The Georgia Underwriting Association (GUA) administers the Georgia FAIR Plan, which is Georgia’s insurer of last resort for homeowners who can’t qualify for home insurance through the standard market. The GUA offers basic property and liability coverage to homeowners when traditional insurers consider property too high-risk to insure.
The GUA FAIR Plan can provide a bare-bones home insurance policy, a limited dwelling fire policy, or a wind and hail only policy in Georgia’s coastal areas. Despite the limited coverage, homeowners with FAIR Plan policies tend to pay more than one would for private-market homeowners insurance in Georgia.
How the Georgia Underwriting Association FAIR Plan works
Georgia state law (Georgia Code Title 33, Chapter 33) established the Georgia Underwriting Association to administer the state’s Fair Access to Insurance Requirements (FAIR) Plan. The GUA is backed by property insurers in the state of Georgia and is subject to oversight by the Georgia Office of the Commissioner of Insurance (OCI).
This plan fills a gap in Georgia’s property insurance market. Rather than competing with standard homeowners insurance companies, GUA provides coverage when your home doesn’t qualify for insurance through the traditional market. However, coverage is far more limited under the Georgia FAIR Plan.
Who qualifies for FAIR Plan coverage?
You may qualify for a Georgia FAIR Plan policy if at least two private insurance companies have denied you coverage. Generally, you’ll need to provide proof, such as through a nonrenewal or cancellation letter.
In Georgia, standard home insurers may reject your home insurance application if you:
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Own an old home in questionable condition (deferred maintenance, clear hazards, old roof, etc.)
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Own a home with multiple claims in recent years
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Live in a particularly hazardous area, such as a high-crime neighborhood, somewhere with increased hurricane risk (like the Atlantic Coast), or in an area with frequent tornadoes (like Dixie Alley)
Just because you were denied coverage in the private market doesn’t mean you’ll automatically qualify for a Georgia Underwriting Association FAIR Plan, though.
While the goal of the FAIR Plan is to make home insurance accessible to as many Georgians as possible, properties must meet specific criteria outlined by the GUA. For instance, a property might not be eligible for coverage if its construction, heating, and wiring are not in acceptable condition or the property violates laws or public policy. And, for older, historic, or high-risk homes in need of an HO-8 policy, the property must be owner-occupied 100% of the time.
What the FAIR Plan covers
The Georgia FAIR Plan offers named-perils coverage only. That means your home will only be insured against damage caused by events (known as perils in the industry) that are specifically listed in the policy details.
Depending on your needs, you may qualify for one of the following through the GUA:
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An HO-8 homeowners insurance policy: Covers the dwelling against damage from 10 named perils. It includes $100,000 in personal liability insurance and $1,000 in medical payments coverage, and you can add up to $20,000 in optional water damage coverage for an additional fee.
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A DP-1 fire policy: Covers nine named perils. You can add up to $20,000 in optional water damage coverage, or up to $20,000 in optional liability coverage, for an additional fee.
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Wind and hail only policy: Covers damage from wind and hail if you have standard home insurance that specifically excludes it (common in Georgia's coastal areas). These policies typically only cover those two named perils.
HO-8 coverage is closest to the most common type of home insurance policy (called an HO-3), but it’s still far more limited. Here’s how the two compare in Georgia:
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GUA Fair Plan (HO-8) |
Standard private policy (HO-3) |
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10 named perils: fire or lightning, windstorm or hail, explosion, riot or civil commotion, aircraft, vehicle, smoke, vandalism or malicious mischief, theft, and volcanic eruption |
Open perils: all perils except those explicitly excluded by the policy |
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10% of dwelling coverage limit; named-perils coverage |
10% of dwelling coverage limit; open-perils coverage |
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50% of dwelling coverage limit; named-perils coverage |
Coverage amount varies (generally 50% to 70% of dwelling coverage limit); typically named-perils coverage with potential option to upgrade for an added cost |
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10% of dwelling coverage limit |
Coverage amount varies; generally, 10% to 30% of dwelling coverage limit |
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$100,000 in coverage |
Coverage amount varies (at least $100,000, but often more) |
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$1,000 of coverage available as an add-on |
Standard part of policy (generally between $1,000 and $5,000) |
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Water damage coverage |
$20,000 in coverage for an additional policy cost, covering water damage from freezing and sudden, accidental discharge or overflow of water or steam. Flood damage not included. |
Freezing and sudden, accidental water discharge or overflow is typically already covered. Sewer or drain backup is a separate, optional add-on. Flood damage not included. |
Cost and coverage limits versus the private market
Georgia FAIR Plan coverage is a last resort. Policies have lower coverage limits (meaning maximum payouts), cover fewer perils, and typically cost more than a standard home insurance policy purchased from the private market, primarily because qualifying homes carry such a high risk.
In some cases, the max coverage limit of a FAIR Plan policy may not be enough to cover the full cost to rebuild your home — one of many reasons a FAIR Plan should be your last resort.
How to apply for GUA FAIR Plan coverage
Here’s how to apply for coverage via Georgia’s FAIR Plan:
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Shop the private market first: Work with a licensed Georgia home insurance agent to get quotes from insurers in the standard market. You should only shop for FAIR Plan coverage if you can’t get coverage elsewhere.
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Document rejections: Keep written evidence, such as emails or letters, from insurers that have declined to cover your home. Two declinations are commonly requested to be eligible for FAIR Plan coverage.
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Gather all the property information: Your agent will likely need details about the home’s age, construction, roof, overall condition, occupancy, and prior claims history.
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Submit the GUA application: Fill out the GUA application and include two color photos of the front and back.
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Wait for the review, and possibly an inspection: GUA checks whether the home meets its safety and eligibility standards before issuing coverage and may schedule an inspection to confirm.
Because requirements can change, your agent should check the current Office of the Insurance and Safety Fire Commissioner directives and GUA materials before submitting an application. You must always work with a licensed agent when applying for FAIR Plan coverage in Georgia.
Frequently asked questions
What does the Georgia FAIR Plan not cover?
The Georgia FAIR Plan does not cover damage from any event (called a peril in the industry) that is not specifically named in the policy. That means a policy generally won’t cover damage caused by falling objects; weight of ice, snow, or sleet; sudden and accidental tearing apart, cracking, burning, or bulging of certain household systems; freezing of plumbing, heating, HVAC, or fire sprinkler systems; sudden and accidental damage from artificially generated electrical currents; and accidental water overflow or steam. However, you can add water damage coverage to the policy for an added cost.
Like standard home insurance, the Georgia FAIR Plan also does not cover damage from floods and earthquakes.
Is Georgia FAIR Plan insurance a good option?
Georgia FAIR Plan insurance is a last-resort option for homeowners. Private market coverage is more affordable and more comprehensive. FAIR Plan insurance is only a good option if you have no other choice.
Who has the cheapest homeowners insurance in Georgia?
The cheapest homeowners insurance in Georgia depends on several factors, including where your home is located, its construction, your preferred coverage limits and deductibles, and any home insurance discounts you qualify for. Compare multiple quotes from Georgia home insurance companies to see where you can get the cheapest coverage. If you can’t qualify with any of them, you may need to try the Georgia FAIR Plan.
