Colorado FAIR Plans offer home insurance for those who can’t get it, but it won’t solve all insurance problems

COLORADO SPRINGS, Colo. (KRDO) - In early 2025, Colorado FAIR plan insurance policies will roll out.

"The intention of the fair plan is to be that pressure release valve for the industry," Kelly Campbell the Executive Director of the Colorado FAIR Plan told KRDO13 Investigates these insurance plans will be available for anyone who's been denied insurance policies by three or more companies.

FAIR stands for Fair Access to Insurance Requirements. Campbell said FAIR plans aren't unique to Colorado, many states have had them for decades and the plans offer a last resort for people who simply can't get insurance. The policies will generally only cover hail or fire damage. In some cases, they could be extended to cover vandalism. Other issues such as flooding would need to be covered by a separate insurance policy.

"What we're hoping is that by having the fair plan to take on some of those higher risk properties that will give the industry the time that it needs to reevaluate the marketplace," Campbell said.

However, this might not directly help the biggest problem facing rural Southern Colorado. Campbell says these policies won't be significantly cheaper than what a name brand like Allstate, State Farm, Progressive, etc. would offer. FAIR plans will use a similar rate-making process.

Bernie Vayle has been selling homes in Teller County for more than 30 years.

Vayle tells KRDO13 Investigates that the biggest problem she sees is finding affordable rates for new buyers, a problem she even had when selling her own home. "When we found the buyer, they had a very difficult time getting insurance at a premium that they could live with."