Home hardening is moving some Californians off the FAIR Plan — 10 days before the 29.1% re-rate

By Daniel Masarsky, CA Lic. 0D87510 · Published October 5, 2026

Update (October 5, 2026): The California FAIR Plan’s higher rates start with policies issued or renewed on or after October 15, 2026. At the same time, new reporting shows a growing number of homeowners in fire country using documented wildfire mitigation to get back into the regular (admitted) insurance market. If your FAIR Plan renewal is coming up, the next few weeks are a good time to get your mitigation paperwork in order and have your address re-shopped.

This morning the Press Democrat / North Bay Business Journal profiled North Bay homeowners who left the FAIR Plan after hardening their homes. The stories are specific, and they line up with what we see when we shop high-fire properties: carriers are more willing to write a home when the owner can show the work, not just describe it.

What the reporting found

West Marin (Inverness Ridge): A homeowner who had been paying about $11,000 a year for FAIR Plan plus a Difference-in-Conditions (DIC) policy moved to a conventional Mercury policy in early 2026 for under $4,000. She had already replaced vents, added gutter guards, enclosed eaves, installed a metal roof and cleared vegetation. She estimated the last round of work the insurer asked for cost $10,000 to $15,000. Her neighborhood’s Firewise community work was part of the picture.
Pope Valley (Napa County): A homeowner whose FAIR Plan fire premium had topped $10,000 got a conventional policy at about $7,000 after clearing the first 5 feet around the house (“Zone Zero”), installing fire-resistant vents and gutter guards, and dealing with combustibles near the structure. Documenting double-pane windows and the vents lowered it further.
FAIR Plan exits: The California Department of Insurance told the paper that about 24,000 policies left the FAIR Plan in April and May, and that FAIR Plan growth has slowed sharply compared with 2024 and much of 2025. The Department also said it can’t confirm all of those policies moved to admitted carriers.
More competition, not lower prices everywhere: United Policyholders’ Amy Bach told the paper the market is showing more competition, and a Napa County supervisor said she is hearing fewer stories of people forced onto the FAIR Plan. She also cautioned that more availability hasn’t necessarily meant big premium drops.

Two caveats matter. These are individual outcomes, not a promise for every house. And the carrier in both stories had its own mitigation requirements that the owners had to meet before it would write the policy. Every insurer’s list is a little different.

Why the timing matters: October 15

The Department of Insurance approved a 29.1% statewide average increase for FAIR Plan dwelling policies (the plan had asked for 35.8%). It applies when your policy is issued or renews on or after October 15, 2026, not in the middle of your current term. Because most of the increase sits in the wildfire part of the premium, homes with higher wildfire scores can see more than the average, and some lower-risk homes may see less or even a decrease.

That makes your next renewal a natural checkpoint. If you’re about to get a bigger FAIR Plan bill, it’s worth finding out whether the work you’ve done (or could finish) would get you a single admitted policy or a better surplus-lines option instead of FAIR Plan plus DIC. We covered the rate hike itself in our five-week countdown checklist and last week’s look at insurers saying they’re writing again.

Help paying for the work

The same reporting described several programs that are trying to make hardening affordable. Availability depends on where you live and your income, so check directly with the program:

California Wildfire Mitigation Program: A state program (from AB 38) that hardens homes and creates defensible space in high-fire-risk, socially vulnerable communities. It can cover the full cost of eligible work, potentially more than $40,000, for households earning up to 120% of area median income, with cost-sharing above that. It is running in demonstration areas such as Kelseyville Riviera in Lake County.
Marin County: The Marin Wildfire Prevention Authority’s Ember Ready program gives one-on-one help reading inspection reports and creating Zone Zero, and Fire Safe Marin is training local contractors in wildfire-resistant retrofits. Officials also described a lower-rate home-hardening loan that Redwood Credit Union was still finalizing.
Local fire safe councils and Firewise communities: Neighborhood-level work showed up in both North Bay examples, and some insurers give it weight.

Also new: more oversight of the FAIR Plan

On September 30 the Department of Insurance announced that Governor Newsom signed nine Department-sponsored bills. One of them, AB 1680 (the “Make It FAIR Act”), requires the FAIR Plan to carry out corrective actions found in state examinations and aims to improve its operations, claims handling and financial accountability. It doesn’t change your premium, but it’s worth knowing if you have a FAIR Plan claim or complaint.

What to do before your renewal

Find your renewal date. If it falls on or after October 15, expect the new FAIR Plan rate. Start shopping 30 to 60 days before it, not the week of.
Document what you’ve already done. Take dated photos of your roof, vents, gutter guards, enclosed eaves, windows and the 5 feet around the house. Keep receipts and any inspection or Firewise paperwork. California’s Safer from Wildfires rules require insurers to offer discounts for qualifying mitigation, and the FAIR Plan offers mitigation discounts too. Our wildfire mitigation discounts guide covers the details.
Start with Zone Zero. Clearing combustibles within 5 feet of the house came up again and again in the reporting, and it’s often the cheapest item on an insurer’s list.
Compare the total, not just the FAIR Plan bill. FAIR Plan plus DIC is two premiums. Line it up against a single admitted or surplus-lines policy with the same dwelling limit, liability, water damage and loss-of-use coverage.
Don’t cancel anything early. Keep your FAIR Plan policy until a replacement is bound and your lender, if you have one, has accepted it.

For background, see our California FAIR Plan guide, our guide to FAIR Plan and DIC coverage, and high-fire-risk home insurance in California.

How ESI can help

At ESI Insurance Brokers (Express Service Insurance Agency, Inc.), we’re an independent California broker. We compare admitted carriers, the FAIR Plan and surplus-lines markets for homeowners, landlords and small commercial property owners in high-fire areas. We’ll tell you honestly what’s available for your address, and which mitigation items could change the answer.

If your FAIR Plan renews this fall, or you’ve finished hardening work and want to see whether it opens up better options:

Get a California homeowners quote →

Or call (415) 440-5136 · CA LIC# 0G83954 · esibrokers.org

Sources

This article is general information, not legal advice or a coverage determination. Individual results depend on the property, the carrier’s guidelines and the policy terms. Ask your broker how this applies to you.