What Is FAIR Plan Insurance?

FAIR plan inꦜsurance covers high-risk homeowners who o༺therwise can’t obtain coverage.

Many states offer last-resor🍃t FAIR (Fair Access to Insurance Requirements) plans to ensure that homeowners have access to basic cover🉐age, regardless of a property’s location or risk factors.

These plans arose in response to insurers halting coverage of high-risk property in certain areas, such as those prone to wildfires. Rising insurance expenses and costly natural disasters are among the fac⛎tors that prompted stat💝es to launch FAIR plans.

How FAIR Plan Insurance Works

🦄All private insurers licensed to do business in states with FAIR plans contribute financially to those states’s FAIR plans. Each insurer shares FAIR plan profits, losses, and expenses that equate to the insurer’s market share in that state. As a result, numerous insurers bear the financial burden of covering high-risk homes.

Aside🐻 from coverage of homes in high-risk areas, such as those plagued by frequent natural disa🐽sters, someone may need FAIR plan insurance in situations such as:

• Living in a high-crime area
• Failing to keep up with home maintenance and repairs
• Filing a lot of 澳洲幸运5官方开奖结果体彩网:home insurance claims

How Does FAIR Plan Cove✤rage Differ Fr൲om Traditional Coverage?

Coverage under a FAIR plan generally costs more than traditional 澳洲幸运5官方开奖结果体彩网:home insurance. In addition, FAIR plans typically cover only ဣdama꧃ge caused by catastrophes.

FAIR plan coverage varies from one state to another. However, dwelling coverage is normally part of the coverage. Coverage for adjacent structures and perཧsonal belongings generally must be purchased as optional a𒈔dd-ons.

A FAIR plan usually doesn’t provide liability or loss-of-use coverage. Some states may allow you to buy additional coverage for risks ꦦlike theft or liability. Still, this 🧔coverage may be limited and more expensive than if you bought it on the traditional home insurance market.

Pros and Cons of FAIR Plan Coverage

Which States Offer FAIR Plans?

Thirty-four states and the District ♚of Columbia offer FAIR coverage. Colorado was the latest to establish a FAIR plan; coverage will begin in 2025. 

State	FAIR Plan?
Alabama
Alaska	No
Arizona	No
Arkansas	No
California
Colorado	(available in 2025)
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho	No
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine	No
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana	No
Nebraska	No
Nevada	No
New Hampshire	No
New Jersey
New Mexico
New York
North Carolina
North Dakota	No
Ohio
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota	No
Tennessee	No
Texas
Utah	No
Vermont	No
Virginia
Washington
West Virginia
Wisconsin
Wyoming	No

What Do FAIR Plans Cover?

Offerings vary by state, but homeowners typically can get dwelling coverage through a FAIR plan. Insurance for personal belongings and additional structures usually 🐭is available only as add-on coverage. Liability coverage and loss-of-use coverage typically aren’t offered.

Dwelling Coverage

Dwelling coverage, a standard part of home in🎃surance, pays claims associated with your home’s structure but not your personal belongings. And this coverage is often for only specific “named” perils, or causes of damage, like fire, lightning, smoke, wind, or hail. However, installed fixtures and perman♛ently attached appliances generally are covered.

Dwelling coverag🌌e is the main component of FAIR plan insur🙈ance.

Contents Coverage

Contents coverage (also known as personal property coverage) kicks in whಌen personal belongings, such as clothing and fur🐟niture, are damaged or destroyed in an incident like a fire or tornado.

Contents c🗹overage is typically optional for𒊎 FAIR plan policies.

Liability Coverage

Generally, FAIR plans don’t provide 澳洲幸运5官方开奖结果体彩网:liability coverage.

The liability portion of a home insurance policy covers legal expenses associated with injury or property damage that💦 you or your family members cause to someone else or someone else’s property. Pet-related incidents are also covered.

What Are High-Risk H😼omes and High-Risk Homeowners?

Factors that may cause a home or homeowner to be considered high-risk include🤡:

• Your home is in an area where natural disasters often occur. These include tornadoes, hailstorms, windstorms, floods, hurricanes, earthquakes, and 澳洲幸运5官方开奖结果体彩网:wildfires.
• Your home is in a high-crime area.
• Your home is in bad shape. For instance, it might have a leaky or worn-out roof. 
• You have a history of making a lot of home insurance claims.

How to Qualify and 🐼Apply for FAIR Plan Insurance

Eligibility requirements for FAIR plan insurance differ by state, and not every applicant gains coverage. Here are the ba⛄sic requirements and steps for obtaining FAIR plan insurance.

• In most states, you must have been rejected by traditional insurers before seeking FAIR plan coverage.
• Once traditional insurers have rejected you, you typically must contact an insurance agent or broker that offers FAIR plan insurance.
• Your home might need to undergo an 澳洲幸运5官方开奖结果体彩网:inspection to determine eligibility.
• Your home must comply with local building codes.
• Someone must be living in your home.
• Your home can’t have an unfenced pool.

Frequently Asked Questions (FAQs)

The Bottom Line

Most, but not all, states offer FAIR plans. FAIR plan insurance is a last-resort safeguard for high-risk homeoꦑwners who can’t buy traditional home insurance. For instance, they might live in an area at high risk of natural disasters or have filed too many home insurance claims in the past. 

This coverage is generally more expensive than traditiꩵonal home insurance and typically provides less p🍷rotection. An alternative to FAIR plan insurance is surplus lines insurance, offered by companies specializing in high-risk coverage.