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

Does Kentucky have a FAIR Plan?

Yes. Kentucky's FAIR Plan is the Kentucky FAIR Plan Reinsurance Association, official site kyinsplans.org/fair ↗. 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 Fire DP 00 01 / DP 00 02: fire, lightning, windstorm/hail, explosion, smoke, vehicles, aircraft, vandalism and malicious mischief. Homeowners HO 00 02 Broad: broader named perils, personal liability ($100,000), medical payments ($1,000). Homeowners HO 00 06 (condo) and HO 00 08 (modified/basic). Renters HO 00 04. Commercial CP 00 99. Farm FP 00 12 / FP 00 14. All on actual cash value basis. Vacant dwellings written under DP-1 only. Does NOT include flood. Farm coverage excludes livestock and crops.

How much will it cover?

The current cap on a single dwelling policy is Dwelling Fire: maximum $200,000 (DP-1 minimum $1,000; DP-2 minimum $15,000). Farm dwellings: maximum $150,000 (within the $250,000 farm aggregate). Homeowners: maximum $200,000. Commercial Protection Classes 1-9: maximum $1,000,000. Commercial Protection Class 10: maximum $250,000. Farm: maximum $250,000. (Kentucky FAIR Plan Reinsurance Association, verified 2026-05-11).

Who is eligible?

Property owners in Kentucky who have exhausted all coverage options available through the voluntary market and are unable to obtain coverage through the standard market. All applications must be submitted by a licensed producer. No specific numeric declination count is stated in publicly accessible Kentucky FAIR Plan materials -- eligibility is based on inability to obtain voluntary market coverage after reasonable effort. Property must meet plan underwriting standards.

How do you apply?

Through a licensed Kentucky insurance producer/agent. Applications must be submitted by a licensed producer -- applicants cannot apply directly. Online application system at kyfairplan.onaipso.com. Contact: (502) 425-9998 / info@fairplanalliance.com.

Need a broker who writes the KY FAIR Plan? →

How much does it cost?

Generally more expensive than the standard market for narrower coverage; ACV settlement means less effective coverage than a standard homeowners replacement-cost policy. Kentucky FAIR Plan had a combined ratio of 135.90% in 2024 (loss ratio 44.38% + LAE ratio 33.49%), indicating the plan is operating at an underwriting loss -- consistent with a residual market pricing structure.

What is changing right now?

Policies in force: 3,539 as of January 2025 (down 6.2% from end of 2023). Policy mix: Dwelling Fire 85%, Homeowner 11%, Commercial 3%, Farm 1%. Claims in 2024: 132. Loss ratio: 44.38%; combined ratio: 135.90%. Member equity: $15.5 million (end 2024). Catastrophe excess of loss reinsurance: $5M excess of $1.5M (as of December 31, 2024). Dwelling Fire Manual revised January 2025; Commercial Fire and Farm Fire Manual also revised January 2025. 2025 budget: $1,872,805. III FY2024 habitational policy count approximately 4,102 (slightly different from Jan 2025 count -- different fiscal periods).

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 Kentucky FAIR Plan Reinsurance 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 →