PUBLISHED: August 10, 2026
The California FAIR Plan has confirmed a significant rate increase and a new coverage option for manufactured and mobile homes, both taking effect October 15, 2026. If you’re one of the growing number of homeowners in Yuba, Sutter, Colusa, or Butte County relying on the FAIR Plan because a traditional carrier wouldn’t write your policy, here’s what’s changing and what it means for you.
Why the FAIR Plan Is Changing Its Rates
The California FAIR Plan is a not-for-profit insurer of last resort, created to provide basic fire coverage when homeowners can’t find it in the standard market. Under state law, it has to charge rates sufficient to cover claims and operating costs, and it’s required to file for a rate review with the California Department of Insurance at least every two years.
That filing process has played out over the past year. The FAIR Plan’s rate application was approved by the Department of Insurance earlier this year, and the new rates go into effect for all new and renewal policies starting October 15, 2026.
This matters locally because the FAIR Plan’s policy count has grown steadily across our region as traditional insurers have pulled back or nonrenewed policies in higher wildfire-risk areas, including many rural and semi-rural properties throughout the Sacramento Valley.
What’s Changing on October 15, 2026
The headline number is an overall average premium increase of 29.1 percent. That’s an average, not a flat increase across every policy. Your actual change will depend on your property’s individual risk factors, and some policyholders could see a smaller increase or even a decrease.
A few other details worth knowing:
- Renewal offers reflecting the new rates start going out August 17, 2026, so if you have a FAIR Plan policy, don’t be surprised to see your renewal notice soon.
- Premiums will now be calculated to the penny instead of rounded to the nearest dollar.
- The FAIR Plan is adopting an updated ISO Public Protection Class structure, which factors in a property’s distance from the nearest fire station and water supply. For rural properties in our four-county area, this could have a real effect on premium, since distance to a fire station or hydrant is exactly the kind of thing that varies a lot between an in-town property and one out on ag land.
New Coverage for Manufactured and Mobile Homes
Alongside the rate change, the FAIR Plan is adding Dwelling Replacement Cost (DRC) coverage for eligible manufactured and mobile homes. This is a meaningful addition for our area, where manufactured and mobile homes make up a real share of rural housing stock across Yuba, Sutter, Colusa, and Butte counties.
Here’s how the timing works, depending on your situation:
- Renewing policies effective on or after October 15, 2026: your broker can request DRC coverage be added through the policy system up to 30 days before your renewal date.
- New policies effective on or after October 15, 2026: your broker needs to select the new rate book when submitting the application in order to include DRC coverage.
- Midterm policies: DRC can only be added if your policy’s effective date is on or after October 15, 2026. So if your policy renews, say, every June 1st, you’d need to wait for your June 1, 2027 renewal to add this coverage. If your policy gets cancelled and rewritten on or after October 15, 2026, the new rates would apply at that point.
What This Means for You
If you currently hold a FAIR Plan policy on a home, manufactured home, or mobile home in our area, expect a higher premium at your next renewal, and take a close look at whether DRC coverage makes sense for your property once it becomes available. The FAIR Plan is designed as a temporary, last-resort option, not a permanent solution, so this is also a good moment to check whether your property might now qualify for coverage back in the standard voluntary market.
Rate changes and new endorsements like this are exactly the kind of thing that’s easy to miss in a renewal notice until it shows up as a bigger bill. If you have a FAIR Plan policy, or you’re not sure whether you do, we’re happy to take a look at your coverage and talk through your options before October.
Have questions about your FAIR Plan policy or want to see if you now qualify for standard market coverage? Contact Oakview Insurance Services today, and we’ll walk through your options together.