2.3 Missouri FAIR Plan
Key Takeaways
- Missouri FAIR Plan provides basic property insurance for high-risk properties unable to obtain standard market coverage
- FAIR stands for Fair Access to Insurance Requirements
- Eligible contents can be covered, and theft can be available for a dwelling risk when contents, extended coverage, and vandalism and malicious mischief coverage are selected
- The producer submits the application but has no binding authority for the Facility
- Liability coverage is not included in the basic FAIR Plan property protection
Missouri FAIR Plan
The Missouri Property Insurance Placement Facility provides a residual-market path for eligible property that cannot obtain coverage through the normal voluntary market. A producer helps the applicant submit the required materials but has no binding authority for the Facility.
Coverage
The Facility's producer materials describe basic property coverage for eligible residential, commercial, and farm property. Available property coverage may include the dwelling or building and eligible contents. Covered causes of loss depend on the selected form and endorsements and may include fire, lightning, windstorm, hail, explosion, riot, civil commotion, aircraft, vehicles, smoke, volcanic eruption, vandalism, and malicious mischief.
Theft is not categorically unavailable. For dwelling risks, theft coverage may be included when contents coverage, extended coverage, and vandalism and malicious mischief coverage are selected. Liability coverage is not part of the basic FAIR Plan property protection.
Application Process
The applicant must satisfy the Facility's eligibility and property-condition requirements. Producers submit complete applications, photographs, requested underwriting information, and premium as directed. The Facility—not the producer—decides whether to accept the risk, what coverage is available, and the applicable premium.
The FAIR Plan is a market-of-last-resort mechanism, not a promise of homeowners-equivalent coverage or a specific premium markup. Compare the offered form, limits, causes of loss, valuation, and endorsements with the applicant's needs.
Exam focus: FAIR Plan means access to basic property insurance after ordinary-market difficulty. Remember that contents can be covered, theft can be available under stated conditions, the producer cannot bind the Facility, and liability coverage is not included.
What does FAIR stand for in Missouri FAIR Plan?
Which of the following coverages is NOT included in a Missouri FAIR Plan policy?
Which statement about theft coverage under the Missouri FAIR Plan is accurate?