How much does FAIR Plan insurance cost?

FAIR Plan insurance is usually more expensive than a standard homeowners policy from a private insurance company. The only way to qualify for a FAIR Plan is for you or your home to be so high-risk that no single private insurer is willing to offer you a homeowners policy. In this case, a FAIR Plan divides your policy among several providers, limiting the risk each company assumes. However, despite providing access to homeowners insurance, a FAIR Plan doesn't alter the reality of your high-risk status, which must be balanced with a more expensive premium. The actual cost of home insurance through a FAIR Plan will depend on a number of factors, most of which are also factors when you buy standard home insurance. Some examples include your state, ZIP code, the age of the home, your credit-based insurance score and your claims history.

Can I stay on FAIR Plan insurance forever?

It depends. Many states require people with FAIR Plan home insurance to apply for private coverage at least once per year. If you’ve been on the plan for a while, the insurance company might work with you to make renovations or updates that would allow you to qualify for private insurance. If you have FAIR homeowners insurance because your home is located in a high-risk area, like on the beach, it might be possible to stay on a FAIR Plan for as long as you own the home.

What does a FAIR plan cover?

FAIR plans generally offer limited coverage. Most plans include dwelling coverage, which is designed to pay for damage to your home's structure, and personal property coverage, which would, as the name indicates, pay for damages to personal items from clothing to appliances. Most plans do not include liability coverage, medical payments or loss of use insurance. It's worth noting that the coverage you receive from a FAIR plan is likely to be on the basis of actual cash value rather than replacement cost value. That means your claim payout is for the depreciated amount of the item covered, not the amount it would cost to replace it. You may, in some cases, be able to purchase an endorsement that will give you replacement cost coverage, but this availability varies from state to state.

Are there discounts available for FAIR Plan insurance?

Most insurance companies offer home insurance discounts to policyholders looking to save money. But unfortunately, you typically can’t qualify for discounts with a FAIR Plan. However, there are other ways to potentially save money on your premium. For example, if you improve your credit score (in some states), make safety-related home improvements or raise your deductible, you might be eligible for a lower rate.

Advertising disclosure

This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Insurance disclosure

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

FAIR Plan home insurance

Written by

Elizabeth Rivelli

Edited by

Lisa McArdle

Edited by

Lisa McArdle

Updated Apr 16, 2024

Find quotes for your area

Explore offers from trusted carriers

+ MORE

Advertising disclosure

Insurance disclosure

On This Page

FAIR Plan insurance explained

A FAIR Plan, which stands for Fair Access to Insurance Requirements, is a program that allows high-risk homeowners to purchase home insurance. People who get insurance through a FAIR Plan are typically not eligible for coverage through the standard home insurance market because their home is located in a high-risk area or they have other red flags that concern insurers.

FAIR Plans are state-run programs that are subsidized by taxpayers and private insurance companies. A FAIR Plan is slightly different from a typical home insurance company because it is a shared market plan. Rather than getting coverage from a single insurance company, several insurance companies cover your property in a FAIR Plan, limiting the amount of risk that one company assumes. If you have to file a claim, every participating company pays for a portion of your loss.

When it comes to the actual coverage, homeowners insurance through a FAIR Plan is pretty limited. Many plans may only include dwelling and personal property coverage on a named perils basis. You most likely cannot get liability, medical payments or loss of use coverage through a FAIR Plan.

It is important to note that FAIR Plan home insurance is only used as a last resort option. You cannot apply for home insurance through your state’s FAIR Plan as your first option because you will have to prove that you have been denied home insurance from several private companies.

High-risk homes and FAIR Plans

FAIR Plans specifically cover high-risk homes and high-risk homeowners. However, the criteria for what is considered a high-risk home is very specific. Here are some of the characteristics of a high-risk home that may qualify you for FAIR Plan insurance:

You live in an area with a high risk of severe weather, like tornadoes, hurricanes or earthquakes.
You live in a neighborhood with a high rate of crime, vandalism or theft. This is typically more common in urban areas.
Your home is very old and has outdated systems that make it risky to insure, like old plumbing or electrical wiring.

