If an insurance company has turned down your home, canceled your policy or refused to renew it, you may hear the words “FAIR Plan.” Here's what that means and whether it's right for you.
What a FAIR Plan is
FAIR stands for Fair Access to Insurance Requirements. A FAIR Plan is a state program that provides basic property insurance when private insurance companies won't. It's often called an insurer of last resort.
FAIR Plans date back to the late 1960s. Today, most states have one. They are usually run as associations of the insurance companies licensed in that state, which share the plan's costs.
Who usually needs one
- Homeowners whose policy was canceled or not renewed
- Landlords with older single family or multifamily rentals
- Owners of vacant or rehab properties (where the state plan allows it)
- Homes in wildfire, storm or other high-risk areas
- Older homes with roofs, wiring or plumbing that standard insurers won't accept
Not sure if you qualify? A licensed Insurance Agent can tell you in minutes.
Call (888) 928-9324What it covers — and what it doesn't
FAIR Plan policies are basic. They typically cover fire, vandalism and certain named disasters. Many don't include theft, liability or water damage, and FAIR Plans don't cover flood. Because rules vary by state, exact coverages depend on your location.
That's why it helps to have an agent point out the gaps. Some gaps can be filled with add-on policies.
How to apply
In most states, you apply through a licensed insurance agent. Some plans require proof that private insurers turned you down. Texas, for example, generally requires declinations from two companies.
Unquoting sells the FAIR Plan in Iowa, North Carolina, Ohio, Texas and Washington. Read about your state: Iowa, North Carolina, Ohio, Texas and Washington.