California FAIR Plan Insurance; How it Can Help Homeowners in High Brush Areas

California FAIR Plan insurance is designed to provide coverage for high risk homeowners and renters that are having trouble finding protection through other insurance companies.

As of November 14th 2019, the California Insurance Commission ordered the FAIR Plan to start including coverage for non fire risks by June 1st, as well as double the coverage limits by April 1st, 2020.

The California FAIR Plan is great for homeowners in need of protection from risks such as fire or smoke. If you need additional coverage for other perils such as wind, or liability you may need to looking into adding a standard homeowners insurance policy.

Although, changes were made around the summer of 2020 and moving forward where comprehensive home insurance may be included in California FAIR Plan insurance coverage. If you live in El Dorado Hills, Folsom, Granite Bay or surrounding areas and are finding it difficult to find great home insurance, the California FAIR Plan may be an option that can help.

Applying for California FAIR Plan insurance is easy when you go through a reputable home insurance broker like Eugene C Yates Insurance Agency. Statistics show that individuals that apply on their own typically run into longer wait times to receive a quote.

The great thing about getting your quote through Eugene C Yates Insurance Agency, is there aren’t any additional fees to have a professional obtain the quote for you. In addition, you’ll have an amazing home insurance agent that can answer all your questions about the California FAIR Plan and how it can benefit you.

Please call us today 916 313 6100, to get a free California FAIR Plan insurance quote!

Qualifications for California FAIR Plan insurance

To be eligible for the California FAIR Plan you first must own the property in the state of California, as well as meet certain business requirements. You may have been rejected by other insurance companies and have proof of the issue, but there isn’t a set rule requiring you to show proof of being rejected.

Please keep in mind the California FAIR Plan is a limited home insurance policy. The main perils it covers are fire and smoke. For homeowners that need protection for liability claims, they will need to get additional coverage to be fully protected.

The California FAIR Plan program will not cover:

• Long-term vacant or unoccupied homes. If more than 50% of your home’s building area has been vacant or unoccupied for at least one year, you won’t qualify for a new fire insurance policy or renewal through the FAIR Plan. And if your house is currently substantially vacant or unoccupied for less than a year, it will need to be in good condition with secured doors and windows in order to obtain coverage.
• Houses with existing damage that is not being repaired. If your house is damaged, it won’t qualify for coverage unless you can submit a repair contract that outlines the work that will be done to fix the damage, along with an estimated completion date. This needs to be signed by you and a licensed independent contractor. If you have yet to hire one, you will need to do so before applying for coverage.
• Properties used for illegal purposes. If illegal activity is taking place on your property, it won’t qualify for California’s FAIR home insurance. For instance, growing marijuana in your house would violate federal law and disqualify it from FAIR Plan coverage.

What’s covered under the California FAIR Plan?

The California FAIR Plan offers home insurance and renters insurance polices. Please keep in mind that renters will only qualify for coverage on their personal property and not the dwelling. The California FAIR Plan homeowners insurance policy extends actual cash value coverage on your home and personal property.

When it comes to deductibles, the California FAIR Plan typically has options that range anywhere from $100 to $10,000. Key point to keep in mind is you deductible has a direct reflection on your insurance premium. Taking a higher deductible will result in a lower insurance premium. If you need a lower deductible, you should expect to see higher insurance premiums.

Covered perils under the California FAIR Plan

Under the California FAIR Plan property insurance policies are named peril policies. Which means the cause of the damage would have to be specified in your insurance paperwork to be officially be covered. Currently the California FAIR Plan covers the following perils;

• Fire
• Lightning
• Internal explosion
• Smoke
• Vandalism or malicious mischief (optional coverage that can be added so long as your house has not been vacant or unoccupied for more than a month)
• Windstorms, hail, explosion, riots and civil commotion, aircraft, vehicular damage, volcanic eruptions (optional coverage that will increase your premium to add)

The best way to get a quote for California FAIR Plan insurance is by contacting one of our agents. They will walk you through the process and answer all of your questions regarding your new insurance policy! Give us a call today at 916 313 6100.