showed that since 2020 California homeowners have seen rates rise an average of 84%. At the same time, the FAIR Plan enrollment has almost tripled. It now insures 5% of California’s dwellings.

That’s up from 2%.

Adding to the problem is the total exposure of the homes insured by the plan. That figure is $768 billion — an 11% jump since September of 2025 and up over 250% since September of 2022.

The FAIR Plan’s cash balance ranges between $200 million and $400 million.

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