If your company is unable to purchase traditional commercial property insurance you have options. The California FAIR Plan offers commercial insurance coverage for many different businesses.
What is The California FAIR Plan?
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.
The FAIR Plan has not been rated or evaluated by A.M. Best.- https://www.cfpnet.com/
Commercial Property Types Covered Under The California FAIR Plan
If you have received a denial for coverage or are unable to renew commercial property insurance with a traditional business insurance company, The California FAIR Plan offers a temporary solution for these businesses:
Habitational Buildings: Buildings with 5 or more habitational units such as apartment buildings, hotels or motels.
Retail Mercantiles: Shops such as boutiques, salons, dry cleaners and convenience stores.
Manufacturing: Companies that manufacture most types of products.
Office Buildings: Offices for professionals such as doctors, lawyers and consultants.
Buildings Under Construction: Residential and commercial buildings under construction from the ground up.
What is covered under the California FAIR Plan?
The commercial fire policy under the California FAIR Plan is a named peril commercial insurance policy. It will only provide coverage for specific risks. The damage it will cover is listed in the policy. The three main perils it covers are as follows:
Fire
Lightening
Internal Explosion
You have the option to get coverage for risks beyond what’s listed above at an additional cost. You can purchase additional coverage if you want protection from vandalism and malicious mischief.
The California FAIR Plan is there when you run out of options
On the California FAIR Plan website they let customers know they are only a temporary fix until traditional insurers can offer them coverage. As wildfires have become increasingly problematic, more & more Californian’s have turned to the FAIR Plan for coverage. There have been many traditional insurers that have pulled back from offering coverage due to the risk involved. Making it ever so difficult to get standard coverage. The California FAIR Plan will support customers regardless of fire risk, although their goal is attrition.
Who is The California FAIR Plan
The California FAIR Plan is in place to offer basic property insurance coverage for Californian’s that have been dried coverage from traditional providers. If you are in an area threaded by wildfires the FAIR Plan will give you access to fire coverage and give you peace of mind in knowing you’re covered.
Following the riots and brush fires of the 60’s the California FAIR Plan was created. They became the states last resort for property insurance. Established in 1968, they have provided access to fire coverage to Californian’s that are not able to obtain traditional property insurance coverage.
Availability
Coverage for rural and urban customers.
Stability
by all property insurers licensed in California.
Reliability
Insuring high-risk properties since 1968.
How do I get a FAIR Plan Insurance quote?
The best way to get a California FAIR Plan insurance quote is to contact an independent insurance broker such as Eugene C Yates Insurance Agency. We are already an approved insurance broker with the California FAIR Plan and we have access to the top commercial property insurance companies in the industry. This makes it easy for our agents to throughly explore your options before turning to the FAIR Plan for coverage.
If you would like a custom commercial property insurance quote, please contact us today at 916 313 6100