Arkansas FAIR Plan: there isn't one; what to do if you're non-renewed in Arkansas

Does Arkansas have a FAIR Plan?

No. Arkansas does not currently operate a FAIR Plan or state-run insurer of last resort. Homeowners who can't get coverage in the admitted market typically work with a surplus-lines (E&S) broker.

What does it cover?

Not applicable — no residential FAIR Plan. For hard-to-insure Arkansas homes the practical market is surplus-lines / excess & surplus (E&S) carriers, whose forms and perils vary by carrier. The ARRUA rural-commercial pool offers a plan of property insurance for rural commercial/business risks (commercial property, business personal property, business income, plus optional debris removal / fire-service charges); ARRUA does not write homeowners.

How much will it cover?

The current cap on a single dwelling policy is Not applicable — Arkansas has no residential FAIR Plan, so there is no FAIR Plan dwelling cap. (For context, the ARRUA rural-COMMERCIAL pool caps building coverage at roughly $500,000 per location, business personal property at ~$250,000, business income at ~$100,000, and ~$1,000,000 combined per location — but ARRUA does not write homeowners/dwelling coverage.) (Martin Agency — Arkansas Rural Risk Underwriting overview (secondary), verified 2026-05-11).

Who is eligible?

Not applicable to a residential FAIR Plan (none exists). For surplus lines: a licensed surplus-lines broker may place coverage with an approved non-admitted insurer when the admitted market is unwilling/unable to provide it (a 'diligent search'/declination-type requirement under Arkansas surplus-lines law and the federal Nonadmitted and Reinsurance Reform Act of 2010). For ARRUA (rural commercial): the applicant's risk must be located in an area the ARRUA governing board has designated 'rural', the applicant must meet the plan's underwriting standards (approved by the Insurance Commissioner), and the plan must then issue coverage.

How do you apply?

There is no residential FAIR Plan to apply to. A homeowner unable to get an admitted-market policy should work with a licensed Arkansas insurance agent who can place coverage with an approved surplus-lines (non-admitted) insurer through a licensed surplus-lines broker; the Arkansas Insurance Department maintains a list of eligible surplus-lines insurers. For ARRUA (rural commercial property), a licensed Arkansas agent submits the application to ARRUA, administered through the Arkansas Insurance Department. Arkansas Insurance Department consumer line: (800) 282-9134.

Need a broker who writes the AR FAIR Plan? →

How much does it cost?

No FAIR Plan benchmark exists. Hard-to-insure Arkansas homes typically end up with surplus-lines carriers at a premium to the admitted market and often on narrower terms (higher wind/hail deductibles, ACV roof settlement). The broader Arkansas admitted market is itself under severe stress: Arkansas posted roughly the second-highest homeowners loss ratio in the U.S. (~144% in 2023), average home premiums rose roughly 15-20% in 2024, and severe convective storms (tornadoes, large hail) are the dominant driver — so even standard-market pricing in much of the state is high.

What is changing right now?

No FAIR Plan policy-count data exists because Arkansas has no FAIR Plan (and the III FAIR-Plans-by-state table explicitly excludes Arkansas). 2023-2025 market developments: United Home Insurance Company of Paragould placed in receivership for insolvency (Sept 2023), claims paid via the Arkansas Property & Casualty Guaranty Fund; American National announced withdrawal from the Arkansas home-insurance market (Feb 2024); the March 14-15, 2025 tornado outbreak (two EF-4s, Jackson and Izard counties) drove >$489M in insured losses, followed by further severe-weather/hail events; Arkansas had confirmed ~35 tornadoes through April 2025 against an annual average of ~42. 2025 legislature: SB179 (an alternative funding-mechanism version of the Strengthen Arkansas Homes Act) was withdrawn by its author on 2025-03-05 — not a FAIR-Plan bill; no bill proposing an Arkansas FAIR Plan was filed. SB366/Act 427 created the 'Strengthen Arkansas Homes' FORTIFIED-roof grant program (up to ~$15,000 per home, administered by the Insurance Commissioner, effective Jan 1, 2026, with mandated insurer FORTIFIED discounts).

Do you also need a wrap (DIC) policy?

Not applicable — no residential FAIR Plan, so no DIC/wrap construct. Homeowners denied in the admitted market typically buy a full homeowners-type policy from a surplus-lines carrier rather than wrapping a residual-market base policy.

What to do this week if you just got a non-renewal notice

1. Read the notice fully. Note the cancellation date — that's your runway.
2. Call your current agent and ask why. Some non-renewals are reversible (a minor issue, a missed inspection); most aren't.
3. Get quotes from at least three other admitted carriers before going to the FAIR Plan. If you're rural / WUI / coastal you may strike out; that's normal.
4. If admitted carriers decline, contact a broker who writes the surplus-lines market in Arkansas. They can submit on your behalf the same week.
5. Don't let coverage lapse. A lapse triggers force-placed insurance from your lender — much more expensive and worse coverage.

For the full playbook see I just got a non-renewal notice →