Colorado FAIR Plan

What Colorado FAIR Plan does

Colorado FAIR Plan (operating as CO FAIR Insurance) is the statutorily designated last-resort property insurer in Colorado, established by legislation signed in 2023 and organized as a stand-alone not-for-profit entity. It provides basic property insurance — actual-cash-value coverage for fire, lightning, smoke, and certain extended perils — to residential property owners (up to $750,000 limit) and commercial property owners (up to $5,000,000 combined limit) who have been unable to obtain coverage in the standard insurance market, evidenced by proof of three declinations from admitted carriers. All policies are sold exclusively through Colorado-licensed agents registered with the FAIR Plan via the Agent Portal; the organization does not sell directly to consumers.

The organization's core technology stack centers on ZestyAI's Z-FIRE wildfire risk model, which produces property-specific Level 1 (community) and Level 2 (property) risk scores on a 1–10 scale alongside the top three contributing factors per property; these scores drive underwriting and premium determination. The FAIR Plan integrates the Watch Duty application operationally to monitor fire-threat status and apply binding moratoriums in areas under Ready, Set, Go evacuation orders pursuant to CRS §10-4-110.9 and Regulation 5-1-17. The product portfolio consists of two base lines (Residential and Commercial Property Coverage) plus a Difference in Conditions (DIC) ecosystem — provided by third-party carriers AccessOne80 and Aegis General — that wraps supplementary perils (liability, water, theft, HO3-style conversion) around the base FAIR Plan policy.

The business model is assessment-funded: the FAIR Plan is not financed by public dollars; rather, all admitted carriers writing personal and commercial property in Colorado are required by statute to pay assessments based on market share if the FAIR Plan's financial condition requires. Revenue is generated through recurring insurance premiums on a monthly billing cadence, priced via Z-FIRE risk scores plus other underwriting and regulatory factors. Distribution is exclusively through the registered-agent channel, and the organization has published a three-phase roadmap (Phase 1: 2025–2026 buildout; Phase 2: 2027–2028 readiness; Phase 3: 2029+ excellence) signaling a multi-year maturation trajectory. Operations are supported by a lean team of 1–10 employees, with offices in Worcester (mailing) and Broomfield (general correspondence), Colorado.

Name

Colorado FAIR Plan

Legal name

Colorado FAIR Plan Association

Website

https://coloradofairplan.com

Company type

Private

Founded year

2023

Operating status

Operating

Headcount range

1–10 employees

Short description

Colorado FAIR Plan is the statutorily designated last-resort property insurer in Colorado, providing basic actual-cash-value coverage to residential and commercial property owners unable to obtain standard market insurance, distributed exclusively through licensed agents.

Ownership category

akta.pro rank

Product category

Last-Resort Property Insurance

akta.pro primary industry

Real Estate / Lessors Risk BOP (FSAJAFAI)

Keywords

• Last-resort property insurance
• Residential property coverage
• Commercial property coverage
• Wildfire risk scoring
• High-risk insurance

Headquarters

HQ city

Worcester

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

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

Revenue model

1. Insurance Premiums: Colorado FAIR Plan generates revenue through insurance premiums paid by policyholders. The organization is a not-for-profit entity funded by assessments on insurance carriers, not public dollars. Premiums are determined using wildfire risk scores alongside other underwriting, actuarial, and regulatory factors.

Pricing tiers

Go-to-market motion2 records

Distribution channels1 record

Marketing channels2 records

Core offering

Colorado FAIR Plan is a state-mandated last-resort property insurance provider that issues basic Actual Cash Value (ACV) policies to Colorado residential and commercial property owners who have been declined by at least three standard insurers. It offers Residential Property Coverage ($750,000 limit) and Commercial Property Coverage ($5,000,000 combined limit) covering fire, lightning, smoke, and optional extended perils, with premiums determined through underwriting that incorporates ZestyAI's Z-FIRE wildfire risk scores.

Product overview

Colorado FAIR Plan is a last-resort property insurance provider for Colorado homeowners and businesses that cannot obtain coverage from standard insurers. The organization offers three core product lines: Residential Property Coverage (up to $750,000 limit for property and contents), Commercial Property Coverage (up to $5,000,000 combined limit), and supplemental Difference in Conditions (DIC) Policies offered by third-party carriers to fill coverage gaps. The FAIR Plan provides basic property insurance covering fire, lightning, and smoke, with optional extended coverage for windstorm, hail, explosions, riot, civil commotion, vehicles, volcanic eruption, vandalism, and malicious mischief. All policies pay actual cash value (ACV) rather than replacement cost. The plan also incorporates ZestyAI's Z-FIRE wildfire risk scoring for underwriting purposes. The organization is a not-for-profit entity established by statute in 2023, funded through assessments on insurance carriers rather than public dollars.

