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 2019 (1)

 

  Number of policies    
State Habitational Commercial Total Exposure (2)
($000)
Direct premiums
written ($000)
California 161,395 7,374 168,769 $76,960,000 $168,769
Connecticut  1,658 53 1,711 307,677 2,292
Delaware 1,330 49 1,379 235,868 517
D.C. 162 16 178 61,290 181
Florida (3) 463,757 5,642 469,399 111,248,584 616,075
Georgia 13,726 450 14,176 2,133,164 18,071
Illinois 3,850 50 3,900 258,300 3,857
Indiana 1,112 24 1,136 116,200 1197
Iowa 1,194 17 1,211 70,554 782
Kansas 14,659 179 14,838 913,569 8,132
Kentucky 7,821 340 8,161 398,265 4,330
Louisiana (3) 41,408 1659 43,067 6,743,563 61552
Maryland 1,123 50 1,173 332,802 796
Massachusetts 221,545 217 221,762 87,301,787 305,410
Michigan 17,283 258 17,541 2,327,253 11,931
Minnesota 4,803 50 4,853 373,198 3,367
Mississippi (4) 4,601 0 4,601 253,822 2,851
Missouri 2,335 67 2,402 162,455 1,659
New Jersey 10,658 273 10,931 1,524,493 6,950
New Mexico 10,498 253 10,751 79,738 5,207
New York 31,082 2,042 33,124 8,934,000 29,362
North Carolina 184,975 4549 189,524 21,684,257 102,272
Ohio 15,680 318 15,998 4,039,000 13790
Oregon 1,787 51 1,838 243,057 996
Pennsylvania 12,543 1019 13,562 1,316,010 5,531
Rhode Island 16,889 105 16,994 4,276,238 23,002
Texas (4) 89,913 0 89,913 13,441,524 85,327
Virginia 27,533 536 28,069 3,978,270 19,375
Washington 82 9 91 27,126 134
West Virginia 343 41 384 27,378 245
Wisconsin 5,254 85 5,339 776,544 2,649
Total 1,370,999 25,776 1,396,775 $350,545,986 $1,506,609

(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 Corp., 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 2019 (1)

 

  Number of policies    
State Habitational Commercial Total Exposure (2)
($000)
Direct premiums
written ($000)
Alabama 17,949 43 17,992 $5,070,497 $24,024
Mississippi 17,671 285 17,956 2,762,962 29,861
North Carolina 201,374 9,529 210,903 75,660,857 331,397
South Carolina 19,509 211 19,720 5,816,000 36,797
Texas 189,935 8,674 198,609 55,189,814 372,016
Total 446,438 18,742 465,180 $144,500,130 $794,095

(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