About The Plan

The Missouri Basic Property Insurance Inspection and Placement Program (Program) operates as the Missouri Property Insurance Placement Facility (the Facility). The Facility is also known as the Missouri FAIR (Fair Access to Insurance Requirements) Plan.

House Bill 772 of the 75th Missouri General Assembly established the Program in 1969. Section 379.810 through 379.875 Revised Missouri Statutes provide the guidelines and limitations of the Program.

The Program is designed to provide property insurance to those having an insurable interest in property who, in good faith, are entitled to such insurance, but who are unable to obtain it in the standard market.

Application for insurance may be made through any Missouri licensed insurance agent or broker (Please see the Missouri Department of Insurance). However, the consumer should first “shop” for placement in the standard market before applying to the FAIR Plan for coverage. An insurance company in the standard market may be able to provide better coverage than that offered by the FAIR Plan and possibly at a lower premium.

The policies offered by the FAIR Plan are ACTUAL CASH VALUE NAMED PERIL policies. Which means, the policies do not provide replacement cost coverage and depreciation is taken into consideration at time of loss. The following coverages are NOT provided for by these policies: liability, earthquake, flood, and back up of sewers or sumps.

The perils for which coverage is provided are fire, lightning, wind, hail, explosion, riot, civil commotion, aircraft, vehicle, smoke, volcanic eruption, vandalism and malicious mischief. Limited theft coverage may be added to the dwelling policy as a separate content item, providing the policy has contents coverage and includes Extended Coverage and Vandalism and Malicious Mischief.

The FAIR Plan offers two basic policies, a habitational dwelling policy and a commercial policy. Policy limits, which are set by Missouri State Statute, are $200,000 for dwelling and $1,000,000 for commercial.

The FAIR Plan also offers a standalone Sinkhole Loss policy for dwelling property. Sinkhole Loss means actual physical damage to a building or property arising out of sudden settlement or collapse of the earth supporting the building, and only when the sudden settlement or collapse results directly from subterranean voids created by the action of water on limestone or similar rock formation and is evidenced by:

  1. The abrupt collapse of the ground cover;
  2. A depression in the ground cover clearly visible to the naked eye;
  3. Structural damage to the covered building, including the foundation; and
  4. The insured structure is uninhabitable, which is evidenced by an order of condemnation by a governmental agency authorized to issue such an order for that structure, where applicable.

Beginning January 1, 2015, the FAIR Plan may issue a policy exclusively for sinkhole loss on habitational property owned by the applicant to supplement the applicant’s primary coverage. Coverage shall be only for habitational structures and shall not cover driveways or non-habitational detached structures. Contents coverage shall apply only if there is covered sinkhole loss on the habitational structure in which the contents were located. Sinkhole coverage shall not include loss for the value of the land or for the cost associated with filling a sinkhole.

The FAIR Plan inspects all new properties and re-inspects renewals every four years.

The following risks will not be considered acceptable by the FAIR Plan.

  1. Vacant property. Property that is essentially unoccupied (70% commercial, 50% dwelling).
  2. Property that is in a severe state of disrepair.
  3. Property with unrepaired damage due to prior losses.
  4. Property where the applicant has had an unsatisfactory loss history.
  5. Any risk having characteristics of occupancy or ownership that may be in violation of law or public policy.
  6. Property with unsafe heating arrangements such as:
    1. Seriously rusted or deteriorated equipment.
    2. Deteriorated chimneys and vents, including from furnaces to chimneys.
    3. Improper use of space heaters, solid, liquid or gas with insufficient clearance to combustibles.
  7. Unsafe electric wiring, such as:
    1. Exposed or frayed wires.
    2. Improperly spliced wires.
    3. Overloaded circuits.
  8. Poor housekeeping (accumulated trash, debris or garbage).

Agents and brokers (producers) are not contracted by the FAIR Plan and cannot accept payment or issue binders, policies or endorsements on behalf of the FAIR Plan. If the inspection indicates deficiencies in the property, we will either endorse the policy to include surcharges for the deficiencies or issue a 30 day notice of cancellation due to conditions.

Upon receipt of an application for insurance the FAIR Plan may issue a quote or decline the application. After the quote is paid an inspection of the property will be ordered. Depending on the findings of the inspection the policy may be endorsed or cancelled due to deficiencies in the property.

The FAIR Plan is located at 906 Olive Street Suite 1000, St. Louis, Missouri 63101. The telephone number is (314) 421-0170 or 800-392-7240 (Missouri only). Normal business hours are Monday through Friday 8 a.m. to 4 p.m.