Delaware FAIR Plan: what it covers, what it costs, who qualifies

Does Delaware have a FAIR Plan?

Yes. Delaware's FAIR Plan is the Insurance Placement Facility of Delaware (Delaware FAIR Plan), official site www.defairplan.com ↗. It exists as the insurer of last resort for property owners who can't get coverage in the standard ("admitted") market.

What does it cover?

Basic property insurance on an adapted ISO Dwelling Fire form DP 00 01 for 1-4 family dwellings; commercial uses ISO CP 00 99. Perils: fire or lightning, plus Extended Coverage (windstorm or hail, explosion, riot or civil commotion, aircraft, vehicles, smoke, and volcanic eruption) and Vandalism & Malicious Mischief (V&MM available only with Extended Coverage; not available if the property is vacant/unoccupied without a vacancy permit). Does NOT include theft or personal liability (standard FAIR Plan limitation). Does not cover flood. A hurricane deductible of $2,000 is mandatory for all dwellings in five specified coastal (Sussex County beach-area) zip codes.

How much will it cover?

The current cap on a single dwelling policy is Maximum $500,000 if the 1-4 family dwelling is occupied; $335,000 if the dwelling is vacant. (Commercial limits are set per the commercial program.) (PropertyCasualty360 — State FAIR Plans reference (July 2024), verified 2026-05-11).

Who is eligible?

Available to any person with an insurable interest in real or tangible personal property located in Delaware who has been unable to secure basic property insurance from the voluntary insurance market; the property must meet the Facility's underwriting/condition standards (vacant property requires a vacancy permit endorsement for V&MM and is capped at the lower vacant limit). Delaware does not publish a fixed numeric 'declined by N carriers' test — the standard is inability to obtain coverage in the voluntary market.

How do you apply?

Through a licensed Delaware insurance producer/agent. The Delaware FAIR Plan does not sell directly to consumers. The facility is administered out of Philadelphia, PA (shared Mid-Atlantic administration) and reached at (800) 462-4972 (the direct Philadelphia line is (215) 629-8800); applications/forms are at defairplan.com (e.g., the commercial-fire application PDF).

Need a broker who writes the DE FAIR Plan? →

How much does it cost?

Generally more expensive than the standard market for narrower coverage (basic named-peril form, no theft, no liability). A last resort, not a price-competition fallback.

What is changing right now?

Delaware's FAIR Plan is very small — III FAIR-Plans-by-state reporting shows roughly 1,170 habitational policies / ~$0.25B exposure. Pressure points: coastal Sussex County (Rehoboth Beach / Bethany Beach / Fenwick Island area) seeing voluntary-market carriers raise hurricane percentage deductibles and tighten beach-area underwriting; the FAIR Plan itself applies a mandatory $2,000 hurricane deductible in five coastal zip codes. Otherwise the Delaware market has been relatively stable. No major FAIR Plan rate or rule change confirmed for 2025-2026; confirm the current policy count from the plan's annual-meeting report on defairplan.com.

Do you also need a wrap (DIC) policy?

typical (no named DIC product) — the Delaware FAIR Plan is a basic-property named-peril form with no liability and no theft, so brokers add a stand-alone liability policy and supplemental coverages

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 Insurance Placement Facility of Delaware (Delaware FAIR Plan). 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 →