New insurance available for Colorado homeowners in high-risk areas as FAIR Plan website launches

Homeowners in Colorado struggling to find coverage have a new option thanks to the new Colorado FAIR Plan. The program website launched Thursday and began accepting applications for personal property.

The FAIR Plan offers home insurance to people in high-risk areas that have been rejected by 3 insurance companies. Officials said they're working on getting agents access to the policy system so they can begin helping customers apply. Insurance agents will be able to offer quick quotes and submit applications if they determine the FAIR Plan is a good fit for customers.

Many Coloradans were left without options after a third of carriers canceled policies in 2022. Officials said this new plan is intended to serve as a last resort and offers very limited coverage for properties that face the greatest risks of natural disasters.

To qualify, customers must have been denied coverage from three admitted carriers. When an insurance agent submits an application to the FAIR Plan for a customer, they must include documentation that they have tried and been unable to find other coverage. Homeowners who already have insurance do not qualify. 

FAIR Plan policies come with substantially higher premiums due to the elevated risk associated with the properties, and standard insurance remains the most cost-effective option for property insurance.

The FAIR Plan is currently accepting applications for residential properties. Commercial property applications are expected to be available later this year.