What Illinois FAIR Plan Association does

The Illinois FAIR Plan Association (IFPA) is a not-for-profit property insurance association established in 1968 under Illinois law (Section 215 ILCS 5/524) to serve as the residual market mechanism — the statutory "insurer of last resort" — for property owners in Illinois who cannot obtain coverage through the standard insurance market. Originally created to provide basic property insurance in designated urban areas, the association now offers statewide coverage across three core product lines: Dwelling Property (up to $750,000 building limit for owner/non-owner occupied homes, mobile homes, farm residences, and rehabilitation properties), a five-form Homeowners program (HO-2, HO-3, HO-4, HO-6, HO-8), and Commercial Property (up to $1,000,000 limit for apartments, mercantile, and service businesses). Optional endorsements include Earthquake Coverage and Mine Subsidence Coverage.

The FAIR Plan distributes exclusively through licensed Illinois insurance producers — applicants must demonstrate three declinations from standard carriers before applying. Policy administration, premium payments, claims reporting, and endorsements run through a web-based portal (ifpa.onaipso.com) hosted by Property Insurance Plans Service Office (PIPSO), with electronic-only application submission mandated since 2015. The organization is funded and governed by nearly 500 Illinois property and casualty insurers, who share in its losses and profits, under the oversight of an eleven-member Governing Committee and the Illinois Department of Insurance, which approves rate filings. Premium pricing is quote-based and regulated; recent annual rate increases on Homeowners and Dwelling Fire policies have ranged from 8.3% to 13.8% (2022–2026), reflecting the deteriorating risk profile of the residual pool.

Name

Illinois FAIR Plan Association

Legal name

Illinois FAIR Plan Association

Website

https://illinoisfairplan.com

Company type

Private

Founded year

1968

Operating status

Operating

Headcount range

1–10 employees

Short description

The Illinois FAIR Plan Association is a not-for-profit, state-mandated residual market insurer, founded in 1968 and funded by nearly 500 Illinois insurance companies. It provides basic property insurance — Dwelling, Homeowners, and Commercial — exclusively through licensed producers to Illinois property owners unable to obtain standard market coverage.

Ownership category

akta.pro rank

Product category

Property Insurance

NAICS

Direct Property and Casualty Insurance Carriers (524126)

SIC

Insurance Agents, Brokers & Service (6411)

akta.pro primary industry

Condominium (HO-6) Insurance (FSAJACAC)

Keywords

• Residual market insurance
• Property insurance
• Homeowners insurance
• Dwelling fire insurance
• Commercial property insurance

Headquarters

HQ city

Chicago

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

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

Revenue model

1. Property Insurance Premiums: The FAIR Plan generates revenue through insurance premiums charged to policyholders for homeowners, dwelling property, and commercial property coverage. Premiums are regulated by the Illinois Department of Insurance. The not-for-profit association is funded by member insurance companies who subsidize losses and share in any profits.

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels4 records

Core offering

The Illinois FAIR Plan Association is a not-for-profit residual market mechanism that provides basic property insurance to Illinois property owners who cannot obtain coverage through the standard insurance market. It offers Dwelling Property, Homeowners (HO-2, HO-3, HO-4, HO-6, HO-8), and Commercial Property coverage, with optional Earthquake and Mine Subsidence endorsements, distributed exclusively through licensed Illinois insurance producers.

Product overview

The Illinois FAIR Plan Association is a not-for-profit property insurance association serving as a market of last resort for property insurance in Illinois. The company offers three main product lines: Dwelling Property coverage (up to $750,000 building limit) for residential properties including owner/non-owner occupied, mobile homes, farm residences, and rehabilitation properties; a comprehensive Homeowners program with five policy types (HO-8, HO-2, HO-3, HO-4, HO-6) providing varying levels of coverage from basic peril repair cost to all-peril replacement cost for owners, renters, and condominium unit owners; and Commercial Property coverage (up to $1,000,000 limit) for apartments, mercantile, and service businesses. Optional endorsements include Earthquake Coverage and Mine Subsidence Coverage. All products provide protection against standard perils including fire, lightning, wind, hail, explosion, smoke, vehicles, aircraft, vandalism and malicious mischief, with the homeowners policies also including burglary, theft and personal liability coverage. The FAIR Plan requires applicants to first attempt obtaining insurance from three companies before applying.

