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Iowa FAIR Plan

Checked against official sources · Last reviewed October 13, 2026

What the Iowa FAIR Plan is

FAIR stands for "Fair Access to Insurance Requirements." The plan says the Iowa FAIR Plan Association was formed on October 25, 1968, and is "an unincorporated mandatory risk-sharing facility established by state law to provide basic property insurance to qualified applicants who are not eligible for insurance in the voluntary insurance market."

Iowa's FAIR Plan Act (Iowa Code chapter 515F) requires every insurer licensed and writing property insurance in Iowa to be a member. The plan "is not and shall not be deemed a department, unit, agency, or instrumentality of the state," and its debts are its own, not the state's. A seven-member governing committee runs it under the supervision of the state insurance commissioner.

The plan says it should "be considered a last resort," and that "Our policies provide less coverage than the voluntary market companies."

We are not the Iowa FAIR Plan Association and are not affiliated with it. We explain its published rules; the plan and your agent make the decisions. [5][11][12]

Who is eligible

The plan's Dwelling Property Program covers one- to four-family homes in Iowa, including single-family mobile homes. Applicants "must have received a notice of rejection, non-renewal, or cancellation from an insurer within the past six months."

The plan lists conditions that make a property ineligible, while saying "our goal is to provide needed coverage." A property is ineligible if it:

- is vacant, unoccupied or in foreclosure (an exception may be made for property in rehabilitation or reconstruction); - is a seasonal or secondary home; - isn't legally owned by the applicant; - has been declared unsafe by a local jurisdiction; - has grossly inadequate or defective heating, wiring or plumbing, or is in exceptionally poor condition; - has unsettled or unpaid claims, or unrepaired damage from earlier claims; - has a homemade wood-burning stove (or is a mobile home with any wood-burning stove, or has a garage or outbuilding with a wood-burning stove); - is a rental with more than 65 percent vacancy, or lacks a required rental certificate; or - had more than two losses in the last 12 months, or more than three in the last 24 months (each at least $500 or 1 percent of the insurance, whichever is greater), caused by conditions the owner is responsible for or by the actions of an insured.

The plan's Articles of Agreement say its underwriting standards "shall not include neighborhood or area location or any environment hazard beyond the control of the property owner." [1][2]

What it covers and what it doesn't

Key points:

- Actual cash value only. "All Iowa FAIR Plan policies provide loss settlement on an ACV basis." The plan's example: if a roof with a 20-year life span is 5 years old, a covered loss "would be settled at 75% of the current replacement cost." The application asks you to acknowledge that this is basic coverage that "will not provide replacement or full restoration of property." - Property only. The plan says it does not write liability, flood, workers compensation, "or any other non-property coverages." - Policy form. Since Oct. 1, 2023, the dwelling program uses the Dwelling Property 1 Basic Form (DP 00 01), with plan endorsements that include an Other Structures Exclusion, a Cosmetic Damage Exclusion, a Collectibles Exclusion and limited fungi, wet or dry rot, or bacteria coverage. Ask your agent exactly which perils and exclusions apply before you buy.

For flood insurance, see our sister site FloodHawk. [1][3][4][10]

How to apply

1. Try to keep or replace your coverage first. The plan suggests asking your agent whether you can keep your current coverage by, for example, "replacing an old roof or cleaning debris from the property," and asking the agent to apply in the voluntary market. 2. Use any Iowa agent. "Only a licensed insurance agent can submit applications." Agents aren't appointed by the plan; any agent licensed by the Iowa Insurance Division can submit one, and the plan says agents are required by Iowa law to help you. An agent may not "decline or refuse to assist a qualified property owner." 3. Complete the application. The plan's Application for Basic Property Coverage asks for the insurer that dropped or rejected you, the reason, and your losses for the past five years. All named insureds and the agent must sign. 4. Get a quote. The plan requires up to five business days for quotes, new policies and policy changes. Agents can't bind coverage, and the plan does not issue binders. 5. Pay. A policy is issued after a complete signed application and proof of payment: full payment, or 25% down plus a $5 fee for the quarterly plan. New business requires the 25% down payment even if your mortgage company will pay the bills. 6. Inspection. "Every property is inspected," at no cost to you. A copy of the inspection is available to you and your agent.

Deficiency charges. If the inspection finds problems such as a roof, siding, trim, paint, soffits, fascia or gutters in need of repair, one to three deficiency charges of $1.00 per $1,000 of coverage may be added. You can have them removed "by correcting and documenting the condition(s)." [1][2][3][5][10]

Paying, claims and your account

- Insured Portal: create a login through the plan's Insured Portal to view two years of declaration pages and billing notices, find your agent's contact information and pay your premium. - Pay online on the plan's payment page with your policy number, ZIP code and last name. The plan accepts check, e-check, debit card or credit card, but not cash. - Payment plans: annual, or quarterly with a $5 service fee for each payment that isn't billed annually. The plan bills you 30 days before each installment is due. - Claims: report claims promptly by phone, mail or email; the plan accepts ACORD forms or any insurer's claim form. Call (515) 255-9531, weekdays 8:30 a.m. to 4 p.m. The plan uses independent adjusters. [3][4][6][7][9]

Appeals

Under the plan's Articles of Agreement, a notice declining your application must say you have a right to appeal to the plan's Governing Committee. You can appeal the committee's decision to the Insurance Commissioner within 30 days from the date the committee notifies you of it. [2]

Rates, funding and recent changes

State law says the plan's pricing must be "actuarially self-supporting" and must not actively compete with prices in the voluntary market. On cost, the plan says "It is impossible to compare premiums" with what you paid before without a complete quote, so ask an agent to help you apply and get one.

- Member assessments: the plan's member insurers were assessed $2,000,000 in 2023, the first assessment since 2018. The plan announced no assessment for 2024, 2025 or 2026 (latest notice dated Sept. 10, 2026). - New forms: the dwelling program moved to new policy forms effective Oct. 1, 2023. - New application: the plan posted an updated Application for Basic Property Coverage (form IFPA APP 07 26), used for both personal and commercial lines. [1][4][8][10][12][13]

Getting back to a regular insurer

The plan renews a policy on its anniversary three times. "At the end of four years, the policy is non-renewed to encourage the policyholder to check for coverage in the voluntary market." If you still can't find coverage, you can reapply, subject to the same eligibility rules and inspection as a new applicant. [3]

Help

- Iowa FAIR Plan Association: (515) 255-9531, weekdays 8:30 a.m. to 4 p.m., or info@iowafairplan.com. Office: 2700 Westown Pkwy, Ste 220, West Des Moines, IA 50266. - Complaints about an insurer or agent: the Iowa Insurance Division, (515) 654-6600, or its complaint page. - Your rights if you were dropped: Homeowners Insurance in Iowa. [5][9][14][15]

Questions people ask