What type of property insurance do Fair Access to Insurance Requirements (FAIR) Plans provide access to in urban areas?

Fair Access to Insurance Requirements (FAIR) Plans are designed to provide access to essential property insurance coverage for individuals and businesses located in high-risk urban areas who may otherwise struggle to obtain insurance through standard market options. The type of coverage that these plans typically offer is categorized as basic.

Basic coverage under a FAIR Plan usually includes fundamental protection against common perils such as fire and certain types of property damage, but it is not as extensive as comprehensive or deluxe options, which cover a wider range of risks and higher liability limits. The primary goal of FAIR Plans is to ensure that individuals in areas deemed too risky by traditional insurers can still obtain necessary insurance, thus enhancing community stability and protecting property investments.

Comprehensive, standard, and deluxe coverage options typically provide more extensive protection and are designed for risks that can be considered more insurable, leaving the basic coverage provided by FAIR Plans as the appropriate solution for high-risk urban areas.