In some urban or high-risk areas the voluntary market may refuse to write property insurance. Fair Access to Insurance Requirements plans, known as FAIR plans, are state-mandated residual market mechanisms that provide basic property coverage to applicants who cannot obtain it through normal channels.

Plans typically offer fire and extended-coverage protection on habitational and commercial properties. Applicants must usually document rejections by voluntary insurers. Premiums are higher than standard rates, and coverage forms may be more restrictive. Participating insurers share the underwriting results.

FAIR plans were widely established after urban unrest in the 1960s highlighted gaps in availability. They remain a safety net rather than a competitive alternative. Ongoing issues include solvency after catastrophe losses, the adequacy of rates, and the balance between access and encouraging risk improvement.

• State residual market for hard-to-place property risks
• Provides basic fire and allied coverage
• Requires evidence of inability to obtain voluntary cover
• Shared by insurers writing in the state