Colorado FAIR Plan

The Fair Access to Insurance Requirements (FAIR) Plan is a program designed to provide property insurance coverage for homeowners and businesses when coverage is unavailable through traditional means. HB23-1288, establishing the FAIR Plan, was passed by the legislature and then signed into law by the Governor on May 12, 2023.

Why was the FAIR Plan created?

The FAIR Plan was created to address situations where insurance companies may refuse coverage due to high-risk factors, such as the property’s location or vulnerability to certain perils such as wildfires. It ensures homeowners and businesses in Colorado have access to insurance even in areas prone to natural disasters or other risks.

What is the current status of the FAIR Plan?

HB23-1288 Fair Access to Insurance Requirements Plan (FAIR) Plan was signed into law by the Governor on May 12, 2023.

Further information about the FAIR Plan Statutes can be found within CRS 10-4-1801 through CRS 10-4-1812.

The Board has been appointed by the Governor and has begun to work on the creation of the Colorado FAIR Plan Association.

The Board submitted the Plan of Operation to the Division of Insurance and it was approved on July 26, 2024.

Access to FAIR Plan policies is not expected until early 2025.

What is the make up of the Board of Directors?

By law, Board members must represent the following interests:

• Two individuals representing admitted mutual insurers writing property insurance in Colorado

• Two individuals representing admitted stock insurers writing property insurance in Colorado

• One individual representing a Colorado-based insurance trade organization that represents insurers of various property interests;

• One member representing a Colorado-based insurance trade association that represents independent insurance agents licensed to write property and casualty insurance in Colorado;

• One insurance producer licensed to write property and casualty insurance in Colorado

• Two individuals representing the interests of consumers and, to the extent practicable, representing consumer advocacy organizations and diverse geographic areas of the state.

Board terms are for three years, except that, to ensure staggered membership, some of the initial appointments will be for one or two year terms.

The Board is reviewing lines of business, forms, and acceptable risk locations/condition. This section will be updated as new information is available.

What coverages will the Colorado FAIR Plan Association offer?

Subject to CRS 10-4-1801 through 10-4-1812, the FAIR Plan will initially offer to provide basic property insurance coverage when such coverage is not available from admitted markets.

The Plan will offer a DP1 Basic Form as an ACV policy providing coverage for the perils of Fire or Lightning; Windstorm or Hail; Explosion; Riot or Civil Commotion; Vehicles; Smoke; Volcanic Eruption; Vandalism; Malicious Mischief. General exclusions will include Ordinance or Law; Earth Movement; Water damage; Power Failure; Neglect; War; Nuclear Hazard; Intentional Loss; and Government Action. There will be a maximum combined coverage amount of $750,000.

The Plan will also offer basic Commercial Property Coverage with a maximum coverage amount of $5,000,000 combined property and contents coverage per location.

Coverages is further outlined by the Board in the Plan of Operations.

This section will be updated as new information is available.

Executive Director Update

Posted 4/25/2024

We are excited to announce the decision of hiring Kelly Campell for the role of Executive Director of the Colorado FAIR Plan Association. We believe Kelly Campbell is the ideal candidate to begin leading the Colorado FAIR Plan. She has worked in many facets of the Property and Casualty industry in Colorado. Kelly started her insurance career with State Farm Insurance as both an Insurance Claims Representative, Fire Operations Team Manager, and then as a Public Relations Specialist. She then served as the Department Vice President for the American Property Casualty Insurance Association (APCIA.) In 2020, Kelly founded Fulcrum Solutions. In that role Kelly has worked with a variety of stakeholders and is seen as an industry leader.

-Bryan Bernier, Board Chair