1. The California FAIR Plan provides:

Basic property (fire) insurance for risks unable to obtain coverage in the voluntary market

The California FAIR Plan is a residual market providing basic property and fire coverage to applicants who cannot obtain it normally.

2. Because the California FAIR Plan provides only basic coverage, an insured often pairs it with a:

Difference-in-conditions (DIC) policy

A difference-in-conditions policy wraps around a FAIR Plan policy to add coverages such as liability, theft, and water damage.

3. Coverage available through the California FAIR Plan is:

Subject to a maximum statutory coverage limit

The FAIR Plan provides basic property coverage subject to a maximum coverage limit set under its plan of operation.

4. The California FAIR Plan is:

An association funded by participating member insurers

The FAIR Plan is an association of admitted insurers that share in its costs and losses in proportion to their market share.