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 2021 (1)

 

  Number of policies    
State Habitational Commercial Total Exposure (2)
($000)
Direct premiums
written ($000)
California 226,524 5,543 232,067 $160,401,838 $475,987
Connecticut 1,315 32 1,347 245,107 1,834
Delaware 1,183 51 1,234 215,408 461
D.C. 106 14 120 44,571 123
Florida (3) 808,431 4,973 813,404 232,502,324 1,814,135
Georgia 9,307 357 9,664 1,938,500 14,001
Illinois 2,014 45 2,059 284,410 3,094
Indiana 806 23 829 106,400 1,017
Iowa 1,057 7 1,064 63,175 767
Kansas 12,564 174 12,738 801,000 7,416
Kentucky 5,936 258 6,194 280,546 3,130
Louisiana (3) 45,072 2,021 47,093 8,583,728 75,859
Maryland 836 46 882 280,472 703
Massachusetts 202,424 186 202,610 85,805,084 296,276
Michigan 15,752 242 15,994 2,296,987 10,765
Minnesota 4,045 48 4,093 291,782 2,935
Mississippi (4) 3,361 0 3,361 197,794 2,220
Missouri 2,000 92 2,092 161,015 1,658
New Jersey 8,423 225 8,648 1,214,337 5,653
New Mexico 8,020 240 8,260 78,568 4,627
New York 25,106 1,801 26,907 7,413,000 27,322
North Carolina 205,650 6,016 211,666 29,087,267 128,425
Ohio 12,151 252 12,403 3,513,606 11,253
Oregon 1,647 50 1,697 255,569 987
Pennsylvania 10,646 934 11,580 1,193,454 4,738
Rhode Island 13,501 94 13,595 3,958,950 22,217
Texas (4) 72,520 0 72,520 11,471,201 75,648
Virginia 23,953 421 24,374 3,551,975 16,042
Washington 96 41 137 49,702 327
West Virginia 297 46 343 28,274 241
Wisconsin 4,465 120 4,585 492,125 2,332
Total 1,729,208 24,352 1,753,560 $556,808,169 $3,012,193

(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 2021 (1)

 

  Number of policies    
State Habitational Commercial Total Exposure (2)
($000)
Direct premiums
written ($000)
Alabama 16,507 32 16,539 $5,208,084 $23,349
Mississippi 12,457 173 12,630 2,292,285 27,782
North Carolina 211,113 9,875 220,988 83,906,545 390,512
South Carolina 15,153 225 15,378 4,995,486 31,739
Texas 194,410 8,025 202,435 59,543,596 395,112
Total 449,640 18,330 467,970 $155,945,996 $868,494

(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