Fighting For Insurance: The Samurai Way

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Texas Homeowners Insurance for the Uninsurable

Your home is the most precious possession you own and probably the most expensive purchase you’ll ever make. It stands to reason that you’ll want to protect it from circumstances and perils that can damage or destroy it. The best type of protection you can have is a good homeowners insurance policy. However, if you’ve been turned down by insurance companies and told your home is uninsurable for one reason or another, you do have other options. As a Texas homeowner, you may be eligible for homeowners insurance through the Texas FAIR Plan Association (TFPA). Learn more about the Texas FAIR Plan and what it all entails.

Created as a part of the Texas Legislature, the Texas FAIR Plan was designed to provide basic residential property insurance to homeowners who are unable to obtain homeowners insurance in the voluntary market. Homeowners should realize that, although the TFPA does ensure that homeowners have homeowners insurance, the coverage is basic and not near as comprehensive as what they’d find in the open market. In addition, although homeowners can get the insurance through the TFPA, it’s not actually the TFPA providing the homeowners insurance.

Homeowners eligible for TFPA insurance will be getting the actual homeowners insurance through an authorized insurance agent. There is also no guarantee that the premiums offered through TFPA-based policies will be competitive with the open market. However, potential TFPA customers may be eligible for certain discounts, and the policies do offer a few different payment options.

The Texas FAIR Plan offers a very basic and limited type of insurance depending on the individual’s needs. They offer a basic Texas homeowners insurance policy that includes coverage for the dwelling and the personal property as well as liability coverage, medical payments coverage and loss of use coverage. They also offer a Texas FAIR Plan Condominium policy and a Texas FAIR Plan Tenant policy. Both of these policies also include coverage for the dwelling, coverage for the personal property, liability coverage, medical payments and loss of use coverage.

Not every homeowner can get their homeowners insurance through the Texas FAIR Plan. Homeowners who are considering obtaining homeowners insurance through the Texas FAIR Plan must meet certain eligibility requirements. One of the first requirements is that they must have been turned down for homeowners insurance by two licensed insurance companies. Homeowners who already have an insurance policy on their homes or have received an open quote from a licensed insurance company are also not eligible for the FAIR Plan.

The Texas FAIR Plan provides coverage for one and two-family dwellings, condominium units, townhouse units as well as rental dwellings and the personal property that may be included within these units. Each of these policies, however, does have maximum limitations to the coverage. In addition to the eligibility requirements mentioned above, the following types of property may be deemed ineligible to be on the Texas FAIR Plan.

• Farms or ranches for business use
• Any property used for business
• Condemned property
• Vacant property
• Property with excessive liabilities (dangerous animal, pools, trampolines)
• Property owner has convictions for insurance-related crimes
• Property owner has made excessive claims
• Mobile home that is not tied down