For people who are having problems insuring their property because insurers view them as high-risk, the Fair Access to Insurance Requirements (FAIR) Plan is a state-mandated scheme that offers fair access to insurance. A "shared market plan" is the FAIR plan.
Main points
- Due to being in a high-risk region or having other significant issues, people who would ordinarily be denied insurance on their home are given insurance through FAIR Plans.
- Homes that are at a high risk include those that are in high-crime or disaster-prone zones, are in disrepair, or have experienced several claims in the past.
- It might be necessary to take further measures in order to qualify for a FAIR Plan, such as reducing your risk by installing alarm systems, water backup valves, or upgrading the wiring in your home.
FAIR Plans Aid in Covering Properties at Higher Risk
State-run FAIR Plans are occasionally supported by private insurance firms. These programs frequently offer insurance to those whose homes would not normally be covered because they are in high-risk areas or have other high-risk issues. You can find out more about a state's specific FAIR Plan through the insurance department there, or you can look at the state-by-state list of resources for the FAIR Plan insurance program that is provided below.High-Risk Insurance and the FAIR Plan
With high-risk insurance, the insurance provider has determined that there is a high chance of claims in a certain area or location due to:- Map information
- Maintenance
- "Loss history", or a significant quantity of claims incidents for a certain area or house,
Where Can You Find Insurance for an Area at Risk?
Standard insurers do not specialize in high-risk locations and hence will often refuse to insure them by either not insuring them in the first place or by refusing to renew a high-risk site once the insurance policy term is up. Which risks an insurance company is willing to accept will often be determined by its underwriting standards. Specialty insurers, some of which can be non-admitted insurers, offer insurance for high-risk properties. Non-admitted insurance providers frequently think outside the box or focus on risks that conventional providers are hesitant to take.What Constitutes a High-Risk Home?
Your property can be regarded as high-risk if you reside in a region that is vulnerable to natural catastrophes like tornadoes or where there is a high frequency of hurricanes or windstorms.- if you reside in a neighborhood where there is a high rate of theft or vandalism.
- If you live in an outdated or poorly maintained home,
- If you've faced numerous claims,
- How to Proceed if You Can't Find Home Insurance
Conditions for FAIR Plan Eligibility
According to the Insurance Information Institute, even the FAIR Plan has requirements that must be fulfilled. Just because you have a high-risk home does not mean the FAIR Plan will accept you. Installing anti-theft or alarm systems, installing water backup valves, or making repairs to your house, such as replacing or repairing a roof or your wiring, may be requested of you in order to reduce the danger of fire, theft, or water damage. You would probably be better off making the necessary repairs and staying with a conventional insurance provider if these kinds of conditions had qualified you for standard insurance. Typically, standard insurance providers are less expensive than high-risk ones.What Situations Require FAIR Plan Insurance?
You have the choice to apply for insurance with the FAIR Plan if you have looked into all of the alternatives mentioned above and are still unable to find an insurer willing to take on your risk. However, keep in mind that even the FAIR Plan has the ability to refuse coverage if you do not abide by the guidelines if the reason for the denial of insurance for your property is not because of circumstances beyond your control. The best course of action is to get in touch with them directly to discuss the terms of the FAIR Plan as they relate to your particular circumstance, because every situation is different. Additional insurance endorsements that could enhance the base coverage may be available to you as well.Where to Find State-by-State FAIR Plan Insurance Help
- Association for Alabama Insurance Underwriting
- Association for California's FAIR Plans
- The FAIR Plan for Connecticut
- Delaware Insurance Placement Facility,
- Property Insurance Facility for the District of Columbia
- Florida-based Citizens Property Insurance Corporation
- Georgia Underwriting Association
- Association of the Illinois FAIR Plan
- underwriting association for basic property insurance in Indiana.
- The Association for Iowa FAIR Plans
- All-Industry Placement Facility in Kansas
- Association for Kentucky FAIR Plan Reinsurance
- Citizens Property Insurance Company of Louisiana
- The Maryland Joint Insurance Association
- Association for Massachusetts Property Insurance Underwriting
- Association for Michigan Basic Property Insurance
- The FAIR Plan for Minnesota
- The Association for Mississippi Windstorm Underwriting
- Property Insurance Placement Facility in Missouri
- Association for New Jersey Insurance Underwriting
- New Mexico Property Insurance Program
- Association for New York Property Insurance Underwriting
- FAIR Plan-North Carolina Joint Underwriting Association
- Coastal Property Insurance Pool, North Carolina Insurance Underwriting Association
- Association for Ohio FAIR Plan Underwriting
- FAIR Plan Association of Oregon
- A Pennsylvania Insurance Placement Facility
- The Joint Reinsurance Association of Rhode Island
- The Association for South Carolina Wind and Hail Underwriting
- Texas FAIR Plans Association
- The Association for Texas Windstorm Insurance
- Association for Virginia Property Insurance
- The FAIR Plan for Washington
- Association for Essential Property Insurance in West Virginia
- Insurance Plan of Wisconsin
How to Obtain Insurance if You Live in a High-Risk Area
If you have tried to negotiate with regular private insurers and have exhausted all other options but have been unsuccessful in getting insurance for your home because it is considered high risk or if you have been refused insurance, you can get more information about the FAIR Plan and how to get insurance for your home by contacting the FAIR Plan administrator in your state.State-by-State FAIR Plan Administrator Phone Numbers
- In Alabama, call 334-943-4029.
- Number: 213-487-0111
- 860-528-9546 for Connecticut.
- 215-629-8800 for Delaware.
- 202-393-4640 in Washington, DC
- JUA 850-513-3700 in Florida.
- Florida Windstorm Underwriters Association (904) 296-6105
- 770-923-7431 for Georgia.
- 808-531-1311 in Hawaii
- 312-861-0385 Illinois
- 317-264-2310 for Indiana.
- Iowa: 515-255-9531
- 785-271-2300 Kansas
- 502-425-9998 for Kentucky.
- FAIR Plan for Louisiana: 504-831-6930
- 410-539-6808 for Maryland.
- 617-723-3800 Massachusetts
- 313-877-7400 for Michigan.
- 612-338-7584 for Minnesota.
- 601-981-2915 Mississippi
- 314-421-0170 Missouri
- 973-622-3838 in New Jersey.
- New Mexico: 505-878-9563
- Manhattan: 212-208-9700
- Ohio: 614-839-6446
- 503-643-5448 for Oregon.
- 215-629-8800 in Pennsylvania.
- 617-723-3800 for Rhode Island.
- South Carolina (803) 737-6180
- Texas: 512-899-4900
- 804-591-3700 in Virginia.
- Call 425-745-9808 in Washington.
- West Virginia (215.629.8800)
- 414-291-5353 for Wisconsin.
Questions and Answers (FAQs)
What is covered by the FAIR Plan insurance?
Although the specific coverages vary by state, FAIR Plans do not offer as much protection against risks as a typical homeowners insurance policy. Fire, vandalism, riots, and windstorm losses are all covered under FAIR plans. Losses from brush fires are also covered in California. For select coastal areas, Georgia and New York both provide wind and hail coverage. Liability insurance is also included in a dozen states.How much does home high-risk insurance cost?
Depending on the state, the area covered, and your level of risk, premium costs for FAIR Plans might be much higher than those for conventional insurance.