FAIR Plans Help Cover Higher-Risk Properties
FAIR Plans are state programs that are sometimes subsidized by private insurance companies. These plans often provide insurance to people who would otherwise be denied coverage on their property due to being in a high-risk area or having other related high-risk problems. Your state insurance department can give you more information on its particular FAIR Plan, or you can check out the state-by-state list of where you can get help for the FAIR Plan insurance program below.
The FAIR Plan and High-Risk Insurance
With high-risk insurance, the insurance company has decided that the risk of having claims in a specific location or area is high based on:
Geographic dataMaintenance"Loss history" or having a high number of claims incidents for the location or specific home.
Where Do You Get Insurance for a High-Risk Area?
Standard insurers do not specialize in high-risk properties and therefore will often refuse to insure them by either not insuring in the first place or by refusing to renew a high-risk location once the insurance policy term is up. An insurance company’s underwriting guidelines will usually dictate which risks they are comfortable with. You can get insurance for high-risk properties from specialty insurers, some of which may be non-admitted insurers. Non-admitted insurance companies will often think outside the box or specialize in risks that other insurers are uncomfortable with.
What Makes a Home High Risk?
If you live in an area that is prone to natural disasters, like tornados, or where there is a high incidence of hurricanes or windstorms, your property may be considered high-risk. If you live in an area that is prone to high crime levels, such as vandalism or theft. If your home has not been renovated or is in disrepair. If you have had many claims.
What To Do if You Have Trouble Finding Home Insurance
If you are purchasing your first home or a new property and are having a hard time finding an insurance company to insure you, try asking your realtor whether they know of local insurance companies or brokers that will write policies in the area. Insurance brokers have access to many different insurance companies and will work to find you something. You can also contact your local state insurance commissioner’s office, and they will point you in the right direction. You may still be able to find a policy with a private insurer that is comfortable and offers good coverage. The FAIR Plan should be used as a last resort. You can also try to negotiate: Consider the reasons that you are being refused insurance, and try negotiating with the insurance company. Very often, if you make adjustments or repairs, or consider higher deductibles, you may be able to obtain coverage. Make sure you try everything with a few standard insurers before going to the FAIR Plan.
Conditions To Be Eligible for the FAIR Plan
According to the Insurance Information Institute, even the FAIR Plan has conditions that must be met. Just because you have a high-risk home, it does not mean the FAIR Plan will accept you. You may be asked to limit the risk of fire, theft, or water damage by installing anti-theft or alarm devices, or you may be asked to install water backup valves or make repairs on your home, such as replacing or fixing a roof or your wiring. If these types of conditions would have made you eligible for standard insurance, you are probably better off doing your necessary repairs and sticking with a standard insurance company. Standard insurance companies are usually less expensive than high-risk insurers.
When To Look for FAIR Plan Insurance
If you have exhausted all of the options outlined above, and you can’t seem to find an insurance company to accept your risk, then you have the option of applying for insurance with the FAIR Plan. Keep in mind, however, that if the reason for a refusal to insure your property is not due to matters beyond your control, even the FAIR Plan has the right to refuse coverage if you do not adhere to the recommendations. The situation varies case by case, so the best idea is to contact them directly to discuss the conditions of the FAIR Plan as they apply to your situation. You may also be eligible for additional insurance endorsements that may improve the base coverage.
Where To Find FAIR Plan Insurance Help State by State
Alabama Insurance Underwriting Association California FAIR Plan Association Connecticut FAIR Plan Insurance Placement Facility of Delaware District of Columbia Property Insurance Facility Citizens Property Insurance Corporation [Florida] Georgia Underwriting Association Illinois FAIR Plan Association Indiana Basic Property Insurance Underwriting Association Iowa FAIR Plan Association Kansas All-Industry Placement Facility Kentucky FAIR Plan Reinsurance Association Louisiana Citizens Property Insurance Corporation Maryland Joint Insurance Association Massachusetts Property Insurance Underwriting Association Michigan Basic Property Insurance Association Minnesota FAIR Plan Mississippi Windstorm Underwriting Association Missouri Property Insurance Placement Facility New Jersey Insurance Underwriting Association New Mexico Property Insurance Program New York Property Insurance Underwriting Association North Carolina Joint Underwriting Association - FAIR Plan North Carolina Insurance Underwriting Association - Coastal Property Insurance Pool Ohio FAIR Plan Underwriting Association Oregon FAIR Plan Association Insurance Placement Facility of Pennsylvania Rhode Island Joint Reinsurance Association South Carolina Wind and Hail Underwriting Association Texas FAIR Plan Association Texas Windstorm Insurance Association Virginia Property Insurance Association Washington FAIR Plan West Virginia Essential Property Insurance Association Wisconsin Insurance Plan
How To Get Insurance When You Live in a High-Risk Area
If you have been unsuccessful in obtaining insurance for your home because it is designated as high risk, or you have been refused insurance, and you have already tried to negotiate with standard private insurers and have exhausted all other options, then you can contact the FAIR Plan administrator in your state to find out more information about the FAIR Plan and how to get insurance on your home.
FAIR Plan Administrator Phone Numbers by State
Alabama: 334-943-4029 California: 213-487-0111 Connecticut: 860-528-9546 Delaware: 215-629-8800 District of Columbia: 202-393-4640 Florida: JUA 850-513-3700 Florida Windstorm Underwriters Association: 904-296-6105 Georgia: 770-923-7431 Hawaii: 808-531-1311 Illinois: 312-861-0385 Indiana: 317-264-2310 Iowa: 515-255-9531 Kansas: 785-271-2300 Kentucky: 502-425-9998 Louisiana FAIR Plan: 504-831-6930 Maryland: 410-539-6808 Massachusetts: 617-723-3800 Michigan: 313-877-7400 Minnesota: 612-338-7584 Mississippi: 601-981-2915 Missouri: 314-421-0170 New Jersey: 973-622-3838 New Mexico: 505-878-9563 New York: 212-208-9700 Ohio: 614-839-6446 Oregon: 503-643-5448 Pennsylvania: 215-629-8800 Rhode Island: 617-723-3800 South Carolina: 803-737-6180 Texas: 512-899-4900 Virginia: 804-591-3700 Washington: 425-745-9808 West Virginia: 215-629-8800 Wisconsin: 414-291-5353
