On July 3, 2024, State Farm began offering a path for some customers caught in the 2024 nonrenewals: buy fire coverage through the California FAIR Plan, then endorse the remaining homeowners policy so State Farm no longer covers the perils the FAIR Plan writes. In the trade that wrap is a difference-in-conditions, or DIC, arrangement.
San Diego stations reported it as good news, and for keeping a relationship with the same carrier it can be. It is not a rate cut. Two policies, two bills, and the FAIR Plan piece is fire-only. You still need the wrap for water, theft, and liability. Combined, most households pay more than the HO-3 they lost.
If you were offered this split, read both forms. Confirm dwelling limits match. Confirm who handles a smoke or water claim so you are not bounced between carriers when a pipe fails the week after a brush fire two canyons over.
If this is on your renewal, call the office at (619) 420-8600 or start a quote. We will tell you what the market will actually write.
Sources: CBS 8 San Diego on State Farm DIC with the FAIR Plan.