FAIR Plan Rates Just Rose 29%. What It Means If You’re Buying or Selling in the Foothills.

By Scott Ostrode, Team Ostrode Properties | Keller Williams, El Dorado Hills | Updated October 2026

You can still buy, sell and insure a home in El Dorado County. But insurance is now part of the deal, not paperwork at the end of it. Buyers should get a real quote before they remove contingencies, and sellers should know what their home costs to insure before they list. As of today, October 15, 2026, the California FAIR Plan's average rates rose 29.1%, so that number matters more than it did last month.

The answer changes if the home is in a high-fire-hazard area, sits on acreage, or can only be insured through the FAIR Plan. I'll walk through each. One note up front: I'm a real estate agent, not an insurance agent. I'll tell you how insurance affects buying and selling here; your broker prices the policy.

What changed on October 15

The California FAIR Plan is the state's insurer of last resort for owners who can't find coverage elsewhere. Starting today, its dwelling policies renew at rates averaging 29.1% higher. The plan had asked for 35.8%; the Department of Insurance approved less. Some homes will see more than the average and some less, depending on location and wildfire exposure.

The FAIR Plan now covers 696,562 California properties, as of June 2026. That's more than 2.5 times its size in September 2022.

Regular carriers are raising rates too. State Farm, California's largest home insurer, settled on a 17% homeowners increase in March 2026.

The partial good news: under the state's Sustainable Insurance Strategy, insurers that use new wildfire risk models must commit to writing more policies in fire-prone areas. That's slowly opening doors that were closed in 2023 and 2024. It hasn't reached every street yet.

Why insurance works differently in the foothills

El Dorado County holds 28,167 FAIR Plan policies, roughly double the count in 2021. Placerville's 95667 ZIP code ranks among the top ZIPs in the state for FAIR Plan exposure. Downtown Sacramento and most of Folsom look very different from Rescue acreage or a Placerville ridge.

What moves the quote here:

• Wildfire exposure of the exact parcel. Two homes a mile apart can get very different answers.
• Roof, vents and the first five feet. Insurers increasingly look at ember-resistant vents, Class A roofs and what's within five feet of the house. California's "Zone 0" rules for that space are written but not yet in force statewide; insurers aren't waiting.
• Access and acreage. Long driveways, steep lots and outbuildings complicate coverage.
• Community discounts. The unincorporated area of El Dorado County was added to the state's Fire Risk Reduction Community list in July 2024, and many neighborhoods are Firewise USA communities. Both can earn a discount under California's Safer from Wildfires rules.

Your coverage options and what each leaves out

Most lenders want proof of the fire coverage and the liability coverage before they fund. On the FAIR Plan, that usually means the DIC policy too. Ask your lender early what they'll accept.

If you're buying

Insurance belongs at the start of escrow, not the end.

1. Before you write the offer, ask the listing agent what the seller pays and with whom. Get a ballpark quote from a broker on the address.
2. During your investigation period (17 days by default on the standard California contract), get a written quote. There is no separate insurance contingency in the standard form, so this is your window.
3. Before you remove contingencies, make sure your lender will accept the policy and that the payment still works.

Run insurance into your payment math. An extra $300 a month in premium uses about the same budget as roughly $43,000 more on a 30-year loan at 7.49%. That can change which price range makes sense.

If you're selling

Buyers in the foothills now ask about insurance before they ask about the kitchen. Answer it first.

• Get quotes before you list. 
• Document your hardening work. Roof age and class, ember-resistant vents, defensible space inspections, Firewise membership. Put it in the disclosure package.
• Use credits where they help. If a buyer's first-year premium is high, a credit toward closing costs can keep a deal together more cheaply than a price cut.

How to lower your premium

• Ask your insurer which Safer from Wildfires discounts you qualify for. Every admitted insurer must offer them.
• Confirm whether your neighborhood is a Firewise USA community and whether your property sits in the county's Fire Risk Reduction Community area.
• Clear vegetation, mulch and stored items within five feet of the house and under decks. Replace older vents with ember-resistant ones.
• If you're on the FAIR Plan, re-shop every renewal. Carriers are slowly re-entering the market.
• Compare deductibles. A higher deductible can lower the premium if you have reserves.

What I'd do this week

1. Pull your renewal notice and compare it to last year's premium.
2. Call an independent broker who writes in El Dorado County and ask for quotes from more than one carrier.
3. Ask about every wildfire discount and document what you've done.
4. If you're buying or selling in the next six months, get the insurance answer before you set a price or make an offer.

If you're thinking about a move and want to know how insurance affects your home's value or your buying power, call us. We work with several local insurance brokers and can connect you. You can also read whether to buy now or wait or find out what your home is worth.

Frequently asked questions

Can I buy a house in El Dorado Hills with FAIR Plan insurance?

Yes, many buyers do. Most lenders will accept a FAIR Plan policy for fire coverage, usually alongside a Difference in Conditions policy for liability and other gaps. Confirm with your lender before you remove contingencies.

How much did FAIR Plan rates go up in 2026?

An average of 29.1% for dwelling policies, effective for new and renewal policies on or after October 15, 2026. Your change depends on your home's location and wildfire exposure.

Does the FAIR Plan cover everything a normal policy does?

No. It covers fire, lightning, smoke and internal explosion. It doesn't cover theft, liability or most water damage. A DIC policy fills those gaps. 

Are insurance companies coming back to the foothills?

Slowly. Under California's Sustainable Insurance Strategy, insurers using approved wildfire models must commit to writing more policies in fire-prone areas. Re-shop at every renewal.

What wildfire discounts can I get in El Dorado County?

California's Safer from Wildfires rules require insurers to offer discounts for home hardening, defensible space and community programs. The county's unincorporated area and many Firewise USA neighborhoods qualify for community-level discounts.

When should I get an insurance quote when buying a home?

Before you make an offer, if possible, and in writing during your investigation period. Don't remove contingencies until you know the cost and your lender accepts the policy.

About the author

Scott Ostrode, Team Ostrode Properties | Keller Williams, El Dorado Hills

Scott Ostrode has been a licensed California real estate agent since 1998 and leads Team Ostrode Properties with Keller Williams in El Dorado Hills. For more than 25 years, the team has helped buyers and sellers across El Dorado Hills, Folsom, Placerville, Rescue and Greater Sacramento. DRE #01241383

Contact: 916-900-1880 | Scott@TeamOstrode.com | www.TeamOstrode.com