When you own a home in Texas, finding reliable insurance is usually a straightforward process. But for many homeowners, especially those with older houses, previous claims, or homes located in high-risk regions, securing coverage can be a frustrating challenge. Insurance companies can decline applications for many reasons — and when that happens repeatedly, homeowners often feel stuck, unprotected, and unsure of what to do next.
Fortunately, Texas has a safety net designed specifically for situations like these: the Texas FAIR Plan Association (TFPA).
What Is the Texas FAIR Plan?
The FAIR Plan — is a state-created insurance program designed for homeowners who cannot secure property insurance through the regular insurance market. It is considered an insurer of last resort, meaning it is only available when standard insurance carriers will not offer you a policy.
The FAIR Plan exists to make sure Texans do not go uninsured simply because their property is considered too risky, too old, or too hard to place. It is not designed to compete with private insurers and does not replace traditional policies. Instead, it serves homeowners who genuinely have no other options.
The program offers basic but essential coverage for homes, condos, rental properties, and tenant-occupied units when no other carrier will write the policy. For many homeowners, it serves as a temporary safety net until their home becomes insurable again in the standard market.
Homeowners HO1
This is the most common policy used for owner-occupied homes. It provides limited named-peril coverage, which means it covers only specific listed risks. Typical covered perils include:
-
Fire
-
Lightning
-
Wind
-
Hail
-
Explosion
-
Smoke
-
Vandalism
-
Theft (limited)
This policy does not typically include coverage for non-sudden water damage, foundation issues, wear and tear, previous damage, or mold. It is designed for essential protection only.
Basic Protection You Need
| Property | Coverage for your main living structure |
| Other Structures | Other buildings or structures on your property |
| Contents | Your personal belongings - furniture, clothing, appliances, etc. |
| Liability | Your personal legal liability |
| Additional living expenses after a loss | Compensation for temporary expenses, hotels, motels or other temporary accommodations while your home is not livable or under repair from a covered loss |
| Replacement Cost Guarantee | Ensure you have the right amount of coverage to replace it |
Dwelling Fire Policy
The Dwelling Policy applies to homes that the owner does not occupy — such as rental homes or sometimes seasonal homes. It provides limited protection for the structure but very little or no coverage for a homeowner’s personal property.
This policy is often used for homes rented to tenants or homes that are otherwise hard to insure.
Tips for saving on your Insurance
If electrical wiring. plumbing and roof have all been updated in the last 20 years, then you get a rating discount by using the first remodeling date as the age of the structure. Up to a 10% credit. If you have 1 or more acres o f land? With or without hobby animals, you may qualify for our personal lines program, No need for a Farm and Ranch insurance type policy. If AG sales are less than $5000 year you may still go into our personal residential insurance programs. We now offer $5000 of accidental water damage, on a DP1 on a standard Fire, EC, VMM for a flat $100 AP. This applies to a tenant or owner occupied.
Why Homeowners may need the FAIR Plan
Homeowners may find themselves declined by insurance companies for a wide range of reasons. Understanding these reasons can help you determine whether the FAIR Plan may be the right solution.
Common reasons insurers decline to write a policy include:
-
Older roofs or roofs showing signs of age or wear
-
Homes with outdated electrical systems, plumbing, or wiring
-
Homes with prior water damage, fire damage, or other significant claims
-
Homes located in high-risk areas, particularly regions with elevated wildfire or hail exposure
-
Too many claims over a short period
-
Poor past insurance history, lapses in coverage, or irregular payment history
-
Homes that fail routine underwriting inspections
-
Vacant or partially vacant homes
-
Homes undergoing renovations or repairs
Even if your home is well maintained, a single underwriting concern can lead an insurer to decline coverage. Some companies are stricter than others. While one may deny your application, another might be willing to insure you — which is why working with an experienced agent matters.
Eligibility for Fair Plan insurance
Not everyone can apply for the FAIR Plan. You must meet certain eligibility requirements. These rules exist to ensure that TFPA remains a true last-resort option for homeowners.
To qualify for coverage, you typically must:
-
Be denied by at least two insurance companies writing property insurance in Texas.
Companies must actually decline you — simply refusing to provide a quote does not always count. -
Live in a property that meets minimum safety and habitability standards.
The FAIR Plan Association will not insure homes that are structurally unsound or extremely unsafe. -
Apply through a licensed Texas insurance agent.
The FAIR Plan does not sell policies directly to consumers. An agent must submit your application on your behalf. -
Not have other homeowners insurance available to you.
If at least one insurer offers you a reasonable policy, you will not qualify for FAIR Plan coverage.
The process can feel confusing — but that’s where an experienced agent becomes invaluable. We can help gather your decline documentation, determine your eligibility, and submit the required forms.
If you have been declined insurance for your home by 3 or more Insurers based either on your Credit Rating or due to excessive Prior Claims History or due to your homes geographical location in what is considered High Risk area of Texas, you can likely get insurance through the Plan. Only your Insurance Agent however, may submit your application. You Agent must also be enrolled in the plan and authorized to submit for coverage. Once place. your coverage can be accepted for 2 years. After 2 years if your Credit or claims History has improved you should be able to find coverage through the traditional market place. If your circumstance have not improved and you are again declined coverage from 3 Texas insurer. your agent may again submit your request for coverage through the Fair Plan for another 2 years.
While the program provides essential coverage for homeowners who are unable to find coverage from traditional insurance provider. it is important to note that this coverage does have limitations. Homeowners who obtain coverage through the fair plan may find that their coverage is more expensive than coverage obtained through traditional insurance providers. Additionally, it may not provide coverage for all types of natural disasters or other catastrophic events.
Frequently Asked Questions
Can I leave the FAIR Plan later?
Yes. Once you qualify for a regular homeowners insurance policy with a standard carrier, you can cancel your FAIR Plan policy at any time.
Is the FAIR Plan more expensive?
Often, yes — premiums reflect higher risk. But it is usually the most affordable option available for uninsurable homes.
How long does the process take?
Once your documentation is complete, we can typically submit and bind coverage quickly.
Do all homes qualify?
No. Homes must meet certain minimum condition requirements. Unsafe homes or severely damaged structures may be ineligible.
Ready to Get Help? Contact Us for FAIR Plan Support
If you’re struggling to find homeowners insurance in Texas or have been declined by multiple companies, the FAIR Plan may be the answer. But the process can be confusing without a knowledgeable agent guiding you.
We’re here to help. Whether you need to determine eligibility, gather declination letters, or apply for coverage, we provide full assistance from start to finish. With years of experience helping Texans secure hard-to-find insurance, we can guide you through the FAIR Plan process and make sure your home is protected.
Economic challenges and financial uncertainty can result in undesirable dings on some consumers usual credit standing. Homeowners with Credit problems can still obtain insurance through our Non Credit Scored programs. These are rated differently and often issued on special custom insurance forms rather than traditional policy offerings. Some insurance markets may limit their Non Credit Scored insurance offerings to an HO1 or HOA type policy for owner occupied and DP1 policy forms for tenant occupied rental properties.
Don’t go uninsured another day. We’ll help you get the coverage you need — even when the standard market says no.