Everything El Dorado County homeowners need to know about the coming rate increases — with the tools to understand your situation, reduce your costs, and protect your home.
If you've opened a renewal notice lately and had to sit down for a minute — you're not alone. And if you're on the California FAIR Plan, we need to have a conversation, because something significant is coming this October.
On May 20th, 2026, California officially approved a 29.1% average rate increase for the FAIR Plan, effective October 15, 2026. That's the state's insurance program that hundreds of thousands of Californians have been pushed onto after major carriers stopped writing policies here. If you're one of them, your bill is going up. For some people, it's going up a lot.
We're not sharing this to scare you. We're sharing it because the best thing you can do right now is understand what's happening — and then take action. That's what this guide is for. No jargon, no spin, just the honest picture and some real steps forward.
The California Department of Insurance approved a 29.1% average rate increase for FAIR Plan policyholders — reduced from the 35.8% originally requested. It takes effect October 15, 2026. Because the increase is tied to wildfire risk modeling for the first time ever, your actual change depends on your property's location. Some lower-risk homeowners may see little change; others in high-risk zones could face 40%, 60%, or more.
The California FAIR Plan was created as a backstop — a place to turn when no regular insurance company would cover you. It covers fire only. No theft, no liability, no coverage if you're displaced. It's bare-bones, and it costs more than a regular policy did five years ago. After major insurers exited California, millions of homeowners had nowhere else to go. In El Dorado County alone, roughly 28% of all homes — over 28,000 policies — are now on the FAIR Plan.
The January 2025 Los Angeles wildfires (Palisades and Eaton fires) destroyed over 16,000 structures and left the FAIR Plan with an estimated $4 billion in losses. The FAIR Plan's total insured exposure has grown to $750 billion — a 242% increase from 2022. More homes, more risk, more losses. Something had to give.
"It just keeps climbing, and I mean, it's becoming a crisis." — George Osborne, 28-year Camino resident and former Cal Fire unit chief, paying over $5,000/year for fire coverage alone on the FAIR Plan
This is not a Los Angeles problem or a Bay Area problem. It's happening in Cameron Park, El Dorado Hills, Shingle Springs, Placerville, Pollock Pines — right here, in the communities we all call home.
El Dorado County sits squarely in the Wildland-Urban Interface. It's what makes this place beautiful and what has also put it at the center of the insurance crisis. Private insurers pulled out years ago, and families who'd been with the same company for decades found themselves scrambling for alternatives.
"Which is just the fire insurance, and then on top of that you have to have regular insurance. So we're debating if we even need insurance." — Sandra Euyen, El Dorado Hills resident, recently dropped from her homeowners policy
Answer these 5 questions to get a sense of where you might land with the new risk-based pricing — and what that could mean for your October renewal.
Use the calculator below to estimate your new annual cost and monthly payment. Your actual increase depends on your property's specific risk score — but this gives you a solid planning number before October arrives.
This is the most important section in this guide. Yes, this is a difficult situation — but it is not hopeless. Here are seven real things you can do right now.
Check each item that applies to your property to see potential savings.
Discount estimates are based on published FAIR Plan and carrier guidelines as of 2026. Actual discounts vary by carrier and policy. Work with a CA-licensed insurance agent to confirm which discounts you qualify for. Need a referral? We're happy to connect you.
| What you do | Potential discount | Notes |
|---|---|---|
| Firewise USA community certification | ~5–7% | Your neighborhood applies as a community |
| Fire Risk Reduction Community (El Dorado) | Additional ~2–3% | Already applies — ask your broker |
| Home hardening improvements | Up to 13.8% | Each qualifying improvement adds to the discount |
| Defensible space (100-foot clearance) | Included above | Required by law; confirms safety to insurers |
| IBHS Wildfire Prepared Home certification | Up to 50% (some carriers) | Honored significantly by private market carriers |
Use this checklist to track your fire-hardening progress. Every item you complete reduces your fire risk and may reduce your insurance premium. Check items off as you complete them — your progress score updates in real time.
Insurance isn't a footnote in real estate transactions anymore. In El Dorado County right now, it's often the single most important factor in whether a deal closes.
If a buyer can't get affordable insurance, their lender won't fund the loan. No insurance means no mortgage, which means no sale. We've seen deals fall apart not because of anything wrong with the home — but because the buyer couldn't get coverage at a price they could afford.
Get ahead of the insurance question before you list. Gather documentation showing your home is safe and insurable — roof receipts (2018 or newer is ideal), photos of vegetation clearance, records of hardening improvements, defensible space compliance confirmation. Buyers who see that documentation upfront feel more confident, and confident buyers are less likely to walk. Pricing also matters: if insurance on your home costs $8,000–$12,000 a year, that's real money that affects what buyers can afford monthly.
Before you fall in love with a property, get an insurance quote. Do it before you write an offer if you can. Ask for quotes from brokers who know the high-risk market — we can connect you with people who do. Find out if the only available coverage is FAIR Plan, add in the cost of a DIC policy, and run those numbers through the calculator above. Make sure the deal still works before you're emotionally invested.
Not sure which type of coverage makes sense for your situation? Here's a quick comparison of the main options available to El Dorado County homeowners right now.
| Coverage Feature | FAIR Plan (+ DIC) | Private Market | E&S Carrier |
|---|---|---|---|
| Fire coverage | ✔ Yes (FAIR Plan) | ✔ Yes | ✔ Yes |
| Liability coverage | ✔ Via DIC only | ✔ Included | ✔ Included |
| Theft coverage | ✔ Via DIC only | ✔ Included | ✔ Included |
| Water damage | ✔ Via DIC only | ✔ Included | ✔ Included |
| Additional living expenses | ✔ Via DIC only | ✔ Included | ✔ Often included |
| Available to high-risk properties | ✔ Always available | ✗ Often not available | ✔ Yes (specialty) |
| Typical relative cost | High (after Oct 15 increase) | Varies — competitive for hardened homes | Varies widely |
| Discounts for home hardening | ✔ Up to 13.8% | ✔ Often significant | ✔ IBHS cert honored |
| Lender acceptance | ✔ FAIR Plan + DIC accepted | ✔ Yes | ⚠ Verify with your lender |
| Regulated by CA DOI | ✔ Yes | ✔ Yes | ✗ Not standard market |
Insurance language can feel like a foreign language. Here are the key terms you'll encounter — explained the way a neighbor would explain them.
No pressure, no pitch — just a real conversation about your home, your situation, and what comes next. Whether you're worried about October's premium, thinking about buying or selling, or simply want a referral to a great insurance agent — we're here.
Or visit andiandtrent.com