FAIR Plans also serve homeowners with a lengthy claims history. If you’ve filed more than a few insurance claims, especially major ones, it may be a red flag for insurance companies. When you apply for a new policy, the insurance company can review your Comprehensive Loss Underwriting Exchange (CLUE) report, which includes a record of the insurance claims you’ve filed. A spotty claims record can make it difficult to get preferred coverage, so you might have to resort to a FAIR Plan if you fall into this category.

Although you may be able to find private insurance companies willing to insure high-risk homes, it’s becoming more difficult in some states. For example, a number of home insurance companies in Florida are shutting down and canceling policies due to the uptick in natural disasters, expensive claim payouts and fraudulent claims. Therefore, more Florida homeowners may need to consider a FAIR Plan due to the difficulty in finding standard coverage.

How to get FAIR Plan homeowners insurance

The process of getting FAIR insurance is different in every state, but is usually straightforward.

Keep in mind that some states require FAIR homeowners insurance customers to apply for private home insurance once per year. If approved, you will no longer be eligible for the FAIR Plan home insurance.

States that offer FAIR Plan insurance

Not every state offers a FAIR Plan, but many do, especially states with a high rate of severe weather. As of 2022, the most recent year with data available, 34 states and Washington D.C. offer or plan to offer FAIR Plans to high-risk homeowners.

Alabama
California
Colorado (starting in 2025)
Connecticut
Delaware
Florida
Georgia
Hawaii
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
New Jersey
New Mexico
New York
North Carolina
Ohio
Oregon
Pennsylvania
Rhode Island
South Carolina
Texas
Virginia
Washington
Washington D.C.
West Virginia
Wisconsin

Frequently asked questions

FAIR Plan insurance is usually more expensive than a standard homeowners policy from a private insurance company.

The only way to qualify for a FAIR Plan is for you or your home to be so high-risk that no single private insurer is willing to offer you a homeowners policy. In this case, a FAIR Plan divides your policy among several providers, limiting the risk each company assumes. However, despite providing access to homeowners insurance, a FAIR Plan doesn't alter the reality of your high-risk status, which must be balanced with a more expensive premium.

The actual cost of home insurance through a FAIR Plan will depend on a number of factors, most of which are also factors when you buy standard home insurance. Some examples include your state, ZIP code, the age of the home, your credit-based insurance score and your claims history.
It depends. Many states require people with FAIR Plan home insurance to apply for private coverage at least once per year. If you’ve been on the plan for a while, the insurance company might work with you to make renovations or updates that would allow you to qualify for private insurance.

If you have FAIR homeowners insurance because your home is located in a high-risk area, like on the beach, it might be possible to stay on a FAIR Plan for as long as you own the home.
FAIR plans generally offer limited coverage. Most plans include dwelling coverage, which is designed to pay for damage to your home's structure, and personal property coverage, which would, as the name indicates, pay for damages to personal items from clothing to appliances. Most plans do not include liability coverage, medical payments or loss of use insurance.

It's worth noting that the coverage you receive from a FAIR plan is likely to be on the basis of actual cash value rather than replacement cost value. That means your claim payout is for the depreciated amount of the item covered, not the amount it would cost to replace it. You may, in some cases, be able to purchase an endorsement that will give you replacement cost coverage, but this availability varies from state to state.
Most insurance companies offer home insurance discounts to policyholders looking to save money. But unfortunately, you typically can’t qualify for discounts with a FAIR Plan. However, there are other ways to potentially save money on your premium. For example, if you improve your credit score (in some states), make safety-related home improvements or raise your deductible, you might be eligible for a lower rate.

Written by

Elizabeth Rivelli

Contributor, Insurance