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What Is FAIR Plan Homeowners Insurance?

FAIR Plans provide insurance to homeowners who can’t get coverage in the standard insurance marketplace. But not every state has one.

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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.

Quick Facts

  • You’ll often see FAIR Plans referred to as “insurers of last resort” because they’re meant to help homeowners who’ve run out of other options for buying insurance.

  • FAIR Plan policies tend to be more expensive than standard insurance due to increased risks from severe weather, wildfire, home age, and more.[?]

  • Colorado is the most recent state to establish a FAIR Plan. It began accepting homeowner applications in April.[?]

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.

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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:

  • Fire (including wildfire)

  • Wind

  • Hail

  • Lightning

  • Electrical surges

  • Riots or civil unrest

  • Vandalism

  • Burglary

  • Leaks or broken water pipes

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.[?]

In Indiana, the FAIR Plan caps residential coverage at $250,000, which includes both the dwelling and your personal belongings.[?] In West Virginia, a standard FAIR Plan only covers damage from fire, lightning, or internal explosion.[?] And in Texas, FAIR Plan policies don’t cover falling objects, like tree limbs, or damage due to freezing.[?]

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:

State
sort ascsort desc
Total Number of Residential Policies
sort ascsort desc
Average Annual Cost Per Policy
sort ascsort desc
Louisiana172,994$3,358
Florida1,528,517$3,284
California311,456$2,703
Indiana692$2,691
Hawaii1,995$2,325
Washington187$2,053
Rhode Island13,424$2,002
Illinois1,755$1,937
Massachusetts194,378$1,729
Georgia8,558$1,532
Source: Insurify analysis of FAIR Plan data as published by the Insurance Information Institute

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.

State
sort ascsort desc
FAIR Plan Website
sort ascsort desc
Phone Number
sort ascsort desc
AlabamaAIUA.org1 (334) 943-4029
CaliforniaCFPNET.com1 (213) 487-0111
ColoradoColoradofairplan.com1 (833) 554-5425
ConnecticutCTFAIRPlan.com1 (860) 528-9546
DelawareDEFAIRPlan.com1 (215) 629-8800
Washington, D.C.DCPIF.org1 (202) 393-4640

Florida — 

1. Florida JUA

2. FL Windstorm Und. Assoc.

FMAP.org

1. 1 (850) 513-3700

2. 1 (904) 296-6105

GeorgiaGeorgiaUnderwriting.com1 (770) 923-7431
HawaiiHPIAinfo.com1 (808) 531-1311
IllinoisIllinoisFAIRPlan.com1 (312) 861-0385
IndianaIndianaFAIRPlan.com1 (317) 264-2310
IowaIowaFAIRPlan.com1 (515) 255-9531
KansasKSFAIRPlan.com1 (785) 271-2300
KentuckyKYFAIRPlan.com1 (502) 425-9998
LouisianaLACitizens.com1 (504) 831-6930
MarylandMDJIA.org1 (410) 539-6808
MassachusettsMPIUA.com1 (617) 723-3800
MichiganMBPIA.com1 (313) 877-7400
MinnesotaMNFAIRplan.org1 (612) 338-7584
MississippiMSplans.com/MRPIUA1 (601) 981-2915
MissouriMissouriFAIRplan.com1 (314) 421-0170
New Jerseyportal.NJIUA.org1 (973) 622-3838
New MexicoNMpropertyinsurance.com1 (505) 878-9563
New YorkNYPIUA.com1 (212) 208-9700
OhioOhioFAIRplan.com1 (614) 839-6446
OregonORFAIRplan.com1 (503) 643-5448
PennsylvaniaPAFAIRplan.com1 (215) 629-8800
Rhode IslandRIJRA.com1 (617) 723-3800
South CarolinaSCwind.com1 (803) 737-6180
TexasTexasFAIRplan.org1 (512) 899-4900
VirginiaVPIA.com1 (804) 358-0416
WashingtonWAFAIRplan.com1 (425) 745-9808
West VirginiaWVFAIRplan.com1 (215) 629-8800
WisconsinWisinsplan.com1 (414) 291-5353

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.

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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.

Pros

  • It can connect you with a pool of insurers willing to offer you coverage, even if you’ve been previously denied.

  • You’ll be able to purchase coverage for a home even if it’s older, outdated, in need of repair, or located in a high-risk area.

Cons

  • Coverage isn’t intended to be competitive, so premiums can be (and usually are) notably higher than traditional policies.

  • You may be subject to much lower coverage limits than with traditional homeowners insurance.

FAIR Plan insurance FAQs

If you have more questions about FAIR Plan insurance, check out the additional information below.

  • How much does FAIR Plan insurance cost?

    Insurance purchased with the help of a FAIR Plan is generally much more expensive than a comparable, traditional insurance policy. The actual premiums will depend on the property’s location, age, condition, and the coverage options chosen.

    Based on Insurify’s analysis of FAIR Plan data published by Triple-I, the average annual cost of a FAIR Plan policy ranges from $3,358 in Louisiana to just $464 in Delaware. But your actual cost may be higher based on individual factors like your credit and claims history.

  • What does the California FAIR Plan not cover?

    California FAIR Plan coverage is a fire insurance pool helping Californians get access to basic fire coverage. If you need to purchase earthquake or flood coverage, you’ll need to work with a broker to find the right policy for you.

  • Can you pay the California FAIR Plan monthly?

    Yes, you can pay your California FAIR Plan premium monthly in 11 installments. Your first payment will be for 16.67% of the total annual premium. The remaining 10 payments will divide the remaining balance into equal installments. You can also pay your premium in full at the start of your policy or in three installments of 40%, 30%, and 30% of the total premium.

  • What’s the limit on the FAIR Plan?

    FAIR Plan coverage limits differ by state. For example, in Florida, the maximum coverage amount for a Citizens Property Insurance Corp. policy is $1 million. In Kentucky, the maximum dwelling coverage limit is $200,000. Keep in mind that FAIR Plan policies generally won’t pay claims at replacement cost value.

  • Does FAIR Plan insurance cover loss of use?

    FAIR Plan policies generally don’t include coverage for loss of use. If you have FAIR Plan insurance and a covered event forces you to leave your home until it’s fixed, your policy won’t pay for your living expenses.

Stephanie Colestock
Stephanie Colestock

Stephanie is a DC-based freelance writer and Certified Financial Education Instructor (CFEI). She primarily covers personal finance topics such as insurance, loans, real estate investing, and retirement. Her work can be found on CBS, FOX Business, MSN, Yahoo! Finance, Business Insider, and more. When she isn't helping people plan for their financial futures, she is traveling, hiking with her kids, or writing for her own website, TomorrowsDollar.com. She can be reached on X @stephcolestock.

Stephanie has been a contributor at Insurify since October 2022.

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