California home insurance
Your FAIR Plan Premium Goes Up on October 15
By Mike Martinez ·
You may have better options than you did last year.
If you own a home in San Diego County and your fire coverage runs through the California FAIR Plan, a letter is coming. The California Department of Insurance has approved a statewide average rate increase of 29.1 percent for policies renewing or newly issued on or after October 15, 2026.
29.1%
Approved statewide average increase
Oct. 15
Effective for renewals on or after this date
675k
Homes and businesses affected statewide
The FAIR Plan asked for 35.8 percent. The Department approved 29.1 percent instead. The word to focus on is average: nobody pays the average. A home above a canyon with heavy brush may see an increase well above 29 percent, while a home placed on the FAIR Plan because of a broad carrier decision may see considerably less.
The part most people miss
This matters more than the rate increase. The FAIR Plan covers fire, but it does not provide liability, theft, or water-damage coverage. If a pipe bursts in your wall or someone slips on your walkway, the FAIR Plan alone does not protect you.
The standard solution is a companion Difference in Conditions policy, often called DIC. It wraps around the FAIR Plan and restores coverage the FAIR Plan leaves out. The FAIR Plan does not sell DIC coverage itself, so it must come through a private carrier.
Many homeowners placed on the FAIR Plan during 2023 and 2024 never received a wrap policy and may be carrying fire-only coverage without realizing it. If that is you, the October increase is the smaller of your two problems.
The good news: the market is reopening
This is the first year in a while when shopping your coverage can produce an actual answer instead of a stack of declinations. Mercury received the first approval under the state's Sustainable Insurance Strategy in December 2025 and committed to more than 38,000 new policies, including a required share in wildfire-distressed areas. Farmers removed its monthly cap on new California policies in November 2025. In April 2026, Travelers announced statewide participation and expansion.
CSAA, AAA, USAA, and Kemper are writing as well. The state now allows carriers to use forward-looking catastrophe models and account for reinsurance costs when setting rates. In exchange, carriers using that approach must commit to writing more policies in wildfire-exposed areas rather than retreating to the safest ZIP codes.
Not everyone is back. State Farm General has been paused since May 2023 and Allstate since November 2022. Still, the door that was nailed shut is open again, and wider than many homeowners realize.
What to do before October 15
- Read your policy. Confirm whether you are on the FAIR Plan and whether you have a DIC wrap next to it. If you cannot tell, that is a normal answer.
- Get requoted, even if you were declined before. A decline in 2023 tells you very little about 2026. Appetite has shifted across San Diego County, from Ramona, Julian, Alpine, Fallbrook, and Valley Center to Scripps Ranch, Rancho Bernardo, Poway, Tierrasanta, Del Cerro, and Rancho Peñasquitos.
- Harden the house and get paid for it. California requires insurers to discount for wildfire mitigation. The FAIR Plan offers twelve hardening discounts worth up to 16.4 percent off the wildfire portion of a Dwelling Fire premium. High-value improvements include a Class A fire-rated roof, ember-resistant vents, enclosed eaves, upgraded windows, and a clear five-foot noncombustible zone around the house.
- Start now, not at renewal. If your policy renews in late October, the increase is already baked in. September gives you room to place something different. The week your notice arrives usually does not.
The short version
The FAIR Plan is getting more expensive on October 15, and the private market is reopening at the same time. The worst move is to open the renewal notice, sigh, and pay it without checking what else is available.
I'm Mike Martinez, and I run Big Rock Insurance Agency out of Santee, serving homeowners across San Diego County. I work with a range of carriers rather than one, so I can look at your address across several markets and tell you honestly whether you can get off the FAIR Plan or whether staying put with the right wrap policy is the smarter play.
Want a second set of eyes before the increase hits? Reach out. No cost, no pressure, and if your coverage is already solid, I'll tell you that too.
Talk with MikeThis article is general information for San Diego County homeowners and is not a substitute for advice about your specific policy or property. Coverage, availability, and pricing vary by carrier, address, and individual underwriting. Rate figures reflect filings approved by the California Department of Insurance as of August 2026.