If regular insurance companies will not cover your home, you still have an option in most states: the FAIR plan. FAIR stands for Fair Access to Insurance Requirements. These state-created programs were set up decades ago to make sure homeowners in high-risk areas could get at least basic property insurance.
For a long time, FAIR plans were a small corner of the market. Not anymore. In California, the FAIR Plan had about 696,500 dwelling and commercial policies in force in June 2026, up 157% since September 2022. Similar growth has hit insurers of last resort in other states.
Here is what a FAIR plan is, what it does and does not cover, what it costs, and how to use it without leaving yourself underinsured.
What a FAIR plan is
A FAIR plan is a pool of insurance companies, required by state law, that sells property insurance to people who cannot get it in the regular market. It is not usually run on taxpayer money, but the insurers that do business in the state share its losses, which can eventually affect everyone’s premiums.
Key points:
- It is an insurer of last resort. Most plans require proof that you were turned down by one or more regular insurers.
- Coverage is often basic, sometimes little more than fire and a few other risks.
- Prices are usually not the cheapest, since plans are designed not to undercut the private market.
Which states have a FAIR plan
According to Insurify, 33 states plus the District of Columbia offer a FAIR plan for homeowners, with Colorado the most recent to add one, in 2025:
Alabama, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia, Washington, West Virginia and Wisconsin.
Some states also have separate programs for specific risks, such as wind pools for coastal areas. Florida’s main insurer of last resort is Citizens Property Insurance Corporation, a state-created insurer. Texas has both the Texas FAIR Plan and the Texas Windstorm Insurance Association for coastal wind coverage. Louisiana has Louisiana Citizens.
What FAIR plans usually cover
Coverage varies a lot by state. Many plans cover:
- Fire and lightning
- Windstorm and hail (in some states)
- Explosion, riot and vandalism
- Smoke damage
- Some cover theft and water damage from burst pipes
What they often leave out
- Personal liability. Many FAIR plans do not include liability coverage if someone is injured on your property.
- Theft and water damage in the most basic plans.
- Loss of use, meaning living expenses while your home is repaired, may be limited or excluded.
- Specific risks by state. Insurify notes that the Texas FAIR Plan does not cover falling objects, such as tree limbs, or freeze damage, while Pennsylvania’s basic plan covers only fire and lightning.
- Flood and earthquake, which are excluded from standard homeowners policies too and need separate coverage.
What FAIR plans cost
FAIR plan premiums are often higher than regular policies for the same home, because the homes they cover tend to carry higher risk. Insurify reported these average yearly FAIR plan premiums for 2023:
| State | Average yearly FAIR plan premium (2023) |
| Louisiana | $3,358 |
| Florida | $3,284 |
| California | $2,703 |
In California, Insurify put the 2025 FAIR Plan average at roughly $2,800, compared with about $2,424 for a traditional homeowners policy in the state. The California FAIR Plan also announced a 29.1% rate increase in 2026. Remember that a FAIR plan premium often buys less coverage than a regular policy, so the true gap is larger than it looks.
The “wrap-around” approach
Because FAIR plans often cover only a few risks, many homeowners pair them with a second policy.
In California, this is called a difference in conditions (DIC) policy. It is sold by private insurers and fills in what the FAIR Plan leaves out, such as liability, theft, water damage and loss of use. Together, the two policies come close to a standard homeowners policy.
Before buying a FAIR plan alone, ask an agent whether a wrap-around policy is available in your state, and what it would cost.
How to apply
- Try the regular market first. An independent agent can check several insurers, including smaller regional ones and surplus lines insurers.
- Keep proof of declines. Many FAIR plans require evidence that you were turned down. Rules vary; Insurify notes Indiana requires three rejections and Texas two.
- Apply through a licensed agent or directly through the plan, depending on the state.
- Expect an inspection in some cases, and fix any obvious hazards, such as missing smoke detectors or damaged roofing, before you apply.
- Set up payment. Some plans offer monthly or installment payments.
- Send proof of coverage to your mortgage lender so it does not buy force-placed insurance on your behalf.
Questions to ask before you sign
Because FAIR plans differ so much, go through these questions with your agent or the plan before you buy:
- Which risks are covered? Get the list in writing. Is wind or hail included, or sold separately?
- Is my liability covered? If not, how will I get it?
- How is the home valued? Replacement cost pays to rebuild. Actual cash value subtracts depreciation, which can leave a big gap on an older house.
- What is the maximum coverage? Plans set limits on dwelling coverage. Make sure the limit is enough to rebuild your home at today’s prices.
- What are the deductibles? Some have separate, higher deductibles for wind or wildfire.
- Are my belongings covered, and for how much?
- Will it pay extra living costs if I cannot live in the home during repairs?
- How often do rates change? Ask about recent and planned increases.
Write the answers down and keep them with the policy. If you are helping a parent, this list is a good place to start the conversation.
Getting back to the regular market
A FAIR plan should usually be temporary. To improve your chances of returning to a standard policy:
- Reduce risk. Clear brush and create defensible space in wildfire areas, replace an old roof, and add storm protection in coastal areas.
- Document improvements with receipts and photos.
- Re-shop every year. Markets change. California, for example, adopted reforms that took effect in January 2025 requiring participating insurers to write more policies in distressed areas.
- Ask about depopulation offers. In Florida, private insurers can offer to take over Citizens policies. Review any offer carefully before accepting.
What this means for people 40 and older
For people planning retirement, a home that can only be insured through a FAIR plan is a real cost and a real risk. Premiums can be higher, coverage thinner and rate increases steep. If you are thinking of buying a retirement home in a wildfire, hurricane or hail area, get insurance quotes on that specific address before you commit.
If you already own a home that has been moved to a FAIR plan, review your coverage with a trusted agent. Many older homeowners have been moved without realizing that liability or water damage coverage was dropped along the way.
Frequently asked questions
What is a FAIR plan in insurance? A state-created program that sells basic property insurance to homeowners who cannot get coverage in the regular market.
Is the FAIR plan more expensive than regular insurance? Often, yes, and it usually covers less. In California, the average FAIR Plan premium was estimated at about $2,800 in 2025, versus about $2,424 for a regular policy.
Does the FAIR plan cover liability? Many do not. You may need a separate policy, such as a difference in conditions policy in California, to add liability coverage.
Can I leave the FAIR plan later? Yes. You can switch to a regular policy whenever one is available. Shopping every year is a good idea.
Sources
- Insurify, “What Is FAIR Plan Homeowners Insurance?” (2026)
- California FAIR Plan policy data, June 2026, as reported by Beinsure
- California Department of Insurance, Sustainable Insurance Strategy (effective January 2025)
- Citizens Property Insurance Corporation (Florida); Texas FAIR Plan Association; Texas Windstorm Insurance Association; Louisiana Citizens Property Insurance Corporation
- Insurify, home insurance rates in the first half of 2026 (California FAIR Plan rate change)
Coverage rules vary by state and change often. Confirm details with your state’s plan or a licensed agent. This article is general information, not insurance advice.
