California FAIR Plan: manufactured homes.

Senator Jones’s proposal expands the California FAIR Plan’s basic property insurance program to include manufactured homes and mobile homes, applying the same terms and conditions as coverage for other residential dwellings. The change is framed as extending access to basic property insurance for these dwelling types within the existing FAIR Plan framework. The measure preserves the plan’s governance structure and regulatory oversight while extending the scope of what counts as basic property insurance.

Key mechanisms drive the change. The amended definitions within the Insurance Code treat basic property insurance as coverage for manufactured homes and mobile homes under the same terms and conditions as insurance for other dwellings. Earthquake coverage that is part of basic property insurance remains governed by the existing framework for such coverage, including renewal under the specified policy structure and the notice requirements applicable to earthquake components. The definitions continue to reference the established roles and terms, including the Health and Safety Code definitions for manufactured homes and mobile homes, and the calculation of premiums written remains tied to gross direct premiums net of returns, dividends, or deposits.

Broader implications and context follow. The bill does not attach a new appropriation, and regulatory oversight continues to reside with the Insurance Commissioner. Expanding the eligible risk pool to include manufactured and mobile homes could affect the composition of the FAIR Plan’s basic property insurance portfolio and may require operational adjustments in underwriting, data management, and policy administration, though pricing mechanisms are not specified in the measure. The proposed change relies on the existing earthquake coverage framework and notice provisions, aligning any implemented policies with current statutory requirements while extending the reach of basic property insurance to a broader set of dwelling types.