Can you get a HELOC on a home in a wildfire zone or on the FAIR Plan?

What the FAIR Plan is, and what it leaves out

The California FAIR Plan is the state’s insurer of last resort. It writes a fire-only policy: fire, lightning, internal explosion and smoke. It does not cover liability, water damage, theft or loss of use. Its dwelling coverage limit for residential property rose to $3 million in January 2026.

Because the FAIR Plan is fire-only, most owners pair it with a difference-in-conditions (DIC) policy — a wrap that covers what the FAIR Plan excludes. Together they approximate a standard homeowner’s policy. Alone, a FAIR Plan policy is a partial one.

Source: California FAIR Plan coverage descriptions and the Assembly Insurance Committee’s January 2026 oversight background. Checked October 2026.

What a lender actually needs

Any lender with a lien on your home — first or second — requires hazard insurance on the property, with the lender named on the policy, in force at closing. A line of credit is no different. What varies between lenders is how they treat a FAIR Plan policy, whether a DIC wrap is expected alongside it, and how the coverage amount is measured against the debt on the property. These are the requirements for the home equity line we place. Other lenders set their own guidelines, and some are more flexible. Bring your declarations pages to the first conversation and that question is answered in minutes.

What a lender cannot do is close a line on a home with no coverage, or with coverage that lapses between application and funding.

The non-renewal clock

Under California Insurance Code section 678, a carrier must deliver written notice of non-renewal at least 75 days before your policy expires, stating the reason and your right to request review by the Department of Insurance. If it fails to, the existing policy stays in force for 75 days from the date notice is finally given.

Seventy-five days is enough time to place FAIR Plan and DIC coverage, but not much more. If you are inside that window and considering a line, the sequence is: secure replacement coverage first, then apply. A line that closes the week your old policy expires is a line that may not fund.

Source: California Insurance Code § 678. Checked October 2026.

Why the line is often the answer to the fire problem

The things that get a home off the FAIR Plan and back onto the standard market are physical: a Class A roof, ember-resistant vents, non-combustible siding and decking, five feet of defensible space with nothing flammable against the house. Carriers increasingly price and underwrite on them. They cost real money, and a line of credit — drawn as each piece is done, secured by the home being made safer — is a reasonable way to pay for them. See the roof and exterior project page for cost bands.

What to have ready

1. Declarations pages for every policy on the home — FAIR Plan, DIC wrap, or standard — showing dwelling coverage and expiration dates.
2. Any non-renewal notice, with its date.
3. Your most recent mortgage statement, so coverage can be read against the debt on the property.