About
About 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, claim history, or vulnerability to certain perils such as wildfires or hail. It ensures homeowners and businesses in Colorado have access to insurance even in areas prone to natural disasters or other risks.
What is the 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 was appointed by the Governor in January 2024 and began work to create the Colorado FAIR Plan Association. The Board submitted the Plan of Operation to the Division of Insurance, which approved it on July 26, 2024.
General Questions
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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/conditions. This section will be updated as new information is available.
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Subject to CRS Sections 10-4-1801 through 10-4-1812, the FAIR Plan will initially offer provide basic property insurance coverage when such coverage is not available from admitted markets.
The Plan will offer coverage for the actual cash value of the property for losses from fire or lightning. A homeowner can select additional coverage for personal property in the home (contents coverage). There is also an option to purchase coverage for losses arising from Windstorms or Hail; Explosions; Riot, or Civil Commotion; Vehicles; Smoke; Volcanic Eruption; Vandalism, and 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 limit of $750,000 for property and contents (if selected).
FAIR Plan policies only provide coverage for the actual cash calue (ACV) of the property. They are NOT replacement cost coverage. ACV is determined by the replacement cost less depreciation.
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 are further outlined by the Board in the Plan of Operations.
This section will be updated as new information is available.