Georgia Fair Plan Insurance Alternative

The Georgia Underwriting Association or FAIR Plan was implemented by the legislature as a residual insurance market offering homeowners insurance to those residents who are unable to obtain coverage through the private marketplace after being deemed “high risk” often due to filing claims. The GUA or FAIR Plan acts as a complement to the private market and provides peace of mind to Georgians who are left out of the private market due to the area they own property in or because of the dwelling or building they have purchased. The GUA also works with the membership to fight arson, improve safety and to reduce the loss of lives and property as a result of natural disasters.

The Plan is especially needed in coastal and island areas such as Savannah where the private insurance companies fear to tread. In these areas, many homeowners are deemed high risk even if they have never filed a homeowners insurance claim. Although coastal areas are better known for being high risk windstorm areas, the state has its share of winter storms, hailstorms and severe weather that arrives often without warning. For those owners of private residents and businesses who cannot obtain insurance in the private market, the Georgia Underwriting Association makes obtaining the necessary high risk home insurance possible.

The Georgia Underwriting Association operates similar to other state FAIR Plans in that applicant properties are inspected upon receipt of the homeowners application. Authorized agents are available to make application on behalf of customers seeking coverage in the FAIR Plan. The policies issued are typically written on standard forms and provide many of the coverages available in the private marketplace subject to certain limitations that are approved by the Georgia Insurance Commissioner.

Policies written by the Georgia FAIR Plan are assigned to the member companies (private insurers) and profits and losses are spread according to each member’s percentage of accepted risk. As with other state FAIR Plans, Georgia residents have the option of the Georgia Underwriting Association as a last resort to make insurance coverage available for those dwellings or commercial buildings when the homeowners risk is too high and the private insurance marketplace has made it difficult to obtain coverage.

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.