Introduction: The Insurance Reality for 90210 Estates

For decades, owning a home in Beverly Hills—whether perched in Trousdale Estates, tucked away in Benedict Canyon, or sitting prominently in The Flats—was a straightforward proposition regarding insurance. You purchased a comprehensive policy from a premier carrier like Chubb, AIG, or Pure, and your asset was secure.

In 2026, that landscape has fundamentally shifted.

We are currently witnessing the most significant contraction in the California property insurance market in history. Major “admitted” carriers—including State Farm, Allstate, and Farmers—have paused new business or issued mass non-renewals across the Santa Monica Mountains and Hollywood Hills.

For the average homeowner, this is a headache. For the owner of a High-Value Estate (defined as a replacement cost exceeding $5 million), it is a financial crisis.

If you have received a non-renewal notice, or if your current broker is struggling to find capacity for your home North of Sunset, you are likely being steered toward the California FAIR Plan.

However, there is a critical detail most generalist brokers miss: The FAIR Plan was never designed for luxury real estate. Relying on a standard FAIR Plan policy to protect a $15 million estate is akin to putting a bicycle lock on a vault. It leaves millions of dollars in exposure.

At Sun Insurance & Financial, operating from our headquarters on Santa Monica Blvd, we specialize in solving this specific disparity. This guide is the definitive resource for protecting high-value assets in Beverly Hills using a sophisticated “layered” approach to the California FAIR Plan.

Part 1: Why Beverly Hills is Ground Zero for Non-Renewals

To solve the problem, one must understand the mechanics behind it. Why are carriers leaving one of the wealthiest zip codes in America?

1. The “Fireline” Score Reality

Insurance carriers use satellite technology to assign a “Fireline Score” to every parcel of land. This score analyzes three factors:

Fuel: The density of brush surrounding the home.
Slope: The steepness of the terrain (fire travels faster uphill).
Access: The ability of fire trucks to navigate the roads.

Many of Beverly Hills’ most prestigious neighborhoods—Trousdale Estates, The Bird Streets, and the upper reaches of Benedict and Coldwater Canyons—score poorly on these metrics. The very features that make these homes valuable (privacy, views, hillside locations) make them “uninsurable” to standard algorithms.

2. Reinsurance Costs

Primary carriers (like State Farm) buy their own insurance, known as reinsurance. The cost of reinsurance for California wildfire zones has skyrocketed by over 40% in the last 24 months. As a result, carriers are “de-risking” their portfolios. They are not just raising prices; they are shedding exposure entirely.

3. The “Admitted” Market Cap

“Admitted” carriers (those regulated strictly by the state) are unable to charge the premiums necessary to cover the true actuarial risk of a $20 million home in a high-fire zone. Rather than operate at a loss, they are exiting the market.

This leaves the Beverly Hills homeowner with one primary option: The California FAIR Plan.

Part 2: The “Gap” — Why the FAIR Plan Fails High-Value Homes

The California FAIR (Fair Access to Insurance Requirements) Plan is a state-mandated “insurer of last resort.” It is designed to ensure that every Californian can buy basic fire insurance.

However, “Basic” is the operative word. The FAIR Plan has severe limitations that are catastrophic for high-net-worth individuals.

The $3 Million Commercial Limit

The most glaring issue is the coverage cap. As of 2026, the standard FAIR Plan dwelling limit typically caps out at $3 million for a residential policy (though higher commercial limits can be negotiated, they rarely reach estate levels).

Do the math:

Your Home: A mid-century modern estate in Trousdale.
Replacement Cost: $12,000,000 (at $1,200 per sq. ft. construction costs).
FAIR Plan Coverage: $3,000,000.
The Gap: $9,000,000.

If a wildfire sweeps through the canyon and destroys the property, you are responsible for the $9 million shortfall. For most families, this is an unacceptable loss of liquidity.

The “Peril” Limitation

The FAIR Plan is a “Named Peril” policy. It covers Fire, Lightning, Smoke, and Internal Explosion. It does NOT cover:

Theft: If your jewelry or art collection is stolen during an evacuation.
Water Damage: If a pipe bursts and destroys your custom flooring (statistically more likely than a fire).
Liability: If a guest slips by the pool, or a domestic staff member sues for injury.
Vandalism: Malicious mischief is excluded.

The “Loss of Use” Cap

If your home burns down, permitting and rebuilding a luxury estate in Beverly Hills can take 3 to 5 years. You will need to rent a comparable home in the area during that time.

Rent for a comparable home: $30,000 – $50,000 per month.
Total cost over 4 years: $1.5 million+.
Standard FAIR Plan Limit: A fraction of this amount.

Part 3: The Solution — The “Tower” Strategy for 90210 Estates

If the “Standard” carriers are gone, and the “FAIR Plan” is too small, how do we insure a $20 million estate?

We build a Coverage Tower.

At Sun Insurance, we treat insurance architecture like investment portfolio management. We layer multiple policies to achieve 100% protection. Here is the specific structure we use for Beverly Hills estates:

Layer 1: The Foundation (California FAIR Plan)

We utilize the California FAIR Plan to cover the first layer of fire risk.

Role: Primary Fire Insurance.
Coverage: The first $3 Million of structure coverage.

Layer 2: The “Wrap” (Difference in Conditions – DIC)

Because the FAIR Plan excludes theft, liability, and water damage, we purchase a separate “Difference in Conditions” (DIC) policy.

