The Missouri FAIR Plan, also called the Missouri Property Insurance Placement Facility, is a state-sponsored home insurance option. If you live in a high-risk area and are unable to secure affordable coverage through a traditional insurer, the FAIR Plan can help — but you must shop for coverage through the private market before resorting to it.
FAIR Plan coverage is more limited than traditional Missouri home insurance. Policies only cover a specific list of damage-causing events (called perils), and coverage is capped at $200,000 total for the structure and contents of your home.
Who qualifies for the Missouri FAIR Plan?
You must demonstrate that you are unable to secure coverage through the private market to qualify for the Missouri FAIR Plan. Coverage is available for both commercial buildings and personal dwellings, including personal dwellings that are tenant-occupied, vacant, or operational farms.
Property characteristics that may disqualify you from FAIR Plan coverage include:
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Properties in disrepair or not up to code
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Properties with a history of damage or insurance claims
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Properties without heating systems
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Unsafe electrical wiring
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Properties with accumulated debris or trash
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Foreclosed properties
What the Missouri FAIR Plan covers
Missouri FAIR Plan insurance offers named-peril coverage, meaning only damage caused by specific incidents outlined in the policy are covered. These incidents include:
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Fire and smoke
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Lightning
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Wind
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Hail
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Volcanic eruption
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Explosions
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Aircraft and vehicles
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Riots and civil commotion
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Vandalism and malicious mischief
The coverage types and policy limits included in FAIR Plan coverage depend on the type of property you are insuring:
|
Coverage type |
What it covers |
Coverage limits |
Eligible property types |
|
The building’s structure |
$200,000 for dwelling and $1,000,000 for commercial (dwelling and contents combined) |
Personal dwellings, commercial properties, producing farms |
|
|
Belongings and personal property |
$200,000 for dwelling and $1,000,000 for commercial (dwelling and contents combined) |
Personal dwellings, commercial properties |
|
|
Theft add-on (optional) |
Extended coverage for vandalism and malicious mischief |
$1,000–$25,000 |
Personal dwellings (excluding vacant properties) |
|
Sinkhole add-on (optional) |
Sinkhole damage (not earthquakes) |
$200,000 for dwelling and $1,000,000 for commercial (dwelling and contents combined) |
Personal dwellings |
Missouri FAIR Plan home insurance policies cover property on an actual cash value (ACV) basis. This means your payout is based on what your belongings are worth today, after accounting for wear and tear — not what it would cost to replace them brand new. For example, if you have a couch that has depreciated by $500, and the cost to buy a new couch of similar type is $2,000, then your insurance payout for damage to the couch would be $1,500 (its replacement cost minus depreciation).
What the Missouri FAIR Plan doesn't cover
Missouri FAIR Plans do not cover damage resulting from incidents that aren’t specifically named in the policy, as well as:
Missouri FAIR Plans only offer actual cash value (ACV) coverage — not replacement cost value (RCV) coverage, which pays to repair or replace your property with new materials at today's prices, with no deduction for depreciation. Private home insurance policies typically use RCV for your home's structure and other structures on your property, but ACV for personal belongings — though many offer the option to upgrade everything to RCV.
FAIR Plans do not cover foreclosed properties, either. Vacant properties are eligible for coverage but have a $1,000 minimum deductible — what you pay toward an approved claim before insurance kicks in. Vacant properties are not eligible for the vandalism and malicious mischief coverage add-on (called an endorsement in industry-speak). And farm policies exclude coverage for farm equipment, crops, and livestock.
How to apply for Missouri FAIR Plan coverage
Missouri FAIR Plan insurance applications must be submitted through a licensed insurance agent or broker in the state. Homeowners cannot apply directly.
An interior and exterior home inspection is typically required for properties covered by the Missouri FAIR Plan. These inspections take place when coverage begins and again every four years to make sure the property is being well maintained.
You can pay your premium to begin coverage in a lump sum or in installments. The initial installment is 40% of your total annual premium followed by two more installments of 30%.
Frequently asked questions
What does the Missouri FAIR Plan not cover?
Along with damage caused by any incident (called a peril in the industry) that is not explicitly named as covered by the policy, Missouri FAIR Plan insurance does not cover flooding, earthquakes, or sewer backup. You can buy a sinkhole coverage add-on for personal dwellings. FAIR Plan policies pay out based on the depreciated value of your property, and they do not offer liability coverage. Foreclosed properties are not eligible. Farm properties are covered, but they must be producing farms, and equipment, crops, and livestock are excluded from coverage.
Who has the cheapest homeowners insurance in Missouri?
The cheapest homeowners insurance policy in Missouri will depend on your property’s location, characteristics, and coverage needs. The best way to see which company can offer you the cheapest rates is to compare personalized quotes from several insurers.
How much is homeowners insurance on a $300,000 house in Missouri?
According to Kin data, the average cost of a Missouri home insurance policy with $300,000 in dwelling coverage is $1,099. Keep in mind that dwelling coverage should reflect your home's rebuild cost, not its market value. The two can differ quite a bit, since market value factors in your land and location, while rebuild cost only covers what it would take to reconstruct the home itself. This average represents a policy with $300,000 in dwelling coverage specifically, so your own rate will depend on your home's actual rebuild cost, along with location and other risk factors.
