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Minnesota FAIR Plan

Checked against official sources · Last reviewed October 13, 2026

What the Minnesota FAIR Plan is

FAIR stands for "fair access to insurance requirements." The plan says it "was established in 1968 for the purpose of making property insurance available to applicants in Minnesota who have not been able to secure insurance in the standard market."

It runs under the Minnesota FAIR Plan Act (Minn. Stat. 65A.31 to 65A.42). Every insurer that writes property insurance in Minnesota must take part, and members share the plan's expenses and losses in proportion to their Minnesota premiums. A nine-member board runs it: five directors elected by member insurers and four public directors appointed by the Commissioner of Commerce.

The plan says it "utilizes standard insurance forms and considers affordability and competitiveness with the standard market in pricing products." Its stated goal includes helping "policy holders transition back to the standard market."

We are not the Minnesota FAIR Plan and are not affiliated with it. We explain its published rules; the plan and your agent make the decisions. [1][7][8][9]

Who is eligible

State law says anyone with an insurable interest in property "who has been canceled, nonrenewed, or otherwise rejected for coverage in the private market may submit an application." The plan adds:

- You must give the reason you were cancelled, rejected or nonrenewed on your application, and you may be asked for documents about it. - "If you have received an offer of coverage from a standard insurer, you do not qualify." - The property must be in Minnesota and have a property identification number and estimated market value on file with the county assessor (with exceptions for builder's risk and reservation property).

Property rules (from the plan's underwriting guidelines, dated March 16, 2016):

- Not eligible: condemned property or property unfit to live in, open to the elements or structurally unsafe; property with delinquent taxes; property with accumulations of rubbish, debris or flammable materials. - Unsafe heating or wiring disqualifies a property unless repairs are under way. - Vacant property qualifies only if it is being rehabilitated or is listed for sale. - Foreclosed property needs an interior and exterior inspection first. - Homeowners policies: the home must be your owner-occupied primary residence with no more than two families and no farming or business operations (a home office is fine if the public doesn't come in). Livestock or an unfenced swimming pool disqualifies it, decks more than three feet above ground need a railing, and stairs more than 36 inches above ground need a handrail.

Inspections and fairness rules in state law: the plan can't deny you because of the property's condition without first inspecting it, inspections are free, and "neighborhood or area location or any environmental hazard beyond the control of the property owner" are not acceptable reasons to decline. [1][2][5][6][10]

What it covers and the limits

The plan lists these policies:

How much coverage: "The limit of coverage provided by the FAIR Plan will not exceed the market value of the structures to be insured plus a reasonable addition for debris and demolition expenses." The plan uses the county assessor's market value or a recent sale price, and will consider other evidence you give it. For debris removal it allows up to $20,000, or no more than 50% if the coverage limit is $40,000 or less.

Not replacement cost: the guidelines say "All policies underwritten by the FAIR Plan are non-replacement policies."

Upper limits: the guidelines say homeowners and owner-occupied dwelling fire risks valued above the surplus lines threshold in Minn. Stat. 60A.201, subd. 2, don't qualify, and non-owner-occupied dwelling fire risks above 80% of that threshold don't qualify. The guidelines date from 2016, when that figure was adjusted each year for inflation; a 2025 law ended the adjustment, so the statute now names homeowners insurance on owner-occupied dwellings "whose value is less than $500,000." Commercial fire is limited to $1.5 million actual cash value per building ($400,000 for a manufacturing risk). Confirm the current limit for your home with the plan or your agent.

For flood insurance, see our sister site FloodHawk. [1][5][6][11][12]

How to apply

1. Find an agent. "Any agent licensed in the State of MN can assist you," and agents "cannot refuse to assist you in applying." Plan employees aren't licensed agents and can't advise you on the application. 2. Gather documents. The plan requires a county parcel report, tax statement or similar document showing the assessed value; sale documents if you bought within the last 12 months; and color photos of the front and back of every structure, taken within 30 days of the effective date. "No offer of coverage will be made until all required documentation has been received." 3. Don't send payment with the application. Payments sent with an application are returned. If the plan accepts you, it sends an offer of coverage and a bill. 4. Pay within 30 days. You have 30 days to pay the first premium. Missing the due date "will be considered a rejection of the offer of coverage." Coverage doesn't start until payment is received.

Agents can't bind coverage. State law requires the plan to tell you within five business days of receiving a completed application whether it accepts you, declines you or adjusts the coverage limit to the property's insurable value. If it inspects after the policy starts and finds you aren't eligible, it must tell you within 59 days of the policy's start. [1][4][6][10]

If you're declined or dropped: appeals

If the plan declines your property or requires improvements as a condition of coverage, it must send the inspection report to you and the Commissioner of Commerce within five business days and tell you how to appeal. You can appeal to the plan's board, and then to the Commissioner within 30 days from notice of the board's decision (or ask a court to review the board's decision instead).

The plan can cancel only for a reason that would have kept it from accepting you, for nonpayment, or with board approval; a cancellation of homeowners insurance must also follow Minnesota's homeowners cancellation law (see Homeowners Insurance in Minnesota). Any cancellation or nonrenewal notice must tell you about your appeal rights. [10][13][14]

Paying, claims and your account

- Online account: register at the plan's policyholder portal with the email address on your policy. The same portal takes online payments and loss reports. - By mail: MN Fair Plan, Lockbox 171420, PO Box 1414, Minneapolis, MN 55480-1414. The plan does not take payments over the phone. - Payment plan: four installments with no extra fees. Policies paid by a mortgage company must be paid in full. - Beware third-party bill-pay sites. The plan says sites such as DOXO "are NOT affiliated in any way" with it and it "cannot guarantee receipt" of payments made through them; late payments that result can lead to a lapse or cancellation. - Questions by phone: (800) 524-1640 or (612) 338-7584. [1][4]

Rates and recent changes

The plan's guidelines say it surveys what private insurers charge for similar coverage, that the Department of Commerce uses this to decide its rates, and that "All rates charged by the FAIR Plan must be pre-approved by the Department of Commerce." They add that "FAIR Plan rates may be more than those charged by private insurers" and are "not set with operating profit as a goal."

Recent changes that affect the plan:

- 2024: a new law lets insurers nonrenew homeowners after three or more covered lightning, wind, rain or hail losses over $10,000 each in five years, and that nonrenewal notice must mention the FAIR plan. - 2025: surplus lines brokers placing homeowners coverage on an owner-occupied home must stamp a notice on the policy saying you "MAY BE ELIGIBLE FOR COVERAGE THROUGH THE MINNESOTA FAIR PLAN." - February 13, 2026: the Legislature's Task Force on Homeowners and Commercial Property Insurance recommended that the FAIR Plan study offering more products, including commercial property coverage for multifamily housing and common interest communities, while remaining "a market of last resort only." [5][11][12][15][16]

Getting back to a regular insurer

The plan lists helping policyholders "transition back to the standard market" among its goals, and state law aims "to encourage maximum use" of the private market. Plan policies are issued for a term of one year. [1][8][17]

Help

- Minnesota FAIR Plan: (800) 524-1640 or (612) 338-7584, 8 a.m. to 4 p.m. Monday through Thursday and 8 a.m. to noon Friday. Office: 7900 International Dr., Suite 625, Bloomington, MN 55425. - Complaints about an insurer or agent: Minnesota Department of Commerce, (651) 539-1600 or (800) 657-3602, or its complaint page. - Your rights if you were dropped: Homeowners Insurance in Minnesota. [1][18]

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