Texas Fair Plan Association

What Texas Fair Plan Association does

Texas FAIR Plan Association (TFPA) is a state-mandated residual market insurance carrier created by the Texas Legislature under Texas Insurance Code Chapter 2211, with statutory authority granted in 1995 and statewide activation in December 2002 in response to a mold crisis that caused private insurers to withdraw from the Texas residential property market. TFPA functions as the insurer of last resort, providing essential residential property insurance to Texas property owners who have been denied coverage by at least two licensed private insurers and have no current property policy. The association is governed by an 11-member committee and is administered by the Texas Windstorm Insurance Association (TWIA), which provides policy processing, claims handling, and shared systems infrastructure.

TFPA's product portfolio consists of five core policy forms: Homeowners, Dwelling, Condominium, and Tenant policies for individuals, plus a Property Owners' Association (POA) policy added in 2024 under HB 998 for HOAs and condominium associations in designated underserved areas. Coverage limits extend up to $1,000,000 in dwelling value, with personal property coverage, liability ($100,000 or $300,000), and loss of use as standard features. Premiums are calculated on standard industry rating factors (amount of insurance, territory, fire protection, construction type, deductible) without credit scoring, and rates are subject to Texas Department of Insurance approval. The Claims Center — a 24/7 web-based platform shared with TWIA — supports online, SMS, and AI phone agent intake.

TFPA distributes exclusively through licensed Texas property and casualty insurance agents, with no direct-to-consumer sales channel. Agents register, meet performance standards, and use the web-based Agent Portal for applications, endorsements, and commissions. The association operates as a non-profit statutory insurance pool: all insurers licensed to write residential property in Texas are mandatory members and must participate in writings and losses, with net gains held as surplus. Revenue consists of recurring premiums plus ancillary payment and processing fees. As of the most recent reporting, TFPA had 8,041 policies in force and 101–250 employees, with operations centered in Austin and a payment mailing address in Dallas.

Name

Texas Fair Plan Association

Legal name

Texas FAIR Plan Association

Website

https://texasfairplan.org

Company type

Private

Founded year

1995

Operating status

Operating

Headcount range

101–250 employees

Short description

Texas FAIR Plan Association is a state-mandated residual market insurance pool that serves as the insurer of last resort for Texas residential property owners denied coverage by at least two private insurers, distributing Homeowners, Dwelling, Condominium, Tenant, and POA policies exclusively through licensed Texas P&C agents.

Ownership category

akta.pro rank

Headquarters

HQ city

Austin

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Operations, Personnel, Marketing or Sales, Technology or R&D, Others, Infrastructure

Revenue model

1. Insurance Premiums: TFPA generates revenue through collecting premiums from policyholders. Premiums are calculated based on standard industry rating factors including amount of insurance, territory, fire protection, type of construction, deductible amount, and optional additional coverages. TFPA does not use credit scoring in rate determination. Rates are set to be sufficient to pay claims and meet all expenses including operational expenses, agent commissions, and premium taxes.
2. Policy and Coverage Types: TFPA issues four main policy types: Homeowners Policy, Dwelling Policy, Condominium Policy, and Tenant Policy. Each provides various coverage options including dwelling coverage (up to $1,000,000 maximum value), personal property, loss of use, and liability coverages. Additional endorsements are available for additional premium charges.
3. Service and Processing Fees: TFPA charges various payment fees including $5.00 installment fee per payment, $5.00 late fee, $15.00 payment reversal fee, and $10.00 phone payment fee.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels5 records

Core offering

Texas Fair Plan Association is a state-mandated residual market insurance carrier that provides essential residential property insurance to Texas property owners who have been denied coverage by at least two licensed insurers. It issues Homeowners, Dwelling, Condominium, and Tenant policies with coverage up to $1,000,000, and also underwrites Property Owners' Association (POA) insurance for HOAs and condominium associations in designated underserved areas. Policies are distributed exclusively through licensed Texas insurance agents and administered in partnership with the Texas Windstorm Insurance Association (TWIA).

Product overview

Texas FAIR Plan Association (TFPA) is a residual market carrier providing essential property insurance to Texas homeowners, dwelling owners, condominium unit owners, and renters who cannot obtain coverage from private insurers. TFPA's product portfolio consists of five distinct insurance policies — TFPA Homeowners Policy, TFPA Dwelling Policy, TFPA Condominium Policy, TFPA Tenant Policy, and TFPA POA (Property Owners' Association) Policy — each offering varying levels of dwelling coverage (up to $1,000,000), personal property coverage, liability coverage, and loss of use coverage. TFPA operates two complementary self-service platforms: the Claims Center for policyholders to report and track claims 24/7, and the Agent Portal for licensed Texas agents to submit applications, service policies, and manage commissions. Additional services include an E-Payments system for premium payments and an Agent Training Center with computer-based training modules and job aids. As an insurer of last resort, TFPA does not compete with the private market and provides limited coverage compared to voluntary market policies.

