The FAIR Plan in Colorado was created in response to rising homeowners insurance premiums, providing coverage for homeowners rejected by traditional insurers. Launched in April 2025, it has limited appeal, attracting only 51 homeowners due to high costs and its designation as a last resort. The plan offers actual cash value coverage rather than full replacement cost, which may deter applications. As cancellations increase among traditional insurers in wildfire-prone areas, the FAIR Plan could become critical for homeowners, similar to California's extensive coverage in high-risk zones.
The FAIR Plan in Colorado, established in 2023, is a state-backed insurance program for homeowners denied coverage by traditional carriers, offering actual cash value coverage up to $750,000.
Despite a growing number of nonrenewals in high-risk areas, the FAIR Plan has issued only 51 policies since its launch due to high barriers to entry and the program's marketing as a last resort with limited coverage and high costs.
Most FAIR Plan policies are written for properties in wildfire zones or with a history of repeated claims, as traditional insurers become increasingly unwilling to cover such risks.
While the FAIR Plan may not offer comprehensive coverage like traditional insurers, it remains a viable option for homeowners struggling to find coverage, especially in high-risk areas.
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