DIC policy renewal: what to do each year
A FAIR Plan and a DIC wrap drift apart at renewal unless someone re-aligns them. That someone should be your broker.
The annual review, in three checks
None of this takes long. The reason it matters is that the failure is silent - nothing tells you the two policies have drifted apart until you file a claim.
- Do the dwelling limits still match? Both policies may carry an inflation guard, and they may not adjust by the same percentage. Two policies that matched at inception can be thousands of dollars apart after two renewals.
- Have the renewal dates drifted? A mid-term change, a rewrite, or a lapse and reinstatement can move one policy's anniversary. Different renewal dates means two separate opportunities each year to accidentally end up with one policy and not the other.
- Has the market changed? This is the one with real money in it. Carriers have been re-entering California areas they had withdrawn from, so re-shopping annually is not busywork.
Why re-shopping every year is worth it
The FAIR Plan is designed as a temporary solution rather than a permanent home - its own materials describe it as an insurer of last resort (About the California FAIR Plan). Treating it as permanent is how people end up paying for two policies for years longer than they needed to.
The market is also still in motion. The FAIR Plan reported 696,562 policies in force through June 2026, up 8 percent in nine months (California FAIR Plan, Key Statistics and Data), while admitted carriers have been re-entering selected areas under the state's sustainable insurance strategy. Both things are true at once, which is exactly why the answer for your specific home can change year to year.
What we check at each renewal: admitted carriers now writing your ZIP, surplus lines options as a single-policy alternative, and whether any home hardening work you have done since last year opens a door that was closed before.
Unwinding the stack when you get a standard policy
Getting an admitted offer is the goal, and the last step is where people get hurt. Cancel in the wrong order and you can be uninsured for a period you did not intend, or lose coverage on a loss that has already happened.
| Step | What to do | Why the order matters |
|---|---|---|
| 1 | Get the new policy bound in writing, with its effective date | An offer is not coverage. Nothing gets cancelled before this exists |
| 2 | Confirm the new policy covers everything both old policies did | Check liability, loss of use, and the valuation basis specifically |
| 3 | Cancel the DIC wrap effective the new policy's start date | Same-day handover, no gap and no double premium |
| 4 | Cancel the FAIR Plan effective the same date | The wrap is worthless without it, so they end together |
| 5 | Confirm both cancellations and any refunds in writing | Short-rate cancellation can reduce the refund - ask before you sign |
Never cancel first and shop after. If the new carrier finds something in underwriting after binding, you want the old policies still in force while it gets sorted out.
If your DIC wrap is non-renewed
A DIC carrier can non-renew just as any other carrier can, and because the wrap is the half of the structure carrying your liability, losing it quietly leaves you with fire coverage and nothing else.
If you get a non-renewal notice on the wrap, treat it as urgent rather than routine, and start looking immediately - a replacement wrap has to be found and coordinated to the FAIR Plan all over again. See what to do after a non-renewal, and send us the notice.
Sources
Figures and definitions on this page come from the regulator or the body that publishes them. Each link was checked on the review date above.
- About the California FAIR Plan California FAIR Plan
- Key Statistics and Data California FAIR Plan
- Wildfire resources and residential insurance California Department of Insurance
Frequently asked questions
Do my FAIR Plan and DIC policies renew at the same time?
Not automatically. They are two policies from two carriers with their own anniversaries, and a mid-term change or a rewrite can move one of them. Aligning the renewal dates makes the whole structure much easier to manage and is usually worth asking for.
Should I re-shop my coverage every year?
Yes. The California market is changing quickly and carriers have been re-entering areas they previously left, so a home that had no options last year may have them this year. Re-shopping costs nothing and the FAIR Plan is meant to be temporary.
What order do I cancel in when I get a standard policy?
Get the new policy bound in writing first, confirm it covers everything the two old policies did, then cancel the DIC and the FAIR Plan effective the new policy's start date. Never cancel anything before the replacement is actually bound.
What happens if my DIC wrap is non-renewed but the FAIR Plan is not?
You are left with fire coverage only, and no liability, theft, or water damage. Treat a DIC non-renewal notice as urgent and start looking for a replacement wrap straight away, because it has to be coordinated to the FAIR Plan again from scratch.
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