California FAIR Plan: A $6 Million Wildfire Loss Case Study

What is the California FAIR Plan

The California FAIR Plan offers fire-only coverage for homes too risky for the standard insurance market. It is not full homeowners insurance and does not include coverage for personal property, additional living expenses (ALE), code upgrades, or extended replacement costs. Liability, theft, water damage, and debris removal are also excluded unless specifically endorsed.

To bridge these gaps, homeowners are expected to purchase a separate Difference in Conditions (DIC) policy—but many do not, or cannot find one.

The $6 Million Wildfire Loss: What You’re Actually Getting

Imagine your custom $6 million home in the Palisades burns down in a 2025 wildfire. You had only FAIR Plan coverage with a $3 million dwelling limit and no supplemental DIC coverage.

Key facts:

• It offers fire coverage when standard carriers decline
• It does not include liability or theft by default
• It is often more expensive and less flexible
• It serves as a temporary solution, not a long-term plan

Homeowners are encouraged to improve their mitigation profile to eventually re-enter the voluntary market.

Why These Gaps Matter for High-Value Homes

The FAIR Plan may satisfy lender requirements, but it’s not designed to replace what you’ve actually lost. Homeowners with high-value or custom properties face the most exposure.

Without the right coverage:

• You may be millions underinsured
• You’ll live in temporary housing for years
• You’ll fight over code compliance, debris removal, and coverage limits
• You’ll absorb the costs of landscape, pools, generators, and contents
• You may never fully recover your property or peace of mind

How Ember Pro Prevents Loss

Ember Pro systems are designed to stop wildfire damage before it starts. Our defense approach includes:

• Roofline and perimeter wildfire spray systems
• Only non-toxic fire inhibiting agents (not water)
• No roof penetrations or pressure-dependent systems
• Fully off-grid design — independent from municipal water or power
• Remote activation capability
• Home hardening services and defensible space compliance

This isn’t a reactionary firefighting effort. It’s engineered ignition prevention—especially from embers, which are responsible for up to 90% of wildfire home losses.

Prevention vs. Payout: The Real Math

Without Ember Pro

• $5M+ uncovered loss
• Extended displacement
• Claim disputes and legal battles
• Total rebuild responsibility
• Emotional and financial trauma

With Ember Pro

• Home defended in real time
• Minimal or no displacement
• No claim process
• No out-of-pocket rebuild
• Peace of mind

How Ember Pro Helps You Leave the FAIR Plan

Ember Pro is more than a defense system. It’s a strategic tool to help homeowners qualify for better coverage.

Our team:

• Provides documentation for Safer from Wildfires and AB 3074 compliance
• Supports your broker with FAIR Plan discount applications
• Partners with managing general agents (MGAs) to access broader markets
• Helps transition homeowners back into the standard or surplus lines market
• Designs mitigation that satisfies insurers and helps unlock DIC or full HO policies

When your home is protected and documented, your insurance options improve.

Key Takeaways for Homeowners

• The FAIR Plan covers less than most homeowners realize
• High-value properties are often underinsured by millions
• Ember Pro prevents ignition and removes reliance on public response
• Strategic mitigation can reduce your risk and your insurance premium
• The best claim experience is never needing to file one

Frequently Asked Questions

How does Ember Pro compare to private firefighting services?
Private crews are reactive and may not arrive in time. Ember Pro is pre-installed protection that activates whether you are home or not.

Will my Ember Pro system help me qualify for FAIR Plan discounts?
Yes. Systems are built to support defensible space and structure discounts. We provide full documentation for brokers.

Can Ember Pro protect exterior structures like pools, solar batteries, or outdoor kitchens?
Yes. Spray lines can be configured to include outdoor assets and hardscape elements.

How do I know if my FAIR Plan coverage is enough?
Request your full policy from your broker and compare it to your true rebuild cost. Most homeowners we assess are underinsured by 30–50%.

Can Ember Pro help me leave the FAIR Plan?
Yes. We support broker submissions with verified documentation of mitigation, helping many clients move into better coverage with preferred carriers or MGAs.

Will Ember Pro work during a power or water outage?
Yes. Our systems are off-grid by design and do not rely on municipal infrastructure.

Does Ember Pro meet California defensible space and hardening laws?
Yes. We design systems that meet or exceed requirements under AB 3074, Zone Zero, and Safer from Wildfires guidance.

Is Ember Pro the same as fireproofing?
No. Fireproofing refers to passive materials. Ember Pro is an active, engineered wildfire defense system.

Related Articles and Next Steps

• California FAIR Plan Home Hardening Discounts for Wildfire Preparedness
• What You Need to Know About AB 3074 and Zone Zero Compliance
• Wildfire ALE Coverage: What Survivors Need to Know
• Fire Protection Systems for Wildfire Home Defense
• Why Wildfire Retardant Systems Work Better Than Water

References

• California FAIR Plan Association
• California Department of Insurance – Safer from Wildfires
• Ember Pro internal case studies and risk reports
• National Fire Protection Association (NFPA) Wildfire Risk Reduction

Wind season is coming. Is your property ready?

Looking to lower your wildfire insurance premium while hardening your home?
Schedule a risk consultation with Ember Pro. Our team will help you complete the right upgrades, document them for submission, and position your home for long-term protection and savings.