Short answer: The Massachusetts FAIR Plan is run by the Massachusetts Property Insurance Underwriting Association (MPIUA). It sells basic property insurance to people with an insurable interest in Massachusetts property who made a reasonable effort to buy coverage in the voluntary market and couldn't. The property must meet basic underwriting standards and can't be vacant or condemned.
What the FAIR Plan is
FAIR Plans are insurers of last resort created under state law. In Massachusetts, the plan is operated by the MPIUA, an association of insurers licensed in the state. The Massachusetts Division of Insurance oversees it.
The FAIR Plan plays a bigger role in Massachusetts than in many states, especially on Cape Cod and the Islands, where many private insurers limit new coastal policies.
Who's eligible
According to the Division of Insurance, you may qualify if:
- you have an insurable interest in property in Massachusetts;
- you made a reasonable effort to get coverage in the voluntary market; and
- you couldn't obtain it.
The property must meet the plan's underwriting standards. It generally can't be vacant, condemned or subject to outstanding tax liens. Residential single-family homes, multi-family dwellings and condominium units are generally eligible. Some commercial property may qualify in limited circumstances.
What it covers
FAIR Plan policies provide basic property coverage. Depending on the form, that can include:
- fire and lightning;
- wind and hail;
- theft and vandalism;
- collapse from the weight of snow and ice; and
- limited liability coverage on some homeowners forms.
FAIR Plan homeowners forms can be more limited than standard policies, with fewer endorsements and lower limits for certain items. Read the policy and compare it to what you're replacing.
What it doesn't cover
Like nearly every homeowners policy, the FAIR Plan doesn't cover flood. Coastal owners should consider a separate flood insurance policy. Wind deductibles for coastal properties can be significant, so check how a hurricane or windstorm deductible would apply. See hurricane deductibles explained.
Coastal property
On Cape Cod, Martha's Vineyard, Nantucket and other coastal areas, many owners use the FAIR Plan because private insurers limit coastal wind exposure. The plan may offer credits for wind mitigation features such as shutters or impact-resistant windows. Ask about available credits when you apply.
Getting back to a standard policy
A FAIR Plan policy doesn't have to be permanent. To move back to the voluntary market:
- address the reasons insurers declined, such as roof condition or old wiring;
- shop the market at each renewal with an independent broker; and
- consider surplus lines options, which may offer broader coverage. See FAIR Plan vs. surplus lines home insurance.
How it compares with other states
Every state's FAIR Plan has its own rules. Compare them in our FAIR Plan insurance by state guide, or start with what is a FAIR Plan.
Common scenarios
You bought a home in Falmouth, and two insurers won't write it because of wind exposure. The FAIR Plan may be an option. Add flood coverage if the home is in a flood zone.
Your insurer non-renews because of an older roof. Replacing the roof may help you return to the voluntary market.
Your Boston triple-decker was declined for knob-and-tube wiring. The FAIR Plan may write it if it meets underwriting standards, but updating the wiring could restore more options.
Key terms
- MPIUA: the association that runs the Massachusetts FAIR Plan.
- Insurable interest: a financial stake in the property, such as ownership.
- Voluntary market: standard insurers that choose which risks to write.
- Surplus lines: non-admitted insurers that write risks standard insurers decline.
Questions to ask your broker
- Have we checked every voluntary and surplus lines option?
- What wind or hurricane deductible applies?
- What mitigation credits are available?
- Does the FAIR Plan form include the liability coverage I need?
Bottom line
The Massachusetts FAIR Plan is an important safety net, especially on the coast, but it's basic coverage. Pair it with flood insurance where needed, understand your wind deductible, and keep shopping for a standard policy.
Contact Alishahi Insurance or call (877) 711-4545. See insurance in Massachusetts.
Frequently asked questions
What is the Massachusetts FAIR Plan?
An insurer of last resort, run by the MPIUA, that sells basic property insurance to owners who can't get it in the voluntary market.
Who is eligible for the Massachusetts FAIR Plan?
People with an insurable interest in Massachusetts property who made a reasonable effort to buy voluntary coverage and couldn't.
Does the Massachusetts FAIR Plan cover flood?
No. Flood requires a separate policy.
Can a vacant home get FAIR Plan coverage?
Generally no. Vacant or condemned property isn't eligible.
Can I leave the FAIR Plan later?
Yes. Address the reasons for declines and shop the voluntary market at each renewal.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.