Many different programs are in place across the United States provide insurance to high-risk policyholders who may have difficulty obtaining coverage from the standard market. So called residual, shared or involuntary market programs make basic insurance coverage more readily available. Today, property insurance from the residual market is provided by Fair Access to Insurance Requirements (FAIR) Plans, Beach and Windstorm Plans, and two state-run insurance companies in Florida and Louisiana: Florida Citizens Property Insurance Corp. (CPIC) and Louisiana Citizens Property Insurance Corp. (Louisiana Citizens). Established in the late 1960s to ensure the continued provision of insurance in urban areas, FAIR Plans often provide property insurance in both urban and coastal areas, while Beach and Windstorm Plans cover predominantly wind-only risks in designated coastal areas. Hybrid plans, like Florida’s and Louisiana’s plans, provide property insurance throughout those states. It is important to note that in addition to windstorm risk, these plans routinely cover a range of other exposures, such as vandalism and fire.
Residual Markets
Insurance Provided By Fair Plans By State, Fiscal Year 2024 (1)
| Number of policies | |||||
|---|---|---|---|---|---|
| State | Habitational | Commercial | Total | Exposure (2) ($000) |
Direct premiums written ($000) |
| California | 417,310 | 13,990 | 431,300 | $429,840,251 | $1,415,750 |
| Connecticut | 1,187 | 53 | 1,240 | 304,240 | 1,842 |
| Delaware | 1,170 | 57 | 1,227 | 249,532 | 607 |
| D.C. | 116 | 18 | 134 | 70,977 | 194 |
| Florida (3) | 1,321,953 | 13,564 | 1,335,517 | 385,821,636 | 4,597,890 |
| Georgia | 8,778 | 638 | 9,416 | 2,200,620 | 16,250 |
| Hawaii | 2,402 | (4) | 2,402 | 928,919 | 5,565 |
| Illinois | 1,961 | 62 | 2,023 | 370,022 | 4,346 |
| Indiana | 810 | 30 | 840 | 1,817 | 1,767 |
| Iowa | 1,021 | 22 | 1,043 | 85,679 | 1,140 |
| Kansas | 11,507 | 209 | 11,716 | 949 | 9,412 |
| Kentucky | 4,102 | 175 | 4,277 | 206,094 | 2,551 |
| Louisiana (3) | 151,075 | 10,572 | 161,647 | 41,714,468 | 518,277 |
| Maryland | 678 | 44 | 722 | 326,557 | 854 |
| Massachusetts | 213,928 | 230 | 214,158 | 115,570,275 | 400,850 |
| Michigan | 15,981 | 293 | 16,274 | 2,599,502 | 13,850 |
| Minnesota | 4,160 | 101 | 4,261 | 457,440 | 4,542 |
| Mississippi | 2,237 | (4) | 2,237 | 137,658 | 1,769 |
| Missouri | 2,041 | 84 | 2,125 | 198,262 | 2,354 |
| New Jersey | 7,029 | 173 | 7,202 | 1,194,598 | 5,535 |
| New Mexico | 7,506 | 306 | 7,812 | 950,673 | 5,956 |
| New York | 20,669 | 1,556 | 22,225 | 7,633,000 | 32,265 |
| North Carolina | 235,990 | 10,165 | 246,155 | 57,330,647 | 278,203 |
| Ohio | 13,942 | 466 | 14,408 | 5,922,806 | 18,034 |
| Oregon | 2,377 | 170 | 2,547 | 840,983 | 3,067 |
| Pennsylvania | 8,982 | 984 | 9,966 | 1,327,698 | 5,345 |
| Rhode Island | 16,029 | 109 | 16,138 | 6,138,905 | 36,730 |
| Texas | 126,680 | (4) | 126,680 | 32,930,398 | 237,277 |
| Virginia | 22,622 | 503 | 23,125 | 4,291,002 | 20,855 |
| Washington | 306 | 55 | 361 | 176,330 | 858 |
| West Virginia | 260 | 43 | 303 | 30,032 | 274 |
| Wisconsin | 5,246 | 198 | 5,444 | 860,276 | 4,553 |
| Total | 2,630,055 | 54,870 | 2,684,925 | $1,100,712,246 | $7,648,762 |
(1) Excludes the FAIR Plans of Arkansas.
(2) Exposure is the estimate of the aggregate value of all insurance in force in all FAIR Plans in all lines (except liability, where applicable, and crime) for 12 months ending September through December.
(3) Citizens Property Insurance Corporation, which combined the FAIR and Beach Plans.
(4) The Hawaii, Mississippi and Texas FAIR Plans do not offer a commercial policy.
Source: Property Insurance Plans Service Office (PIPSO).
Insurance Provided By Beach And Windstorm Plans, Fiscal Year 2024 (1)
| Number of policies | |||||
|---|---|---|---|---|---|
| State | Habitational | Commercial | Total | Exposure (2) ($000) |
Direct premiums written ($000) |
| Alabama | 18,600 | 37 | 18,637 | $7,466,751 | $43,324 |
| Mississippi | 13,219 | 223 | 13,442 | 3,265,777 | 45,996 |
| North Carolina | 265,765 | 11,587 | 277,352 | 151,951,968 | 735,849 |
| South Carolina | 16,583 | 509 | 17,092 | 7,121,572 | 56,508 |
| Texas | 273,295 | 9,257 | 282,552 | 113,745,441 | 758,845 |
| Total | 587,462 | 21,613 | 609,075 | $283,551,509 | $1,640,522 |
(1) The Florida and Louisiana Beach Plans merged with their FAIR Plans, see chart, Insurance Provided By FAIR Plans By State.
(2) Exposure is the estimate of the aggregate value of all insurance in force in each state’s Beach and Windstorm Plan in all lines (except liability, where applicable, and crime) for 12 months ending September through December.
Source: Property Insurance Plans Service Office (PIPSO).
Captives By State
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