Updated 2026-10-03 by Insurance City Agency, LLC, CA License #6003045. Reviewed by Santo Militello, California-licensed Property & Casualty agent (CA License #1737723).
Sometimes. The California FAIR Plan dwelling page lists 1-to-4-unit rentals leased for at least one year among the occupancies it will insure, and it calls that policy a temporary solution when a traditional company will not write the property (California FAIR Plan, Dwelling, checked 10/3/2026). A move to one admitted DP-3 happens only if an admitted carrier offers that form for that rental. If none does, the FAIR Plan stays in force. It is a lawful last-resort market. Check whether you qualify for one admitted policy. Call (209) 670-1556. Stockton: 956 W Robinhood Dr. San Jose: 25 N 14th St Ste 125.
As of June 2026 the FAIR Plan reported 696,562 policies in force, an 8 percent increase from September 2025 (California FAIR Plan, Key Statistics & Data, checked 10/3/2026). That count is statewide. It is not a qualification rate for any rental. The 2026 dwelling rate change is a separate question from whether an admitted policy will write the house. An owner-occupied home uses California FAIR Plan alternatives. Once a DP-3 is already in force, the coverage map is on landlord insurance in California. The wider list of rental types is the landlords and rental property hub.
Can a rental on the California FAIR Plan move to one admitted DP-3?
Sometimes. The California FAIR Plan dwelling page lists 1-to-4-unit rentals leased for at least one year among the occupancies it will insure, and it calls that policy a temporary solution when a traditional company will not write the property (California FAIR Plan, Dwelling, checked 10/3/2026). A move to one admitted DP-3 happens only if an admitted carrier offers that form for that rental. If none does, the FAIR Plan stays in force. Check whether you qualify for one admitted policy.
Companies we are appointed with for a California home or rental include Stillwater, an insurance company, and Bamboo, a managing general agency. This review is for an admitted policy. Appointment is not an offer of coverage. Each rental is underwritten. The FAIR Plan dwelling page also says a broker may be able to offer coverage that is more complete than the FAIR Plan. That sentence is an invitation to shop. It is not an approval.
What does an admitted DP-3 cover that a FAIR Plan dwelling policy plus a DIC does not?
They are not the same contract. The Department of Insurance says the FAIR Plan covers fire or lightning, internal explosion, and smoke, and that theft and liability are not part of that policy, so a difference-in-conditions policy is a second contract for those gaps (California Department of Insurance, Home/Residential Insurance, checked 10/3/2026). An admitted DP-3 is one dwelling policy when a carrier writes it. ISO’s special dwelling form, DP 00 03, includes fair rental value. The FAIR Plan sample is its own named-peril form, CFP 00 01, not DP 00 03. The declarations control.
The FAIR Plan’s own dwelling page calls its policy a named-peril policy and points readers toward a difference-in-conditions policy, a flood policy, or an earthquake policy for additional perils. Extended coverage and vandalism or malicious mischief may be added to the FAIR Plan for an additional premium. The Department of Insurance says so on its Home/Residential Insurance page. Adding those endorsements still leaves theft and liability off the FAIR Plan contract.
| Item | FAIR Plan dwelling policy | DIC | One admitted DP-3 |
|---|---|---|---|
| Fire or lightning, internal explosion, smoke | Named perils on the FAIR Plan policy (CDI) | A second contract for gaps. Fire stays on the FAIR Plan when the two are paired. | One contract if a carrier writes it. The filed form controls. |
| Theft and liability | Not part of the FAIR Plan policy (CDI) | CDI describes a DIC as the policy that fills those gaps | Only if the declarations schedule them |
| Fair rental value | On the sample form, with the limits in the next section | Read the DIC declarations. Do not assume the limit. | Coverage D on ISO DP 00 03. The California declarations set the limit. |
| How many contracts | The FAIR Plan policy | A second policy | One policy when the carrier writes one |
ISO’s dwelling program, in the North Carolina Department of Insurance copy of the multistate rules notice, names DP 00 01 as the basic form, DP 00 02 as the broad form, and DP 00 03 as the special form. The basic and broad forms list named perils; the special form covers the dwelling against direct physical loss unless a peril is excluded. DP 00 03 includes Coverage D, Fair Rental Value (checked 10/3/2026). Landlords often call the FAIR Plan stack a DP-1 plus a DIC. The FAIR Plan does not title its sample contract DP-1. The sample is CFP 00 01 (05/2026). An admitted DP-3 is the special form that carrier filed. Read that form.
