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Illinois FAIR Plan

Checked against official sources · Last reviewed October 13, 2026

What the Illinois FAIR Plan is

FAIR stands for "Fair Access to Insurance Requirements." The Illinois FAIR Plan Association was formed in 1968 and describes itself as "a not-for-profit property insurance association supported by nearly 500 Illinois insurance companies." It calls itself "a market of last resort."

State law (Article XXXIII of the Illinois Insurance Code) sets it up. The insurers that write property insurance in Illinois fund it and share in its losses, and an 11-member governing committee runs it: 6 insurer representatives, 4 public members appointed by the Director of Insurance, and 1 licensed Illinois insurance producer. The Director must approve its rates before they are used.

We are not the Illinois FAIR Plan and are not affiliated with it. We explain the plan's published rules; the plan and your agent make the decisions. [1][8][10][11][12][13][14]

Who is eligible

The plan says it serves "applicants in the state of Illinois who are unable to purchase coverage through the standard insurance market for reasons beyond their control," and offers its policies "on a statewide basis."

- Try regular insurers first. The Department of Insurance says "you must have three unsuccessful attempts to buy property coverage from insurance companies." State law also counts "3 attempts." - Basic upkeep. Properties "must meet reasonable underwriting requirements, including satisfactory housekeeping and maintenance." All properties are surveyed, and "An unsatisfactory survey can lead to coverage being denied or canceled." If the inspection finds hazards, the plan says you're notified and given a chance to fix them. - Loss history. You "must not have had excess losses within their control." - Storm damage history. The plan "generally does not decline properties affected by acts of nature losses; however, coverage may be reduced and/or deductibles increased." It may also attach an exclusion endorsement to leave out "unacceptable hazards." - Not eligible: vacant or unoccupied property (except under the Rehabilitation program for homes with work in progress), seasonal dwellings, manufacturing risks, and farm operations and outbuildings.

Through Dec. 31, 2026, state law also says an owner-resident of a 1-4 family home who was nonrenewed in the regular market is entitled to submit a binding application while the plan inspects. The rewritten law that starts Jan. 1, 2027 instead entitles that owner to an evaluation of the property. [1][3][7][8][14][15]

What it covers

Actual cash value means replacement cost minus depreciation, so an older roof pays less than the cost of a new one.

Limits and options:

- Dwelling: up to $750,000 on Homeowners and Dwelling Property policies. Contents: up to $375,000 (from the plan's older brochure and 2010 chart). Commercial property: up to $1,000,000. - Homeowners liability: $100,000 standard, $300,000 maximum; medical payments $1,000 standard, $2,000 maximum (from the plan's coverage comparison chart dated January 2010). - Perils: the plan's products cover "fire, lightning, wind, hail, explosion, smoke, vehicles, aircraft, and vandalism and malicious mischief"; Homeowners policies add burglary, theft and personal liability. - Earthquake: available on request as an endorsement to Dwelling Property and Homeowners policies, with a standard 5% deductible. Not available on Commercial Property. - The Department of Insurance says FAIR Plan customers can buy "virtually the same coverages" as in the regular market, "including guaranteed replacement cost, sewer back-up, earthquake, building ordinance and law endorsements."

Flood is not part of these policies; see our sister site FloodHawk for flood insurance. [2][3][8][10][16]

How to apply

1. Find an agent. The plan says to "Contact any licensed Illinois producer," who helps choose the policy and completes the application. All Illinois-licensed producers can register to write FAIR Plan business. The Producer Summary says producers do not have binding authority, so an agent cannot start your coverage on the spot. 2. Application package. Homeowners and Dwelling applications must be submitted electronically, with photos of the front and rear of the building (not needed for HO 4 or HO 6), a replacement cost calculation for HO 2 or HO 3, and a payment of at least 20% of the annual premium. If you live in a county where mine subsidence coverage is mandatory and you're waiving it, a signed waiver (FP344) is required. 3. When coverage starts. For Homeowners and owner-occupied Dwelling policies, if everything is received and you meet the rules, coverage can begin at 12:01 a.m. the day after the plan receives it. The plan surveys the property after the policy is issued. 4. Rentals and commercial. For non-owner-occupied Dwelling and Commercial policies, there is no coverage until the property is surveyed, coverage is approved and a 20% deposit is received. If the plan hasn't issued a quote or a denial within 21 days of getting the application, "A policy may be requested."

