Coverage & Eligibility

Statutory Eligibility Requirements
Texas FAIR Plan Association (TFPA) provides limited coverage for one- and two-family residential dwellings, townhouse units, condominium units and manufactured housing that meet its underwriting standards. TFPA does not insure commercial properties.

TFPA is authorized to issue policies throughout Texas; however, it is not authorized to provide windstorm and hail insurance for properties eligible for coverage through the Texas Windstorm Insurance Association (TWIA). If you reside in the TWIA coverage area and qualify for TFPA, you may have to carry both a TFPA and TWIA policy. Visit the TWIA website for more information about its coverage and eligibility requirements.

To be eligible for a TFPA policy, applicants and properties must meet certain criteria defined by the Texas Legislature.

• Applicants must have been denied coverage by at least two insurance companies licensed to write and actually writing residential property insurance in Texas (click here to view the TFPA Proof of Declination of Coverage form).
• An applicant is not eligible for coverage if the applicant has a current homeowners or other residential property policy, has a renewal offer, or has received a valid offer of comparable residential property insurance from an insurance company licensed in Texas.
• A policyholder must reapply for coverage in the voluntary market every two years.

TFPA does not sell policies directly to the public and does not have agents of its own. Applicants may only apply to TFPA through an agent. TFPA accepts applications submitted by any licensed property and casualty agent who meets its minimum requirements and performance standards.

Other Eligibility Requirements
Although Texas FAIR Plan Association is considered a market of last resort, applications submitted for coverage are subject to underwriting guidelines for characteristics of ownership, condition, occupancy, maintenance, and liability exposure.

An applicant may be denied coverage for any of the following reasons:

• Property condemned due to condition of the property
• Property in disrepair or with existing damage
• Vacant property
• Property with excessive or unusual liability exposure, (e.g. dangerous animal, pool or trampoline not within a fenced yard)
• Applicant who has a conviction for arson, fraud, or other insurance related offenses
• Applicant with more than eight paid claims (excluding glass claims) within the past three years
• Mobile home, unless the wheels are removed and the mobile home is tied down.
• Farm or ranch used for business
• Any dwelling occupied for business use

Coverage
As a market provider of last resort, coverage available through the Texas FAIR Plan Association is not as comprehensive as coverage available through the voluntary market and TFPA does not compete with the private market.

Coverage must be obtained through an authorized licensed Texas agent. Any agent licensed to write property and casualty insurance in Texas can be authorized to write coverage through the Texas FAIR Plan Association. Visit our Find an Agent page to find an authorized agent in your area.

We offer policies with limited coverage, and as such, do not cover the following perils that other insurers may provide:

• Falling trees or limbs, falling objects
• Collapse of a building or a part of a building
• Breakage of glass
• Damage from the weight of ice, snow or sleet
• Freezing of plumbing, heating, air condition or automatic fire protective sprinkler system or household appliance
• Mold, fungi or other microbe remediation (insurers provide or offer this coverage for the basic perils)
• Back up of sewer or drains
• Items that may be scheduled, such as expensive jewelry
• Sudden and accidental discharge of water or steam*

*For an additional premium charge, a limited coverage endorsement may be added to the following policy forms: Homeowners Policy, Tenant Policy, and Condominium Policy.