Being on the California FAIR Plan today doesn’t necessarily mean you’ll have to stay on it forever. Some Tahoe homeowners may qualify for coverage outside the FAIR Plan, even if that wasn’t an option when they last checked.
We recently moved our own Tahoe home from a FAIR Plan plus Difference in Conditions (DIC) combination to a private homeowners policy, saving approximately $3,000 per year. Our neighborhood’s Firewise recognition saved us another $260 per year.
That’s our experience, not a promise that another home will qualify or see similar savings. But if you haven’t shopped your coverage recently, it may be worth asking again.
Our Experience Getting Off the FAIR Plan
Like many homeowners on the California side of Lake Tahoe, we had been carrying a FAIR Plan policy with a companion DIC policy.
Recently, we asked a local insurance broker to shop our property again. This time, we qualified for a private homeowners policy through SageSure.
The insurer required a home inspection as part of the underwriting process. That inspection brought up a few things we hadn’t necessarily thought of as insurance issues.
One was decorative lattice near the house. The insurer considered it combustible material close to the structure and an additional wildfire risk. We were still able to get the policy, but it resulted in a small increase in our premium.
Gutters were another consideration. In Tahoe, pine needles and other debris can accumulate in gutters and create a wildfire concern if they aren’t regularly cleaned. That doesn’t mean gutters themselves are universally a problem. It was a reminder that insurers may look at ordinary features of a mountain home differently than we do.
Even after the inspection adjustment, the switch saved us approximately $3,000 for the year.
The biggest lesson was simple: the answer had changed since we last asked.
What Do the FAIR Plan and a DIC Policy Cover?
The California FAIR Plan provides basic property insurance for homeowners who have difficulty obtaining coverage in the traditional market. It is an insurer of last resort, not a government insurance company.
Its basic dwelling coverage includes fire, lightning, internal explosion and smoke, subject to policy terms. Additional coverages are available, but a FAIR Plan policy does not provide all the protections typically included in a traditional homeowners policy.
That’s why many homeowners pair it with a Difference in Conditions, or DIC, policy. Depending on its terms, a DIC policy can help address gaps such as liability, theft and certain water damage.
The result is two policies intended to provide protection that might otherwise be available through one homeowners policy. Understanding how those policies work together matters as much as knowing the combined premium.
Why One Tahoe Home May Qualify and Another May Not
Wildfire exposure has made homeowners insurance challenging in Tahoe, but insurers don’t evaluate only the house itself.
Their underwriting may consider surrounding vegetation, construction, roof type, access and how many properties they already insure in an area. Two seemingly similar homes can have different insurance options.
That’s why we caution buyers against assuming:
“The house next door has insurance, so this one will too.”
You need to investigate the specific property.
Options can also change. An insurer’s underwriting criteria may shift, a different program may become available, or a broker may have access to an insurer your previous agent didn’t represent.
Property improvements and wildfire mitigation may matter too, but completing a particular project does not guarantee coverage. If insurance eligibility is your reason for making an improvement, ask your insurance professional which measures matter to the insurers they work with.
Firewise Recognition and Property Maintenance Can Matter
Our neighborhood’s Firewise USA recognition qualified us for an additional discount of approximately $260 per year on our new policy.
If your neighborhood has that recognition, make sure your insurance professional knows and ask how it may affect your premium.
California’s Safer from Wildfires framework connects qualifying property and community wildfire-mitigation measures with insurance discounts. The amount and application depend on the insurer, policy and qualifying measures.
Our inspection also reinforced the importance of routine maintenance: keeping combustible materials away from the house, maintaining defensible space and preventing pine needles and debris from accumulating around the structure.
These are practical parts of owning a Tahoe home. They may also affect how an insurer evaluates it.
An initial quote doesn’t necessarily mean underwriting is finished. Ask whether an inspection is required and whether its findings could lead to required work or changes in the premium.
Your Insurance Broker Matters
Insurance agents and brokers don’t all have access to the same options. One agent being unable to find coverage doesn’t necessarily mean no coverage exists.
For our home, we worked with one of our local insurance brokers, who found the policy through SageSure that allowed us to move away from our FAIR Plan and DIC combination. We’ve since referred clients and have received positive feedback.
He isn’t the only person who may be able to help, and the same policy won’t fit every property. The point is that someone who regularly works with Tahoe homes and wildfire-exposed communities may know which options are worth exploring.
When comparing quotes, look beyond the annual premium. Ask your insurance professional to review:
- Coverage limits: How much protection is provided for rebuilding the home and replacing belongings?
- Deductibles and exclusions: What would you pay out of pocket, and what losses aren’t covered?
- How you use the home: Does the policy fit your primary residence, second home or rental use?
- Underwriting requirements: Are inspections or improvements still outstanding?
Before canceling existing coverage, have your insurance professional confirm that replacement coverage is bound and coordinate the effective dates.
If suitable coverage outside the FAIR Plan remains unavailable, the FAIR Plan may still be the appropriate option. Review it and any companion DIC policy together so you understand what is and isn’t covered.
Buying a Tahoe Home? Shop Insurance Early
Don’t wait until the last few days of escrow to investigate homeowners insurance.
As soon as you’re seriously considering a property, and certainly once you’re under contract, start getting quotes.
We encourage buyers to find out whether a homeowners policy is available, what it will cost and whether an inspection or mitigation work is required. If FAIR Plan plus DIC is the available option, get the combined cost and review the coverage gaps, limits and deductibles.
Also ask whether the property is in a Firewise-recognized community and what discounts may apply.
Insurance can materially affect the annual cost of owning a Tahoe home. It deserves to be part of the buying decision, alongside maintenance and the other practical responsibilities of ownership.
Already on the FAIR Plan? Ask Again
You don’t have to assume that the insurance options available when you bought your home are the only ones you’ll ever have.
Ask a knowledgeable broker to review your options periodically. The FAIR Plan may still be your best available choice. Or you may find, as we did, that another policy is now available.
Wondering What Your Tahoe Home’s Insurance Options Look Like?
We found a better option by asking again. If you’d like an introduction to the local insurance broker who helped us, fill out the form below and we’ll connect you.
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This article is provided for educational and informational purposes only and is not intended as insurance advice. Coverage options, eligibility, and premiums vary by property and insurer. Before making any insurance decisions, consult a licensed insurance professional to review your specific needs and coverage options.