West Virginia Essential Property Insurance Association or FAIR Plan?

Formally known as the West Virginia Essential Property Insurance Association, the West Virginia FAIR Plan began operating November 1, 1986 in order to provide basic property insurance available to property owners located in West Virginia who are unable to obtain the insurance in the private market usually due to homeowners insurance claims.

The FAIR Plan is an association of the combined property insurance companies doing business in West Virginia. The plan is not funded or subsidized by the Federal or State governments. It is however, administered by a board of directors appointed by the West Virginia state insurance commissioner.

For dwellings the FAIR Plan will issue a simplified policy offering coverage against direct loss to real or personal property at a location within the state of West Virginia caused by fire and extended coverage. The FAIR Plan will offer a simplified policy for commercial property against direct loss to real or tangible property for the perils of fire, lightning, explosion, windstorm and hail and many other perils.

West Virginia is prone to all sorts of severe weather such as hail, blizzards, thunderstorms and floods causing thousands of homeowners insurance claims per year resulting in many homeowners being labeled as “high risk.” Insurance companies in West Virginia have continued to face the challenge of unprofitability and homeowners in at risk areas and those who have filed claims will continue to be the ones stuck in the middle. Property owners are always encouraged to attempt to place their insurance coverage in the private market since the FAIR Plan is considered to be a market of last resort.

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.