What Is the Fair Plan and Who Needs It for Home Insurance?

The Fair Plan is a shared market where multiple insurers pool risk to provide basic property coverage. It exists in many states, including Washington, as a safety net for homeowners who are otherwise uninsurable. You apply through a participating agent, not directly.

Coverage under the Fair Plan is more limited than a standard policy. It typically covers fire, wind, and some other named perils, but not flood or earth movement. You can often buy separate policies for those risks, which is important in a marine climate with wet winters and dry summers.

The Fair Plan generally covers damage from fire, lightning, wind, and smoke. It may also include vandalism and theft, but each state's plan differs. You should read the policy carefully to know exactly what perils are included and what exclusions apply.

Water damage from burst pipes is often excluded unless it's sudden and accidental. Gradual leaks or flooding from outside are not covered. If you experience water damage, you may need separate flood insurance or a rider, depending on your situation.

• Fire and lightning damage
• Wind and hail damage
• Smoke damage
• Vandalism and theft
• Limited liability coverage
• No flood or earth movement coverage

Before resorting to the Fair Plan, you can try to improve your home's insurability. Fixing a leaky roof, upgrading electrical systems, or removing dead trees can make your property more attractive to standard insurers. Some insurers offer 'high-risk' policies that are broader than the Fair Plan.

You can also work with an independent agent who can compare options from multiple insurers. That agent might find an insurer willing to write a policy with certain conditions. If you've had water damage, addressing the source and documenting repairs can help. Policies vary, and your insurer decides what is covered.