A Firm Foundation: How Insurance Supports the Economy

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.

 

Insurance Provided By FAIR Plans By State, Fiscal Year 2020 (1)

 

  Number of policies    
State Habitational Commercial Total Exposure (2)
($000)
Direct premiums
written ($000)
California 198,206 4,690 202,896 $118,203,282 $308,640
Connecticut  1,461 43 1,504 272,264 2,034
Delaware 1,272 54 1,326 224,842 490
D.C. 128 14 142 51,095 143
Florida (3) 568,051 5,376 573,427 144,799,737 1,182,125
Georgia 12,508 364 12,872 1,780,475 15,826
Illinois 2,427 38 2,465 313,000 3,417
Indiana 1,041 25 1,066 988,600 1,058
Iowa 1,120 16 1,136 67,606 823
Kansas 13,476 169 13,645 851,530 7,576
Kentucky 6,849 304 7,153 340,815 3,765
Louisiana (3) 39,671 1,471 41,142 6,658,437 59,195
Maryland 925 43 968 314,977 729
Massachusetts 209,342 192 209,534 86,249,126 299,350
Michigan 15,334 233 15,567 2,278,644 10,996
Minnesota 4,399 52 4,451 421,493 3,107
Mississippi (4) 4,309 0 4,309 216,999 2,651
Missouri 2,088 82 2,170 153,986 1,588
New Jersey 9,418 236 9,654 1,351,405 6,281
New Mexico 9,168 145 9,313 86,821 4,885
New York 27,756 1,869 29,625 8,152,000 28,444
North Carolina 193,723 5,104 198,827 24,677,084 111,968
Ohio 13,917 295 14,212 3,703,892 12,227
Oregon 1,669 45 1,714 228,185 901
Pennsylvania 11,483 984 12,467 1,244,562 5,109
Rhode Island 14,430 94 14,524 4,108,832 23,246
Texas (4) 79,575 0 79,575 12,618,291 79,477
Virginia 25,980 544 26,524 3,873,206 17,129
Washington 68 7 75 24,311 108
West Virginia 309 40 349 26,098 241
Wisconsin 4,513 116 4,629 534,121 2,513
Total 1,474,616 22,645 1,497,261 $424,815,716 $2,196,042

(1) Excludes the FAIR Plans of Arkansas and Hawaii.
(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 Mississippi and Texas FAIR Plans do not offer a commercial policy.

Source: Property Insurance Plans Service Office (PIPSO).

View Archived Tables

 

 

Insurance Provided By Beach And Windstorm Plans, Fiscal Year 2020 (1)

 

  Number of policies    
State Habitational Commercial Total Exposure (2)
($000)
Direct premiums
written ($000)
Alabama 16,288 33 16,321 $4,819,371 $22,032
Mississippi 14,397 250 14,647 2,406,870 26,155
North Carolina 201,178 9,557 210,735 78,198,588 348,265
South Carolina 16,498 250 16,748 5,193,668 32,829
Texas 187,529 7,924 195,453 55,009,638 369,601
Total 435,890 18,014 453,904 $145,628,135 $798,882

(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).

View Archived Tables