Glossary

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.

Also called: Fair Access to Insurance Requirements plan, state FAIR plan, property insurance plan, FAIR Plan

FAIR stands for Fair Access to Insurance Requirements. The plans date to the late 1960s, when insurers pulled out of riot-damaged urban areas and states created pools so property owners could still buy coverage. Today they matter most to homeowners in wildfire, coastal and other high-loss areas whom private insurers have declined or nonrenewed.

A FAIR plan is generally an industry-run pool, not a taxpayer-funded insurer. The insurers licensed in the state share its profits and losses, usually in proportion to their market share. When a large catastrophe exhausts the plan's reserves, member insurers are charged an assessment, which the state may allow them to recover from their own policyholders.

The coverage is typically narrower and costlier than an HO-3. Many plans start with named perils such as fire, lightning and internal explosion, add wind, hail or vandalism as options, and leave out theft, water damage and liability. That gap is why homeowners often pair a plan policy with a Difference in conditions (DIC) policy policy. Eligibility rules, limits and names differ by state, and some states use a different name entirely.

The FAIR plan guide covers how to apply, and the California FAIR Plan shows one in detail.

Last reviewed October 10, 2026

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Related terms

Residual market The state-created plans and pools that cover property owners the private market declines, as opposed to coverage insurers sell by choice. Insurer of last resort A state-created or state-sponsored insurer that sells coverage to property owners who cannot get a policy from a private company. 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. Assessment An extra charge raised after a state-backed insurer or guaranty fund runs short of money, collected from insurers and sometimes passed on to policyholders. Depopulation A state program that moves policies out of a state-backed insurer and into private companies, shrinking the plan's exposure to the next catastrophe. Takeout policy The private-market policy offered to a state-backed insurer's customer when a company takes over a block of that plan's policies.

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. The California Earthquake Authority explained What the CEA is, how its policies are sold through your home insurer, what they cover and exclude, how it is funded, and what its limits mean for homeowners. The California FAIR Plan explained What the California FAIR Plan covers and leaves out, how to pair it with a DIC policy, how it is funded, and how to move back to a regular insurer. California's home insurance crisis Why California homeowners lost coverage, how the FAIR Plan became a major insurer, and what to do if you are dropped. Facts as of October 2026. California's Sustainable Insurance Strategy What the Sustainable Insurance Strategy changes in California: wildfire models, reinsurance costs in rates, the 85% writing commitment and what you can expect. Check insurability before you buy a house Get address-specific quotes and an eligibility answer during your inspection period, before you are committed. What to check and what to do if insurers say no.

Related insurers

Arbella Insurance Quincy, Massachusetts mutual founded in 1988 that sells home, condo and auto insurance through independent agents in Massachusetts and Connecticut; AM Best A. California FAIR Plan California's insurer of last resort, a pool of all licensed property insurers selling basic fire policies; 696,562 policies in force in June 2026. DB Insurance (U.S. Branch) U.S. branch of South Korea's DB Insurance, writing homeowners in California through the Aegis General program, plus Hawaii, New York, New Jersey and Guam. GEICO Homeowners Insurance (GEICO Insurance Agency) GEICO does not underwrite most home policies: its agency places home, condo and renters coverage with partner insurers that set the terms and pay claims. Louisiana Citizens Property Insurance Corporation Louisiana's nonprofit insurer of last resort, created in 2003 to run the state's FAIR and Coastal plans, with rates set by law above the private market's. Mapfre Insurance U.S. arm of Spain's Mapfre and the former Commerce Insurance of Webster, Mass.; the largest home insurer in Massachusetts, sold through independent agents.

Related states

Hawaii Hawaii home insurance: State Farm leads, hurricane cover is often a separate policy, HPIA insures lava-zone homes, and 2026 storms tested claim rules. Kansas Kansas home insurance: State Farm and American Family lead, hail drives claims, contractor assignments are banned since 2026, and the FAIR Plan is the fallback. Kentucky Kentucky home insurance: State Farm and Kentucky Farm Bureau write nearly half, FORTIFIED discounts began in 2026, and nonrenewals need 75 days' notice. Missouri Missouri home insurance: State Farm and American Family lead, hail and the 2025 tornado season drive premiums, and New Madrid quake cover stays rare. New Jersey New Jersey home insurance: NJM leads, coastal hurricane deductibles are capped by rule, flood is the big gap, and a small FAIR plan covers what insurers won't. New Mexico New Mexico home insurance: State Farm leads, wildfire and burn-scar floods drive nonrenewals, and the FAIR plan now covers homes up to $750,000 at cash value.

Related tools

Nonrenewal action plan Turn a nonrenewal notice into a dated plan: what to do now, where to look for coverage, and what your state offers when no private insurer will write you. Home insurance rules by state Pick a state, or two side by side, to see its market, insurer of last resort, deductible and claim rules, and regulator contacts.