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FAIR Plan home insurance: What homeowners should know
Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Key takeaways
- Fair Access to Insurance Requirements (FAIR) insurance policies are policies of last resort, designed for homeowners in high-risk areas unable to get coverage from a standard provider.
- FAIR Plan policies cover less than a standard home insurance policy and usually cost more.
- To qualify for FAIR Plan insurance, most homeowners will need to show they have been denied coverage multiple times in the private market.
FAIR Plan insurance explained
A FAIR Plan, which stands for Fair Access to Insurance Requirements, is a program that allows high-risk homeowners to purchase a home insurance policy. People who get insurance through a FAIR Plan are typically not eligible for coverage through the standard home insurance market because their home is located in a high-risk area or they have other red flags that deter insurers.
FAIR Plans are state-run programs that are financially supported by private insurance companies. A FAIR Plan is slightly different from a typical home insurance company because it is a shared market plan. Rather than getting coverage from a single insurance company, technically, several insurance companies cover your property in a FAIR Plan, limiting the amount of risk that one company assumes. If you have to file a claim, every participating company pays for a portion of your loss.
When it comes to the actual coverage, homeowners insurance through a FAIR Plan is pretty limited. Many plans may only include dwelling and personal property coverage on a named-perils basis. You most likely cannot get liability, medical payments or loss of use coverage through a FAIR Plan. Further, most states’ FAIR Plans only insure homes at actual cash value, as opposed to replacement cost value.
FAIR Plan home insurance is intended to be a last-resort option. You cannot apply for home insurance through your state’s FAIR Plan as your first option because you will have to prove that you have been denied home insurance by several private companies.
News
Beach and windstorm plans work similarly to the FAIR Plan. They are a last-resort option for homes in high-risk coastal communities, particularly ones along the Atlantic and Golf Coasts. Like the FAIR Plan, they are also state-run and financially supported by private insurance companies.
Beach and windstorm plans are only available in high-risk coastal communities, where the risk of wind damage is extreme. In these locations, FAIR Plans or regular home insurance policies may exclude wind coverage. In that case, you'd need a beach and windstorm plan to be covered.
To note, when a state offers FAIR Plan insurance, it's usually available statewide. But beach and windstorm plans are typically limited to a handful of ZIP codes. Beach and windstorm plans may be available in:
- Alabama
- Florida*
- Louisiana*
- Mississippi
- North Carolina
- New York
- South Carolina
- Texas
*Available statewide
High-risk homes and FAIR Plan insurance
FAIR Plans specifically cover high-risk homes and high-risk homeowners. However, the criteria for what is considered a high-risk home is very specific. Here are some of the characteristics of a high-risk home that may qualify you for FAIR Plan insurance:
- You live in an area with a high risk of severe weather like tornadoes, hurricanes or earthquakes.
- You live in a neighborhood with a high rate of crime, vandalism or theft.
- Your home is very old and has outdated systems that make it risky to insure, such as old plumbing or electrical wiring.
- You've been denied coverage in the voluntary market twice or more.
FAIR Plans also serve homeowners with a lengthy claims history. If you’ve filed more than a few insurance claims, especially major ones, it may be a red flag for insurance companies. When you apply for a new policy, the insurance company can review your Comprehensive Loss Underwriting Exchange (CLUE) report, which includes a record of the insurance claims you’ve filed. A spotty claims record can make it difficult to get preferred coverage, so you might have to resort to a FAIR Plan if you fall into this category.
Although you may be able to find private insurance companies willing to insure high-risk homes, it’s becoming more difficult in some states. For example, a number of home insurance companies in Florida are shutting down and canceling policies due to the uptick in natural disasters, expensive claim payouts and fraudulent claims. Therefore, more Florida homeowners may need to consider the FAIR Plan due to the difficulty in finding standard coverage. In the midst of California’s home insurance crisis, an increasing number of homeowners across the state have been forced to rely on the state’s FAIR Plan.
How to get FAIR Plan home insurance
The process of getting FAIR Plan insurance is different in every state, but it is usually straightforward. First, and most importantly, you must prove that you have been denied home insurance from at least two private home insurance companies. Some states may require more denials. To be eligible for the FAIR Plan, you must not owe any outstanding taxes, and there must not be any penalties, liens or assessments on your property. Your home must also be in accordance with local building, housing, sanitation or pollution laws.
Keep in mind that some states require FAIR homeowners insurance customers to apply for private home insurance once per year or every two years, depending on your state. If approved, you will no longer be eligible for FAIR Plan home insurance.
States that offer FAIR Plan insurance
Not every state offers a FAIR Plan, but many do — especially states with a high rate of severe weather. Beginning in 2025, 34 states and Washington, D.C. offer or plan to offer FAIR Plans to high-risk homeowners.
- Alabama
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- New Jersey
- New Mexico
- New York
- North Carolina
- Ohio
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- Texas
- Virginia
- Washington
- Washington, D.C.
- West Virginia
- Wisconsin
Colorado FAIR Plan 2025
Colorado is the newest state to offer a FAIR Plan, although it was in the works for a while. House Bill 23-1288 was signed into law in 2023, establishing a statewide FAIR Plan that would be launched two years later. To be eligible for a Colorado FAIR Plan, homeowners must demonstrate that they've been denied coverage at least three times.
Frequently asked questions
