Colorado Launches FAIR Plan for Homeowners Insurance

Colorado is launching its FAIR Plan, a crucial new homeowners insurance option aimed at residents who face challenges in obtaining conventional coverage. Starting this Thursday, homeowners who have been turned down by three or more insurance companies can apply for this state-sponsored plan, which offers up to $750,000 for home replacement costs. The plan also includes optional coverage for wind, hail damage, theft, and vandalism. Notably, it excludes water damage, flood coverage, liability, and additional living expenses, ensuring it serves as a last-resort option rather than a substitute for standard homeowners policies.

The FAIR Plan's introduction comes at a time when Colorado's climate may lead to increased risks associated with severe weather, including hailstorms and wildfires. As such, this initiative is not only an important step in enhancing homeowners' protections but also a response to the evolving insurance landscape, where obtaining coverage is becoming increasingly difficult for certain segments of the population. Homeowners interested in this program will have to go through licensed agents, and further information is available at coloradofairplan.com.