US FAIR Plans

Updated info:
Insurance Information Institute: Residual markets
FULL TEXT (Rev. 10/05)

Fair Access to Insurance Requirements (FAIR) Plans were created to make property insurance more readily available to those who have difficulty obtaining it because of abnormal exposure to risks over which they have no control. The plans make insurance available to properties regardless of location or exposure. FAIR Plan policies typically insure against losses from fire, vandalism, riot and windstorm. Georgia, Massachusetts and New York FAIR Plans provide wind and hail coverage for certain coastal communities. These states do not have Beach and Windstorm plans common to many coastal regions. New Jersey does not have a Beach Plan but its WindMap operates in the voluntary market to assist homeowners living in coastal areas with their insurance needs.

The aggregate value for all lines of Ohio FAIR Plan exposure increased from about $8.2 billion in 2002 to nearly $13.4 billion in 2003. Ohio represented about 3.9% of the nation’s insurance provided through FAIR Plans reporting coverage data. This is based on the value of policies in force at year-end 2003, not on the number of policies in force.


1 Exposure is the estimate of the aggregate value of all insurance in force in each state’s FAIR Plan in all lines (except liability, where applicable, and crime) for 12 months ending September through December
2 Citizens Property Insurance Corporation, which combined the FAIR and Beach Plans
3 Includes a wind and hail option for certain coastal communities
4 Includes wind and hail coverage for any dwelling including those in coastal communities
NA=Data not available

Source: Property Insurance Plans Service Office (PIPSO), reprinted from Insurance Information Institute, Fact Book 2005

Fewer than 2% of the millions of insurance claims filed each year result from the total loss of a home.
(The New York Times, 8/31/04)