Topic guide · cite .gov
FAIR plans & residual markets
When admitted insurers nonrenew or decline new business in wildfire-exposed areas, residual markets — often called FAIR plans — may offer basic fire/property coverage. They are last resorts, not full homeowners replacements.
What a FAIR plan usually is
FAIR (Fair Access to Insurance Requirements) plans and similar associations are residual markets created so property owners who cannot obtain coverage in the voluntary market still have a path to basic fire or property insurance. Coverage is often actual cash value, fire-focused, and missing liability, theft, or other HO-3 pieces — which is why Difference-in-Conditions (DIC) or surplus wraps are commonly discussed alongside FAIR policies.
Prefer official plan and state DOI pages over marketing blogs when checking eligibility, declination counts, and limits.
Where FAIR (or an analog) exists among wildfire states
- California — California FAIR Plan Association (cfpnet.com); CDI consumer page at insurance.ca.gov.
- Colorado — Colorado FAIR Plan (coloradofairplan.com), launched 2025; typically three declinations.
- Oregon — Oregon FAIR Plan Association (orfairplan.com); materials often cite two declines.
- Washington — Washington FAIR Plan (wafairplan.com); cancel/nonrenew notices must include FAIR contact.
- Texas — Texas FAIR Plan Association (TFPA); TDI overview PDF at tdi.texas.gov. Coastal TWIA is wind/hail, not FAIR fire.
- New Mexico — NMPIP / NM FAIR Plan (nmpropertyinsurance.com); ACV; active-fire 50-mile new-business bar.
- Hawaii — Hawaii Property Insurance Association (hpiainfo.com); two voluntary declines typical.
States without a residential FAIR Plan (as of research)
Arizona, Nevada, Idaho, Utah, Montana, Wyoming, Oklahoma, and Alaska — no residential FAIR insurer of last resort was identified in the official materials reviewed. Oklahoma’s OK-MAP is a referral program, not a FAIR writer. Florida’s Citizens is a wind/hurricane residual market — comparative only, not a western wildfire FAIR twin.
Homeowner checklist
- Collect written declinations before applying (counts vary by plan).
- Read what is not covered — liability, theft, water, replacement cost.
- Keep shopping the admitted market annually; residual markets are pressure valves.
- Confirm live limits and Plan of Operation text — secondary dollar figures go stale.