One of the biggest fears people have when considering moving to the Sierra Foothills is whether or not they will be able to insure their home. While it’s true that Nevada County homes in high fire zones are more expensive to insure, the investment is worth it for the breathtaking views and close-knit community. The California Fair Plan is here to help.
In the past decade, as wildfires have become more common and destructive in California, an increasing number of Californians have looked to the FAIR Plan for insurance. Some insurers have even stopped offering coverage in these markets altogether. The FAIR Plan is available to residents and businesses statewide who cannot obtain insurance through a regular company.
What is the California Fair Plan?
The California Fair Plan is not a state-run insurance program. The FAIR Plan is an Insurance pool syndicate that includes all property/casualty insurers who are licensed to do business in the state of California. The Department of Insurance exercises oversight under California law to make sure the FAIR Plan addresses the changing needs of Californians.
So how does the California Fair Plan Work?
If your insurance agent can’t write the additional fire insurance policy you’ll need if you buy a home in a high fire zone, you’ll have to obtain it from the California Fair Plan. A typical house insurance policy would be written by your insurance agent, then California Fair Plan would provide the extra fire insurance that would be required.
Is the California Fair Plan expensive?
The state of California sets the rates for the California Fair Plan, and they are required to be reasonable. Having said that, depending on where you want to purchase property and the fire level danger in that area, it can still be expensive.
How many homes are insured by the California Fair Plan?
According to the California Fire Insurance commissioner’s website “As of 2020, the FAIR Plan covers less than 3% of residents, meaning more than 97% of Californians have a competitive option for insurance.”
How do I determine if the home I want to purchase is in a high-risk area for wildfires?
By searching Cal Fire’s map, you can get an idea of which areas will be more expensive to insure. View the California Fire Zone Map >>
The bottom line is that the California Fair Plan is a great resource for homeowners who want to insure their home in a high fire zone. It’s important to do your research and work with an insurance agent you trust to make sure you’re getting the best coverage for your needs.
You can find a broker in the area you are searching for homes that provides the California Fair Plan here >> https://www.cfpnet.com/find-a-broker/
Overall, the pros of moving to the Sierra Foothills far outweigh the cons. Yes, Nevada County homes in high fire zones are more expensive to insure, but the investment is worth it for the breathtaking views and close-knit community. If you’re considering making a move to the Sierra Foothills, don’t let insurance coverage deter you – The California Fair Plan is here to help. Make sure to subscribe to our blog for the latest details on everything Sierra Foothills related!
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