Texas Insurance Commissioner Jose Montemayor announced the official launch of the Texas FAIR (Fair Access to Insurance Requirements) Plan Association’s homeowners insurance market-of-last-resort in Texas. As of Jan. 8, the FAIR Plan had 450 insurance agencies ready to sell policies to Texas consumers.
“Today marks a watershed day in the history of Texas insurance. For the first time, we are initiating action to ensure that no Texan falls through the cracks in the homeowners market,” Montemayor said. “This residual market will be of great benefit to those consumers who are having extreme difficulty finding coverage and will add additional capacity and accessibility to the existing marketplace.”
All licensed property and casualty insurers writing residential property insurance are required to participate in the FAIR Plan. Participation includes paying assessments as needed if the plan’s claims and other expenses exceed the premiums paid for coverage.
Access to the FAIR Plan is available only to those consumers who have been rejected for coverage by at least two licensed insurance companies and the consumer has not received a valid offer of comparable insurance from any other licensed insurance company. Additionally, the consumer’s home must be insurable and is subject to inspection by the FAIR Plan if necessary to establish that it meets the plan’s standards for insurability.