What does the Residual Market/State FAIR Plan provide?

The Residual Market, commonly known as the State FAIR Plan, provides insurance through state-mandated plans. This system is established to ensure that individuals who may not qualify for coverage through regular insurance markets can still obtain essential insurance, particularly in areas prone to high risks such as natural disasters or in high-crime regions.

The FAIR Plan is specifically designed to offer basic property insurance to homeowners and businesses that are unable to secure coverage through traditional insurers. It acts as a safety net for those who may face difficulty accessing necessary coverage due to factors like location or property condition.

By adhering to state regulations, the FAIR Plan serves a critical role in providing equitable access to insurance, fulfilling a public need for coverage where private insurers often decline to provide policies.