The Virginia Property Insurance Association (FAIR Plan)

The Virginia Property Insurance Association or Virginia FAIR Plan was formed to enable Virginia property owners the ability to obtain dwelling and commercial property coverage when they have not been able to find it in the private market.

Compared to other states, Virginia may appear to be rather tame when it comes to natural disasters and catastrophic events. But in reality, the state is vulnerable to a wide variety of storms and events, from hurricanes, tornadoes and earthquakes. Hurricanes can be especially dangerous to those coastal cities like Virginia Beach, Norfolk and Chesapeake. Recently, Norfolk and Virginia Beach were named in the top five most vulnerable cities to hurricanes. As such, cities like Virginia Beach may be one of the most expensive places to purchase homeowners insurance in the US and many consumers purchase a FAIR Plan homeowners policy due to claims or location. Virginia is one of those states that spreads risk pretty much across the board. The western part of the state is less volatile when it comes to natural disasters where the eastern part of the state presents risks such as hurricanes, hail storms and severe flooding.

In 2011 Hurricane Irene unleashed more than 10 inches of rain in parts of Virginia and the eastern third of the state was pounded by tropical storm isolated hurricane force winds. These types of natural disasters and their potential are the factors that drive the insurance companies risk appetite for the state. The fallout of these types of events always results in rate increases, cancellations, non-renewals, coverage restrictions and in some cases, carriers pulling out of entire counties or states. As with all types of FAIR Plans, the policies should be used as a market of last resort and consumers are urged to find insurance in the private market.

As with all FAIR Plans, consumers are urged to try to find coverage in the private market and we can help you find an agent that can help you find alternatives to the FAIR Plan.