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Texas FAIR Plan (TFPA)

Checked against official sources · Last reviewed October 13, 2026

What the Texas FAIR Plan is

A FAIR plan (Fair Access to Insurance Requirements plan) is a state-created insurer of last resort. The Texas Legislature authorized the Texas FAIR Plan in 1995, and it was activated statewide in 2002 after the Texas mold crisis, when insurers sharply cut back on new and renewal policies. It is governed by Chapter 2211 of the Texas Insurance Code and regulated by the Texas Department of Insurance (TDI), which approves its rates and forms. TFPA is not a state agency and gets no state general revenue.

TFPA is run by an 11-member governing committee appointed by the Commissioner of Insurance and is managed by the Texas Windstorm Insurance Association (TWIA). Every insurer that writes home insurance in Texas is a member and shares in TFPA's losses.

This site is not the Texas FAIR Plan Association and is not affiliated with it. For your policy, go to texasfairplan.org or call (800) 979-6440. [2][8][10][11]

Who is eligible

- Two declinations. You must have been denied coverage by at least two insurance companies licensed to write, and actually writing, property insurance in Texas. TFPA requires agents to keep proof of both declinations (see TFPA's coverage and eligibility page). The law (Insurance Code 2211.151) sets the same two-declination rule. - No other offer. You're not eligible if you have a current homeowners or other property policy, have a renewal offer, or have a valid offer of comparable coverage from a Texas-licensed insurer. - Shop again every two years. Policyholders must reapply in the regular market every two years. - Insurable condition. TFPA underwrites for ownership, condition, occupancy, maintenance and liability.

TFPA lists these reasons it may turn an applicant down:

• property condemned, in disrepair, or with existing damage;
• vacant property;
• unusual liability exposure, such as a dangerous animal, or a pool or trampoline outside a fenced yard;
• an applicant convicted of arson, fraud or other insurance-related offenses;
• more than eight paid claims (not counting glass claims) in the past three years;
• a mobile home, unless the wheels are removed and it's tied down;
• a farm or ranch used for business, or a home used for business.

Inspection and appeal. Under state law, TFPA's inspection bureau inspects the property after you apply. If it fails TFPA's standards, you're told why in writing and can get one reinspection within 60 days of the first inspection after making repairs. You can appeal a TFPA decision to the association, and then to the Commissioner of Insurance within 30 days. [1][10][11][12]

What TFPA covers

TFPA sells four residential policy forms: Homeowners, Dwelling, Condominium and Tenant (renters). Its fact book lists the covered perils as fire and lightning; sudden and accidental damage from smoke; windstorm and hail; explosion; aircraft and vehicles; vandalism and malicious mischief; riot and civil commotion; and theft (not on Dwelling policies). Dwelling policies cover only fire and lightning unless you add extended coverage for the other perils.

Actual cash value is the default. Dwelling and personal property are covered at actual cash value (replacement cost minus depreciation). The Homeowners policy can be endorsed for replacement cost on the house if you insure it to 100% of replacement cost; if you're under 80% at the time of a loss, TFPA may pay only part. Homeowners, Condo and Tenant policies can add replacement cost on belongings for extra premium. The Dwelling policy can't get replacement cost.

Liability and medical payments come with the Homeowners, Condo and Tenant policies. TFPA's dwelling limits rise about 4% at renewal for policies effective on or after Sept. 1, 2026, to keep up with building costs. [3][10][13]

What TFPA doesn't cover

TFPA says its coverage "is not as comprehensive as coverage available through the voluntary market." It does not cover:

- falling trees or limbs, or falling objects; - collapse of a building or part of a building; - glass breakage; - weight of ice, snow or sleet; - freezing of plumbing, heating, air conditioning, sprinkler systems or appliances; - mold remediation; - sewer or drain backup; - items that may be scheduled, such as expensive jewelry; - sudden and accidental discharge of water or steam, unless you add a limited endorsement (available on Homeowners, Tenant and Condo policies for extra premium).

Wind and hail on the coast. By law TFPA can't cover wind and hail for property eligible for TWIA, which is the 14 coastal counties and part of Harris County on Galveston Bay. A TFPA policy there carries a Windstorm and Hail Exclusion Agreement, and you buy wind and hail from TWIA.

