Explanation of the FAIR Plan

Coverage for High-Risk Homes

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By
Mila Araujo
Mila Araujo Personal Insurance Expert for the Balance
Full Bio
Mila Araujo is a certified personal lines insurance broker with more than 20 years of experience in the insurance industry. She currently serves as the director of personal insurance for Ogilvy Insurance where she works with some of the world's largest insurers and manages the needs of thousands of clients with the help of her broker team. As an insurance expert, has written about homeowners, auto, health, and life insurance for The Balance. Mila received the Bernard J. Finestone Award in General Insurance from McGill University in 2001. 
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Updated January 12, 2022
Reviewed by
Samantha Silberstein
Samantha Silberstein
Reviewed by Samantha Silberstein
Full Bio
Samantha Silberstein is a Certified Financial Planner, FINRA Series 7 and 63 licensed holder, State of California Life, Accident, and Health Insurance Licensed Agent, and CFA. She spends her days working with hundreds of employees from non-profit and higher education organizations on their personal financial plans.
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The Fair Access to Insurance Requirements (FAIR) Plan is a state-mandated program that provides fair access to insurance for individuals who are having trouble insuring their property due to the fact that insurers consider them high risk. The FAIR plan is a "shared market plan."

Key Takeaways

  • FAIR Plans provide insurance to people that would otherwise be denied insurance on their property due to being in a high-risk area or having other major problems.
  • High-risk homes include those in regions prone to natural disasters or in high-crime areas, residences in disrepair, or homes with many previous claims.
  • Extra steps may be needed in order to be eligible for a FAIR Plan, such as limiting your risk by installing alarm devices, water backup valves, or replacing your home's wiring.

FAIR Plans Help Cover Higher-Risk Properties

FAIR Plans are state programs that are sometimes subsidized by private insurance companies. These plans often provide insurance to people who would otherwise be denied coverage on their property due to being in a high-risk area or having other related high-risk problems.

Your state insurance department can give you more information on its particular FAIR Plan, or you can check out the state-by-state list of where you can get help for the FAIR Plan insurance program below.

The FAIR Plan and High-Risk Insurance

With high-risk insurance, the insurance company has decided that the risk of having claims in a specific location or area is high based on:

  • Geographic data
  • Maintenance
  • "Loss history" or having a high number of claims incidents for the location or specific home.

Where Do You Get Insurance for a High-Risk Area?

Standard insurers do not specialize in high-risk properties and therefore will often refuse to insure them by either not insuring in the first place or by refusing to renew a high-risk location once the insurance policy term is up. An insurance company's underwriting guidelines will usually dictate which risks they are comfortable with. You can get insurance for high-risk properties from specialty insurers, some of which may be non-admitted insurers. Non-admitted insurance companies will often think outside the box or specialize in risks that other insurers are uncomfortable with.

What Makes a Home High Risk?

  • If you live in an area that is prone to natural disasters, like tornados, or where there is a high incidence of hurricanes or windstorms, your property may be considered high-risk.
  • If you live in an area that is prone to high crime levels, such as vandalism or theft.
  • If your home has not been renovated or is in disrepair.
  • If you have had many claims.

What To Do if You Have Trouble Finding Home Insurance

If you are purchasing your first home or a new property and are having a hard time finding an insurance company to insure you, try asking your realtor whether they know of local insurance companies or brokers that will write policies in the area. Insurance brokers have access to many different insurance companies and will work to find you something.

You can also contact your local state insurance commissioner's office, and they will point you in the right direction. You may still be able to find a policy with a private insurer that is comfortable and offers good coverage. The FAIR Plan should be used as a last resort.

You can also try to negotiate: Consider the reasons that you are being refused insurance, and try negotiating with the insurance company. Very often, if you make adjustments or repairs, or consider higher deductibles, you may be able to obtain coverage. Make sure you try everything with a few standard insurers before going to the FAIR Plan.

Conditions To Be Eligible for the FAIR Plan

According to the Insurance Information Institute, even the FAIR Plan has conditions that must be met. Just because you have a high-risk home, it does not mean the FAIR Plan will accept you. You may be asked to limit the risk of fire, theft, or water damage by installing anti-theft or alarm devices, or you may be asked to install water backup valves or make repairs on your home, such as replacing or fixing a roof or your wiring. If these types of conditions would have made you eligible for standard insurance, you are probably better off doing your necessary repairs and sticking with a standard insurance company. Standard insurance companies are usually less expensive than high-risk insurers.