Differentiator

Problem solved

Functional benefit

Products and services

• Dwelling Property Insurance Property insurance coverage with up to $750,000 building limit protecting owner/non-owner occupied properties, fixed mobile homes, farm residences, and rehabilitation properties against fire, lightning, wind, hail, explosion, smoke, vehicles, aircraft, vandalism, and malicious mischief. For Illinois property owners who cannot obtain coverage in the standard market.
• Homeowners Insurance — HO-8 Basic Peril Repair Cost Homeowners policy providing basic peril repair cost coverage for older or unique properties. Protects buildings and personal property against specified hazards with repair-cost settlements for owners unable to obtain standard market coverage.
• Homeowners Insurance — HO-2 Named Peril Replacement Cost Homeowners policy providing named peril coverage against specific listed perils with replacement cost settlements for property owners who cannot obtain standard market coverage.
• Homeowners Insurance — HO-3 All Peril Replacement Cost Comprehensive homeowners policy providing all-peril replacement cost coverage, offering the broadest protection in the FAIR Plan's homeowners line for property owners unable to obtain standard market coverage.
• Homeowners Insurance — HO-4 Renters Renter's insurance policy protecting personal property and providing liability coverage for tenants who cannot obtain standard market renters coverage.
• Homeowners Insurance — HO-6 Unit Owners Condominium unit owner's insurance policy protecting the interior of condo units and personal property for condominium owners who cannot obtain standard market coverage.
• Commercial Property Insurance Commercial property insurance coverage up to $1,000,000 limit for apartment, mercantile, and service businesses. Provides basic property protection with limited perils and actual cash value settlements. Applicants must certify three prior attempts to obtain insurance through other sources. Excludes liability, co-insurance, farm, and manufacturing properties.
• Earthquake Coverage Endorsement Optional earthquake coverage endorsement attachable to Dwelling Property and Homeowners policies, with rates varying by territory and a 5% standard deductible. Not available under Commercial Property.
• Mine Subsidence Coverage Coverage for damage caused by mine subsidence available as an endorsement. In mandatory mine subsidence counties, the coverage is automatically added unless waived via Form FP344.

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Three partnerships are on record, tiered core and minor.

• Illinois Department of InsurancecoreStrategic or Co-development PartnerThe FAIR Plan operates under Illinois Department of Insurance regulation, including rate approval authority. The DOI issues bulletins that guide FAIR Plan operations, such as Bulletin 2025-17 regarding policyholder assistance during federal government shutdowns.
• Fire Investigators Strike ForceminorStrategic or Co-development PartnerThe FAIR Plan works closely with fire investigators and law enforcement officials to fight arson in Illinois.
• Governing CommitteecoreStrategic or Co-development PartnerAn eleven-member governing committee (including six representatives from the insurance industry, four from the general public, and one licensed Illinois insurance producer) acts as the FAIR Plan policymaking body.

Scale indicators3 records

Recent moves7 records

Expansion highlights3 records

Direct peers

• North Carolina Insurance Underwriting Association: North Carolina's FAIR Plan-beach plan residual mechanism providing property insurance to risks declined in the voluntary market; same residual-market, multi-peril property scope and member-assessed funding model.
• New Jersey FAIR Plan: New Jersey's statutory residual-market property insurer of last resort, providing basic property coverage to applicants unable to obtain standard-market insurance—the most direct conceptual peer by structure and naming.
• Louisiana Citizens Property Insurance Corporation: Louisiana's residual market mechanism providing property insurance to applicants declined by the voluntary market; shares the residual-market, insurer-assessment-backed model with the Illinois FAIR Plan.
• Texas Windstorm Insurance Association (TWIA): Texas's residual-market windstorm and hail insurer of last resort for coastal properties, established by statute and funded through member insurer assessments—structurally analogous to Illinois FAIR Plan within a narrower peril scope.
• Florida Citizens Property Insurance Corporation: Florida's residual-market property insurer of last resort, created by statute and backed by assessments on the state's property insurers—mirroring Illinois FAIR Plan's structure but operating in a far more catastrophe-exposed market.
• California FAIR Plan Association: California's statutorily designated property insurance market of last resort; offers the same residual-market function for homeowners unable to obtain standard coverage and is funded by participating state insurers. Direct conceptual and operational analog to the Illinois FAIR Plan.
• Massachusetts Property Insurance Underwriting Association: Massachusetts' FAIR Plan-equivalent residual market property insurance association; performs the same market-of-last-resort function funded by member insurers as the Illinois FAIR Plan.
• New York Property Insurance Underwriting Association: New York's residual-market property insurer operating under a similar statutory structure, writing homeowners and commercial property coverage declined in the standard market—closely comparable to Illinois FAIR Plan.

Others

• Property Insurance Plans Service Office (PIPSO): National administrator and technology services provider for state FAIR Plans; hosts the Illinois IFPA portal at ifpa.onaipso.com and supports underwriting/claims workflows—enabling peer rather than competing with the Illinois FAIR Plan.

Broad incumbents

• Allstate: Large national P&C carrier and one of the ~500 Illinois insurers that fund and participate in the Illinois FAIR Plan's losses and profits; competes in the standard property market but is a key counterparty/assessor for the FAIR Plan.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/illinois-fair-plan-association

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

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 Illinois FAIR Plan Association