Does the FAIR Plan pay loss of rents on a rental?
It pays fair rental value only inside the limits on the FAIR Plan sample dwelling policy, CFP 00 01 (05/2026). You may use up to 10 percent of the Coverage A dwelling limit, and that payment reduces Coverage A for the same loss. If fair rental value is checked on the declarations, the policy also pays up to the separate limit printed there, and that amount is in addition to the 10 percent. The sample form pays no more than one-twelfth of that coverage per month, caps a civil-authority shutdown at two weeks, and does not pay for a cancelled lease (California FAIR Plan sample dwelling policy, checked 10/3/2026).
An Insurance Journal article dated October 21, 2019, quoting ISO form DP 00 03, says the insured may use up to 20 percent of the Coverage A limit for loss of both fair rental value and additional living expense, and that this coverage is additional insurance. That sentence describes the ISO form in the article. It is not a California premium and it is not your declarations. On any DP-3 we review, the months and the limit are the ones printed on the declarations. The tenant’s own belongings are not this coverage. Those sit on a renters policy the tenant buys.
Where does landlord liability sit if the rental is on the FAIR Plan?
Not on the FAIR Plan contract. The Department of Insurance says the FAIR Plan does not cover liability, and that a difference-in-conditions policy is a separate contract for perils the FAIR Plan leaves out, including liability (California Department of Insurance, Home/Residential Insurance, checked 10/3/2026). If there is no DIC and no other liability policy, a guest injury at the rental is outside the FAIR Plan dwelling contract.
On an admitted dwelling placement, premises liability appears only if the declarations schedule it. Some programs add it by endorsement. This page does not state a dollar limit. The limit is the one on the policy that is offered, after underwriting, not a figure we can print for every rental. Read the declarations before you drop the DIC.
What do underwriters check before they offer an admitted DP-3?
They check this rental, not the county it sits in. The FAIR Plan dwelling page separates owner-occupied homes, seasonal rentals, and 1-to-4-unit rentals leased for at least one year (California FAIR Plan, Dwelling, checked 10/3/2026). Admitted underwriting asks that same occupancy question, plus the roof and the wildfire exposure. This page does not publish a roof-age cutoff, a score, or a brush distance. The declarations and any inspection decide the file.
Send the FAIR Plan declarations, the DIC declarations if you have them, the address, and whether a tenant is in place on a lease of at least one year. A vacant house or a short-term rental is a different file from that one-year lease. Call (209) 670-1556 or use the secure contact form. We can check whether you qualify for one admitted policy. The check is underwriting. It is not an approval.
How do I switch a rental without a coverage gap?
Do not cancel the FAIR Plan first. If an admitted policy is offered, bind it so the effective date overlaps the FAIR Plan, confirm the lender has the new evidence of insurance, and only then cancel the FAIR Plan and the DIC. That overlap is Insurance City’s placement practice. It is not a deadline in the Insurance Code.
Start the check before the renewal. Thirty to 45 days is Insurance City’s timing advice, not a statute. The 2026 rate page is where the dwelling-rate filing is explained. The document list for the switch lives on Via Rapida’s leave the FAIR Plan guide. This page is the rental check: whether one admitted DP-3 is available at all.
What do landlords ask about moving a rental from the FAIR Plan to a DP-3?
Can a rental on the California FAIR Plan move to one admitted DP-3?
Sometimes. The California FAIR Plan dwelling page lists 1-to-4-unit rentals leased for at least one year among the occupancies it will insure, and it calls that policy a temporary solution when a traditional company will not write the property (California FAIR Plan, Dwelling, checked 10/3/2026). A move to one admitted DP-3 happens only if an admitted carrier offers that form for that rental. If none does, the FAIR Plan stays in force. Check whether you qualify for one admitted policy.
What does an admitted DP-3 cover that a FAIR Plan dwelling policy plus a DIC does not?
They are not the same contract. The Department of Insurance says the FAIR Plan covers fire or lightning, internal explosion, and smoke, and that theft and liability are not part of that policy, so a difference-in-conditions policy is a second contract for those gaps (California Department of Insurance, Home/Residential Insurance, checked 10/3/2026). An admitted DP-3 is one dwelling policy when a carrier writes it. ISO’s special dwelling form, DP 00 03, includes fair rental value. The FAIR Plan sample is its own named-peril form, CFP 00 01, not DP 00 03. The declarations control.
