Eligibility
Eligibility for the Colorado FAIR Plan
The Colorado FAIR Plan is designed to be a last resort for property owners who cannot secure insurance through the private market. To qualify for coverage under the FAIR Plan, you must meet specific criteria.
Do You Qualify?
To be eligible for the Colorado FAIR Plan, you must:
Own a property considered uninsurable by the private market, typically due to factors like wildfire risk, hail risk, claims history, age, or location.
Receive three declinations from licensed private insurance companies.
Work with a licensed insurance agent to confirm eligibly and submit an application.
FAIR Plan coverage is not meant to replace private insurance. It exists only for those who cannot find coverage elsewhere.
The FAIR Plan provides only basic property insurance with a $750,000 limit for homeowners or a $5,000,000 limit for commercial properties. This means coverage is limited to essential protections, such as fire and lightning. Some limited extended coverages may be purchased for things like 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.
However, the premiums for FAIR Plan coverage are typically higher than private insurance due to the increased risk associated with the property. FAIR Plan policies only provide coverage for the actual cash value (ACV) of the property. They are NOT replacement cost coverage. ACV is determined by the replacement cost less depreciation.
Determine Your Eligibility
Consult with an agent: The FAIR Plan can only be accessed through a licensed insurance agent. Work closely with your agent to confirm eligibility and review your options.
Submit proof of declinations: You must provide proof that three different insurance companies have declined to insure your property. Your agent will help you gather this information.
Important Reminders
The FAIR Plan is a last resort and typically the most expensive insurance option.
Always explore private insurance options before applying for FAIR Plan coverage.
Eligibility is determined solely by the inability to secure insurance from private insurers—not by financial need, property size, or other factors.
The FAIR Plan provides limited coverage and only covers the actual cash value of your home, not the cost to rebuild or replace it.
If you’re unsure about your eligibility, contact your insurance agent today to explore your options.
Not Eligible? Explore Other Options
If you don’t meet the Colorado FAIR Plan criteria, options may still be available through private insurers or the surplus lines market. We recommend exploring all options with your agent.
For more resources, see our Q&A section or visit the Colorado Division of Insurance’s Homeowner Toolkit to learn more about shopping for property insurance.