Home › Dropped or can't get coverage

FAIR Plans: Last-Resort Home Insurance, State by State

Checked against official sources · Last reviewed October 13, 2026

What a FAIR plan is

The NAIC describes FAIR plans as "state-mandated property insurance plans that provide coverage to individuals and businesses who are unable to obtain insurance in the regular market." They are "typically used as a last resort" and give basic coverage to homes that insurers see as high-risk or hard to insure "due to factors such as location, age, or type of construction."

FAIR plans go by many names. Some are called FAIR plans; others are "underwriting associations," "placement facilities" or "property insurance associations." Coastal states also run beach and windstorm plans, which the NAIC calls "a type of FAIR plan in coastal states." Florida and Louisiana run theirs as "Citizens" property insurance corporations.

The NAIC also notes that the "size, scope, and funding mechanisms vary significantly" from state to state. So the details below are general; your own state's plan sets its own rules. [1][2][11]

Where FAIR plans came from: the 1968 federal law

FAIR plans grew out of the Urban Property Protection and Reinsurance Act of 1968, Title XI of Public Law 90-448, signed Aug. 1, 1968. Congress found that "responsible owners of well-maintained residential, business, and other properties" in many inner-city areas "are unable to obtain adequate property insurance coverage against fire, crime, and other perils," and that riots had caused "abnormally high losses" for insurers.

The law offered insurers federal riot reinsurance. In return, each reinsured insurer had to work with its state's insurance regulator on "statewide plans to assure fair access to insurance requirements (FAIR plans)." The 1968 rules said a home could not be turned down or surcharged without first being inspected "without cost to the owner," and an insurer that declined had to give "the specific reasons" and explain the owner's right to appeal to the state.

Many of today's plans date from that time. The California FAIR Plan was set up by state law in August 1968 "following the riots and brush fires of the 1960s." The Delaware and Pennsylvania plans began operating Oct. 28, 1968, and the Minnesota plan was set up in 1968. The Connecticut and Rhode Island plans say they were set up to conform to, or in response to, the 1968 federal act. (The NAIC calls the law the "Urban Property Insurance Protection and Reinsurance Act"; the statute's own title is the "Urban Property Protection and Reinsurance Act of 1968.")

In 2025 the NAIC called Colorado's FAIR Plan the newest of these markets, citing its "recent development and launch." [1][4][5][11][12][13][14][15][16]

Who pays for a FAIR plan (and what an assessment is)

A FAIR plan is not a regular insurance company. According to the NAIC, the plans are "financially backed by all private insurers licensed to write insurance in that state," and each insurer shares in the plan's "profits, losses, and expenses at an amount proportional to its market share in the state."

The plans say the same about themselves. The California FAIR Plan says it "is not a state agency, nor is it a public entity. There is no public or taxpayer funding." Ohio's plan says each licensed company "shares in the losses of the Plan in direct proportion to its premium volume in Ohio." Pennsylvania's says "No Federal, State, or local funds are used to support or subsidize this Plan."

When a plan's losses are larger than its money on hand, it can charge its member insurers an assessment. The California FAIR Plan's published history shows assessments of $150 million (fiscal 1993), $60 million (1994), $50 million (1995) and $1 billion in fiscal 2025, and distributions to members in some other years. For the 2025 assessment, the California Department of Insurance said insurers were "responsible for half the assessment" under an earlier agreement and, with the Commissioner's prior approval, could charge their own customers "a temporary supplemental fee." See our California FAIR Plan page.

Florida works differently. If Citizens Property Insurance Corporation has a deficit, state law makes it charge its own policyholders a surcharge of "up to 15 percent" of premium. Any remaining deficit is covered by emergency assessments collected "from assessable insureds" across the state, including people insured by other companies and by surplus lines insurers. [1][3][5][13][17][18][19]

What a FAIR plan covers, and what it usually doesn't

Coverage "varies by state," the NAIC says, "but at the very least it usually includes dwelling coverage." Coverage for your belongings and for other structures (a garage or shed) is usually an optional add-on, and "loss of use and personal liability coverages aren't offered" in most FAIR plans. The NAIC adds that FAIR plans are "typically only intended to provide coverage for catastrophic events."

Two examples show how narrow a plan can be:

• California FAIR Plan: its dwelling policy is a "named peril policy." It covers fire and lightning, internal explosion and smoke. Vandalism coverage costs extra. The notice California law requires with every nonrenewal warns that "FAIR Plan policies may not cover liability, theft, or water damage, among other things."
• Wind pools: the Texas Windstorm Insurance Association sells "windstorm and hail insurance" on the Texas coast. The Mississippi Windstorm Underwriting Association covers wind and hail in six coastal counties and says its coverage "is standalone — not flood or all-perils."

Because of these gaps, many people pair a FAIR plan with a second policy. California's FAIR Plan suggests "Difference in Conditions, Flood, or Earthquake policies" to cover more perils; see our difference in conditions guide. Flood is separate: California's FAIR Plan points you to a separate flood policy, and Mississippi's wind pool says its coverage is not flood. For flood insurance, see our sister site FloodHawk. [1][9][20][21][22]

Why FAIR plans cost more and cover less

FAIR plans are built to be a backstop, not to compete with regular insurers. The NAIC says they are "typically more expensive and have limited protection than insurance obtained in the regular market."

