What is the purpose of the FAIR Plan?

The FAIR Plan, which stands for Fair Access to Insurance Requirements Plan, is designed specifically to provide high-risk property insurance to individuals who may otherwise struggle to obtain coverage in the standard insurance market. Many property owners in high-risk areas—such as those prone to fires, floods, or severe weather—often find it challenging to secure insurance. The FAIR Plan helps address this issue by making insurance accessible to these property owners, ensuring that they can still protect their assets despite their higher risk profile.

The other options do not accurately reflect the primary objective of the FAIR Plan. Regulating insurance companies is a broader task typically handled by state insurance departments, while offering discounts on premiums is not a central function of the FAIR Plan. Additionally, the FAIR Plan provides coverage for both residential and some commercial properties, rather than restricting coverage solely to residential properties. This comprehensive approach helps enhance the availability of insurance options for those in higher-risk situations.