Understanding Colorado’s FAIR Plan Works with Roofing
In 2023, Colorado lawmakers created the Fair Access to Insurance Requirements (FAIR) Plan, a safety net for homeowners who can’t find insurance in the private market. The program officially launched in April 2025.
Modeled after last-resort programs in California and Florida, Colorado’s FAIR Plan was designed for homeowners in wildfire-prone areas and those repeatedly denied coverage by traditional insurers due to hail and other weather events.
But while the program is available, very few people are signing up, and the reasons why matter for both homeowners and roofing professionals.
Why So Few Enrollments?
Despite growing wildfire risks, only 51 homeowners purchased FAIR Plan coverage in its first few months. That low uptake reflects some serious challenges:
-
High Premiums: FAIR Plan rates are among the most expensive in Colorado. Costs are inflated by reinsurance and risk pooling.
-
Limited Benefits: Policies cover actual cash value, not replacement cost. That means a $300,000 home may only see $150,000–$180,000 in payout after a claim.
-
Coverage Caps: Protection is limited to $750,000, excluding many higher-value homes.
-
Strict Eligibility: Homeowners must show denials from three traditional insurers before applying.
Even the program’s own website warns applicants to consider private options first.
Who Uses the FAIR Plan?
The small group of policyholders so far typically includes:
-
Homeowners in wildfire-risk zones
-
Properties with hail damage or prior hail claims
-
Homes with aging or deteriorating roofs
-
Owners who have exhausted options in the private and “non-admitted” markets (insurers outside state regulation)
For most homeowners, even in high-risk areas, the FAIR Plan is considered a last resort, not a first choice.
What Homeowners Should Consider
If you’re a homeowner exploring insurance options:
-
Exhaust private options first. Even if one carrier denies coverage, others may be willing.
-
Keep your roof in top condition. Roof age and quality are major factors in insurance eligibility.
-
Get inspections regularly. Proactive repairs reduce risk and may improve insurability, and provide documentation that supports future renewal applications.
-
Work with a trusted roofing contractor. A well-maintained roof—and clear records of that maintenance—can make the difference between approval and denial of private coverage.
Resources
If you’re struggling to find home insurance, the FAIR Plan may feel like a last resort—but it is still an option. While the coverage is limited and often costly, it can provide the protection you need to meet mortgage requirements when traditional insurers won’t take you on.
Ultimately, the best defense for homeowners is to maintain a strong roof, stay proactive with insurance, and work with trusted roofing professionals