--- title: "Texas FAIR Plan Association Review [Updated 2026]" description: "The Texas FAIR Plan Association (TFPA) offers homeowners, condo, dwelling, and renters insurance to Texans who cannot secure coverage through traditional insurers. As a state-mandated insurer of last resort, TFPA provides limited but essential coverage." canonical: "https://www.coveragecat.com/reviews/texas-fair-plan" last-updated: "2026-08-13" --- # Texas FAIR Plan Association Review [Updated 2026] 1. [Introduction to Texas FAIR Plan Association](#introduction) 2. [What Types of Insurance Does Texas FAIR Plan Offer?](#typesofinsurance) 3. [Does Texas FAIR Plan Sell Homeowners Insurance?](#homeowners) 4. [Does Texas FAIR Plan Sell Auto Insurance?](#auto) 5. [How Does Texas FAIR Plan Work?](#howdoesitwork) 6. [Pros and Cons of Texas FAIR Plan](#proscons) 7. [Ratings and Customer Feedback](#ratings) 8. [Get Customer Support or File a Claim](#support) 9. [Frequently Asked Questions](#faq) ## Introduction to Texas FAIR Plan Association The Texas FAIR Plan Association (TFPA) serves as Texas' insurer of last resort for residential property insurance. The Texas Legislature authorized TFPA's creation in 1995. The Commissioner implemented the plan in December 2002 after a severe mold crisis forced several major insurers to exit the Texas market. TFPA is not a traditional insurance company. It provides property insurance to homeowners who don't have current residential policies and who have been denied coverage by at least two insurance companies. The Texas Windstorm Insurance Association (TWIA) manages TFPA. Neither organization is a state agency. Both receive funding from assessments on insurance companies operating in Texas and from premiums paid by policyholders [(Texas Department of Insurance, "FAIR Plan Overview", 2026)](https://www.tdi.texas.gov/company/fair-plan-resources.html). TFPA has experienced dramatic growth as Texas faces an increasingly challenging insurance market. Applicants climbed from 66,512 in 2021 to 121,658 in the first quarter of 2025 [(Texas FAIR Plan Association, "Q1 2025 Fact Book", 2025)](https://www.texasfairplan.org/wp-content/uploads/Q1-2025-TFPA-Fact-Book.pdf). Between 2020 and 2022, TFPA saw fewer applications. By 2023, however, applications climbed to 11,174 policies. In 2024, applications surged to 41,234 policies—the highest increase on record [(Insurance Journal, "Texas FAIR Plan Policies Surge as Market Tightens", 2024)](https://www.insurancejournal.com/news/southcentral/2024/09/16/783946.htm). State law requires every property and casualty insurer licensed in Texas to be a member of the association. The plan operates as a private insurance pool, not funded by tax dollars [(Florida & Beyond Insurance Agency, "Texas FAIR Plan | Home Insurance for High-Risk Homes", 2025)](https://fbia.com/blog/texas-fair-plan-guide/). ## What Types of Insurance Does Texas FAIR Plan Offer? Texas FAIR Plan Association offers four main types of residential property insurance: homeowners, dwelling, condo, and tenant (renters) insurance. All policies cover residential properties across Texas, with geographic restrictions for windstorm and hail coverage. ### Products Offered | Policy Type | Coverage | Maximum Dwelling Limit | Personal Property Coverage | |------------|----------|----------------------|---------------------------| | **Homeowner Policy (HO-A)** | Comprehensive residential property coverage | Up to $1,000,000 maximum | 50%, 60%, or 70% of dwelling coverage | | **Dwelling Policy (TDP-1)** | Basic fire coverage with optional additional perils | Up to $1,000,000 maximum | Actual cash value coverage available | | **Condominium Policy (HO-CONB)** | Coverage for condo unit owners | Up to $500,000 maximum | 50% of condo unit coverage | | **Tenant Policy (HO-BT)** | [Renters insurance](/insurance-types/renters-insurance) for tenants | Up to $500,000 maximum | Replacement cost available at additional premium | All four policies provide actual cash value coverage for personal property. Replacement cost coverage is available at an additional premium for some policies [(Texas FAIR Plan Association, "TFPA Underwriting Manual", 2023)](https://www.texasfairplan.org/wp-content/uploads/TFPA-Underwriting-Manual_Edition-Date-04-2023.pdf). ## Does Texas FAIR Plan Sell Homeowners Insurance? Yes, Texas FAIR Plan provides [homeowners insurance](/insurance-types/homeowners-insurance) through its HO-A policy form. As a market of last resort, TFPA coverage is less comprehensive than most coverage available through the voluntary market [(TFPA, "TFPA Underwriting Manual", 2023)](https://www.texasfairplan.org/wp-content/uploads/TFPA-Underwriting-Manual_Edition-Date-04-2023.pdf). ### Coverage Details TFPA homeowners policies include: **Dwelling Coverage:** Up to $1,000,000 maximum **Other Structures:** 10% of dwelling coverage amount **Personal Property:** 50%, 60%, or 70% of dwelling coverage amount for HO-A policies **Liability Coverage:** $100,000 or $300,000 limit **Medical Payments:** $5,000 per person/$25,000 per occurrence limit [(Texas FAIR Plan Association, "Coverage Options", 2026)](https://www.texasfairplan.org/about-us/coverage-eligibility/) ### Covered Perils The Texas FAIR Plan covers approximately 10 causes of damage or loss: - Fire and