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Delaware FAIR Plan

Checked against official sources · Last reviewed October 13, 2026

What the Delaware FAIR Plan is

The Delaware FAIR Plan, formally the Insurance Placement Facility of Delaware, "commenced operating October 28, 1968, to make basic property insurance available" to people with an insurable interest in Delaware property "who have been unable to secure such insurance from the voluntary insurance market." FAIR stands for Fair Access to Insurance Requirements.

Delaware law (18 Del. C. 4103 to 4113, the "Basic Property Protection Plan") requires the insurance industry to run a placement facility for basic property insurance, under the Insurance Commissioner's supervision. The plan says it was created under House Bill 712 of the Delaware General Assembly, is "an association of the property insurance companies doing business in Delaware," and that "No Federal, State, or local funds are used to support or subsidize this Plan." A board of directors elected each year by the member companies runs it.

The plan is staffed from Philadelphia: its 2024 annual report says it "is run with full support and staffing provided by the Insurance Placement Facility of Pennsylvania."

We are not the Delaware FAIR Plan and are not affiliated with it. This page explains the plan's published rules; the plan makes the decisions. [1][11][12][13]

Who is eligible

Any individual, business, estate or other entity "having an insurable interest in any real or personal property which has a fixed location in this state may apply." The plan's brochure says "Almost every property owner in the State is eligible," in every county, "at the beach, along the bay" or in the city. Delaware law entitles anyone who "has made a diligent effort to obtain basic property insurance in the normal insurance market" to an inspection.

You can't get coverage if you:

• have been convicted of, or have an outstanding indictment for, arson or insurance fraud;
• put misrepresentations on the application (a policy issued on that property is void); or
• won't let the plan inspect the property.

Property the plan won't insure includes motor vehicles, farms, buildings in danger of collapse or under an order to vacate or demolish, property "in extremely dilapidated condition" or with substantial unrepaired damage, and buildings with current fire, health, building or code violations. Buildings vacant or unoccupied longer than 30 days are ineligible unless boarded up, with exceptions such as active renovation, a home listed for sale (up to one year), active military service, and seasonal homes.

The property must also be "reasonably well maintained with windows and doors intact and electrical wiring in good condition." An inspection that finds hazards such as broken windows, exposed wiring, or roof, wall or plumbing leaks can lead the plan to decline, limit the perils covered, or add a condition charge.

Storms: no new applications or coverage increases are accepted while a named tropical storm or hurricane is inside a box running from 30 to 42 degrees North and 70 to 85 degrees West. The exception: if your previous policy was nonrenewed within the past 60 days, you can still get coverage by sending proof of the nonrenewal with your application and premium. [2][8][13][14]

What it covers and what it doesn't

For homes and other residential buildings, the plan issues a simplified policy based on the Insurance Services Office DP-00 01 basic form, covering "fire, extended coverage and vandalism." The plan's brochure lists:

• fire, including lightning and internal explosion;
• wind or windstorms, hail, falling aircraft, vehicles, smoke, explosion and volcanic eruption;
• vandalism and malicious mischief (not on fully vacant or unoccupied buildings).

What it doesn't do:

- "Coverage against loss caused by other perils, or for time element or indirect loss is NOT provided by the Plan." The brochure calls it "a Fire Insurance policy that protects both your buildings and your contents," not a full homeowners policy. - Claims are paid at actual cash value: "the cost to repair or replace the damaged property less deductions for physical deterioration (depreciation) and obsolescence." - Flood is not one of the listed perils, and the plan says other perils are not covered. For flood insurance, see our sister site FloodHawk.

Limits:

The plan will consider more than the purchase-price limits after an inspection or proof of renovation spending.

Hurricane deductible: a $2,000 Delaware hurricane deductible is mandatory on dwellings in ZIP codes 19930, 19944, 19958, 19970 and 19971, and optional in 19939, 19941, 19945, 19947, 19951, 19960, 19966, 19967, 19968, 19969 and 19975. It applies from the time the National Hurricane Center issues a hurricane watch or warning for any part of Delaware until 72 hours after the last one ends. More: hurricane deductible.

