The Washington FAIR Plan: Who Ends Up There, What It Covers and How to Get Out

15 min read

$1.5 million, actual cash value only, no theft, no liability. That's the Washington FAIR Plan in one line. It's where your home goes when no company in the regular market will insure it, and it is a much thinner policy than the homeowners coverage most people are used to.

Very few Washington homes end up there. The plan had 306 habitational policies in fiscal 2024, according to the Property Insurance Plans Service Office (PIPSO). But that number has gone up four and a half times since fiscal 2020, and the people landing in it are mostly the ones you'd expect: homes in wildfire country, homes with a few recent claims, and older houses that need work. If a nonrenewal letter just showed up, here's what the plan is, what it leaves out, and how to get back to a full policy.

Most the plan will insure at one location$1.5Mbuildings plus contents (WAC 284-19-070)
How losses are paidACVactual cash value; no replacement cost
WA FAIR Plan homes, FY2024306habitational policies, up from 68 in FY2020 (PIPSO)
Payment plansNonefull annual premium before coverage starts

What the Washington FAIR Plan is (and isn't)

FAIR stands for Fair Access to Insurance Requirements. The Washington FAIR Plan was set up in 1968 to sell basic property insurance to people who can't get it in the standard market. It isn't an insurance company and it isn't a state agency. It's a joint reinsurance association: every company licensed to write property insurance in Washington has to be a member and share in its results. The plan says it gets no money from taxpayers or the state.

The rules are in chapter 284-19 of the Washington Administrative Code, which formally calls it the "Washington essential property insurance inspection and placement program." The Office of the Insurance Commissioner (OIC) supervises it. The office is in Lynnwood (425-745-9808, toll-free 866-745-9808), but you won't be dealing with the plan directly when you apply. A licensed agent does that part.

The OIC's own advice on what to do when your home policy is canceled or not renewed lays out the order: ask your agent to find other coverage, and if they can't, they can get a FAIR Plan quote. The plan describes itself as a "last resort." That's accurate.

Who actually ends up in the FAIR Plan

The plan publishes its own list. According to the FAIR Plan's customer page, most people with a FAIR Plan dwelling policy fit one of these:

The six situations the Washington FAIR Plan lists for most of its dwelling customers
SituationWhat's usually behind it
Two or more claims in recent yearsThe current policy is being nonrenewed after the claims
A liability claim against youThe plan's example is a dog bite; now no one will write the home
No insurance on the house until nowA gap in prior coverage makes the standard market harder
Maintenance problemsNonrenewed for condition, and you need time to make repairs
Wildfire area or island locationCan't find coverage where the home sits
Older homeNeeds updating or isn't up to current code, but is structurally sound

Source: Washington FAIR Plan, Customers page, read Oct. 18, 2026.

The wildfire line is the one that's grown. The OIC says the number of Washington homeowners who were nonrenewed or canceled doubled since 2021, from 11,763 to 24,106. That count covers every reason, not just wildfire, and a nonrenewal doesn't mean nobody else will write the house. For a small but growing number, nobody did.

The plan's own dwelling application asks why your current company is dropping you. The checkboxes are Prior Claims, Condition of Property, Wildfire Risk, Nonpayment, No prior coverage, Vacant, and Other. That tells you who's applying.

One rule here matters more than people realize. Under WAC 284-19-080, the plan can decline a home for its physical condition (construction, heating, wiring, signs of earlier fires, general deterioration) or how it's used (vacancy, overcrowding, piles of rubbish or flammable materials). It cannot decline a home because of "neighborhood or area location or any environmental hazard beyond the control of the property owner." Owning a house on a timbered lot east of the Cascades is not, by itself, a reason for the FAIR Plan to say no. A roof full of pine needles and a woodpile against the siding is a different matter.

Two groups generally can't get in. Vacant houses: the plan's FAQ says coverage is generally not available for vacant structures, with possible exceptions for homes being repaired under a construction contract to make them livable. And farm and manufacturing risks aren't eligible at all.

How many Washington homes are in it

Washington FAIR Plan habitational policies, by fiscal year Residential (habitational) policies only; commercial policies not shown

Source: Property Insurance Plans Service Office (PIPSO), via Triple-I archive tables (FY2015-FY2023) and Triple-I facts and statistics (FY2024).

