What You Need To Know About The Colorado Fair Plan (Loveland, CO)

Property insurance has been a real challenge in Colorado. Can you tell me about the new government-run program called the Colorado Fair Plan?

The Colorado Fair Plan was established in Colorado back in 2023 as a result of the challenges in the insurance marketplace in the state of Colorado. Many homeowners had been unable to procure coverage due to the increased risk of wildfire in our state. Other homeowners may not have been able to obtain insurance due to past claims history or maybe property condition.

The Colorado Fair plan was designed to address this and help as an insure of last resort. Some key things to know about the plan: for residential properties, coverage is limited to $750,000, and for commercial properties, coverage is limited to $5 million.

The policies are only actual cash value, do not provide replacement, and in order to purchase it, you will have to prove that you've been rejected by other carriers from the standard marketplace. It will only cover certain perils, such as fire, windstorm, hail, and vandalism. It excludes water damage, building up code upgrades, and the weight of ice and snow. The premiums for the Fair Plan will be higher than you have ever seen elsewhere. This will be one of the most expensive policies available, but it is truly an insurance plan of last resort.

We’d be happy to review your insurance coverage options with you! Give us a call at (970) 667-2145 or visit https://weedinagency.com.