Why are more homeowners ending up on FAIR Plans?

In recent years, more homeowners have found themselves turned down by standard insurers and turning to FAIR Plans. Here's what's behind the trend.

More severe weather losses

Wildfires, hurricanes, hail and severe storms have caused large insurance losses. Insurers respond by raising prices, tightening rules or writing fewer policies in high-risk areas.

Higher rebuilding costs

The cost of materials and labor to repair and rebuild homes has risen. That makes every claim more expensive, which affects what insurers are willing to cover.

Insurers pulling back

Some insurance companies have stopped writing new policies, or have non-renewed policies, in certain areas or for certain types of homes — such as older homes or homes with older roofs.

What it means for you

• A non-renewal may have more to do with the market than with you
• Shopping with an independent agent matters more than ever
• The FAIR Plan can keep you covered while the market changes

What you can do

Keep your home well maintained, fix issues like old roofs or wiring when you can, and review your coverage every year at renewal. Read more: How long can you stay on a FAIR Plan?

By Unquoting Insurance Company. This article is general information, not advice for your specific situation. Coverage and eligibility vary by state and policy — call (888) 928-9324 to talk with a licensed Insurance Agent.