lightning - Windstorm and hail (except in designated catastrophe areas) - Explosion - Riot or civil commotion - Aircraft - Vehicles - Smoke - Vandalism and malicious mischief - Theft - Freezing of plumbing, heating, air conditioning, automatic fire protection sprinkler systems, or household appliances ### Important Exclusions and Limitations Texas FAIR Plan policies are named perils policies that cover specific events like fire but often exclude personal liability, theft, and common water damage [(Florida & Beyond Insurance Agency, "Texas FAIR Plan | Home Insurance for High-Risk Homes", 2025)](https://fbia.com/blog/texas-fair-plan-guide/). Compared to standard homeowners policies, TFPA policies come with severe limits on water damage, falling trees, glass breakage, and plumbing freezing. Personal property coverage limits are lower than standard policies, and additional living expenses coverage is minimal if your home becomes uninhabitable [(Insurance For Texans, "Is the Texas Fair Plan a Good Home Insurance Policy?", 2024)](https://www.insurancefortexans.com/blog/is-the-texas-fair-plan-a-good-home-insurance-policy). TFPA does not cover windstorm, hail, and hurricane damage in Texas' 14 coastal counties or in the portion of Harris County east of State Highway 146 on Galveston Bay. These counties include Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio, and Willacy [(Texas Department of Insurance, "Coastal Insurance Requirements", 2026)](https://www.tdi.texas.gov/tips/what-is-windstorm-insurance.html). Properties in these areas must have a Windstorm and Hail Exclusion Agreement attached to their policy. Residents can purchase windstorm, hurricane, and hail insurance through the Texas Windstorm Insurance Association (TWIA). TFPA does not provide flood insurance. You'll need to purchase flood insurance through the National Flood Insurance Program (NFIP) or from a private insurer [(FEMA, "National Flood Insurance Program", 2026)](https://www.fema.gov/flood-insurance). ## Does Texas FAIR Plan Sell Auto Insurance? No. TFPA does not sell [auto insurance](/insurance-types/car-insurance). The organization only provides residential property insurance products. Texas has a separate program for auto insurance called the Texas Automobile Insurance Plan Association (TAIPA) for drivers who cannot obtain coverage in the voluntary market [(Texas Department of Insurance, "TAIPA Information", 2026)](https://www.tdi.texas.gov/tips/insurers-of-last-resort.html). ## How Does Texas FAIR Plan Work? ### Eligibility Requirements To qualify for Texas FAIR Plan coverage, applicants must meet strict criteria. You must have been denied coverage by at least two insurance companies licensed to write—and currently writing—residential property insurance policies in Texas. You must provide proof of these declinations. Additional eligibility requirements include: - Your property cannot be condemned, vacant, or in disrepair - You cannot have more than eight paid insurance claims within the past three years - You cannot have been convicted for arson, fraud, or any other insurance-related offense - You cannot have a current homeowners policy, renewal offer, or valid offer of comparable coverage from another licensed Texas insurer - Your property must meet TFPA underwriting standards [(Texas FAIR Plan Association, "Eligibility Requirements", 2026)](https://www.texasfairplan.org/about-us/coverage-eligibility/) ### Application Process You must obtain coverage through an authorized licensed Texas agent. Any agent licensed to write property and casualty insurance in Texas can be authorized by TFPA to submit applications. The process follows these steps: 1. **Obtain Declination Letters:** Secure written proof from at least two insurers that denied you coverage 2. **Find an Authorized Agent:** Contact a licensed Texas property and casualty agent authorized to write TFPA policies 3. **Submit Application:** Your agent submits your application through the TFPA Agent Gateway system 4. **Underwriting Review:** TFPA reviews your property and eligibility 5. **Policy Issuance:** TFPA issues policies on more than 99% of applications [(Texas FAIR Plan Association spokesperson, quoted in Insurance Journal, 2024)](https://www.insurancejournal.com/news/southcentral/2024/09/16/783946.htm) ### Policy Terms Policies are issued for one-year terms, subject to underwriting standards. Every two years, however, the insured must reapply for residential property insurance in the voluntary market. This requirement reinforces TFPA's role as temporary coverage until policyholders can transition back to private market insurance [(Texas Insurance Code, Chapter 2211)](https://statutes.capitol.texas.gov/Docs/IN/htm/IN.2211.htm). Texas FAIR Plan is designed to be temporary coverage until policyholders can transition back into the private market. With increasing weather-related losses and rising reinsurance costs, however, more homeowners are relying on TFPA for extended periods. Unlike Florida and Louisiana, Texas FAIR Plan has not yet participated in takeout programs where private insurers acquire policies [(CB Insights, "Texas FAIR Plan Association - Products, Competitors, Financials", 2025)](https://www.cbinsights.com/company/texas-fair-plan-association). ## Pros and Cons of Texas FAIR Plan