Policies run for one year. [2][9][10][15]

How to apply

1. Choose how to apply. "An application may be filed on behalf of the applicant by a producer (licensed property insurance agent or broker). Also, an application may be filed directly by any person or legal entity having an insurable interest in the property." The plan says "There is no cost to apply," and agents and brokers may not charge you a fee for placing coverage in the plan. 2. Get a quote and apply online, through the plan's online services, or use the Dwelling Fire Insurance Application on the forms page. Each building or structure needs its own application. Incomplete applications are returned. 3. Pay the premium. Coverage starts at 12:01 a.m. the day after the plan receives your premium (or a later date you ask for). Mail or deliveries arriving on a weekend, holiday or after hours count as received the next business day. The minimum premium for a dwelling policy is $75. 4. Inspection. Vacant property, estates, bankruptcy cases and other properties the rules flag need an inspection or review before coverage starts. Others are bound first and inspected after; if the inspection finds the property uninsurable, the plan may decline it, and its rules say the declination "will specify the reason(s) for uninsurability and include a copy of the inspection report."

The plan's brochure says "Next day binding coverage can be provided in most cases." [2][3][5][6][16][17][18]

Paying, claims and policy changes

- Pay by personal check, certified or bank check, money order, or by credit card or bank transfer through the plan's website. Make checks payable to "The DE FAIR Plan" or "The Insurance Placement Facility of Delaware." Don't mail cash. - Log in, pay or report a claim online at the plan's online services portal, which has separate registration for insureds and agents. - Report a claim promptly on ACORD Property Loss Notice form 1, by mail or fax (215) 409-9100, or through the website. For an emergency (home unlivable, in danger of collapse or more damage, or under a demolition order), call the claims department at (215) 629-8800. The plan assigns all adjusters; your agent can't. - Claim checks normally go to your agent of record to pass on to you, or to your public adjuster or attorney if you have one. - Phone menu: (215) 629-8800, option 1 for customer service, payments and policy questions; option 2 for new or pending claims; option 3 for accounting. Hours are Monday to Friday, 8 a.m. to 4 p.m. - Renewal: the plan reviews policies before they expire and mails a "Notice of Premium Due" to renew. If a policy lapses, you can ask within 30 days of expiration to reinstate it without a gap, if you pay and send a letter saying there were no losses. [1][4][5][18][19][20]

If the plan turns you down or cancels

The plan must give you at least 30 days' written notice before it cancels or nonrenews, except that 5 days' notice can be used in listed situations such as abandoned property, unrepaired fire damage, code violations, unpaid utility bills or real estate taxes, arson or material misrepresentation.

You can appeal "an Underwriting decision or action by the Plan within thirty days after any ruling" in writing, and appeal that decision to the Insurance Commissioner within 30 days. Delaware law gives anyone "aggrieved by any action or decision" of the facility 30 days to appeal to the Commissioner, who holds a hearing. [13][21][22]

Rates, results and recent changes

- Size: in 2024 the plan issued 1,227 policies and wrote $607,263 in premium, a 6.97% increase in policies issued; new applications rose 51.58%. Its president wrote that premiums "have never exceeded $900,000" in a year and policy counts "have only once been as high as 6,063." - Losses: the plan "suffered two large losses in 2024," and losses incurred rose 550.33%, for a 2024 operating deficit of $624,538.51. In the first half of 2026 the plan wrote $370,993 in premium and reported a net result of $231,720.18. - Cost: the plan's brochure says "Generally speaking, FAIR Plan premiums are less and more affordable than elsewhere," but also that "you may find broader coverages elsewhere," and it encourages you "to seek several quotations." - Rules: the General Rules sections posted on the plan's website are labeled edition 12/2024. [2][11][23][24]

Getting back to a regular insurer

The plan's rules say it "is not intended to replace normal markets." Its brochure says that "after a clean loss history is established with the FAIR Plan, you may find other companies more willing to quote your property," and that if you get insurance elsewhere you can cancel your FAIR Plan policy "without penalty charges and pay only for the days in which the FAIR Plan policy was in force."

Delaware law also bars a regular insurer from turning you down just because you "previously obtained insurance coverage through a residual market insurance mechanism" such as the FAIR Plan. [2][9][21][25]

Help

- Delaware FAIR Plan: (215) 629-8800, toll-free (800) 462-4972, customerservice@pafairplan.com. Mail: 190 N. Independence Mall West, Suite 301, Philadelphia, PA 19106-1554. - Complaints about an insurer or agent: Delaware Department of Insurance Consumer Services, (800) 282-8611 toll-free in Delaware, or the complaint page. - Your rights if a regular insurer dropped you: Homeowners Insurance in Delaware. [1][4][7][26]

Questions people ask