Differentiator

Problem solved

Functional benefit

Products and services

• Residential Property Coverage Basic property insurance coverage for eligible Colorado residential properties with a $750,000 combined limit for property and contents. Coverage is limited to essential protections including fire, lightning, and smoke damage on an Actual Cash Value (ACV) basis (not replacement cost). Available only to homeowners who have been declined by at least three standard insurance carriers, and sold exclusively through Colorado-licensed registered agents.
• Commercial Property Coverage Property insurance coverage for eligible Colorado commercial properties with a combined maximum of $5,000,000 for commercial property and business personal property. Coverage includes fire, lightning, smoke, and extended perils such as windstorms, hail, explosions, riot, civil commotion, vehicles, volcanic eruption, vandalism, and malicious mischief. Available only to commercial property owners who have been declined by at least three standard insurance carriers, sold exclusively through Colorado-licensed registered agents.
• Difference in Conditions (DIC) Policy Supplemental coverage that wraps around the base Colorado FAIR Plan policy, providing protection against perils not covered by the base policy, such as liability, water damage, and theft. Designed to upgrade a basic FAIR Plan policy into an HO3-style policy via Difference in Conditions (DIC) endorsements offered by partner carriers including AccessOne80 and Aegis General.

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Four partnerships are on record, tiered core, supporting and operational.

• ZestyAIcoreTechnology or IntegrationZestyAI provides the Z-FIRE wildfire risk assessment model used by Colorado FAIR Plan to evaluate wildfire risk for each insured property. Z-FIRE provides Level 1 (community-level) and Level 2 (property-level) risk scores on a scale of 1-10, along with the top three contributing factors for each score. This model is used in underwriting and premium determination.
• AccessOne80supportingOthersAccessOne80 provides an excess and surplus lines product that wraps around the Colorado FAIR Plan policy to make it an HO3 policy. This DIC (Difference in Conditions) product is developed independently of the FAIR Plan and provides additional coverage options for FAIR Plan customers.
• Aegis GeneralsupportingOthersAegis General offers a program that adds coverage to a Colorado FAIR Plan Policy. This DIC (Difference in Conditions) product wraps around the basic FAIR Plan coverage to enhance protection options.
• Watch DutyoperationalTechnology or IntegrationWatch Duty app is used by Colorado FAIR Plan to monitor fire status and apply binding moratoriums for areas under evacuation orders. The app tracks Ready, Set, Go evacuation protocol status to determine when underwriting can bind properties in fire-threatened areas.

Scale indicators3 records

Recent moves7 records

Expansion highlights4 records

Direct peers

• Citizens Property Insurance Corporation: Florida's not-for-profit, state-created residual market insurer offering property coverage to Floridians unable to find coverage in the private market — directly comparable in statutory structure, assessment funding, and last-resort role to the Colorado FAIR Plan.
• Louisiana Citizens Property Insurance Corporation: Louisiana's not-for-profit residual market insurer providing basic property insurance when the private market declines — directly comparable as a state-created FAIR Plan analog serving high-hazard residential and commercial properties.
• New Jersey FAIR Plan: New Jersey's residual market mechanism for basic property insurance coverage when standard insurers decline — directly comparable to the Colorado FAIR Plan as a state-designated last-resort property insurer funded by industry assessments.
• Texas FAIR Plan Association: Texas's residual market property insurance mechanism for residential and commercial properties that cannot obtain coverage in the voluntary market — a state-mandated last-resort insurer with the same core mission and operating model as the Colorado FAIR Plan.
• California FAIR Plan Association: California's statutory property insurer of last resort, providing basic fire and extended coverage to homeowners and businesses unable to obtain insurance in the standard market — the most direct functional analog to the Colorado FAIR Plan, with substantially larger scale and a longer operating history.
• Washington FAIR Plan: Washington's residual market property insurance association for property owners unable to obtain standard insurance — a directly comparable state-mandated last-resort insurer with significant wildfire exposure relevance similar to Colorado.
• Massachusetts Property Insurance Underwriting Association: Massachusetts' FAIR Plan equivalent, providing basic property insurance to property owners who cannot obtain coverage from the voluntary market — a direct peer in mission, structure, and state-mandated residual market role.
• Oregon FAIR Plan: Oregon's FAIR Plan, providing basic property insurance to property owners unable to obtain coverage in the standard market — an especially relevant peer given overlapping wildfire exposure dynamics with Colorado.
• New York Property Insurance Underwriting Association: New York's statutorily created property insurance pool for property owners unable to obtain coverage in the voluntary market — functionally identical to the Colorado FAIR Plan in serving as a designated last-resort property insurer.

Emerging players

• Palomar Holdings: Specialty insurer focused on earthquake and other catastrophe-exposed properties using data-driven underwriting — a relevant adjacent peer illustrating how a private, capital-backed carrier pursues the high-hazard property insurance market that FAIR Plans are designed to absorb.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/colorado-fair-plan

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 Colorado FAIR Plan