MENDOCINO CO., 10/23/26 — If your home is insured through the California FAIR Plan, your rate is changing. For many policyholders, that means a bigger bill.
The FAIR Plan is the state’s insurer of last resort. People turn to it when regular insurance companies won’t cover their homes. Its rates went up an average of 29.1% for policies that start or renew on or after Oct. 15.
“Existing policies transition to the new rates at their next renewal on or after that date,” the FAIR Plan said in an emailed statement Tuesday.
So if your policy renews in March, the new rate starts in March.
The state Department of Insurance approved the increase on April 6, according to the department’s list of approved rate filings. The FAIR Plan had asked for 35.6%.
Not everyone will pay 29.1% more. That number is an average, and the FAIR Plan said wildfire risk is the biggest part of the change.
“The largest component of the approved rate change is tied to wildfire risk, meaning customers with properties facing greater wildfire exposure may experience larger increases, while others may see smaller increases or, in some cases, premium decreases,” the plan said.
Asked how the change breaks down in Mendocino County, the FAIR Plan didn’t say. Asked for the largest and smallest changes statewide, it didn’t give a range. It pointed instead to the data it posts online.
Why the plan says rates are rising
“The FAIR Plan is required by state law to maintain rates that are sufficient to cover expected claims and operating expenses,” the plan said in its statement.
“The FAIR Plan has experienced unprecedented growth in recent years,” it said.
The plan says that growth comes from regular insurers pulling back. “As more insurers have declined to provide new coverage or renew existing policies, more Californians have turned to the California FAIR Plan for the basic property coverage they need,” the plan says on its website.
The governor and Legislature created the FAIR Plan, but it isn’t a state agency. It’s a private association run by insurance companies, not taxpayers, according to the Department of Insurance. Every company licensed to sell property insurance in California must belong to the FAIR Plan. Each one shares in the plan’s profits, losses and expenses in proportion to its share of the state market, so the more business a company writes in California, the bigger its share, according to the FAIR Plan’s website.
What Mendocino County pays now
Mendocino County had 4,873 FAIR Plan home policies as of June 30, according to the FAIR Plan’s figures by ZIP code.
Those homeowners paid about $3,363 a year on average. The statewide average was about $2,725. That means county policyholders were already paying about $640 more than the state average before the new rates.
Counting businesses, the FAIR Plan had 4,707 policies in the county in September 2025. Four years earlier, it had 1,498. That’s more than three times as many.
Ukiah and Willits have the most home policies. The Ukiah ZIP code had 1,262, with an average premium of about $2,793. The Willits ZIP code had 1,048, averaging about $3,098.
Fort Bragg had 502 policies and the lowest average in the county, about $1,653.
Averages ran higher in several smaller communities. The average was about $4,006 in Redwood Valley, $5,513 in Boonville, $6,322 in Philo and $7,369 in Elk. The highest was Branscomb, where nine policies averaged about $8,086.
These are averages for each ZIP code. Your own bill will differ.
The FAIR Plan posts its policy and premium figures by ZIP code at cfpnet.com.
A distressed county
Every Mendocino County ZIP code with FAIR Plan policies is marked as a distressed area in the FAIR Plan’s report.
The Department of Insurance uses that label for places with three things in common. Wildfire is a threat. Insurance companies have cut back on writing policies. And FAIR Plan policies have piled up.
What the FAIR Plan covers
A FAIR Plan policy is basic. The plan sells fire coverage when it isn’t available from a regular insurer, according to its website.
For now, that policy doesn’t cover water damage, liability, theft and other common losses. Homeowners need a second policy for those, called a “Difference in Conditions” policy, according to the Department of Insurance. A fuller FAIR Plan policy that would include those coverages “is currently in progress,” the department says.
Ways to lower the bill
The FAIR Plan offers discounts for homes that are better protected from wildfire. The state calls them “Safer from Wildfires” discounts. They take money off the wildfire part of the premium for homeowners who make their property harder for fire to damage.
“Eligible dwelling policyholders who qualify for all 12 available discounts may receive up to 16.4% off the wildfire portion of their premium,” the FAIR Plan said.
That’s not 16.4% off the whole bill. “The amount of savings depends on the discounts for which the property qualifies and the wildfire portion of the policy’s premium,” the plan said.
Homeowners can also pay monthly without a fee, according to the Department of Insurance.
“First, we recommend you shop the market,” the department’s FAIR Plan page says. If a regular insurer won’t write a policy, people can apply through a licensed insurance broker or call the FAIR Plan directly at 800-339-4099.
Who weighed in
The FAIR Plan’s request drew criticism when it was filed last fall. “A 35% rate hike would be devastating to all the homeowners already paying too much for too little at the FAIR Plan,” Carmen Balber, executive director of the advocacy group Consumer Watchdog, said in an Oct. 6, 2025, statement.