Update, September 2026: A lot has happened since this article was written.
- The FAIR Plan kept growing. It covered about 697,000 dwelling and commercial policies as of June 2026, up 8% in a year and up 157% since September 2022.
- The $1 billion assessment is reaching policyholders. The assessment approved after the January 2025 Palisades and Eaton fires allows member insurers to seek approval to recoup up to half of what they paid through a temporary fee, which must be listed separately on your bill. That means you may see a FAIR Plan-related fee even if you don't have a FAIR Plan policy. A Los Angeles court upheld the Insurance Commissioner's authority to issue this guidance in June 2026.
- Private insurers are slowly returning. Under California's Sustainable Insurance Strategy, six of the state's ten largest home insurance groups have committed to expanding coverage, including Farmers, which pledged in May 2026 to market to at least 300,000 policyholders in wildfire distressed areas.
- Mitigation now earns discounts. Under the state's Safer from Wildfires regulation, insurers must offer discounts for qualifying home hardening (like a Class A roof, ember-resistant vents and a five-foot noncombustible zone) and provide a wildfire risk score.
Securing fire insurance in Santa Barbara can be challenging. The California FAIR (Fair Access to Insurance Requirements) Plan serves as a last-resort option for homeowners unable to obtain coverage through traditional insurers. Here's what you need to know.
Understanding the California FAIR Plan
Established in 1968, the California FAIR Plan provides basic fire insurance coverage for properties deemed high-risk, including those in wildfire-prone areas like Santa Barbara. It is not a state agency but a syndicated fire insurance pool made up of all insurers licensed to write property and casualty insurance in California.
What the FAIR Plan Covers
The standard FAIR Plan policy covers damage from:
- Fire
- Smoke
- Lightning
- Explosions
Additional coverages, such as protection against windstorms, theft, or liability, are not included, but can be obtained through a separate Difference in Conditions (DIC) policy that "wraps around" the FAIR Plan.
Coverage Limits
The FAIR Plan offers coverage of up to $3 million for residential properties. This limit covers the dwelling, other structures, personal property, and loss of use combined, which can be a real gap for higher-value Montecito and Hope Ranch homes.
How to Apply
- Consult a licensed broker: While you can apply directly, working with a licensed insurance broker is advisable. They can assess your eligibility and explore all available options.
- Determine eligibility: The FAIR Plan is intended for those who cannot secure coverage in the traditional market. A broker will conduct a thorough search to confirm this.
- Submit an application: With the broker's assistance, complete and submit the application to the FAIR Plan.
Cost Considerations
Premiums under the FAIR Plan are generally higher than standard homeowners insurance policies. Factors influencing the cost include property location, construction type, and fire mitigation measures. The FAIR Plan provides a premium calculator on its website to estimate potential costs. Remember to budget for the separate DIC policy as well.
Recent Developments
Due to recent catastrophic wildfires, the FAIR Plan has faced significant financial challenges, leading to a $1 billion assessment on member insurers to maintain solvency. This assessment may result in temporary fees added to policyholders' premiums statewide.
Recommendations for Homeowners
- Explore all options: Before resorting to the FAIR Plan, consult with multiple insurers and brokers to seek coverage in the traditional market.
- Implement fire mitigation measures: Enhancing your property's wildfire resilience can make it more insurable and may reduce premiums. This includes creating defensible space and using fire-resistant building materials.
- Stay informed: Insurance regulations and market conditions are evolving. Regularly consult with your insurance broker and monitor updates from the California Department of Insurance.
- Buying a home? Get insurance quotes during your inspection period, not after. Coverage availability and cost can affect whether a purchase pencils out.
Securing adequate fire insurance in Santa Barbara requires diligence and proactive measures. Engaging with knowledgeable professionals and staying abreast of current developments will help you navigate this complex landscape. If you're buying or selling and have questions about insurability, call me at (805) 607-9709.
Curtis Swan II
(805) 607-9709
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