Does the FAIR Plan pay loss of rents on a rental?
It pays fair rental value only inside the limits on the FAIR Plan sample dwelling policy, CFP 00 01 (05/2026). You may use up to 10 percent of the Coverage A dwelling limit, and that payment reduces Coverage A for the same loss. If fair rental value is checked on the declarations, the policy also pays up to the separate limit printed there, and that amount is in addition to the 10 percent. The sample form pays no more than one-twelfth of that coverage per month, caps a civil-authority shutdown at two weeks, and does not pay for a cancelled lease (California FAIR Plan sample dwelling policy, checked 10/3/2026).
Where does landlord liability sit if the rental is on the FAIR Plan?
Not on the FAIR Plan contract. The Department of Insurance says the FAIR Plan does not cover liability, and that a difference-in-conditions policy is a separate contract for perils the FAIR Plan leaves out, including liability (California Department of Insurance, Home/Residential Insurance, checked 10/3/2026). If there is no DIC and no other liability policy, a guest injury at the rental is outside the FAIR Plan dwelling contract.
What do underwriters check before they offer an admitted DP-3?
They check this rental, not the county it sits in. The FAIR Plan dwelling page separates owner-occupied homes, seasonal rentals, and 1-to-4-unit rentals leased for at least one year (California FAIR Plan, Dwelling, checked 10/3/2026). Admitted underwriting asks that same occupancy question, plus the roof and the wildfire exposure. This page does not publish a roof-age cutoff, a score, or a brush distance. The declarations and any inspection decide the file.
How do I switch a rental without a coverage gap?
Do not cancel the FAIR Plan first. If an admitted policy is offered, bind it so the effective date overlaps the FAIR Plan, confirm the lender has the new evidence of insurance, and only then cancel the FAIR Plan and the DIC. That overlap is Insurance City’s placement practice. It is not a deadline in the Insurance Code.
Which sources support the facts on this page?
- California FAIR Plan, Dwelling (named-peril policy; rental occupancy of 1-to-4 units leased at least one year; temporary solution; DIC, flood, or earthquake for additional perils; checked 10/3/2026)
- California FAIR Plan sample dwelling property policy, CFP 00 01 (05/2026) (Fair Rental Value: up to 10 percent of Coverage A, which reduces Coverage A; if checked on the declarations, a separate limit in addition to the 10 percent; one-twelfth per month; civil authority no more than two weeks; no lease-cancellation expense; checked 10/3/2026)
- California Department of Insurance, Home/Residential Insurance (FAIR Plan covers fire or lightning, internal explosion, and smoke; theft and liability are not included; a DIC is a separate policy for those gaps; checked 10/3/2026)
- California FAIR Plan, Key Statistics & Data (696,562 policies in force as of June 2026, 8 percent above September 2025; checked 10/3/2026)
- North Carolina Department of Insurance, ISO dwelling program manual notice (DP 00 01 basic, DP 00 02 broad, DP 00 03 special, with Coverage D Fair Rental Value on DP 00 03; this is not a California rate filing; checked 10/3/2026)
- Insurance Journal, October 21, 2019 (quotation of ISO DP 00 03: up to 20 percent of Coverage A for fair rental value and additional living expense, as additional insurance; not a California premium)
Related
- California FAIR Plan alternatives
- FAIR Plan vs admitted calculator (owner-occupied)
- FAIR Plan dwelling rate change, 2026
- Landlord insurance in California
- Landlords and rental property hub
- Condo insurance in California — an owner-occupied unit uses an HO-6, not a DP-3
- Stillwater home insurance in California (an insurance company we are appointed with)
- Bamboo home insurance in California (a managing general agency we are appointed with)
- Leer esta guía en español
- Insurance City Stockton
Reviewed by Santo Militello, California-licensed Property & Casualty agent (CA License #1737723) and owner of Via Rapida Services (Insurance City Agency, LLC) — CA Insurance License #6003045. Our licensed team brings more than 70 years of combined insurance experience. Phone (209) 670-1556. Insurance City, 956 W Robinhood Dr, Stockton, CA 95207. San Jose office: 25 N 14th St Ste 125, San Jose, CA 95112. Last reviewed 2026-10-03.
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