AB 1680: What the "Make It FAIR Act" Means for California Homeowners in 2026

If you own a home in California — especially in a high-risk wildfire area — the name "FAIR Plan" has probably come up in at least one conversation over the last few years. For hundreds of thousands of homeowners, it is the only insurer still willing to write coverage. But the FAIR Plan has long been criticized for stripped-down policies, slow claim handling, and a governance structure that most policyholders have never even seen.

That may be about to change. In early 2026, Insurance Commissioner Ricardo Lara and Assemblymember Lisa Calderon introduced AB 1680, the "Make It FAIR Act" — the most significant overhaul of California's insurer of last resort in decades. If enacted, it would reshape what FAIR Plan policies look like, how the Plan is governed, and how quickly homeowners can transition back into the regular market.

Here is what the bill actually does, why it matters, and what California homeowners should be watching over the coming months.

Key Takeaways

• AB 1680 would expand FAIR Plan coverage to include water damage, liability, and other standard homeowners protections that currently require a separate "wraparound" DIC policy.
• Transparency requirements would open Governing Committee meetings, subcommittee documents, and an Annual Report to public view for the first time.
• The Plan would be required to adopt a three- to five-year strategic plan aligned with Commissioner Lara's Sustainable Insurance Strategy, with the explicit goal of moving homeowners off the FAIR Plan.
• FAIR Plan enrollment surged 43% between September 2024 and December 2025, driven in part by the $40 billion Los Angeles wildfire losses — but growth has slowed sharply in early 2026.
• The bill is part of a broader package of reforms that also includes new catastrophe modeling, reinsurance cost recovery, and expanded coverage mandates for admitted carriers.

A Quick Refresher: What the FAIR Plan Is (and Isn't)

The California FAIR Plan is not a government insurance program. It is a privately run syndicated pool — every admitted insurer writing property coverage in California is required to participate and share in its profits and losses. It exists as a statutory backstop for homeowners who cannot find coverage on the open market, typically because of wildfire exposure.

Historically, a FAIR Plan policy covers only the "basic peril" of fire, along with a few other limited exposures. That means most FAIR Plan homeowners also have to purchase a separate Difference in Conditions (DIC) policy — often from a surplus lines carrier — to fill in coverage gaps for theft, water damage, personal liability, and loss of use. The result: two policies, two premiums, two sets of paperwork, and often two different claims experiences when something goes wrong.

What AB 1680 Would Change

1. A More Complete FAIR Plan Policy

The centerpiece of the Make It FAIR Act is a fundamental rethinking of what a FAIR Plan policy covers. Rather than forcing homeowners to cobble together coverage from multiple sources, the bill directs the FAIR Plan to offer more comprehensive residential options — closer to what a traditional HO-3 policy looks like. That would mean built-in coverage for things like water damage from plumbing failures, personal liability, and theft.

For homeowners currently juggling a FAIR Plan dwelling policy plus a separate DIC wraparound, this could simplify both pricing and claims. It may also reduce the risk of coverage gaps that only become visible after a loss.

2. Strategic Planning Aligned With Moving Off the FAIR Plan

AB 1680 requires the FAIR Plan to publish a rolling three- to five-year strategic plan, similar to what any private insurer would maintain. Crucially, that plan must explicitly support Commissioner Lara's Sustainable Insurance Strategy — the regulatory framework that is trying to coax admitted carriers back into high-risk markets by allowing catastrophe modeling in rate filings and letting insurers recover a portion of their reinsurance costs.

The underlying goal is to make the FAIR Plan smaller over time, not larger. With enrollment still well above historical averages, any legislation that accelerates the movement of homeowners back into the admitted market is welcome news for policyholders stuck paying two premiums for partial protection.

3. Real Transparency for the First Time

Unlike most insurers, the FAIR Plan's Governing Committee has traditionally operated out of public view. AB 1680 would require public access to Governing Committee and subcommittee meetings and documents, plus an Annual Report covering governance changes, premium rate data, catastrophe response plans, and other performance metrics.

For homeowners trying to understand why their FAIR Plan renewal jumped 30% this year, transparency matters. It also gives consumer advocates and the press a clearer window into decisions that affect millions of Californians.

The Bigger Market Context

AB 1680 does not exist in a vacuum. The California Department of Insurance recently completed its final evaluation of the Sustainable Insurance Strategy, a multi-year effort to stabilize the admitted market after a string of major wildfires. Between September 2024 and December 2025, FAIR Plan enrollment grew by roughly 43% as carriers paused or reduced new business. The good news: enrollment growth slowed to under 4% in the final quarter of 2025, suggesting the market may be beginning to stabilize.

That stabilization is fragile. A single severe wildfire season could reverse it. But the combination of Sustainable Insurance Strategy reforms, legislative proposals like AB 1680, and expanded coverage options from admitted carriers creates a realistic path back to a healthier market — if the regulatory and legislative pieces all hold together.

What Homeowners Should Do Right Now

AB 1680 is still pending legislation, so nothing about your current policy changes today. But there are practical steps California homeowners can take while the bill works its way through the legislature:

• Review your current policy structure. If you have a FAIR Plan dwelling policy plus a DIC policy, make sure both are current, the coverage limits align, and there are no gaps between the two.
• Check whether you still need the FAIR Plan. Market conditions have shifted. Some carriers that paused new business in 2023–2024 have quietly resumed writing in certain ZIP codes. An independent broker can re-shop your risk and see whether you qualify for admitted coverage.
• Harden your home. Defensible space, ember-resistant vents, and Class A roofing aren't just safety measures — they are increasingly prerequisites for admitted-market eligibility.
• Document everything. If you do need to stay on the FAIR Plan, keep detailed records of your home's structure, contents, and any mitigation upgrades. That documentation speeds up any future claim and supports your application when you move back to the admitted market.

Frequently Asked Questions

When would AB 1680 take effect?

The bill was introduced in early 2026 and is still moving through the California Legislature. Even if passed, most provisions would require an implementation period before they reach policyholders. Watch for updates from the California Department of Insurance later this year.

Will AB 1680 lower my FAIR Plan premium?

Probably not directly. Expanding coverage typically costs more, not less. The potential savings come from eliminating the need for a separate DIC policy, and from accelerated movement back to the admitted market where premiums are generally lower than a FAIR Plan plus DIC combination.

Is the FAIR Plan going away?

No. It remains California's statutory insurer of last resort. AB 1680 is designed to improve the FAIR Plan and make it smaller over time, not eliminate it.

Do I still need a DIC policy if AB 1680 passes?

If the FAIR Plan begins offering fuller coverage directly, many homeowners would no longer need a separate DIC policy. In the interim, most FAIR Plan policyholders in high-risk areas should continue to carry one.

How do I know if I qualify for admitted coverage again?

The easiest path is to work with an independent broker who can shop multiple carriers at once. Eligibility depends on location, home construction, mitigation measures, and claims history — all of which are easier to evaluate with a broker who knows the current market.

What is the Sustainable Insurance Strategy?

It is a package of regulatory reforms from the California Department of Insurance designed to bring admitted carriers back into high-risk markets. It allows insurers to use catastrophe modeling in rate filings, recover a portion of reinsurance costs, and expand coverage to distressed areas in exchange for writing more policies there.

Disclaimer: This article is for informational purposes only and should not be construed as legal or insurance advice. Coverage terms, carrier availability, and regulatory requirements change frequently. Consult a licensed insurance professional for guidance specific to your situation.