The Delaware FAIR Plan

Formally referred to as the Insurance Placement Facility of Delaware, the Delaware FAIR Plan was approved by the state legislature and introduced in late October of 1968. The Delaware FAIR Plan’s purpose is to make homeowners insurance available to Delaware property owners who are unable to obtain through the private insurance marketplace usually due to filing too many homeowners claims or even just for living in a high risk area.

Like other states, the Delaware FAIR Plan is an association made up private insurers doing business in the state. Since no federal, state or local funds are used to subsidize the Plan, the taxpayers are not responsible for funding the administration or claims paying ability of the Plan.

The Delaware FAIR Plan offers coverage for dwelling on a basic form so coverages and limits are limited and may or may not meet the needs of the owner. Properties located in the coastal areas are also required to have a $2,000 minimum deductible, which is common for most FAIR Plans where there is a high risk of hurricane damage or high winds.

Since the state of Delaware is surrounded by water on three sides and with the eastern side of the state being on the Atlantic, the hurricane exposure is a constant concern. The state has suffered damage and outages every year since 2010 from Hurricane Irene, Tropical Storm Lee, Hurricane Rina, Hurricane Issac and most importantly Hurricane Sandy which affected the entire state causing thousands of homeowners claims in the high risk areas and across the state.

Many insurance carriers are reluctant to offer property coverage along the eastern coastline so many consumers incorrectly think the Delaware FAIR Plan is the only option. 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.