What is the California Fair Plan?

The California FAIR Plan Association is an association which provides property insurance to homeowners in California who cannot get coverage elsewhere. The CA FAIR Plan association is last resort, and they recommend that homeowners shop the “voluntary” home insurance market before applying for FAIR Plan coverage.  Many property owners in California cannot get insurance through no fault of their own.  For instance in some cases entire areas of the sate have been “redlined” by insurance companies and are refused property insurance covered.  Example areas could be high-risk fire areas, urban core neighborhoods, or areas where standard property policies are difficult to obtain.  All Policyholders and Property Owners in California do have access to the California FAIR Plan Association, which is an excellent safety net for the state’s population of home owners… in theory.

The problem with the California FAIR Plan is that once the FAIR Plan issues a policy, they offer coverage that is not compliant with standard California fire insurance policy found in California Insurance Code § 2071. This differential treatment is a mistreatment of California FAIR Plan policyholders and has caused major financial hardships for the property owner.  California FAIR Plan determines the “Fair Market Value” of your home or real property and then decides if they will pay that LOWER value if the damages caused by a covered peril are greater than the Fair Market Value.

Professional Insurance Evaluations specializes in helping property owners who have been given unfair treatment or property valuations from the California FAIR Plan Association.  You can click to learn more about our California FAIR Plan Claims Service, or you can contact us today to learn more and get help with your California FAIR Plan Claim.