The California FAIR Plan is the state’s “insurer of last resort.” When traditional companies cancel or refuse wildfire-prone homes, owners turn to the FAIR Plan for bare-bones fire coverage. In 2024 and early 2025, huge wildfire losses drained the plan’s reserves, triggering a new round of surcharges.
Why Are Surcharges Appearing on June 1 Renewal Notices?
- $1 billion deficit. The FAIR Plan’s 2024 claims—driven by the Sierra Crest and Palisades fires—left a one-billion-dollar gap that must be repaid through policyholder assessments.
- Board vote in February 2025. Directors approved a 17 % statewide surcharge on all FAIR Plan policies effective with June 1 renewals.
- Re-insurance costs. Reinsurers raised catastrophe pricing about 25 % at January renewals; the FAIR Plan passes this expense directly to consumers.
Who Is Affected in the Fresno Foothills?
Homeowners in ZIP codes such as 93664 (Shaver Lake), 93651 (Prather), and 93619 (Clovis-east) sit inside CAL FIRE’s newly updated “Very High Fire Hazard Severity Zone” map.
Roughly 18,000 properties in eastern Fresno County rely on FAIR Plan fire coverage or wrap-around policies after being dropped by standard carriers.
Where Do Total Costs Stand in 2025?
Many foothill households now face:
- FAIR Plan fire premium: $3,200 – $4,800
- Difference-in-Conditions (DIC) wrap-around: $1,000 – $1,600
- +17 % surcharge on the FAIR Plan portion (≈ $540 – $820 extra)
Add in State Farm’s approved 17 % homeowners rate hike (effective June 15) and total housing-insurance spend can top \$6,000 a year for some families.
When Could Premium Relief Arrive?
Regulators say relief depends on fewer large fires and additional capital.
Analysts at Moody’s do not expect meaningful price softening until at least mid-2027.
How Can Fresno Foothill Residents Fight Back?
- Create Defensible Space. Clearing 100 ft of brush can unlock 5 – 8 % mitigation credits with some wrap-around carriers.
- Harden the Home. Class A roofing, ember-resistant vents, and sprinkler retrofits often cut FAIR Plan premiums 10 – 15 %.
- Bundle. Placing auto, liability, or umbrella with the same broker can offset some of the fire-policy surcharge.
- Shop Surplus-Line Options. After recent capital infusions, a handful of London-backed surplus carriers re-entered selected foothill ZIPs—quotes may beat FAIR Plan + DIC by 5 – 10 %.
- Check for Grants. CAL FIRE’s Wildfire Mitigation Assistance Program offers up to \$10,000 for retrofits in designated zones.
Bottom Line
The 17 % FAIR Plan surcharge is unavoidable this year, but homeowners still have levers to pull.
Act on mitigation, compare wrap-around quotes, and start renewal shopping at least 90 days out.
Smart steps today can trim hundreds off tomorrow’s bill.
Outbound Links & Sources
- California FAIR Plan—February 2025 Surcharge Announcement
- CAL FIRE—2025 Fire-Hazard Severity Zone Map (Eastern Fresno)
- CA Department of Insurance—State Farm 17 % Homeowners Rate Approval
- Insurance Journal—Re-insurance Costs Push FAIR Plan Assessment (Mar 2025)
- Moody’s—Wildfire Risk & California Home Insurance Outlook (Apr 2025)
- CAL FIRE—Wildfire Mitigation Assistance Program