Iowa FAIR Plan: what it covers, what it costs, who qualifies

Does Iowa have a FAIR Plan?

Yes. Iowa's FAIR Plan is the Iowa FAIR Plan Association, official site iowafairplan.com ↗. It exists as the insurer of last resort for property owners who can't get coverage in the standard ("admitted") market.

What does it cover?

Dwelling Property Program: ISO DP 00 01 07 14 (Basic Form) -- fire, lightning, windstorm/hail, explosion, riot, aircraft, vehicles, smoke. Does NOT include theft, freezing, or water damage. Homeowners Program: HO 00 08 Modified Coverage Form. Commercial: CP 00 99. All policies on actual cash value (ACV) basis; no replacement cost. Flat $1,000 deductible for all perils. Does NOT include flood or liability.

How much will it cover?

The current cap on a single dwelling policy is Dwelling Property Program: maximum $300,000 (ACV, lesser of ACV or market value). Homeowners Program (HO-8): maximum $200,000 (ACV), minimum $40,000. Commercial Property Program: maximum $500,000 per location. (Iowa FAIR Plan Association, verified 2026-05-11).

Who is eligible?

Property owners who are unable to obtain coverage in the voluntary insurance market. Must apply through a licensed insurance agent. Eligible types: 1-4 family dwellings and single-family mobile homes (Dwelling Property Program); owner-occupied single-family dwellings with prior adverse loss history (Homeowners 8 Program); commercial properties. Ineligible: vacant, unoccupied, or properties with open/unresolved claims (note: unresolved-claims exclusion temporarily suspended July 1, 2024 for storm-damaged properties with cancellation notices); building code violations; condemned; inadequate utilities; excessive loss history (more than 2 losses of $500+ in 12 months). No fixed numeric declination count stated; applicant must show voluntary market is unavailable.

How do you apply?

Through a licensed Iowa insurance producer/agent only. Iowa FAIR Plan states: 'Only a licensed insurance agent can submit applications to the Iowa FAIR Plan Association.' Applicant should first contact agent about property improvements, request voluntary market applications, then request IFPA application if voluntary market unavailable. Contact: (515) 255-9531 / info@iowafairplan.com. Address: 2700 Westown Pkwy Ste 220, West Des Moines, IA 50266.

Need a broker who writes the IA FAIR Plan? →

How much does it cost?

Generally more expensive than the standard market for narrower coverage; ACV basis (no replacement cost) means lower effective coverage than a typical homeowners policy. Iowa home insurance rates rose approximately 14% in 2024 amid rising tornadoes, hailstorms, and insurer rate increases. Iowa FAIR Plan explicitly describes itself as 'a last resort when seeking property insurance coverage.'

What is changing right now?

Key 2024 change: Iowa FAIR Plan temporarily suspended the unresolved/unpaid claims ineligibility rule effective July 1, 2024, to prevent coverage gaps for storm-damaged Iowans who received cancellation/non-renewal notices before securing replacement coverage. Iowa has experienced elevated severe convective storm frequency: derechos annually since 2020; hail events increased 133% from 2022 to 2023. Iowa home insurance market rates rose approximately 14% in 2024. FY2024 habitational policy count approximately 1,021 / total exposure approximately $85.7 million per III.

Do you also need a wrap (DIC) policy?

typical

What to do this week if you just got a non-renewal notice

1. Read the notice fully. Note the cancellation date — that's your runway.
2. Call your current agent and ask why. Some non-renewals are reversible (a minor issue, a missed inspection); most aren't.
3. Get quotes from at least three other admitted carriers before going to the FAIR Plan. If you're rural / WUI / coastal you may strike out; that's normal.
4. If admitted carriers decline, contact a broker who writes the Iowa FAIR Plan Association. They can submit on your behalf the same week.
5. Don't let coverage lapse. A lapse triggers force-placed insurance from your lender — much more expensive and worse coverage.

For the full playbook see I just got a non-renewal notice →