Texas Fair Plan Association (2024)

FAQs

What is the purpose of the Texas Fair Plan Association? ›

Texas FAIR Plan Association's mission is to provide essential residential property insurance products and services for eligible Texas policyholders when no one else will.

TFPA is authorized to issue policies throughout Texas; however, it is not authorized to provide windstorm and hail insurance for properties eligible for coverage through the Texas Windstorm Insurance Association (TWIA).

TFPA provides coverage to the entire state of Texas. TWIA provides coverage in the 14 coastal counties and parts of Harris County.

A FAIR Plan policy protects your home for the risk of fire, and will satisfy a mortgage company's requirement that your home be insured, but it doesn't cover theft, flood, earthquake, hail, vandalism or personal liability.

The FAIR Plan covers property damage due to fire, lightning, smoke, or internal explosions. You can also purchase optional extended coverage for windstorms, hail, explosions, riots, aircraft, or vehicles, as well as for vandalism or malicious mischief.

Through the California FAIR Plan, all licensed insurance companies in the state are required to participate. The FAIR plan issues policies on behalf of these companies, which share in both profits and losses commensurate with their overall market share.

The Texas FAIR Plan earns a low score on our price rating scale due to its prohibitively expensive home insurance rates compared to the amount of coverage that you're getting. Texas homeowners should expect to pay about $4,250 per year for a policy with $300,000 in dwelling coverage, according to our analysis.

Dwelling coverage is the part of a homeowners policy that pays to repair damage to the structure of your home, or to rebuild it if it's destroyed. Dwelling insurance will cover you up to the limit of your policy. Your home's structure includes the roof, foundation, floors, doors, windows and walls.

TFPA policies provide coverage for damage caused by:

Consumers in a designated catastrophe area may purchase windstorm, hurricane and hail insurance on insurable property through the Texas Windstorm Insurance Association.

The Windstorm Inspections Program applies to structures located in the designated catastrophe areas, known as Texas' First Tier Counties: Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio, Willacy, and certain cities east of State Highway 146 ...

Is TWIA only in Texas? ›

TWIA's primary purpose is to provide an adequate market for windstorm and hail insurance in certain designated portions of the seacoast territory of Texas. The seacoast territory includes 14 first-tier and 14 second-tier coastal counties.

TWIA policies provide coverage for residential and commercial property located within the area designated by the Commissioner of Insurance. This area currently includes all 14 first tier coastal counties and parts of Harris County east of Highway 146.

These plans are typically only intended to provide coverage for catastrophic events. FAIR Plan insurance coverage varies by state, but at the very least it usually includes dwelling coverage. Coverage for personal belongings and additional structures on the property are usually only offered as optional policy add-ons.

How much coverage can I get under the California FAIR Plan? Home dwelling coverage limits are capped at $3 million under the FAIR Plan, but policies with higher limits will likely cost more than the $3,200 average.

Final answer: The incorrect statement about the FAIR plan is that it provides property coverage to both residential and farm dwellings. The FAIR plan offers coverage for high-risk properties to those who can't get standard insurance, and agents cannot instantly bind coverage.

The FAIR Plan exists to provide insurance to Californians who cannot find coverage through no fault of their own. The FAIR Plan serves as a temporary safety net for property owners until traditional insurance coverage becomes available.

The FAIR Plan provides property coverage for risks that are uninsurable through the private insurance market. No property can be denied coverage by a FAIR Plan.

The Texas Department of Insurance mission is to protect insurance consumers by: Regulating the insurance industry fairly and diligently. Promoting a stable and competitive market. Providing information that makes a difference.

The Texas Fair Defense Project's mission is to fight to end the criminalization of poverty in Texas. We envision a system of justice that upholds the dignity and civil rights of all people, regardless of income, race, or gender.