The California FAIR Plan is a type of wildfire insurance for people who are not able to find other insurance due to their home's fire risk.Typically, the FAIR Plan is much more expensive than regular wildfire insurance and should be used only as a last resort."The FAIR Plan ultimately is intended to be a short-term solution for the marketplace. It is more expensive because the majority of the risks, are more risky," said Phil Irwin, public relations representative for the California FAIR Plan.How does the California FAIR Plan work?According to its website, the FAIR Plan is a "syndicated fire insurance pool comprised of all insurers licensed to conduct property/casualty business in California."All insurers that write basic property insurance are members of the FAIR Plan. Each company involved participates in the profits, losses and expenses of the plan."The FAIR Plan provides insurance in areas where people aren't able to get, through traditional avenues, traditional insurance carriers in higher risk areas. So people that are in that situation. It's really a last resort," Irwin said.Is the California FAIR Plan new?No, the FAIR Plan was established in California in August 1968 as an insurance placement facility.Can I use the California FAIR Plan in place of my regular insurance? The FAIR Plan is described only as a "temporary safety net," meant to support homeowners only until a traditional insurance carrier becomes available. Irwin said he encourages people to get recommendations from several brokers who may be able to find better plans."Traditionally, I think people would just stick with one insurance agent, stick with them forever. And again, it's not about being disloyal. It's about really knowing that maybe what's available for one particular broker doesn't mean that another one down the street might have some additional options available to them," he said.He added that the FAIR Plan is meant to be used only until residents are able to get regular insurance."Really, the goal is to see the market restored when the carriers have come back, and they're willing to take these risks now or hopefully in the near future, and the FAIR Plan would no longer be needed," Irwin said.What is covered under the California Fair Plan?The FAIR Plan is a very basic policy, covering only fire and lightning, internal explosion and smoke-related damages.It won’t cover other damages like vandalism that a regular policy would cover, but the coverage can be bought for an additional fee.How do I apply for a California FAIR Plan policy?First, you're encouraged to find an insurance broker who may be able to find you insurance through another company.If they cannot find another insurance, then they can help you apply for a policy through the FAIR Plan.Then your broker will help determine your eligibility."The FAIR Plan, compared to traditional insurance carriers, has very limited requirements," Irwin said.He said the biggest issue that would disqualify someone from the plan would be major unrepaired damages. "If it's something that you've got a planned, remodel or a renovation or something like that, you can specify that. And that would be acceptable if the timeline was met," he said. If you are eligible, your broker will help you decide if you only need basic fire coverage or if you need to add optional supplemental coverage. Does it cost money to have a broker?According to the California FAIR Plan, there is no additional cost for having an insurance broker.How much does the California FAIR Plan cost?Irwin said that customers using the FAIR Plan with a difference in condition policy, on average, pay premiums at around $3,200. "It's one of those situations that it is, any solution you're looking at is going to be expensive," he said.Is the California FAIR Plan only offered if I own a house?No, the FAIR Plan is available to renters as well, including seasonal renters and condominium unit owners. "Other examples, from homes, you've got manufactured homes, you've got condos, businesses looking to get insured. So those are other areas where people are unable to get insurance, the FAIR Plan can help," Irwin said.| MORE | 2022 California Wildfire Preparedness Guide: What to know and how to stay safeKCRA 3’s latest ‘Wildfire Ready’ special airs Tuesday at 7:30 p.m., where you’ll get tips from experts on how to make sure your home and belongings are covered, and hear what some wildfire survivors say they would have done differently.