California FAIR Plan Renewals on or After Oct 15, 2026: What Commercial Owners and Builders Should Check
If your California commercial property or business owner’s policy sits on the FAIR Plan, today is not a rumor date. For policy terms effective on or after October 15, 2026, the California FAIR Plan’s CDI-approved new rates apply to Dwelling Fire, Commercial, Commercial High Value, and Business Owner’s Policy (BOP) business. Earthquake Authority (CEA) business is outside that bulletin’s affected lines.
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That matters for warehouse owners, retail and office risks, and builders with buildings under construction who landed on the FAIR Plan because the voluntary market said no. A renewal notice is the wrong day to discover what the policy actually covers—and what it does not.
What actually changed
The California FAIR Plan issued a broker bulletin (widely circulated in August 2026) tying the new rate basis and related broker-commission restructuring to policy terms effective October 15, 2026, or later. Policies written or renewed before that date keep the prior rate and commission structure for that term. Terms that start on or after October 15 move to the new basis.
We are not publishing average percentages or “what you will pay.” Premium depends on the property, the rating factors, and the market that will actually write you. What you can do is treat every FAIR Plan renewal on or after today as a market-search event, not a rubber stamp.
FAIR Plan is last-resort property coverage
The California Department of Insurance describes the FAIR Plan as privately run last-resort coverage for Californians who cannot find a home in the regular market. It is not a full commercial insurance program by itself. At renewal, confirm in writing:
- Which causes of loss your FAIR Plan commercial or BOP form actually names.
- Whether general liability, business income, and other lines you need sit on separate policies—and whether those policies still match your operations, COI requests, and lender or landlord requirements.
- Whether a Difference-in-Conditions (DIC) wrap or another voluntary-market option is available for the same risk this year.
The FAIR Plan’s own bulletin tells brokers to keep running diligent searches in the traditional marketplace and place coverage there whenever it is available. That advice is for your benefit, not just the broker’s.
What to do this week if you renew on or after Oct 15
- Pull the renewal packet early. Compare the effective date on the declaration page to October 15, 2026. If the new term starts on or after that date, you are on the new rate basis.
- Ask for a voluntary-market search in writing. Have your broker document which admitted and specialty markets were tried, and why the risk stayed on (or left) the FAIR Plan.
- Match the rest of the program. Builders: check builders risk and your construction insurance stack (GL, WC, COIs). Commercial owners: walk the full business insurance picture, not just the property layer.
- Do not wait for the notice to be the first conversation. If the risk is wildfire-exposed or hard-to-place, start the re-shop before the renewal is locked.
Oversight context: AB 1680 (Make It FAIR Act)
On September 30, 2026, Governor Newsom signed a CDI-sponsored package that includes AB 1680, the Make It FAIR Act. Per the Department of Insurance, AB 1680 strengthens oversight of the FAIR Plan—corrective actions from examinations, claims-handling practices, financial accountability, and policyholder protections. It does not replace your renewal checklist. It does mean the last-resort market you may still need is under tighter statutory scrutiny.
Who this is for
California commercial property owners, BOP insureds, and contractors with buildings under construction who are on the FAIR Plan—or who were forced there after a non-renewal. We place commercial and specialty coverage nationwide; FAIR Plan is a California-specific last-resort layer that still shows up in construction and commercial accounts across the state.
California FAIR Plan commercial FAQ
What does a FAIR Plan commercial policy cover?
According to the California FAIR Plan, its Commercial Fire Policy is a named-peril policy. It pays only for damage from the causes of loss listed in the policy, such as fire, lightning and internal explosion. Other coverages, such as vandalism and malicious mischief, are optional at an additional cost.
Does the FAIR Plan include general liability?
No. The commercial property policy the FAIR Plan publishes does not include liability coverage. Buy general liability from another insurer, and confirm that its certificates match your lease, lender and contract requirements.
Which commercial properties can the FAIR Plan write?
The FAIR Plan describes its commercial program as a temporary option for properties that cannot get coverage from a traditional insurer. Examples it lists include apartment buildings with five or more units, hotels and motels, retail shops, manufacturers, office buildings, buildings under construction, and farms and wineries (not crops or livestock).
Did the October 15, 2026 change affect my current policy term?
Per the FAIR Plan broker bulletin summarized above, the new rate basis applies to policy terms that start on or after October 15, 2026. A term that started before that date stays on the prior basis until its next renewal. Check the effective date on your declarations page.
Do other states have FAIR plans?
Yes. The NAIC reports that 33 states have some form of FAIR plan or similar residual market plan, and the eligible properties and coverage vary by state. Wherever your property is, review a last-resort policy for gaps at each renewal and ask your broker to re-market it when the voluntary market opens up. Lions & Coventry is licensed in all 50 states. Request a quote or call (916) 967-7715.
Lions & Coventry Insurance Services was established in 2009 and is licensed in all 50 states (CA Lic. #0G22084).
Get a second look before you bind
If your FAIR Plan term renews on or after October 15, 2026, send us the declaration page and we will help you pressure-test the voluntary market and the rest of the program. Call (916) 967-7715 or use our contact form. Lions & Coventry Insurance Services — California License #0G22084.
Sources: California FAIR Plan broker bulletin on rate and commission restructuring for terms effective October 15, 2026 (Commercial / Commercial High Value / BOP / Dwelling Fire; CEA excluded from that bulletin’s commission change); California Department of Insurance press release, September 30, 2026 (AB 1680 Make It FAIR Act). No premium figures published—pricing depends on the risk. Last reviewed October 15, 2026.