Show the numbers
Policies
FY201567
FY201665
FY201767
FY201872
FY201982
FY202068
FY202196
FY2022116
FY2023187
FY2024306

From FY2015 to FY2020 the plan sat between 65 and 82 homes. Then it went 96, 116, 187, 306. Fiscal 2024 alone was up about 64% on the year before. The dollar value of what the plan insures (PIPSO calls it exposure, and this figure includes the commercial side) climbed faster:

Washington FAIR Plan exposure, by fiscal year Estimated value of all insurance in force, $ millions, all lines

Source: PIPSO via Triple-I; FY2024 from Triple-I. Converted from $000 and rounded to the nearest $1 million.

Show the numbers
Exposure ($ millions)
FY201521
FY201619
FY201721
FY201825
FY201927
FY202024
FY202150
FY202270
FY2023101
FY2024176

Keep the scale in mind. Washington's FAIR Plan is still tiny: 361 total policies in fiscal 2024, residential and commercial, with $858,000 in direct premiums written. Next door, Oregon's FAIR Plan had 2,547 policies. Nationwide, FAIR plans held about 2.7 million, nearly half of them in Florida's state-created insurer of last resort, Citizens Property Insurance Corporation, and another 431,300 in California. Washington isn't anywhere near that. The trend line is what I'd watch, not the size.

What a FAIR Plan policy covers vs. a standard homeowners policy

A FAIR Plan dwelling policy is a dwelling fire policy, built on what the rules call the standard fire policy. A typical homeowners policy (the HO-3 form) is a package: house, belongings, other structures, loss of use, medical payments to others, and liability, all in one, as the OIC's homeowner guide describes it. Here's how the two line up, using the FAIR Plan's own published documents and the standard ISO HO-3 form:

FAIR Plan dwelling coverage compared with a standard homeowners policy
Washington FAIR Plan (dwelling)Typical homeowners policy (HO-3)
Covered causes of loss, houseNamed perils only: fire and lightning (required); extended coverage and vandalism are optional add-onsAll risks of direct physical loss except what's excluded
How a loss is paidActual cash value. Replacement cost isn't available for buildings or contentsReplacement cost on the house is standard on most policies; belongings are often paid at ACV unless you add replacement cost (OIC)
TheftNot availableCovered for personal property, with sub-limits
LiabilityNot availableIncluded; most policies start at $100,000 or more (OIC)
Water damageMost types not availableSudden accidental leaks generally covered; flood and sewer backup excluded
Other structuresUp to 10% of dwelling limit, and it reduces the dwelling limitUsually 10% of dwelling, on top of the dwelling limit
Time element (fair rental value etc.)Not writtenLoss of use is part of the package
Most it will insure$1.5 million per locationSet by the policy and company
Paying for itFull annual premium up front; no payment plans or premium financingVaries by company

Source: Washington FAIR Plan, Customers page; FAIR Plan FAQ; FAIR Plan Dwelling Application WFP 100 (06/24); FAIR Plan Payments; WA OIC homeowner guide; WA OIC, Learn how home insurance works; ISO HO-3 sample form via Triple-I. Your policy wording controls.

The optional "extended coverage" adds windstorm, hail, explosion, riot or civil commotion, damage from vehicles hitting the building, smoke, and volcanic action. Vandalism and malicious mischief is a separate option. If you skip extended coverage to save money, a windstorm that drops a fir on the roof isn't covered. Don't skip it without a reason.

Actual cash value: the gap most people miss

Actual cash value means replacement cost minus depreciation. Example, with round numbers: say a fire damages a kitchen that would cost $60,000 to redo today, and the adjuster figures the old kitchen had depreciated 40%. On an actual cash value policy with a $1,000 deductible, the payment is $36,000 minus $1,000, or $35,000. On a replacement cost policy, once the work is done, it would be $59,000. You'd be covering $24,000 yourself.

The plan flags a related issue on its applications page: if you're moving from a homeowners policy where the limit was set at replacement cost, think about whether that number is still right for an actual cash value policy. Ask your agent to walk through it with you before you pick a dwelling limit. Deductible choices on the dwelling application run from $500 up to $10,000; a higher one lowers the premium.

The gaps you need to fill yourself

The plan is clear about what it doesn't do. Its FAQ says "coverage for liability, theft, and most types of water-related losses are not available through the Plan." In practice, that leaves a short list of questions to put to your agent:

  • Liability. This is the big one. Without it, if a guest falls on your steps, nothing in the FAIR Plan policy responds. Ask whether separate personal liability coverage can be placed for your situation, and what it would take.
  • Theft. Not available from the plan, for owners or renters. Ask whether there's another way to cover contents against theft.
  • Water. Most water losses aren't available through the plan. Flood was never part of a homeowners policy anyway; it's a separate purchase. See our Washington flood insurance page.
  • Your lender. If you have a mortgage, ask the lender whether an actual cash value dwelling fire policy satisfies the loan. The OIC warns that if you let coverage lapse, the lender can buy lender-placed insurance that protects only the lender and usually costs much more.
  • Living expenses. The plan says it doesn't write time element coverages, giving fair rental value and business interruption as examples. Ask in writing what, if anything, the policy pays if you can't live in the house after a fire.

