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Kentucky FAIR Plan

Checked against official sources · Last reviewed October 13, 2026

What the Kentucky FAIR Plan is

FAIR stands for "fair access to insurance requirements." Kentucky law (KRS Chapter 304, Subtitle 35) requires every insurer licensed to write property or casualty insurance in the state on a direct basis to set up and fund a FAIR plan and a reinsurance association, and to belong to it as a condition of doing business in Kentucky. Members share the plan's expenses, income and losses in proportion to their Kentucky premiums.

Insurers first created the plan in 1968 at the request of the Commissioner of Insurance, and it has operated continuously since then. A seven-person Governing Committee appointed by the Commissioner runs it. The plan's mission is basic coverage for property owners who, "through their agent or producer, have exhausted all coverage options available through the voluntary market and are unable to obtain coverage through the standard market."

We are not the Kentucky FAIR Plan and are not affiliated with it. This page explains the plan's published rules; the plan and your agent make the decisions. [1][6][7][8][9][10]

Who is eligible

"Any person, firm or corporation desiring insurance coverage who is unable to obtain such coverage directly from an Insurer may apply to the Association through a Producer licensed to do business in Kentucky." The plan says it is for "responsible property owners or homeowners" who can't buy coverage in the standard market "for reasons beyond their control," and that "reasonable standards" must be met.

Rules from the plan's 2026 homeowners manual:

- Homeowners policies are for owner-occupied homes (including buyers under a long-term installment contract and people living there under a life estate). Seasonal homes can qualify. - No homeowners policies on farms or on mobile homes or trailers. Mobile homes and vacant dwellings can be written only on the basic dwelling fire form (DP-1). - If the house is over 40 years old, "the wiring must have been updated to meet current standards." The manual says there are no other age limits. - More than one paid theft claim in the last three years moves an HO-2 application to the more limited HO-8 form; renters (HO-4) and condo (HO-6) applications with more than one paid theft claim are declined. - Applications need photos of the front and rear of the home, and renters and condo applications need a contents inventory and interior photos.

The plan may turn down, cancel or not renew for reasons including suspected arson, damage left unrepaired for more than 60 days, an abandoned property, utilities shut off for unpaid bills, real estate taxes unpaid for two years after they became delinquent, repeated fires, and material misrepresentation.

Inspections: unless your photos clearly show the property meets the plan's standards, it hires an inspector, and inspections are "limited to the likelihood of damage from covered perils to the insured property itself." [2][6][11][12]

What it covers and what it doesn't

Homeowners forms include $100,000 of personal liability per occurrence and $1,000 of medical payments per person. Covered perils on every homeowners form include fire, lightning, windstorm, hail, explosion, smoke, vandalism and theft (limited). The HO-8 form does not cover falling objects, weight of ice and snow, freezing, or accidental discharge of water or steam; the HO-2, HO-4 and HO-6 forms do.

Other things to know:

- Actual cash value. "All policies are ACV (Actual Cash Value)," meaning replacement cost minus depreciation. - $200,000 is a ceiling. The homeowners manual also caps the amount of coverage with a cost-per-square-foot valuation unless you document a higher value (for example, with an appraisal, the tax assessment or a recent purchase price), and the plan's underwriters decide how much coverage is written. - Deductibles. Homeowners policies have a $1,000 base deductible, with $500 and $2,500 options. On dwelling fire policies the base is also $1,000, and a $2,500 deductible is required for dwellings with prior fire losses or multiple claims. - Earthquake coverage can be added to dwelling and homeowners policies. - Minimum premium: $200 a year for homeowners and $100 for dwelling fire, commercial and farm policies, plus the Kentucky surcharge. - Flood is not something this plan sells; see our sister site FloodHawk.

Read your policy for exact terms. The plan says to "review your declarations page and policy forms to confirm the perils you are protected against." [2][3][4][6][11][12]

How to apply

1. Find a Kentucky-licensed agent. "Contact any licensed Kentucky producer. The producer will help you decide what coverages are available in the FAIR Plan." Any agent with an active Kentucky license can register with the plan to submit applications. 2. The agent applies online with photos of the front and rear of the home. The plan does not accept faxed applications. 3. Pay with the application. Each application must include the greater of $100 or the first premium installment. 4. Underwriting. Agents have no binding authority; coverage starts only when the plan accepts the application. If the plan can't accept or reject it within 20 days because an inspection isn't done, eligible properties are automatically covered for 30 days (the "Deemer" provision). If the plan rejects the risk within the first 20 days, it returns the whole initial payment. 5. The plan can say yes, say yes with lower limits or extra charges, or say no and list repairs that would make the property acceptable. [2][4][6][11]

Paying, claims and policy changes

- Pay online through the plan's policy portal. The plan does not take payments by phone, and warns that paying through third-party services such as Doxo or bank bill-pay "may add considerable processing time," which can lead to cancellation for nonpayment. - Payment plans: full pay, semi-annual, quarterly, 5-pay, or billed to your mortgage company. A $6.00 billing charge applies to each installment. - Renewal bills are mailed to you 45 days before the renewal date. If the renewal premium isn't paid, the policy lapses on the renewal date. A lapsed policy can be rewritten only between the 11th and 30th day after lapse for nonpayment, paid electronically, subject to underwriting approval. - Report a loss with the electronic loss notice in the policy portal, or by phone, email or mail. All claims are settled at actual cash value. - Changes and cancellations can be sent by email to info@fairplanalliance.com or by mail; the plan does not take them by phone. [2][4][5][6][7][11]

If the plan turns you down or drops you: appeals

After a policy has been in effect more than 60 days, the plan must give 30 days' written notice before cancelling or not renewing, or at least 5 days when one of its listed conditions applies (for example, unrepaired damage, abandonment or misrepresentation). Every denial, cancellation or nonrenewal notice must state the reason and tell you about your right to appeal.

To appeal, write to the plan's Executive Director within 30 days of the decision. The Governing Committee reviews it and sends a written decision. If you disagree, Kentucky law lets you appeal to the Commissioner of Insurance within 30 days, and the Commissioner decides after a hearing. [6][11][13]

Size, finances and recent changes

- Policies: 3,189 in force as of January 2026. New applications: 754 in 2024 and 672 in 2025. - Claims: 132 in 2024 and 159 in 2025. - 2025 results: combined ratio of 140.92%, net loss of $759,632, and members' equity of $15,328,304 at year end. - Reinsurance: the plan buys catastrophe reinsurance; as of December 31, 2024, it was "$5M XS of $1.5M." - Assessments: by law, an insurer's annual assessment for the plan can't exceed 1% of its net direct Kentucky premium written voluntarily in the prior year. - New manuals for dwelling fire, homeowners and commercial/farm policies took effect June 1, 2026. The Articles of Association were amended and restated effective July 1, 2024. [4][6][7][10][14]

Getting back to a regular insurer

The FAIR Plan is meant as a last resort, and its coverage is limited. Kentucky law bars an insurer from turning you down or dropping you based solely on the fact that you "previously obtained insurance through a residual market mechanism" such as the FAIR Plan. [1][15]

Help

- Kentucky FAIR Plan: (502) 425-9998, info@fairplanalliance.com, P.O. Box 437249, Louisville, KY 40253. - Complaints about an insurer or agent: Kentucky Department of Insurance, (800) 595-6053 or its complaint page. - Kentucky's rules if you were dropped: Homeowners Insurance in Kentucky. [1][16][17]

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