For most homeowners, going without insurance isn’t an option — especially if you have a mortgage. But if you live in an area with significant weather or wildfire risks, it may be difficult to find a standard home insurance policy. That’s because insurance companies generally try to avoid the chance of having to pay out big claims in high-risk areas.
Some states, like California and Texas, have state-sponsored programs to provide basic insurance to homeowners who haven’t been able to buy a policy in the standard insurance marketplace. But these plans tend to offer basic coverage at a higher price, so they’re not for everyone.
Here’s what you need to know about FAIR Plans, including which states have them, how they work, how they differ from traditional homeowners insurance, and what to expect if you need to buy FAIR Plan coverage.
What is FAIR Plan insurance?
A Fair Access to Insurance Requirements, or FAIR, Plan is a state-managed program that provides property insurance to homeowners who haven’t been able to get coverage in the standard insurance marketplace. State governments create and manage FAIR programs, and taxpayers often subsidize them.
But FAIR Plans don’t directly sell or underwrite policies. Instead, every company that sells home insurance in the state must participate in the FAIR Plan pool — and provide coverage to homeowners who get approval for FAIR Plan coverage.
Participating insurers share responsibility to issue policies to high-risk homeowners and pay out subsequent claims. They also split any profits from that consumer pool.
FAIR Plans tend to offer more limited coverages. And they’re often more expensive than traditional homeowners insurance policies.
Who needs FAIR Plan insurance?
If you’re a homeowner — or in some states, a business owner — who’s been denied coverage in the standard insurance market, you may qualify for FAIR Plan coverage.
Generally, homeowners may end up with a FAIR Plan if their property is in an area with a high risk of disasters like hurricanes, tornadoes, or wildfires. Some might not be able to buy standard insurance because they have an older or outdated home with certain high-risk qualities, like old plumbing or electrical wiring. And some may need FAIR coverage because they’ve had a history of multiple claims.
How to buy FAIR Plan insurance
To buy homeowners insurance through your state’s FAIR Plan, you’ll need to follow some basic steps:
What does FAIR Plan insurance cover?
Standard homeowners insurance policies usually cover damage from:
A standard homeowners insurance policy will cover your home, any other structures on your property (like a shed or gazebo), your personal belongings, and any additional living expenses you face while your home is undergoing repair for a covered claim.
But FAIR Plan policies are more limited, and each state’s program varies in what it will cover.
For example, the Pennsylvania FAIR Plan has basic property insurance coverage that only protects your dwelling against fire- or lightning-related loss. If you want protection against other perils, you’ll need to purchase additional coverage.3
In Indiana, the FAIR Plan caps residential coverage at $250,000, which includes both the dwelling and your personal belongings.4 In West Virginia, a standard FAIR Plan only covers damage from fire, lightning, or internal explosion.5 And in Texas, FAIR Plan policies don’t cover falling objects, like tree limbs, or damage due to freezing.6
Depending on what your state’s FAIR Plan covers, you may need to buy additional policies to ensure your home has full protection.
How much does FAIR Plan insurance cost?
For most homeowners, FAIR Plan policies are more expensive than a standard homeowners insurance policy.
For example, based on the number of policies in force in March 2025 and total written premiums, the average annual cost of a California FAIR Plan policy is approximately $2,800. For comparison, in 2024, the overall average cost of home insurance in the state was $2,424, according to Insurify data.
Here’s a look at the 10 states with the highest average cost for a FAIR Plan homeowners policy in 2023:
States that offer FAIR Plan homeowners insurance
Currently, 33 states plus the District of Columbia offer a FAIR Plan for homeowners insurance. Colorado launched its FAIR Plan earlier this year. Here’s a look at states that have FAIR Plans.
How to qualify for a FAIR Plan policy
Not everyone can qualify to buy a FAIR Plan policy. And you should apply for one only as a last resort if you can’t find coverage in the open market.
Every state has its own eligibility requirements for its FAIR Plan program. Generally, though, multiple insurers must refuse to cover your home. For example, in Indiana, you’ll only qualify if three or more unrelated insurers have denied you coverage, while in Texas, you need to be denied by just two.
And you may need to show evidence of the rejections.
Some states limit plans to certain property types, like single-family homes. Others may offer coverage only to residential properties, not commercial ones. And in some states, you may have to make improvements or repairs to your home to qualify, especially if it has old wiring or plumbing that could lead to a claim.
Lastly, to qualify for a FAIR Plan policy, you usually can’t have any outstanding tax liens or open insurance claims on the property.
FAIR Plan insurance pros and cons
While buying homeowners insurance through a FAIR Plan may feel like a last resort, you should keep in mind these advantages and disadvantages.
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