Read the exclusions, too. The plan's FAQ is plain that its policies contain exclusions and other coverage limits.

How to apply for the Washington FAIR Plan

You can't buy a FAIR Plan policy online on your own. You apply through any agent or broker licensed for property insurance in Washington; the plan has no agents of its own. Every licensed producer is required by WAC 284-19-165 to cooperate with the plan, so an agent can't simply refuse to help. That agent is your representative, not the plan's, and can't bind coverage. Agents earn a 10% commission on FAIR Plan policies, the same on new and renewal business. The steps:

Applying to the Washington FAIR Plan, step by step
StepWhat happensTiming in the rules
1. Shop the standard marketYour agent tries regular companies first. The plan can ask the agent to show that effort, but it can't make you prove you were turned downBefore applying
2. ApplicationDwelling Property application (WFP 100), every question answered, signed by you and your agentApply well before you need coverage
3. InspectionInspector from the Washington Surveying and Rating Bureau (or another approved organization) looks at inside and outside; you or a representative must be there with a key. No cost to youScheduled after the application arrives
4. DecisionAccepted; accepted if listed improvements are made and reinspected; or declined with reasonsWithin 3 business days of the inspection report
5. Pay in fullFull annual premium by agency check, mortgagee check, cashier's check, or card on the plan's site. No personal checksCoverage starts no earlier than the day payment arrives
6. Policy issuedOne-year term; renewal notice mailed about 45 days before renewalPolicy or binder within 2 business days of acceptance and payment

Source: WAC 284-19-060, -070, -080, -100; Washington FAIR Plan, Applications page; FAIR Plan, Producers page; FAIR Plan, Payments page.

Timing is where people get hurt. Nothing is covered until the application is processed, the inspection is done, the plan accepts the home, and the full premium is paid. If your current policy ends on the 30th, don't start this on the 25th. With a 60-day nonrenewal notice in hand, start the FAIR Plan application at the same time your agent shops the regular market, so it's ready if nothing else comes through.

Two rights worth knowing. You can ask for a copy of the inspection report, which also shows any surcharges the inspector found. And if the plan declines you, the denial has to tell you about your right to appeal: in writing, to the plan's governing committee, which must decide within 15 business days unless both sides agree to a delay. You can take the committee's decision to the Insurance Commissioner.

Getting back to the standard market

The plan says it itself: broader coverage at more competitive prices is normally available in the standard market, so check your options often while you're on the FAIR Plan. If you find a regular policy mid-year, you can cancel the FAIR Plan policy and get a prorated refund. So there's no reason to wait for renewal.

What usually gets a house out depends on why it went in:

  • Condition or maintenance. Make the repairs. If the inspection flagged items, the plan has to tell you what improvements would bring the house to unsurcharged rates. That same list is a decent checklist for a standard-market application.
  • Claims history. Time helps. The FAIR Plan application asks for five years of claims, and regular companies look at your history as well. Keep the policy in force so there's no gap in coverage, and have your agent re-shop each year.
  • Wildfire risk. Mitigation and paperwork. The OIC points homeowners to the IBHS Wildfire Prepared Home designation: clear roofs and gutters, remove burnable material next to the house, keep defensible space, check vents, decks and fences for ember traps, use a Class A roof, and keep 6 inches of noncombustible siding or exposed foundation at the base of exterior walls. The application fee is $125, the designation lasts three years, and it transfers if you sell. A certificate isn't guaranteed, and the OIC doesn't say any company must accept or discount a designated home.

Know what you're up against on wildfire. Insurers buy third-party wildfire risk scores built from satellite imagery, property data and fire science, and use them for eligibility and pricing. I haven't found a Washington law that requires a company to show you that score. A 2026 bill to require disclosure passed the Senate 48-1 but stalled in the House Consumer Protection & Business Committee, and the Commissioner lists an updated version as a 2027 priority. A separate Strengthen Washington Homes grant proposal, which would help pay for IBHS upgrades and protect homes that meet the standard from wildfire nonrenewals, also stalled in that committee. Both are proposals, not law. Still, ask any company that turns you down whether a wildfire score was used and what would change it.

For what the regular market covers after a fire, and the claim deadlines that apply to regular policies, see our guide to wildfire insurance in Washington State. For the full homeowners package you're trying to get back to, see homeowners insurance in Washington State.

