What Is FAIR Plan Insurance?

FAIR plan insurance ⛎covers high-risk homeowners who otherwise can’t ⛎obtain coverage.

Many states offer last-resort FAIR (ﷺFair Access to Insurance Requirements) plans to ensure that homeowners have access to basic cove🐲rage, 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 th💙e factors that pr🐼ompted states 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 disasters, 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开奖号码历史查询:home insurance claims

Hoꦬw Does FAIR Plan Coverage Differ From 🌜Traditional Coverage?

Coverage under a FAIR plan generally costs more than traditional 澳洲幸运5开奖号码历史查询:home insurance. In additi𒊎on, FAIR plans typically cover only damage 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 personal belongings generဣally must be purchased as optional add-ons.

A FAIR plan usual⛄ly doesn’t provide liability or loss-of-use coverage. Some states may allow you to buy additional coverage for risks like 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 ܫtypically 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 insurance, pays claims associated with your home’s structure but not your personal belongings. And this coverage ꦕis often for only specific “named” perils, or causes of damage, like fire, lightning, smoke, wind, o🥂r hail. However, installed fixtures and permanently attached appliances generally are covered.

Dwelling coverage is 🧸the main comp✃onent of FAIR plan insurance.

Contents Coverage

Contents coverage (also known as personal property coverage) kic💎ks in when personal belongings, such as clothing and furniture, are damaged or destroyed in an incident like a𒁏 fire or tornado.

Contents coverage is typically optional for FAIR🦂 plan po💟licies.

Liability Coverage

Generally, FAIR plans don’t provide 澳洲幸运5开奖号码历史查询: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 Homes and High-Risk Ho𓆉meowners?

Factors that may cause a hom✅e 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开奖号码历史查询: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

Eligibil𓆉ity requirements for FAIR plan insurance differ by state, and not every applicant gains coverage. Here are the basic 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开奖号码历史查询: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, staꦡtes offer FAIR plans. FAIR plan insurance is a last-resort safeguard for high-risk homeowners who can’t buy traditional home insurance. For instance, they might live in an area at high risk of natu🐈ral disasters or have filed too many home insurance claims in the past. 

This coverage is generally more expensive than traditional home insurance and typically provides less protection. An a♊lternative to F🗹AIR plan insurance is surplus lines insurance, offered by companies specializing in high-risk coverage.