The Texas FAIR Plan

Who qualifies

TFPA lists these rules:

• You've been turned down by at least two insurers licensed in Texas and actually writing property insurance here, documented on TFPA's declination form.
• You don't currently have a policy, a renewal offer or a valid offer of comparable coverage. TDI puts it simply: if a company has offered you a policy or renewal, you won't qualify.
• You reapply in the regular market every two years.
• The property isn't condemned, vacant, in disrepair or carrying unrepaired damage.
• You haven't had more than eight paid claims (excluding glass) in the past three years.

What a FAIR Plan policy covers

TFPA sells a Homeowners Policy, Dwelling Policy, Condominium Policy and Tenant Policy. The named perils are fire and lightning, sudden and accidental smoke damage, windstorm and hail, explosion, aircraft and vehicles, riot and civil commotion, and vandalism and malicious mischief. Liability, medical payments and loss of use are available.

Because it's a named-peril policy, anything not on the list isn't covered. If you have a mortgage, ask your lender whether a FAIR Plan policy meets its insurance requirements before you buy.

Limits and valuation

TFPA's summary lists dwelling coverage up to $1,000,000 and liability options of $100,000 or $300,000. Homeowners and Dwelling policies cover the house at actual cash value by default. Replacement cost on the house is available only on the Homeowners Policy and requires insuring the dwelling to 100% of its replacement cost, and if the home is insured for less than 80% of full replacement cost at the time of loss, TFPA may pay only part of the loss. Contents are actual cash value unless you add replacement cost, which is offered on Homeowners, Condo and Tenant policies.

Deductibles changed in 2026

Effective July 1, 2026, TFPA eliminated the 1% wind and hail deductible on homeowners policies. Policies with 1% switch to 2% at renewal. Options are now 2% to 5% for wind and hail and 1% to 5% for all other perils, and deductibles can't be changed on a policy already in force.

On the coast: FAIR Plan plus TWIA

The FAIR Plan can't sell wind and hail coverage where TWIA is available (Insurance Code Section 2211.156). In the 14 coastal counties and parts of Harris County, you may need a FAIR Plan policy for fire and other perils plus a TWIA policy for wind and hail, plus flood coverage if required.

FAIR Plan or surplus lines?

If no standard company will insure you, an agent may show you a FAIR Plan policy, a surplus lines policy, or both. TDI describes surplus lines companies as out-of-state insurers that cover risks Texas companies won't. They must be licensed in their home state and meet Texas standards, and agents must make a good effort to find a Texas-licensed company first.

How to apply

TFPA doesn't sell directly. A licensed Texas agent submits the application with proof of the two declinations. Ask the agent to show you what the FAIR Plan policy covers next to whatever surplus lines option they may also suggest; TDI notes surplus lines insurance has fewer consumer protections than typical home insurance.

• Get the two declinations in writing, with company names and dates.
• Fix visible damage or disrepair first; it can be a reason for denial.
• Ask whether replacement cost is available for your home; TFPA requires insuring the dwelling to 100% of replacement cost to get it.
• Set a reminder to shop the regular market again before your two-year mark.
• On the coast, line up TWIA wind coverage and any required flood policy at the same time.
• Ask what the FAIR Plan doesn't cover, in writing, so you can decide whether to add other coverage.