The plans say so too. Iowa's plan says it "should be considered a last resort" and that "Our policies provide less coverage than the voluntary market companies." The Texas FAIR Plan "does not compete with the private market." Oregon's plan warns its coverage "is basic and may not provide the full extent of coverage needed."

Florida writes the rule into law. You must "first try to obtain private market coverage" before getting a Citizens policy. For a primary home, a new applicant who gets an offer from an authorized (state-licensed) insurer is not eligible for Citizens unless that premium is "more than 20 percent greater" than Citizens' price for comparable coverage. Since April 1, 2023, the same 20 percent test applies at renewal. [1][3][7][23][24]

How to apply for a FAIR plan

Many plans take applications through a licensed insurance agent or broker rather than directly. Some examples:

• California: "Any licensed insurance agent or broker registered with the California FAIR Plan can assist you." The broker first does "a diligent search" for regular coverage. Not all brokers are registered with the plan, and "There is no additional cost for having an insurance broker." California law also says you can apply directly with the plan, though the plan "strongly encourages" using an agent or broker.
• Iowa: "Only a licensed insurance agent can submit applications."
• Hawaii: any agent licensed to sell property insurance in Hawaii can help you apply to the Hawaii Property Insurance Association.
• Texas FAIR Plan: applicants "must have two declinations from other insurers."
• New Mexico: since Nov. 4, 2025, the application must include an affidavit signed by you and your licensed insurance agent.
• Mississippi: you apply for windstorm or property coverage "through a licensed agent."

Two tips from the California FAIR Plan apply anywhere. Ask more than one broker, because brokers can reach different insurers. And pick your coverage amount with care: the plan "does not estimate" what it would cost to rebuild your home. That's up to you and your broker.

Rules on who must be turned down first, inspections, and roof or wiring conditions differ by plan. Confirm with your plan (links in the table below). [6][7][8][9][10][21][23][25]

Getting back to the regular market

Most plans want you to leave once a regular insurer will take you. The California FAIR Plan calls itself "a temporary safety net" and says "our goal is attrition." Minnesota's plan lists helping "policy holders transition back to the standard market" among its goals.

Some plans actively hand policies back to private insurers:

• California runs a clearinghouse. Other insurers can review some of your policy information and "offer to place your policy in the standard market." You can opt out.
• Louisiana Citizens has used a process to "depopulate" policies to private insurers since early 2008.
• Florida Citizens: if an authorized private insurer offers your primary home coverage at renewal for no more than 20 percent above Citizens' renewal premium for comparable coverage, the home is no longer eligible for Citizens. See our Florida Citizens page.

You can also ask your agent or broker to check the regular market again before each renewal; California's FAIR Plan suggests asking more than one broker. Related guides: wildfire home hardening, wind mitigation inspections and FORTIFIED roofs. [3][5][14][25][26][27]

Every state's FAIR plan, beach plan or wind pool

This list comes from the Property Insurance Plans Service Office (PIPSO), "a national organization supported by the FAIR and Beach plans." We opened every plan's website on Oct. 13, 2026, and linked the address that works today. Where PIPSO's address was out of date or failed (Alabama, Michigan, New Jersey), we used the plan's current site. This site is not any of these plans and is not affiliated with them.

Notes:

• Illinois also has the Illinois Mine Subsidence Insurance Fund on PIPSO's list. It provides "reinsurance to insurance companies for damage caused by mine subsidence"; it is not a place to buy homeowners coverage.
• Arkansas: state law (Ark. Code 23-88-301 and following) set up the Arkansas Rural Risk Underwriting Association (ARRUA). Every insurer licensed to sell property insurance in Arkansas must be a member, and the association must provide "a plan of property insurance to insurable rural risk applicants," meaning risks in areas its governing board names as rural. It is still active: on Sept. 29, 2026, the Arkansas Insurance Department said the ARRUA board had decided an assessment of members is needed for 2026. It is not on PIPSO's list, and we found no public ARRUA website, so ask the Arkansas Insurance Department whether your property qualifies. See our Arkansas page.
• North Dakota: no plan is operating that we could find, but state law (NDCC chapter 26.1-52) lets the insurance commissioner set up a "property insurance placement facility." The commissioner must first hold a public hearing, on at least 20 days' notice, and find "a lack of availability of property insurance in the market." If one were set up, people refused coverage in writing by at least five standard insurers could apply. See our North Dakota page.
• Oklahoma: the Oklahoma Insurance Department's homeowners guide says that if you have trouble finding homeowners insurance, you should contact the Oklahoma Market Assistance Program (OK-MAP), which "can connect you with insurance companies that may be willing to cover your home." It is not a FAIR plan. See our Oklahoma page.
• South Carolina: has only the coastal wind pool, no statewide FAIR plan on PIPSO's list. scwind.com blocks automated visits, so we confirmed the address through the South Carolina Department of Insurance, which links to it.
• "None on PIPSO's list" means the national directory shows no plan there. Your state insurance department can tell you about other options.

[1][2][6][7][8][9][10][12][13][14][15][16][17][22][23][24][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43][44][45][46][47][48][49][50][51][52][53][54][55][56][57][58][59]

Questions people ask