Delaware FAIR Plan Alternative

If you’re a homeowner in Delaware, particularly in a high-risk area, finding homeowners insurance can sometimes feel like an uphill battle. That’s where the Delaware FAIR Plan, formally known as the Insurance Placement Facility of Delaware, comes into play. Established in late October 1968, this state-approved plan was created to help Delaware property owners who struggle to get insurance through the private market—whether it’s due to filing multiple claims or simply living in a high-risk area.

What is the Delaware FAIR Plan?

The Delaware FAIR Plan (Fair Access to Insurance Requirements) is a safety net for homeowners who can’t secure insurance through traditional means. It doesn’t compete with the private insurance market but steps in when insurers are unwilling to offer coverage. Like other FAIR Plans across the country, Delaware’s version is funded by private insurance companies operating in the state. No federal, state, or local funds are used to keep the plan running, so taxpayers aren’t responsible for the administration or claims payments under this program.

However, it’s important to understand that the Delaware FAIR Plan only offers basic coverage on a dwelling. This means the limits and protections provided may not fully meet the needs of every homeowner, especially for those with higher-value properties or unique risks.

High-Risk Areas and Coastal Coverage

For homeowners in Delaware’s coastal areas, the FAIR Plan comes with some additional considerations. Since properties along the coast are more prone to hurricane damage and high winds, there is a $2,000 minimum deductible for homes in these areas. This is fairly standard for FAIR Plans in high-risk coastal regions, where the potential for hurricane-related claims is much higher.

Delaware, bordered by water on three sides, faces constant exposure to hurricanes and tropical storms. Over the past decade, the state has experienced significant damage from storms like:

• Hurricane Irene
• Tropical Storm Lee
• Hurricane Rina
• Hurricane Isaac
• Hurricane Sandy

Of these, Hurricane Sandy in 2012 was particularly destructive, affecting the entire state and leading to thousands of homeowners claims, especially in coastal and high-risk areas.

Why Some Homeowners Turn to the Delaware FAIR Plan

Given the state’s location and frequent storm activity, many private insurers are reluctant to offer coverage for properties along the eastern coastline. This leaves homeowners feeling like they don’t have many options. It’s easy to assume that the Delaware FAIR Plan is the only route for securing insurance, but that’s not always the case.

While the FAIR Plan serves as an important backup for those who can’t get insurance elsewhere, it’s always worth exploring other options in the private market first. Coverage through the FAIR Plan is often more limited, and it’s important to make sure it fully meets your needs before committing.

Finding Alternatives to the Delaware FAIR Plan

At Home Insurance Alternatives, we always encourage homeowners to seek out private insurance options before turning to the FAIR Plan. Many people assume that if their property is located in a high-risk area, they won’t be able to find coverage outside the FAIR Plan—but that’s not necessarily true. There are private insurers that specialize in high-risk properties, including those along the coastline, and they may offer more comprehensive protection than the basic coverage available through the FAIR Plan.

Here’s how we can help:

1. Connect with experienced agents: Finding the right insurance agent is key to securing the coverage you need. We work with agents who have experience in high-risk areas and can help guide you through your options.
2. Compare multiple providers: Don’t assume that the FAIR Plan is your only choice. By comparing quotes from multiple private insurance providers, you may be able to find a policy that offers more comprehensive coverage at a competitive rate.
3. Understand your coverage needs: Every home is different, and your insurance should reflect that. Whether you need additional protection for hurricane damage, flooding, or wind-related risks, we’ll help you assess your coverage needs to ensure your home is properly protected.

Protecting Your Delaware Coastal Property

Living in a coastal area like Delaware comes with its share of risks, but with the right homeowners insurance, you can protect your investment and enjoy peace of mind. Whether you’re looking to explore private market options or need help understanding the Delaware FAIR Plan, we’re here to guide you every step of the way.

Don’t wait until the next storm is on the horizon. Contact us today to learn more about your Delaware homeowners insurance options and how we can help you secure the coverage you need.