What Are FAIR Plans?
FAIR Plans (Fair Access to Insurance Requirements) are state-mandated insurance programs that provide coverage to homeowners who cannot find insurance in the private market. They are designed as a safety net — the "insurer of last resort."
Every state has some form of residual market mechanism. The largest are:
- • Citizens Property Insurance (Florida): 1.4+ million policies, the largest in the country
- • California FAIR Plan: Growing rapidly due to wildfire withdrawals
- • Louisiana Citizens: Expanding as private carriers exit
- • Texas Windstorm Insurance Association (TWIA): Covers coastal wind/hail risk
- • Beach/Windstorm Plans: Available in several Atlantic and Gulf coast states
FAIR Plan policies typically cost 20-50% more than equivalent private market coverage, offer more limited coverage, and may have lower coverage limits. They should be considered temporary while you continue searching for private market options.
How to Apply
The process is similar in most states:
1. Get denied first. Most FAIR Plans require proof that you were denied coverage by at least 2-3 private insurers. Your agent can document these denials. 2. Apply through a licensed agent. FAIR Plans typically require applications through a licensed insurance agent, not direct purchase. 3. Property inspection. Many programs require a property inspection before issuing a policy. Fix any code violations or safety hazards before applying. 4. Expect higher premiums and deductibles. FAIR Plan pricing reflects the higher risk of the properties they insure. 5. Keep shopping. FAIR Plans are a bridge. Continue getting private market quotes annually — new carriers enter markets regularly.
State-by-State Overview
High-crisis states (major FAIR Plan growth): - Florida (Citizens): Largest state-backed insurer. Covers wind, fire, and other perils. Premiums are rising but still below some private carriers. Legislative reforms in 2022-2023 aimed to shrink Citizens by pushing policies back to private market. - California (FAIR Plan): Covers fire/wildfire risk. Growing 30-40% annually as major carriers exit. New "wrap-around" policies available to supplement FAIR Plan coverage gaps. - Louisiana (Citizens): Expanded dramatically after 2020-2021 hurricane seasons. Covers standard homeowner perils.
Moderate-crisis states: - Texas (FAIR/TWIA): TWIA covers first-tier coastal counties for wind/hail. Texas FAIR Plan covers fire risk for other areas. Combined, they cover 350,000+ policies. - Massachusetts (FAIR Plan): One of the oldest FAIR Plans, covering properties in urban areas and coastal zones. - New York (FAIR Plan): Covers fire risk for properties in higher-risk areas. Property Ins. Underwriting Association.
Other notable programs: - Mississippi, Alabama, South Carolina, North Carolina: Beach/windstorm plans for coastal properties. - Colorado, Nebraska, Oklahoma: Standard FAIR Plans available but less commonly used (private market still functioning, though premiums rising fast).
Check your state's Department of Insurance website or InsureWatch's state pages for current program details and application information.