Got a nonrenewal notice? Check these five things

A nonrenewal letter is the usual way into the FAIR Plan. Before you get there, check the letter itself:

  1. The date. Under RCW 48.18.2901, the insurer has to mail or deliver written notice at least 60 days before the policy expires. Count the days.
  2. The reason. The notice must include the insurer's actual reason. "Underwriting guidelines" alone doesn't tell you much; ask your agent or the company in writing what specifically triggered it.
  3. The FAIR Plan and the OIC. Under WAC 284-19-170, a company ending a property policy has to explain how to apply to the FAIR Plan and include the OIC's consumer hotline and website. If those are missing, note it.
  4. Whether it's fixable. If the reason is a roof, a wood stove or brush near the house, ask whether fixing it before the expiration date would change the decision.
  5. Your calendar. Start shopping the same week. Run the regular market and a FAIR Plan application in parallel so you aren't uninsured on day 61.

If something looks wrong (a short notice, no reason, a reason that doesn't match your house), call the OIC's Consumer Advocacy line at 800-562-6900, 8:30 a.m. to 4:30 p.m., Monday through Friday. Our post on filing a complaint with the Washington Insurance Commissioner walks through what to send. For the basics of Washington home coverage, see our Washington home insurance page and the Washington insurance FAQ.

FAQ

What is the Washington FAIR Plan?

It's an association of all insurers licensed to write property insurance in Washington that sells basic fire coverage to people who can't get insurance in the standard market. It runs under WAC chapter 284-19, is supervised by the OIC, and isn't a state agency.

What does the Washington FAIR Plan cover?

Fire and lightning, plus optional extended coverage (windstorm, hail, explosion, riot, vehicles, smoke, volcanic action) and vandalism, on an actual cash value basis up to $1.5 million per location. It doesn't offer theft, liability or most water-related coverage.

How do I apply for the Washington FAIR Plan?

Through any agent or broker licensed for property insurance in Washington. You both sign the application, the home is inspected, and coverage starts only after the plan accepts it and receives the full annual premium.

Is the Washington FAIR Plan more expensive?

The plan's own FAQ says that in most situations FAIR Plan coverage is more expensive. Rates are set by the Washington Surveying and Rating Bureau, and there are no payment plans.

Can the FAIR Plan turn me down because I live in a wildfire area?

Not for location alone. WAC 284-19-080 says neighborhood or area location, or an environmental hazard beyond the owner's control, is not an acceptable reason to decline. The plan can decline for the home's condition or use.

Your own policy wording and Washington law control. Confirm your situation with a licensed agent, the Washington Office of the Insurance Commissioner, or, for legal questions, an attorney.

Sources

  1. Washington FAIR Plan: Home
  2. Washington FAIR Plan: Customers (eligibility, coverage, perils)
  3. Washington FAIR Plan: Applications
  4. Washington FAIR Plan: Application for Inspection and Insurance, Dwelling Property, WFP 100 (06/24) (PDF)
  5. Washington FAIR Plan: Frequently Asked Questions
  6. Washington FAIR Plan: Producers
  7. Washington FAIR Plan: Payments
  8. WAC chapter 284-19: Washington essential property insurance inspection and placement program
  9. RCW 48.18.2901: Renewal required, exceptions
  10. WA OIC: What to do when changing homeowner policies
  11. WA OIC: Wildfires and insurance
  12. WA OIC: Washington consumers most at risk from wildfires deserve our help (Feb. 6, 2026)
  13. WA OIC: Wildfire risk score transparency
  14. WA OIC: IBHS Wildfire Prepared Home designations
  15. WA OIC: Strengthen Washington Homes grant program
  16. WA OIC: A consumer's guide to homeowner insurance (PDF)
  17. WA OIC: Learn how home insurance works
  18. WA OIC: Lender-placed insurance
  19. ISO HO-3 sample homeowners form (via Triple-I) (PDF)
  20. Triple-I: Insurance provided by FAIR Plans, archived tables (PIPSO data)
  21. Triple-I: Facts and statistics, homeowners and renters insurance (PIPSO FY2024)

Vadim Marusin

Vadim Marusin is a licensed independent insurance agent and the owner of Maru Insurance, serving Washington (WA License WAOIC #1365574) and Florida (FL License #G363233), NPN 22261820.

This article is for general educational purposes only and is not legal, tax or insurance advice. Coverage depends on the actual policy, its terms, conditions and exclusions, and state law. Maru Insurance · WA License (WAOIC) #1365574 · FL License #G363233 · NPN 22261820.