Glossary

Excess and surplus lines

The specialty market where non-admitted insurers cover unusual, high-hazard or hard-to-place risks that standard carriers will not write at filed rates.

Also called: E&S, E&S market, surplus lines market, non-admitted market

Excess and surplus lines, usually shortened to E&S, is the part of the insurance market that operates outside the standard, rate-filed system. "Excess" originally meant coverage above primary limits. "Surplus" means capacity for risks beyond what the licensed market will take. For homeowners, the surplus side is what matters: houses that admitted companies decline or cannot profitably price under their filed rates.

E&S business flows through licensed surplus lines brokers, often working with wholesale brokers or managing general agents, to non-admitted insurers and, in some cases, Lloyd's of London syndicates. Since the federal Nonadmitted and Reinsurance Reform Act of 2010, only the policyholder's home state regulates and taxes a placement, so the rules do not stack from state to state.

The market tends to grow when standard carriers pull back from catastrophe-exposed areas. For a homeowner, E&S can mean coverage that would otherwise be unavailable, though often at a higher price, with tighter terms and without guaranty fund protection in most states. Compare the form closely to a standard HO-3, and see admitted versus surplus lines insurers for the practical differences. The company itself is covered in surplus lines insurer.

Last reviewed October 10, 2026

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Related terms

Surplus lines insurer An insurer not licensed in a state that may write risks the standard market declines, with freer rates and forms and usually no guaranty fund backing. Admitted insurer A company licensed by a state to sell insurance there, with its rates and forms under regulator review and its claims backed by the state guaranty fund. FAIR plan A state pool, funded by the insurers doing business there, that sells basic property coverage to owners who cannot find it in the regular market. Residual market The state-created plans and pools that cover property owners the private market declines, as opposed to coverage insurers sell by choice. Guaranty fund A state safety net, financed by charges on licensed insurers, that pays covered claims up to a cap when an insurer is declared insolvent. Difference in conditions (DIC) policy A separate policy built to sit beside a primary policy and pay for perils and coverages the primary one leaves out, such as theft, water damage and liability.

Related guides

Admitted vs surplus lines home insurers: what you give up Admitted insurers are licensed, file rates and are backed by guaranty funds. Surplus lines carriers take what they decline, usually without those protections. Difference in conditions policies to pair with a FAIR plan A difference in conditions (DIC) policy adds the water, theft and liability coverage a FAIR plan leaves out. How the pairing works and where it can fail. Finding coverage for a hard-to-insure home Hard-to-insure homes usually have options: fix the cause, use an independent agent, then try specialty carriers, state plans and surplus lines. Home insurance in New York and the Northeast How New York, New Jersey, Connecticut, Massachusetts and neighbors differ on hurricane deductibles, FAIR plans and suit deadlines, per NAIC and state data. Insuring an Airbnb or other short-term rental If you rent a home to short-stay guests regularly, a homeowners policy is the wrong fit. Compare short-term rental policies, endorsements and platform coverage. Surplus lines home insurance when standard carriers say no How to buy, vet and live with a surplus lines homeowners policy: the broker process, taxes, wording traps, checking the insurer, and when to move back.

Related insurers

Kingstone Insurance Hudson Valley insurer with roots in an 1886 fire mutual; writes New York homeowners through agents, Demotech-rated, now testing California surplus lines. Markel (Markel American, Evanston and State National) Specialty insurer with no mainstream home policy: it writes hard-to-place homes through agents and wholesalers and fronts MGA programs via State National.

Related states

New York New York home insurance: State Farm, Allstate and Chubb lead, hurricane deductibles need a New York landfall, and NYPIUA and C-MAP back up coastal homes.