--- title: CA FAIR Plan Rates Up 29.1%: Your Options in the South Bay url: https://smartpath-insurance.com/california-fair-plan-rate-increase-alternatives/ description: FAIR Plan rates rose 29.1% for renewals on or after Oct 15, 2026. An El Segundo independent agent explains what changed and how to compare alternatives. --- [Home](https://smartpath-insurance.com/) California FAIR Plan Rates Rose 29.1%. Here’s What South Bay Homeowners Can Do Before Renewal # California FAIR Plan Rates Rose 29.1%. Here’s What South Bay Homeowners Can Do Before Renewal If your home is insured through the California FAIR Plan, your next renewal will likely cost more. The California Department of Insurance approved an average 29.1% rate increase, effective for… [Quote My Policies](https://smartpath-insurance.com/quotes/) [Call (310) 751-5979](tel:+13107515979) Star Star Star Star Star 5.0 from 158 Google Reviews 30+ carriers compared ![California FAIR Plan rates up 29.1% for renewals on or after October 15, 2026](https://smartpath-insurance.com/wp-content/uploads/sites/183/2026/10/01-california-fair-plan-rate-increase-1024x538.png) ![California FAIR Plan rates up 29.1% for renewals on or after October 15, 2026](https://smartpath-insurance.com/wp-content/uploads/sites/183/2026/10/01-california-fair-plan-rate-increase.png) If your home is insured through the California FAIR Plan, your next renewal will likely cost more. The California Department of Insurance approved an average 29.1% rate increase, effective for new and renewing FAIR Plan policies on or after October 15, 2026. Not every homeowner will see the full increase, and some may see a decrease, but most will pay noticeably more. The good news: California’s property insurance market is starting to open back up. Here is what changed, and what homeowners in El Segundo, Manhattan Beach, Torrance and across Los Angeles can do now. ## What is the California FAIR Plan? The FAIR Plan is California’s insurer of last resort. It provides basic fire coverage when a homeowner can’t find coverage with a standard (admitted) carrier. It is not a full homeowners policy. Most FAIR Plan policyholders also need a separate “difference in conditions” (DIC) policy for liability, theft and water damage. The plan has grown fast. As of June 2026 it had 696,562 dwelling and commercial policies in force, up 157% from September 2022, with $768 billion of exposure. ## Why FAIR Plan rates went up - **Wildfire losses.** The January 2025 Palisades and Eaton fires produced billions in insured losses in Los Angeles County. - **Rapid growth.** The plan now carries far more risk than it was designed for. - **New rate rules.** Under the state’s Sustainable Insurance Strategy, rates can now reflect catastrophe modeling and reinsurance costs. The FAIR Plan originally asked for 35.8%. Regulators approved 29.1%. ## The market is starting to open up FAIR Plan growth slowed to 1.9% in the second quarter of 2026, the lowest quarterly increase since 2022. The Department estimates about 24,000 policies left the FAIR Plan in April and May 2026 alone. Eleven homeowners insurance groups have committed to stay in California and grow, including Mercury, Farmers, Travelers, Liberty Mutual, CSAA and the Auto Club of Southern California. Several are expanding into wildfire-distressed areas. That means a policy that was your only option two years ago may no longer be. ## 5 steps before your FAIR Plan renewal 1. **Start 60 to 90 days early.** Underwriting a home with a past FAIR Plan policy can take time. 2. **Document your home hardening.** Class A roof, ember-resistant vents, a five-foot non-combustible zone and defensible space can all help with eligibility. 3. **Review your dwelling limit.** Make sure it reflects today’s rebuild cost, not your purchase price (see our guide to replacement cost vs. market value). 4. **Check your DIC policy.** Compare what you pay for the FAIR Plan plus DIC combined against a single full homeowners policy. 5. **Compare multiple carriers.** An independent agent can check admitted and non-admitted options in one review. ## How SmartPath helps SmartPath Insurance is an independent agency in El Segundo with access to more than 20 property carriers for eligible homes. We compare your current FAIR Plan and DIC coverage against available alternatives and explain the differences in plain language. Eligibility, coverage and pricing vary by carrier and property. **Renewal coming up? Call (310) 751-5979 or [start your quote](https://smartpath-insurance.com/quotes/) .** ## Frequently asked questions **How much did California FAIR Plan rates go up in 2026?** The California Department of Insurance approved an average 29.1% increase for FAIR Plan dwelling policies, effective for new and renewal policies on or after October 15, 2026. Individual changes vary by property. **Can I leave the FAIR Plan in Los Angeles?** Many homeowners can, depending on the property, location and wildfire risk. Several admitted carriers are expanding in California under the Sustainable Insurance Strategy. An independent agent can check which options you qualify for. **Does the FAIR Plan cover water damage or liability?** No. The FAIR Plan mainly covers fire and a few named perils. Liability, theft and water damage usually require a separate difference in conditions (DIC) policy. **When should I start shopping before my FAIR Plan renewal?** Start 60 to 90 days before your renewal date so there is time for inspections and underwriting. *SmartPath Insurance · 841 Apollo St., #470, El Segundo, CA 90245 · CA Lic. #6004439. This article is general information, not a coverage recommendation. Coverage is subject to policy terms and eligibility.* **Sources:** [CDI: FAIR Plan growth slows below 2% (Aug 3, 2026)](https://www.insurance.ca.gov/0200-industry/0105-alert/upload/FAIR-Plan-growth-slows-below-2-as-Californias-insurance-market-continues-to-show-signs-of-recovery.pdf) · [KRCR: FAIR Plan to raise rates about 29%](https://krcrtv.com/news/local/california-fair-plan-to-raise-homeowners-insurance-rates-about-29) · [Beinsure: California insurers pledge new policies](https://beinsure.com/news/california-insurers-pledge-new-policies/) · [Coverage Cat: FAIR Plan rate hikes 2026](https://www.coveragecat.com/blog/california-fair-plan-rate-hikes-2026) *Written by Richard Nguyen, Agency Principal, SmartPath Insurance.* ![Richard Nguyen, agency principal of SmartPath Insurance](https://smartpath-insurance.com/wp-content/uploads/sites/183/2026/10/F525F54A-CED2-4CA0-8A57-D7E252119D10-700x800-copy-square.png) ## Talk to Richard Nguyen Agency principal at SmartPath. We compare 30+ carriers for you, explain the options in plain English, and stay with you at every renewal. [Quote My Policies](https://smartpath-insurance.com/quotes/) [Call (310) 751-5979](tel:+13107515979) Already insured? 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