A state-created property insurance option for certain hard-to-insure risks.
Why it matters
It may be a last-resort option, but coverage can be limited.
Example
A wildfire-exposed home may be considered for a FAIR Plan in some states.
Common mistake
Assuming FAIR Plans are identical in every state.
Related terms
Definitions are educational summaries. The policy's definitions and applicable law control a specific claim or coverage question.