Opening a letter that says your home insurance won’t be renewed is stressful, especially when you own an older Philadelphia rowhome or you’ve had a claim or two. The good news is that a non-renewal or a declined application usually isn’t the end of the road. In many cases you still have options, and one of them is the Pennsylvania FAIR Plan. This guide explains what the PA FAIR Plan generally is, who it’s for, how its coverage tends to compare with a standard homeowners policy, and how a local independent agency like Insure Me Philly can help you work out the best next step.
What the Pennsylvania FAIR Plan Is and Who Runs It
FAIR stands for “Fair Access to Insurance Requirements.” The Pennsylvania FAIR Plan was created under state law in 1968 to make basic property insurance available to Pennsylvania property owners who can’t get coverage through the regular insurance market. It is often described as an insurer of last resort.
The plan is administered by the Insurance Placement Facility of Pennsylvania, which is based in Philadelphia, and it is supported by the insurance companies that write property coverage in the state. It is not a government handout or a discount program. It is a way to make sure that a home that standard carriers won’t take on can still generally get some protection.
Who Qualifies, and Why Philadelphia Homeowners Get Non-Renewed
The FAIR Plan is generally meant for homeowners who have been unable to find coverage in the standard market. Eligibility rules and underwriting standards vary and can change, and the plan may inspect a property before issuing coverage, so it’s worth confirming the current requirements before you apply.
Here in Philadelphia, some of the common reasons homeowners are declined or non-renewed by standard carriers include:
- An older home. Many Philly rowhomes and twins are close to, or well past, 100 years old. Carriers may be wary of older roofs, original wiring, knob-and-tube, or aging plumbing and heating systems.
- Prior claims. Several claims in a short period, especially water or weather-related claims, can lead a carrier to decide not to renew.
- Property condition. Roof wear, deferred maintenance or safety issues spotted during an inspection may affect whether a carrier will continue coverage.
- Vacancy or occupancy changes. A home that sits empty, or that shifts from owner-occupied to rented, is often underwritten differently.
- Carrier decisions. Sometimes a non-renewal has less to do with your home and more to do with a company pulling back from certain areas or types of property.
Pennsylvania generally requires insurers to give you advance written notice of a non-renewal and to state the reason. Read that notice carefully and note the date your coverage ends, because that date sets your timeline for finding replacement coverage.
What the FAIR Plan Generally Covers vs. a Standard HO-3 Policy
This is the most important part to understand. A standard homeowners policy, often called an HO-3, typically bundles several protections into one package: coverage for the house itself, your personal belongings, additional living expenses if you can’t live at home after a covered loss, and personal liability. A FAIR Plan policy is generally much more limited.
FAIR Plan coverage is typically focused on the structure against a defined list of perils, with fire and lightning at its core. Depending on the policy form you choose, other named perils may be included. What it often does not include by default, compared with a typical HO-3, can be significant:
- Personal liability. A FAIR Plan policy generally isn’t a liability policy, so protection if someone is hurt on your property may need to come from a separate policy.
- Theft and personal belongings. Contents and theft coverage may be limited or not included, depending on the form.
- Certain weather and water losses. Some losses, such as freezing pipes or the weight of ice and snow, may not be covered under a basic form.
- Extras you may be used to. Things like loss of use, water backup, and replacement cost settlement may be limited or unavailable.
Exactly what’s covered varies by policy form, and forms and limits can change. Before you rely on a FAIR Plan policy, review it with a licensed agent so you know what the gaps are. In many cases homeowners pair a FAIR Plan policy with separate coverage, such as a personal liability policy, to fill them.
How to Apply, and How an Independent Agent Helps
You can generally apply for FAIR Plan coverage through a licensed insurance agent or broker. Working with an independent agent has a few practical advantages when you’ve been non-renewed:
- We shop the market first. Being dropped by one carrier doesn’t mean every carrier will say no. An independent agency can check options across multiple carriers before you settle for a more limited policy.
- We help with the application. If the FAIR Plan does turn out to be the right fit, we can help you gather what’s needed and explain the paperwork.
- We look for the gaps. We’ll walk through what a FAIR Plan policy generally does and doesn’t cover, and whether separate liability or other coverage makes sense for you.
- We keep an eye on renewal. Circumstances change. A new roof, updated wiring or a clean claims history may open the door to standard coverage again later.
FAIR Plan vs. Shopping the Standard Market First
For most Philadelphia homeowners, the FAIR Plan works best as a backstop, not a first choice. A standard homeowners policy generally offers broader protection in a single package, and in many cases it can be better value for what you get. That’s why it usually makes sense to see what the standard market will offer before you apply to the FAIR Plan.
Timing matters too. Try not to let your coverage lapse while you shop. A gap in coverage can make it harder to find a new policy, and if you have a mortgage, your lender will generally require that the home stays insured. If you’ve received a non-renewal notice, reach out well before the end date so there’s time to compare options. If you own a condo rather than a rowhome or house, the picture is a little different; see our guide to condo insurance in Philadelphia. For an overview of standard homeowners coverage, see our home insurance in Philadelphia page.
Frequently Asked Questions
How much does FAIR Plan insurance cost? It varies with the home, its location, its condition, the coverage amount and the policy form. In many cases FAIR Plan coverage costs more than a standard policy for less protection, which is one reason to shop the standard market first. A licensed agent can help you compare actual quotes.
Is the FAIR Plan permanent? No. There’s generally nothing stopping you from moving back to a standard carrier when one will offer you coverage. Many homeowners use the FAIR Plan while they fix the issue that led to the non-renewal, such as replacing a roof or updating electrical systems, and then re-shop.
Can I switch back to a regular homeowners policy? In many cases, yes. It generally helps to show that the reason for the non-renewal has been addressed and to keep a clean claims history. An independent agent can re-check the market for you at renewal.
Does the FAIR Plan cover liability if someone is injured at my home? A FAIR Plan policy generally focuses on property rather than liability, so you may need a separate policy for that protection. Confirm the details of your specific policy with a licensed agent.
Talk to a Local Philadelphia Agent
If you’ve been non-renewed or declined, you don’t have to sort it out alone. Insure Me Philly is an independent agency on Cottman Avenue in Northeast Philadelphia. We can review your notice with you, check options across carriers, and, if it’s the right fit, help you apply to the Pennsylvania FAIR Plan. Request a quote, call us at 215-742-3743, or contact our team for a no-pressure review of your options.
This article is general information, not insurance or legal advice. FAIR Plan eligibility, coverage, policy forms and costs vary by policy and carrier and can change. Confirm the details of your situation with a licensed Terra agent, the Pennsylvania FAIR Plan, or the Pennsylvania Insurance Department.
