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Bill

SB 525

California FAIR Plan: manufactured homes.

2025-2026 Regular Session Introduced by Brian Jones

SB 525 extends California's FAIR Plan insurance coverage to manufactured homes, expanding access for homeowners unable to obtain private property insurance.

Chaptered by Secretary of State. Chapter 476, Statutes of 2025.
#californiafairplan #manufacturedhomes
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Bill Summary · SB 525

Legislative bill overview

SB 525 expands California's FAIR Plan (Fair Access to Insurance Requirements) to include manufactured homes as an insurable class. Previously, the FAIR Plan primarily served standard residential properties that couldn't obtain coverage through conventional insurers. This legislation extends the insurer-of-last-resort program to manufactured home owners facing similar coverage gaps.

Why is this important

Manufactured homes represent a significant portion of California's affordable housing stock, yet owners often struggle to secure property insurance as wildfire risk increases and private insurers retreat from the market. By including manufactured homes in the FAIR Plan, the bill aims to prevent a coverage crisis for vulnerable homeowners while maintaining the state's insurance stability mechanisms during an ongoing affordability and availability crisis.

Potential points of contention

  • FAIR Plan solvency concerns: The FAIR Plan already faces financial strain; adding manufactured homes increases potential claims exposure and could require higher assessments on policyholders or require state intervention if catastrophic losses occur.
  • Manufactured home insurability: Questions exist about whether FAIR Plan underwriting standards and rates adequately account for manufactured home construction, location vulnerabilities, and claim patterns, potentially creating adverse selection.
  • Market distortion effects: Expanding FAIR Plan availability might reduce private insurer incentives to serve manufactured home markets, potentially locking the state further into reliance on the insurer-of-last-resort system.

Compiled from official sources — confirm details with the bill’s official record.

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