The Producer Summary on the plan's site is labeled "Revised September 2024" in its file name, but its pages are dated May 2023; confirm current requirements with your agent. [2][3]

Paying and claims

- Online: the policyholder portal lets you "view and print policy information, make premium payments and submit claims." You register with your property's ZIP code and get a temporary password by email. - Installments: you can pay in full or use the 5-pay plan: 20% down, then 4 equal installments about 55 days apart, with a $3 fee per installment. - By mail: Illinois FAIR Plan Association, PO Box 7137, Carol Stream, IL 60197-7137. Other mail goes to PO Box 849, Tinley Park, IL 60477. - Claims: contact your agent, call the plan at (312) 861-0385 or the claims line (502) 425-7903, or report the loss online. The plan's brochure says to report a loss "at once," list the damaged items with estimated values, and protect the property from further damage. [2][3][4][5][6][8]

Rates and recent changes

Rate changes approved by the Illinois Department of Insurance, as posted by the plan:

Quotes issued at old rates must be paid before the change date "or the rate increase will be applied to the policy without exception."

In November 2025, following Department of Insurance Bulletin 2025-17, the plan said it would consider, on request, suspending cancellations for nonpayment and extending repair deadlines for federal employees unpaid during the federal government shutdown (not for commercial policies). [5][9][17]

Changes coming Jan. 1, 2027

Public Act 104-645 (Senate Bill 2910), signed July 24, 2026, rewrites the FAIR Plan law starting Jan. 1, 2027:

- Statewide by law. The law today speaks of property "in an urban area." From 2027, it covers 1-4 family homes and nonresidential property anywhere in Illinois, after "at least 3 unsuccessful attempts" to buy coverage, stated in writing to the plan. - Agents only. "All properly completed applications must be submitted to the Association by an Illinois-licensed agent registered with the Association." - Your evaluation report. You can get a copy of the property evaluation on written request, and you can ask for one reevaluation any time starting 60 days after the first. - Appeals. Anyone whose application is rejected, or whose policy the plan cancels or nonrenews, can appeal to the plan's governing committee within 30 days, then to the Director of Insurance within 30 days of that decision. (Today's law gives applicants a right to appeal to the governing committee, then the director within 30 days.) - Back to regular insurers. The plan must keep a "Credit Depopulation Program" that gives member insurers incentives to take FAIR Plan policies back into the standard market.

Also from Jan. 1, 2027, an insurer that cancels or nonrenews you must include the FAIR Plan's mailing address, website and phone number in its notice. [12][14][15][18][19][20]

Getting back to the regular market

The plan says "Many insureds use the FAIR Plan as a temporary market for a year or two until they qualify for coverage in the standard market." Its renewal notice recommends that you "review options for coverage with a different insurance company other than the FAIR Plan" and check whether your coverage amount still matches today's construction costs. Its brochure says that if you find a better deal after joining, you "can cancel their FAIR Plan policy without penalty." Canceling needs the plan's cancellation request form, signed by all insureds and the agent. [2][3][8][21]

Help

- Illinois FAIR Plan customer service: (312) 861-0385 or toll-free (800) 972-4480, 8:30 a.m. to 4:00 p.m.; email information@illinoisfairplan.com. - Complaints about an insurer, agent or the plan: Illinois Department of Insurance Consumer Assistance, (866) 445-5364, or the complaint page. - Illinois rules if you were dropped: Homeowners Insurance in Illinois. [2][4][22][23][24]

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