CAL FAIR JUST ANNOUNCED A 29.1% RATE INCREASE STARTING IN OCTOBER
Dwelling Fire Rate Changes & Dwelling Replacement Cost (DRC) for Manufactured & Mobile Homes
Overview
California FAIR Plan (CFP) is a not-for-profit insurer, required by California law to charge rates that are sufficient to pay claims and operating expenses. Over the past several years, the number of CFP policies in force have continued to grow while traditional insurance companies have continued to withdraw from the market.
CFP is required to submit a dwelling rate application to the California Department of Insurance (CDI) within two years of the approval of the last rate application. CFP submitted an application for a rate increase last year, which was approved earlier this year by CDI and will take effect for all new and renewal business on October 15, 2026. This rate increase is needed to support CFP’s long-term financial stability and ensure we can continue meeting our obligations to our policyholders.
CFP continues to expand coverage options and work with the California Department of Insurance and other stakeholders to improve access to insurance for Californians. In addition to the rate change, effective October 15, 2026, we are adding Dwelling Replacement Cost (DRC) coverage for eligible manufactured and mobile homes.
What You Need to Know
Dwelling Fire Rate Changes:
- CFP rate application approved by CDI
- Overall average premium change: +29.1% (Individual risk factors will determine premium, which may be higher or lower increases than the average premium, or in some cases, even a reduction in premium.)
- The effective date for the new rates is October 15, 2026.
- The first renewal offers containing the new rates will be sent on August 17, 2026.
- Premiums for individual coverages and total premium will be calculated to the penny. (Previously, premiums were rounded to the nearest dollar.)
- CFP is adopting the updated ISO Public Protection Class structure with its new and updated classes, based on the property’s distance from a fire station and water supply. This could factor into the insured’s premiums.
Dwelling Replacement Cost (DRC) for Manufactured & Mobile Homes:
DRC coverage will be available for Manufactured & Mobile Homes with policy effective dates on or after October 15, 2026.
- For renewals effective on or after October 15, 2026: Brokers can request the addition of DRC through the policy `system` up to 30 days before the effective date of the renewal.
- For new business effective on or after October 15, 2026: Brokers must select the new rate book when completing the application to add DRC coverage. (There will be a message in the policy `system` advising of the need to do this.)
- Midterm policies: A broker request to add a DRC endorsement to a policy is allowed only if the policy has an effective date on or after October 15, 2026. For example, a policy with an effective date of June 1, 2026, would need to wait until the June 1, 2027, renewal term to add DRC. Brokers are reminded that the new premium rates would apply in the case of a cancel/rewrite on or after October 15, 2026.
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