Flood. TDI says most home policies don't cover flood damage. Our sister site FloodHawk explains flood insurance. [1][3][11][14]

Deductibles

Since July 1, 2026, TFPA Homeowners policies offer wind and hail deductibles of 2%, 3%, 4% or 5% and all-other-perils deductibles of 1% to 5%, and allow separate (split) deductibles. The 1% wind and hail option was eliminated: existing policies with a 1% wind and hail deductible change to 2% at renewal. Deductibles can't be changed on a policy already in force. To see what a percentage deductible means in dollars, try our hurricane deductible calculator. [15]

How to apply

TFPA doesn't sell to the public and has no agents of its own. Any Texas-licensed property and casualty agent who registers with TFPA can submit your application. Use TFPA's Find an Agent page, or ask your current agent. Have your two declinations ready. TFPA pays agents a 12.5% commission on new business and 10% on renewals.

Hurricane moratorium. When a hurricane is inside 80 degrees west longitude and 20 degrees north latitude, TFPA stops accepting new applications and coverage increases in the 14 coastal counties and Harris County until its general manager lifts the moratorium; renewals without more coverage continue. TFPA's latest notice (Oct. 8, 2026) says its Hurricane Isaias moratorium was lifted and it would accept applications and issue new policies again from Oct. 9, 2026 (checked Oct. 13, 2026). Some TFPA web pages may still show an older banner saying it isn't accepting applications; if in doubt, ask your agent or call TFPA at (800) 979-6440. [1][7][8][10][16][17]

Paying your bill and reporting claims

Pay online on TFPA's e-payments page. Payment plans:

TFPA charges a $5 fee per installment, a $5 late fee, a $15 payment reversal fee and a $10 fee for paying by phone. Mail payments to Texas FAIR Plan Association, P.O. Box 733916, Dallas, TX 75373-3916.

Claims. Report a claim 24/7 in the Claims Center, through your agent, or at (800) 979-6440, option 1. If you have both TFPA and TWIA policies, the Claims Center handles both. Make temporary repairs and keep receipts, but don't start permanent repairs until a TFPA adjuster has inspected. If you disagree with the amount, call option 1 first; your policy also offers appraisal, which you start by asking TFPA in writing. [3][4][5][6][8][18]

Rates and recent changes

TFPA staff propose rates to the governing committee, and TDI must approve them before use. Premiums depend on the amount of insurance, territory, fire protection, construction, deductible and options. TFPA doesn't use credit scores.

TDI approved TFPA rate changes (Commissioner's Order No. 2026-9939, May 20, 2026) for new and renewal policies effective on or after Sept. 1, 2026. Statewide averages:

Changes vary by region. Homeowners rates fell 21.6% in Seacoast Tier 1 and 4.5% in the Dallas-Fort Worth area, and rose 0.3% in Seacoast Tier 2. TFPA's rates page still shows the earlier change effective Aug. 1, 2022, a 7.6% statewide homeowners increase.

How losses are paid. TFPA pays claims from premiums and surplus, then reinsurance ($800 million for June 1, 2026 to May 31, 2027). Any deficit after that is assessed on Texas private-market property insurers, who may recoup it through policy surcharges statewide over three years. Up to $75 million in public securities may also be issued. A 2025 law (House Bill 2517) exempted TFPA from state premium and maintenance taxes. [10][11][13][19][20][21]

How many Texans use it

TFPA insured 118,486 properties on June 30, 2026, down from 127,957 a year earlier (-7.4%). Harris County had the most policies (58,464, down 11.6%). Some coastal counties grew, such as Galveston (8,709, up 13%) and Brazoria (5,507, up 12.6%), while Dallas, Tarrant and Denton counties fell 19% to 29%. [9]

Getting back to a regular insurer

TFPA doesn't compete with the private market, and you must reapply in the regular market every two years. TDI's HelpInsure.com lets you compare sample rates from companies selling in your area. If no Texas-licensed company will take you, TDI says a surplus lines company may be another option; see our surplus lines guide and Texas page. [1][14][22]

Help

- TFPA: (800) 979-6440 (option 1 claims, option 3 policy services, option 4 policy questions); Austin (512) 505-2200; login help (800) 979-6443. Policy changes go through your agent. - Fraud hotline: (800) 625-0425. - TDI Help Line: (800) 252-3439, or file a complaint. [5][8][23]

Questions people ask