Role: Fills the gaps left by the FAIR Plan.
Coverage: This policy “wraps” around the FAIR Plan. It provides high-limit Liability ($5M – $10M), Theft coverage for contents, Water Damage protection, and broad “All Risk” coverage for everything except fire.
Carriers: We access specialized carriers like Lloyd’s of London, Scottsdale, or other Non-Admitted markets for this layer.

Layer 3: The “Excess” (Surplus Lines Fire)

This is the step that generalist brokers often miss. To bridge the gap between the FAIR Plan’s $3M limit and your home’s $15M value, we secure Excess Fire Coverage.

Role: Catastrophic Fire Protection.
Coverage: This policy sits on top of the FAIR Plan. If the FAIR Plan pays out its full $3M, this policy kicks in to pay the remaining $12M.
The Result: You have a seamless $15M fire policy, indistinguishable in payout from a traditional policy.

The Result: A “Virtual” Premier Policy

By stacking these three layers, the client receives:

Full Replacement Cost Coverage (No matter the value).
Comprehensive “All Peril” Protection (Fire + Theft + Water).
High Liability Limits (Protecting your future earnings).

Part 4: Neighborhood-Specific Nuances

Beverly Hills is not a monolith. The underwriting strategy changes street by street.

Trousdale Estates

The Risk: High concentration of mid-century homes with flat roofs, often surrounded by dense ornamental vegetation.
The Strategy: Underwriters here are obsessed with Roof Updates. If your home still has a 20-year-old rock or tar-and-gravel roof, you will struggle to find Excess coverage. We work with clients to document roof certifications to unlock capacity.

Benedict Canyon & Coldwater Canyon

The Risk: Narrow roads and steep slopes. “Access” is the primary decline reason here.
The Strategy: We emphasize Brush Clearance Certification. We often advise clients to hire private brush clearance crews to clear beyond the mandatory 200 feet, and we submit drone photography to carriers to prove the property is defensible.

The Flats (South of Sunset)

The Risk: While not in the “High Severity Zone,” homes here are still seeing non-renewals due to “concentration of risk.”
The Strategy: For The Flats, we can sometimes still find “Admitted” carriers or High-Net-Worth specialists (like Chubb or Pure) if the home is modernized. We exhaust these options before moving to the FAIR Plan strategy.

Part 5: Beyond the Structure — Protecting the Lifestyle

High-Value Home Insurance is about more than just lumber and drywall. It is about protecting the lifestyle that comes with it.

Domestic Staff Workers’ Compensation

Many Beverly Hills estates employ nannies, housekeepers, private chefs, or estate managers.

The Trap: Standard homeowner policies rarely provide sufficient Workers’ Comp for full-time staff. If a housekeeper is injured, you could be personally liable for their medical bills and lost wages for life.
The Fix: We attach a specialized Domestic Employees Endorsement or a standalone Workers’ Comp policy to your DIC layer.

Cyber Liability for Family Offices

If you run a Family Office or manage significant assets from your home in the Bird Streets, you are a target.

The Risk: Ransomware attacks, social engineering fraud, or theft of digital assets.
The Fix: We add Personal Cyber Liability to your portfolio, protecting you against digital extortion and identity theft.

Fine Art & Jewelry Schedules

The FAIR Plan offers virtually zero coverage for fine art.

The Fix: We schedule your assets—whether it is a classic Porsche collection in the garage or a contemporary art collection on the walls—onto a Private Collections Floater. This ensures “Agreed Value” coverage (you get the full appraised value, no depreciation) and “Worldwide” coverage (you are covered even if the jewelry is stolen while you are traveling in Paris or Aspen).

Part 6: Why “Local” Representation Matters

In the age of 1-800 numbers and online aggregators, why does it matter that your broker is on Santa Monica Boulevard?

1. We Know the Fire Maps

We know that a home on Loma Vista Drive has a different risk profile than a home on N. Alpine Drive. When an underwriter in New York or London denies a quote based on a satellite image, we can fight back with local knowledge. We know when a “brush zone” on a map is actually a well-manicured park or a golf course.

2. We Handle the Inspections

High-value policies require physical inspections. We do not just send a stranger to your gate. A member of our team is often present to walk the property with the inspector, pointing out the safety features (the new slate roof, the ember-resistant vents, the brush clearance) that the camera might miss.

3. Privacy & Discretion

We understand that our clients include public figures, celebrities, and high-profile executives. We operate with strict confidentiality. We know how to structure policies in the name of LLCs or Trusts to maintain your privacy on public records.

Conclusion: Don’t Wait for the Letter

If you are currently insured with a mass-market carrier in a Beverly Hills fire zone, the reality is stark: It is not a matter of if you will be non-renewed, but when.

Waiting until you receive the 30-day notice puts you in a position of weakness. You may be forced to accept a sub-par policy just to satisfy your mortgage lender.

By being proactive, you can structure a FAIR Plan + DIC + Excess Tower that offers better protection than your current policy. You can secure your legacy, protect your liquidity, and sleep soundly knowing that even in the worst-case scenario, your estate is fully covered.

Sun Insurance & Financial has been the trusted advisor to the 90210 community for over 20 years. We are not just selling policies; we are preserving the generational wealth of Los Angeles.

Request a Confidential Review

Do not leave your largest asset exposed to a coverage gap. Contact our Private Client Risk Team today.

Visit Us: 9663 Santa Monica Blvd, Suite 785 Beverly Hills, CA 90210

Call Direct: (310) 860-5000

Email: info@suninsure.com

Consultations are complimentary and strictly confidential.

Beverly Hills FAIR Plan: Protecting Luxury Homes