Colorado will launch the state’s new, last-resort homeowners insurance program — known as the FAIR Plan — on Thursday even as this summer’s weather conditions could be ripe for severe hailstorms and wildfires.
Homeowners who can show they’ve been declined coverage by at least three commercial insurance companies can apply to purchase a FAIR Plan policy that would provide up to $750,000 toward the cost of replacing their home. Applicants will have the option to add coverage for wind and hail damage as well as theft and vandalism.
The FAIR Plan will not provide coverage for water or flood damage, liability, content replacement or additional living expenses should a homeowner be displaced by a fire.
“This product is not intended to compete with the admitted market,” said Kelly Campbell, the FAIR Plan’s executive director. “It’s not intended to be the same as a basic homeowners policy.”
FAIR Plan policies will be sold through licensed agents, although a list of those agents was not yet online Wednesday evening. People can call their insurance agent to find out if they are licensed to sell FAIR Plan policies. For more information, visit coloradofairplan.com.
Read the full story from our partners at The Denver Post.
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