![]() “Claims and premiums that the FAIR plan collects and pays out are backed by admitted insurance companies in the state, based on their percentage of market share. All FAIR plans cover losses due to fire, and offer vandalism, riot and windstorm coverage. “FAIR plan policies might cost more than private insurance and offer less coverage, but still, it is protection where none would otherwise exist. Susman explains, “FAIR plans are state chartered organizations designed to provide fire and other types of coverage to people who cannot obtain insurance in the standard market. The FAIR plan was government’s response to insurance companies refusing to insure inner-city properties and “redlining.” It was an example of what government can do when it gets its act together, and currently over 30 states and Washington D.C. Recognizing the need to make insurance available to even the most difficult-to-insure properties, in the 1960s Fair Access to Insurance Requirements (FAIR) plans (opens in new tab) were created to make insurance available in areas that had abnormally high exposure to risks over which property owners had no control. The FAIR Plan Provides Insurance in Many States You are biting your fingernails, thinking, “This is so unfair! Now what? How am I going to get coverage?”Īnd you just answered the question yourself with that one word, FAIR. ![]() So, let’s assume that you get that bad news from your agent, go online and find insurance brokers who represent several companies - not just one - and still are being turned away or quoted mind-numbing rates that you just can’t afford. If your property is located in an area prone to severe weather, such as hurricanes, windstorms, tornadoes or hail, or you live in an urban area with high crime, vandalism and theft, this may be considered as high risk.” If you live near a forest (vulnerable to fire risks), then it is logical that your premiums will be much higher than someone who resides in a city. “Properties that are in obviously higher-risk areas will have premiums that reflect those risks.
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