A FAIR Plan can keep your property insured when no one else will. But it isn't the same as a standard homeowners policy. Here's how they compare.
Covered causes of loss
A standard homeowners policy usually covers your home against most causes of loss unless they're specifically excluded. A FAIR Plan policy is typically named-peril: it covers only the causes listed, such as fire, vandalism and certain named disasters.
Theft, liability and water damage
Standard policies usually include theft of belongings and personal liability, which helps if someone is hurt on your property. Many FAIR Plan policies leave these out or offer them only as options. Water damage coverage is often limited too.
How claims are paid
Depending on the state and policy, a FAIR Plan may pay claims based on actual cash value — the cost to replace, minus depreciation — instead of full replacement cost. Ask your agent which applies to your policy.
Want to see exactly what a FAIR Plan would cover for your property? Ask a licensed Insurance Agent.
Call (888) 928-9324Filling the gaps
You can often pair a FAIR Plan with other policies:
- Difference-in-conditions (wraparound) policy: adds coverage the FAIR Plan leaves out, such as theft or liability.
- Flood insurance: FAIR Plans don't cover flood, so it's a separate policy.
- Windstorm coverage: in some coastal areas, wind and hail come from a separate plan, such as TWIA in Texas.
The bottom line
A FAIR Plan is a safety net, not a replacement for a full policy. Many homeowners use it to stay covered, fix the issues that caused the denial, and then move back to a standard policy later.