Differentiator

Problem solved

Functional benefit

Products and services

• TFPA Homeowners Policy Insurance policy providing actual cash value or optional replacement cost coverage for dwellings and outbuildings, personal property, liability, medical payments, and loss of use for residential homeowners in Texas who have been denied coverage by at least two other licensed insurers.
• TFPA Dwelling Policy Insurance policy providing actual cash value coverage for dwellings and limited personal property, with optional extended coverage endorsements for perils such as windstorm, explosion, and vandalism. Designed for property owners who do not need full homeowners coverage.
• TFPA Condominium Policy Insurance policy providing actual cash value or optional replacement cost coverage for condominium unit owners' personal property and liability, with coverage limits up to $500,000 for personal property.
• TFPA Tenant Policy Insurance policy covering personal property and liability for renters, with coverage limits up to $500,000 for personal property and optional replacement cost coverage.
• TFPA Property Owners' Association (POA) Policy Insurance policy providing property and liability coverage for property owners' associations (HOAs and condominium owners' associations) covering common areas, facilities, and common elements in Texas designated underserved areas. Available in designated underserved areas only.

Named customers2 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability2 records

Partnerships

Four partnerships are on record, tiered core.

• Texas Windstorm Insurance Association (TWIA)coreStrategic or Co-development PartnerTWIA manages TFPA at the direction of its Governing Committee. TWIA provides administrative services including policy processing, claims handling, and system management for TFPA operations. Both associations share systems and portals for policyholders and agents.
• Arden Insurance ServicescoreChannel Partner/ Reseller/ DistributorTFPA contracted with Arden Insurance Services to provide underwriting services for the Property Owners' Association (POA) insurance program. Arden handles POA applications, policy changes, and provides an agent portal specifically for POA insurance.
• Texas Department of Insurance (TDI)coreOthersTDI serves as the regulatory authority over TFPA. The Commissioner of Insurance or an employee of TDI serves as an ex officio member of the Governing Committee. TDI reviews and approves TFPA rate changes and oversees compliance with Texas Insurance Code Chapter 2211.
• Member Insurance CompaniescoreOthersAll insurers licensed to write property insurance in Texas that write residential property insurance are members of TFPA. All member insurers must participate in the writings and losses of TFPA. TFPA functions as a pooling mechanism that allocates losses back to the insurance industry.

Scale indicators3 records

Recent moves8 records

Expansion highlights5 records

Broad incumbents

• Allstate: One of the largest U.S. personal property insurers. Voluntary-market incumbent whose selective non-renewal decisions directly drive residual-market demand for TFPA in Texas.
• State Farm: Largest U.S. homeowners insurer and significant Texas writer whose prior pull-back from coastal California and risk-selection actions historically created FAIR Plan spillover. A key voluntary-market actor that influences TFPA's residual demand.

Direct peers

• California FAIR Plan Association: California's legislatively created residual market property insurer of last resort. Operates under a near-identical model to TFPA — provides basic residential property coverage to homeowners who cannot obtain it in the voluntary market, and has experienced significant growth amid wildfire-driven market retrenchment.
• Citizens Property Insurance Corporation: Florida's state-created insurer of last resort, providing residential and commercial property coverage to Floridians unable to obtain private-market insurance. Most analogous to TFPA in mission and structure, with substantially larger policy count given Florida's hurricane exposure.
• Louisiana Citizens Property Insurance Corporation: Louisiana's residual-market property insurer of last resort, providing residential and commercial property coverage where private markets withdraw. Directly comparable to TFPA as a state-mandated FAIR Plan equivalent.
• Massachusetts Property Insurance Underwriting Association: Massachusetts' FAIR Plan, providing basic property insurance to residents in designated underserved areas who cannot obtain coverage in the voluntary market. Closest state-level analogue to TFPA's residential residual-market model.
• New York Property Insurance Underwriting Association: New York's FAIR Plan for residential property insurance in underserved areas. Operates under the same residual-market concept as TFPA — basic dwelling, homeowners, and tenant policies for those denied by voluntary carriers.
• North Carolina Insurance Underwriting Association (NCJUA/Beach Plan): North Carolina's coastal and residual-market property insurance mechanism, providing wind and property coverage in beach/coastal areas. Comparable to TFPA in being a legislatively created residual market, with a more coastal-focused scope.
• Texas Windstorm Insurance Association (TWIA): TWIA is the windstorm/hail insurer of last resort in the Texas coastal catastrophe area and is also TFPA's operational administrator. Closely comparable on coverage scope for coastal wind and as the statutory counterpart filling the gap TFPA cannot.
• Coastal Insurance Underwriting Association (Alabama): Alabama's coastal FAIR Plan equivalent, providing wind coverage to coastal properties unable to obtain it in the voluntary market. Comparable in being a state-residual mechanism focused on catastrophe-area coverage.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Texas Fair Plan Association