Pros

Cons

## Ratings and Customer Feedback for Texas FAIR Plan ### Financial Strength TFPA itself does not carry a standalone AM Best or Demotech rating. The organization claims it only works with home insurance companies rated A- or higher [(Texas FAIR Plan Association, "About Us", 2026)](https://www.texasfairplan.org/about). Independent rating agency Weiss Ratings has assigned TFPA a concerning E- safety rating in October 2025. The rating reflects poor long-term capitalization (0.0 on a scale of 0 to 10) based on weak current risk-adjusted capital under severe and moderate loss scenarios. TFPA also received a weak profitability index (0.2) with operating losses during each of the last five years. The average return on equity over the last five years was -48.8%, though profits turned positive in the first six months of 2025. As of the most recent rating, TFPA showed a loss ratio of 121.26%, total assets of $155.32 million, capital of -$58.02 million, and net premiums of $159.03 million [(Weiss Ratings, "Summary - Texas FAIR Plan Association", 2025)](https://weissratings.com/en/insurer/p11543). The organization has faced financial challenges. In December 2024, the Commissioner concurred with TFPA's request to assess participating insurers $17.6 million for its 2023 deficit. TFPA has also requested an assessment for its 2024 deficit, which totaled $60 million [(Insurance Journal, "Texas FAIR Plan Seeks $60M Assessment for 2024 Deficit", 2024)](https://www.tdi.texas.gov/bulletins/2025/b-0015-25.html). Insurers must pay FAIR Plan within 30 days after receiving notice of assessment. All property insurance policies are subject to recoupment surcharges including farm and ranch, flood, earthquake, wind and hail [(Texas Department of Insurance, "B-0020-24: FAIR Plan Association Assessment and Recoupment FAQ", 2024)](https://www.tdi.texas.gov/bulletins/2024/B-0020-24.html). ### Hurricane Beryl Impact In July 2024, Hurricane Beryl struck Texas, triggering TFPA's Catastrophe Incident Response Plan. As of October 25, 2024, TFPA received 9,833 FAIR Plan claims from Hurricane Beryl [(Texas FAIR Plan Association, "News and Announcements", 2024)](https://www.texasfairplan.org/category/news-and-announcements/). Combined with TWIA claims, the two organizations received 40,485 Hurricane Beryl-related claims and paid out $315.4 million for losses through September 27, 2024 [(AM Best, "TWIA and Texas FAIR Plan Hurricane Beryl Losses Rise to $315.4 Million", 2024)](https://news.ambest.com/newscontent.aspx?refnum=261120&altsrc=23). ### Recent Litigation In March 2026, the Court of Appeals Fifth District of Texas at Dallas ruled in favor of homeowners who sued Texas FAIR Plan Association for denying a water damage claim caused by a leaky toilet. The homeowners sought $4,303 for repairs. TFPA denied the claim and fought through a jury trial. TFPA declined to comment, citing policy not to comment on litigation or individual policyholders' claims. The Insurance Council of Texas criticized the court decision, warning about future implications [(WFAA, "Texas homeowners win big after suing insurer for denied claim", 2026)](https://www.wfaa.com/article/money/business/right-on-the-money/texas-homeowners-win-big-after-suing-insurer-denied-claim/287-a436af7b-137d-4c1d-8356-e17f7b1fdcb3). ### Customer Reviews Summary | Source | Rating | Representative Feedback | Takeaway | |--------|--------|------------------------|----------| | [Better Business Bureau](https://www.bbb.org/us/tx/austin/profile/associations/texas-fair-plan-0825-90072757) | Not BBB Accredited | No rating available | Organization is not BBB accredited | | Insurance Industry Forums | Mixed | "Very hit or miss on reviews. I fully understand you typically get what you pay for in life but $300 a month on top of todays interest rates can be a big deal" | Concerns about cost versus value | ### Real Customer Reviews

