Kansas Fair Plan Insurance Alternative

Kansas FAIR Plan Homeowners Insurance?

The Kansas FAIR Plan was formed to make homeowners insurance available to all qualified applicants in the state of Kansas and to encourage the improvement of certain properties located in Kansas at the lowest possible cost to the Plan’s member insurance companies. The FAIR Plan homeowners insurance is there for those residents who have had difficulties purchasing insurance through the private home insurance marketplace often due to filing too many claims and being labeled “high risk.”

The FAIR Plan is regulated by the Kansas Insurance Commissioner and as such is not a governmental agency or organization. It was introduced as an insurance pool which is available to high risk homeowners.

Columbia National Insurance Company is the current insurer for the FAIR Plan. All policies are issued through Columbia and all claims are settled through Columbia National as well. The properties eligible for coverage are:

Habitational – These include owner and tenant occupied properties. Mobile homes at a fixed location and vacant and unoccupied dwellings.
Commercial Property – Commercial properties are those apartment buildings that contain 5 or more units, mercantile risks, service risks, manufacturing risks and vacant and unoccupied properties.
Dwelling and commercial properties that have been declined coverage, usually for claims but sometimes even due to location, by three or more private market companies are eligible as long as the applicant can show insurable interest.

Although known as a beautiful place, Kansas is prone to an array of severe weather and natural disasters. Blizzards, tornadoes and hailstorms are typical to the area and as a result many private companies have refused to offer coverage in certain high risk home insurance areas. One of the most memorable storms on record is the 1992 Wichita hailstorm that was actually two separate storms that blasted the area within 6 hours of one another on June 19 and dropped baseball sized hail on the city of Wichita and surrounding counties destroying about $100 million worth of crops and another $500 million of private property including homes and automobiles. This event caused a significant increase in the Kansas FAIR Plan homeowners insurance due to the increased risk perceived by insurance companies.

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.