Nevada FAIR Plan Insurance Alternative

Nevada FAIR Plan Homeowners Insurance

Most states have a FAIR Plan or some other type of state run insurance for at risk homeowners but Nevada has not yet passed any legislation to do so. Nevada does have its share of extreme weather but it is rarely presented in the form of a tornado. The topography of the state allows for events such as rockfalls and rockslides in the mountains, wildfires in the southern section and flooding in the low lying areas. Nevada is not immune to disasters that make the news. The January 2008 Western North American storm complex wreaked havoc in the Sierra Nevada mountain chains but since the population is at a very low level, injuries and deaths were not a huge national news item. The lack of frequency in severe weather events and the corresponding infrequency of homeowners insurance claims is the likely reason for Nevada not having a FAIR Plan.

To compare disaster frequency with the rest of the country, Nevada does have some extremes. For example, the average earthquake index for the U.S. is 1.81 but Nevada comes in at a much higher 2.88. The tornado index however looks just the opposite with the U.S. tornado index value at 136.45 and Nevada at a miniscule 4.84. Nevada does have a severe risk of brushfires which have been both deadly and costly and these risks will continue to occur. Although Nevada certainly has some historic events that have shaken homeowners in their homes, over the long term, the catastrophic events have been few and far between. These favorable conditions lead to lower prices than the national average but this also increases the risk of insurance company rate hikes, coverage limitations, cancellations and non-renewals in the event of a major disaster. The lower rates and lack of a Nevada FAIR Plan could cause a major rift in the market in the event of a major event that causes home insurance claims.

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.