Personal Liability Insurance: What Happens When Someone Gets Hurt on Your Property

Have you been denied home insurance because of your property’s age, location, or past claims?

Are you hearing about something called the “FAIR Plan” and wondering what it actually covers — and whether it’s right for you?

At Vargas & Vargas Insurance, we help clients across Massachusetts navigate the FAIR Plan every day — and in this article, we’ll explain exactly what it is, who it’s for, and how it compares to standard insurance.

You’ll walk away knowing what the FAIR Plan covers, when you should consider it, and what your next step should be if you think it might apply to you.

The FAIR Plan (short for  Fair Access to Insurance Requirements ) is a state-backed homeowners insurance program available through the  Massachusetts Property Insurance Underwriting Association (MPIUA) . It was created to provide insurance to homeowners who are unable to secure coverage through traditional insurance carriers.

Here’s a smoother, clearer rewrite of that section:

The Massachusetts FAIR Plan was established in 1968 by the state legislature as a  residual market solution  — designed to offer property insurance to homeowners who can’t secure coverage through traditional insurance companies.

In simple terms, it’s a  safety net  for homes that private insurers consider too “high-risk” or too costly to insure through standard markets.

• Private insurers have denied your home coverage
• Your home is located in a  high-risk area  (coastal zones, high-crime neighborhoods, flood-prone zones)
• You’ve had multiple prior claims
• Your property has structural issues or older systems that standard insurers don’t want to cover

You must also meet certain basic conditions — for example, the home  can’t be vacant or condemned , and  you must have taken reasonable steps to maintain the property.

Unlike what many believe, the FAIR Plan  does offer standard homeowners policies  — including HO-2, HO-3, HO-4 and HO-6 forms — meaning you may be eligible for:

• Fire and smoke damage
• Windstorm or hail
• Theft and vandalism
• Accidental water discharge
• Snow or ice collapse
• Damage from vehicles or aircraft
• Personal property (if included)
• Replacement cost coverage (if qualifications are met)

• No discounts  for bundling, loyalty, or protective devices
• Fewer available endorsements  and optional coverages
• May not automatically include coverage like  liability, mold, or water backup
• You’ll need separate policies for  flood  or  earthquake  protection
• Some policies are written on  actual cash value  if you don’t meet replacement cost eligibility
• Dwelling maximum limit of $1mil

The FAIR Plan uses  standard base premiums  like other insurers, but  does not offer discounts  — which means it’s often  more expensive  than a private-market policy for the same home.

If your home qualifies for a standard insurer later, you may be able to  reduce your cost and improve your coverage  by moving off the FAIR Plan.

Here’s the bottom line:

But it shouldn’t be your forever plan.

At Vargas & Vargas Insurance, we often start clients on the FAIR Plan when necessary — but we also:

• Help you understand why you were declined
• Identify possible home improvements to help you qualify for standard coverage
• Re-shop your policy every year to move you back into the voluntary market when possible

If you’ve been turned away by insurers — or even suspect your home may be considered high-risk — don’t panic.

Call our team at  Vargas & Vargas Insurance  at  617‑298‑0655 . We’ll review your situation, walk you through the FAIR Plan, and help you build a plan to either get coverage now — or work toward a better one.

You don’t need to figure it out alone. We’re here to answer your questions, advocate for your home, and help you move toward better insurance — one step at a time.