When To Look for FAIR Plan Insurance

If you have exhausted all of the options outlined above, and you can't seem to find an insurance company to accept your risk, then you have the option of applying for insurance with the FAIR Plan. Keep in mind, however, that if the reason for a refusal to insure your property is not due to matters beyond your control, even the FAIR Plan has the right to refuse coverage if you do not adhere to the recommendations. The situation varies case by case, so the best idea is to contact them directly to discuss the conditions of the FAIR Plan as they apply to your situation. You may also be eligible for additional insurance endorsements that may improve the base coverage.

Where To Find FAIR Plan Insurance Help State by State

Alabama Insurance Underwriting Association

California FAIR Plan Association

Connecticut FAIR Plan

Insurance Placement Facility of Delaware

District of Columbia Property Insurance Facility

Citizens Property Insurance Corporation [Florida]

Georgia Underwriting Association

Illinois FAIR Plan Association

Indiana Basic Property Insurance Underwriting Association

Iowa FAIR Plan Association

Kansas All-Industry Placement Facility

Kentucky FAIR Plan Reinsurance Association

Louisiana Citizens Property Insurance Corporation

Maryland Joint Insurance Association

Massachusetts Property Insurance Underwriting Association

Michigan Basic Property Insurance Association

Minnesota FAIR Plan

Mississippi Windstorm Underwriting Association

Missouri Property Insurance Placement Facility

New Jersey Insurance Underwriting Association

New Mexico Property Insurance Program

New York Property Insurance Underwriting Association

North Carolina Joint Underwriting Association - FAIR Plan

North Carolina Insurance Underwriting Association - Coastal Property Insurance Pool

Ohio FAIR Plan Underwriting Association

Oregon FAIR Plan Association

Insurance Placement Facility of Pennsylvania

Rhode Island Joint Reinsurance Association

South Carolina Wind and Hail Underwriting Association

Texas FAIR Plan Association

Texas Windstorm Insurance Association

Virginia Property Insurance Association

Washington FAIR Plan

West Virginia Essential Property Insurance Association

Wisconsin Insurance Plan

How To Get Insurance When You Live in a High-Risk Area

If you have been unsuccessful in obtaining insurance for your home because it is designated as high risk, or you have been refused insurance, and you have already tried to negotiate with standard private insurers and have exhausted all other options, then you can contact the FAIR Plan administrator in your state to find out more information about the FAIR Plan and how to get insurance on your home.

FAIR Plan Administrator Phone Numbers by State

Alabama: 334-943-4029

California: 213-487-0111

Connecticut: 860-528-9546

Delaware: 215-629-8800

District of Columbia: 202-393-4640

Florida: JUA 850-513-3700

Florida Windstorm Underwriters Association: 904-296-6105

Georgia: 770-923-7431

Hawaii: 808-531-1311

Illinois: 312-861-0385

Indiana: 317-264-2310

Iowa: 515-255-9531

Kansas: 785-271-2300

Kentucky: 502-425-9998

Louisiana FAIR Plan: 504-831-6930

Maryland: 410-539-6808

Massachusetts: 617-723-3800

Michigan: 313-877-7400

Minnesota: 612-338-7584

Mississippi: 601-981-2915

Missouri: 314-421-0170

New Jersey: 973-622-3838

New Mexico: 505-878-9563

New York: 212-208-9700

Ohio: 614-839-6446

Oregon: 503-643-5448

Pennsylvania: 215-629-8800

Rhode Island: 617-723-3800

South Carolina: 803-737-6180

Texas: 512-899-4900

Virginia: 804-591-3700

Washington: 425-745-9808

West Virginia: 215-629-8800

Wisconsin: 414-291-5353

Frequently Asked Questions (FAQs)

What does FAIR plan insurance cover?

FAIR Plans do not cover as many perils as a standard homeowners insurance policy, but the exact coverages vary by state. All FAIR plans cover losses due to fire, vandalism, riots, and windstorms. In California, coverage also includes losses for brush fires. Georgia and New York both offer wind and hail coverage for some coastal areas. A dozen states also include liability coverage.

How much is high-risk insurance for a home?

Premium rates for FAIR Plans vary by state, coverage area, and your risk level, but they can be significantly higher than the rates for standard policies.

Article Sources

  1. Insurance Information Institute. "What if I Can't Get Coverage?" Accessed Jan. 6, 2022.