Mr. Bond, TexAgs Forum User, 2024

via TexAgs Real Estate Forum

"The difference came out to nearly $300 a month in favor of the lenders bid. I did compare apples to apples and there are some differences. Deductible is 2.5% vs 2% and some other very minor details that would equate to less than pocket change per month. I found out the lenders quote was TFP...... doing very quick ignorant research it is very hit or miss on reviews."

Brad Hancock (Insurance Agent), 2024

via Insurance For Texans

"We also had to explain that it comes with significant limitations compared to standard homeowners insurance policies. Limited Perils Covered: Texas Fair Plan policies typically cover fewer perils than standard homeowners policies. For example, it may severely limit water damage, falling trees, breakage of glass, and freezing of plumbing."

## Get Customer Support or File a Claim with Texas FAIR Plan ### Contact Information [(Texas FAIR Plan, "Contact Us", 2026)](https://www.texasfairplan.org/about-us/contacts/) **Toll-Free Number:** 1-800-979-6440 **Policy Questions & Changes:** tfpapolicy@twia.org or call 800-979-6440, Option 4 with fax 800-979-6441 **Mailing Addresses:** Premium Payments: Texas FAIR Plan Association P.O. Box 733916 Dallas, TX 75373-3916 General Correspondence: Texas FAIR Plan Association P.O. Box 99080 Austin, TX 78709-9080 **Agent Services Email:** agentservices@twia.org **Agent Hotline:** Call 800-979-6440, Option 3 and fax 800-979-6441 ### How to File a Claim TFPA offers multiple options to file a claim: 1. **Online Claims Center:** If you have policies with both Texas FAIR Plan Association and Texas Windstorm Insurance Association, you can use the Claims Center to report and manage claims with both [(Texas FAIR Plan Association, "Claims Center", 2026)](https://www.texasfairplan.org/claimscenter/) 2. **Phone:** Call 800-979-6440 to report a claim 24/7 3. **Through Your Agent:** Contact your licensed insurance agent who wrote your policy ### Claims Process A TFPA representative will contact you as soon as possible after you report your claim. Make any temporary or minor repairs necessary to protect your property from further damage. Take photos of the damage. Keep receipts and records of payment for any temporary repairs. Do not begin making permanent repairs until a TFPA-assigned adjuster or representative has contacted you and inspected your property [Ibid.](https://www.texasfairplan.org/claimscenter/). **Important:** An insured must file a claim under a TFPA policy not later than the first anniversary of the date on which the damage to property that is the basis of the claim occurs [(Texas Insurance Code, Section 2211.158(b))](https://statutes.capitol.texas.gov/Docs/IN/htm/IN.2211.htm). ### Dispute Resolution If you disagree with a claim settlement, appraisal is a process for resolving the disputed value of your claim or the costs of repair and replacement under the terms of your policy. Damages not covered under your policy, or damages beyond the scope of your loss, are not subject to appraisal. The first step is to provide written notice of your request for appraisal [Ibid.](https://www.texasfairplan.org/claimscenter/). ## Frequently Asked Questions ### Is Texas FAIR Plan a real insurance company? Yes. Texas FAIR Plan Association is a legitimate insurance organization. In 1995, the Texas Legislature enacted legislation authorizing the commissioner of insurance to establish the Texas Fair Access to Insurance Requirements Plan [(Texas Insurance Code, Chapter 2211)](https://statutes.capitol.texas.gov/Docs/IN/htm/IN.2211.htm). TFPA operates as an insurance company by issuing policies, collecting premiums, and paying losses. The organization provides limited coverage for one- and two-family residential dwellings, townhouse units, manufactured homes, and condominium units that meet its underwriting standards. ### How much does Texas FAIR Plan insurance cost? The average annual cost for a homeowners insurance policy through the Texas FAIR Plan is around $1,440. However, actual costs vary significantly by location, property value, and coverage selected. Texas homeowners should expect to pay about $4,250 per year for a policy with $300,000 in dwelling coverage—roughly 46% higher than the Texas state average. ### What's the difference between Texas FAIR Plan and TWIA? The Texas Fair Plan was created by the Texas Legislature in 1995 to provide residential property insurance in underserved areas. The state already had an insurer of last resort—the Texas Windstorm Insurance Association, created by the Legislature in 1971 after Hurricane Celia struck near Corpus Christi [(Texas Department of Insurance, "Windstorm Insurance", 2026)](https://www.tdi.texas.gov/tips/what-is-windstorm-insurance.html). Today, TWIA manages TFPA. The Texas Fair Plan is available statewide. TWIA, by contrast, only issues policies in Texas' 14 coastal counties and a portion of Harris County east of Highway 146. ### Can I get windstorm coverage through Texas FAIR Plan? It depends on your location. Many Texas Fair Plan policies cover windstorm damage. However, TFPA does not provide windstorm, hurricane, or hail coverage for properties in designated catastrophe areas. This includes all 14 first-tier coastal counties (Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio, and Willacy) and a portion of Harris County east of State Highway 146 on Galveston Bay [Ibid.](https://www.tdi.texas.gov/tips/what-is-windstorm-insurance.html). ### Do I have to reapply for private insurance if I have a TFPA policy? Yes. Policies are issued for one-year terms. Every two years, the insured must reapply for residential property insurance in the voluntary market [(Texas Insurance Code, Chapter 2211)](https://statutes.capitol.texas.gov/Docs/IN/htm/IN.2211.htm). This requirement ensures TFPA remains a temporary solution rather than a permanent insurance option. ### Should I buy Texas FAIR Plan insurance? You should only consider Texas FAIR Plan if you cannot obtain coverage through the private insurance market. Before accepting a TFPA policy, work with an independent insurance agent or comprehensive comparison platform like [Coverage Cat](https://www.coveragecat.com) to explore all available options, including surplus lines insurers that may offer more comprehensive coverage. TFPA coverage is limited and expensive compared to private market options. However, TFPA serves a vital role in Texas' insurance landscape. While it may not be your first choice, understanding its purpose, eligibility, and limitations is crucial for any Texas property owner facing challenges in the private insurance market. For Texas homeowners exploring [homeowners insurance](/insurance-types/homeowners-insurance) options, it's worth comparing TFPA with other available carriers and understanding your complete coverage needs, including potential needs for [umbrella insurance](/insurance-types/umbrella-insurance) to protect assets beyond your property.