The Kentucky FAIR Plan, explained
What Kentucky's insurer of last resort covers, who qualifies, and how to use it as a bridge instead of a destination.
By the TMRW Team · Published September 2, 2026
The short answer
- The Kentucky FAIR Plan Reinsurance Association is Kentucky's insurer of last resort — basic property coverage for homes the regular market won't take.
- Like most FAIR plans, it covers fewer kinds of damage than a normal policy and usually costs more — treat it as a bridge while you work back to a regular insurer.
- Check the alternatives below before settling in; many homeowners qualify for the regular market again sooner than they expect.
Quick facts
| Official name | Kentucky FAIR Plan Reinsurance Association |
| Website | kyinsplans.org/fair |
| Consumer phone | (502) 425-9998 or toll-free (888) 222-7702 |
| Established | 1968 |
| Maximum home coverage | $200,000 |
| Covers | Fire and lightning, Windstorm and hail, Explosion, Smoke, Riot or civil commotion, Damage caused by vehicles or aircraft, Vandalism and malicious mischief, Theft, on the homeowners forms only and with limits, Optional add-on: earthquake coverage, Optional add-on: mine subsidence coverage, in qualified counties, Homeowners forms also include basic personal liability ($100,000 per occurrence) and medical payments ($1,000 per person), Note: policies pay actual cash value — the age and condition of the property is considered in a settlement, so payouts can be less than the cost to rebuild |
Verified against the official plan site and state insurance department — see Sources.
Who qualifies
You must be unable to buy the coverage from a regular insurer in the normal (voluntary) market. Kentucky does not publish a required number of declinations — the plan's rule is that anyone "unable to obtain such coverage directly from an Insurer" may apply through a licensed Kentucky agent. Almost any property in Kentucky can qualify, but it must meet basic fire, loss-prevention and safety standards, and an inspection is required. Hazardous conditions can add a "condition charge" to the premium or have to be fixed before a policy is issued. The dwelling program covers homes built for one to four families that are not used for business; farm property goes through a separate commercial farm fire program. The plan can decline or cancel for specific conditions such as unrepaired damage older than 60 days, disconnected utilities, apparent abandonment, repeated fires, or an arson conviction tied to the property.
How to apply
- 1.
Contact any licensed Kentucky insurance agent
There is no direct-to-consumer or online signup. Every resident agent (called a "producer") licensed to write property insurance in Kentucky can submit a FAIR Plan application, and the plan's consumer page says the producer will help you decide what coverages are available. The agent legally represents you, not the plan.
- 2.
Complete the official FAIR Plan application
Applications must be on the plan's own forms (available on the official website), signed by both you and the agent, accompanied by photographs of the front and rear of the dwelling, and submitted with the full initial premium payment.
- 3.
Underwriting review and inspection
Your agent cannot bind coverage — you are insured only once the plan's underwriting department accepts the application. An inspection of the property is required; if it reveals substandard conditions, the plan may add a condition charge or require corrections first.
- 4.
The 20-day automatic-coverage safeguard
The plan has a "deemer provision": if, through no fault of yours, coverage has been neither provided nor declined within 20 calendar days of the plan receiving your application and payment, you are automatically deemed insured for a period of 30 days.
What it costs
The Kentucky Department of Insurance advises that most people can get broader coverage and often a better rate in the competitive market, and that you should shop around before and after coming to the plan — you can cancel a FAIR Plan policy at any time without penalty and get a refund of the unused premium.
The plan's Dwelling Fire Manual (revised 06/2022) sets a minimum written annual premium of $100 plus Kentucky surcharge; the Homeowner Manual (revised 04/2017) sets a $200 minimum written annual premium.
All policies placed in the plan are written on an actual cash value basis, meaning the age and condition of the property is considered in the settlement for destroyed or damaged property.
Published coverage caps: up to $200,000 of protection on private dwellings, up to $1,000,000 on commercial property depending on location, and up to $250,000 on farm property under common ownership.
Premiums are computed from the plan's published key rates, which vary by county territory, construction type (frame vs. masonry), protection class, and optional add-ons such as earthquake, mine subsidence, and a wood-burning or coal stove surcharge; no simple consumer rate table is published.
Alternatives in Kentucky
Keep shopping the regular market: the Kentucky DOI says broader coverage at a better rate is often available from standard insurers, and a licensed independent agent can quote multiple companies. If you buy through the FAIR Plan and later find a better deal from an insurer licensed in Kentucky, you can switch — cancel without penalty and receive a refund of the unused portion of your premium. Within the FAIR Plan itself, optional earthquake coverage and mine subsidence coverage (in qualified counties) can be added if standard perils are not the gap. For help or complaints, the Kentucky Department of Insurance consumer line is 800-595-6053 (in Kentucky) or 502-564-3630.
Wherever you land, most FAIR-type policies leave gaps a second policy has to fill — see the gap (DIC) policy, explained.
Common questions
TMRW is an independent wildfire-mitigation company. We are not affiliated with, endorsed by, or connected to the California FAIR Plan Association or any state FAIR Plan, wind pool, or insurance program.
This page is educational. TMRW is not an insurance agent, broker, or producer, and nothing here is insurance advice, a coverage recommendation, or an offer of insurance. Talk to a licensed agent or broker about your coverage.
Sources
- Kentucky FAIR Plan Reinsurance Association (official site) — Kentucky FAIR Plan Reinsurance Association, accessed 2026-09-02
- Kentucky FAIR Plan — Consumers page — Kentucky FAIR Plan Reinsurance Association, accessed 2026-09-02
- Monitoring of Kentucky's markets of last resort — Kentucky Department of Insurance, accessed 2026-09-02
- KAIP and Kentucky FAIR Plan consumer brochure (May 2022) — Kentucky Department of Insurance, accessed 2026-09-02
- Kentucky FAIR Plan Dwelling Fire Manual (revised 06/2022) — Kentucky FAIR Plan Reinsurance Association, accessed 2026-09-02
- Kentucky FAIR Plan Homeowner Manual (revised 04/2017) — Kentucky FAIR Plan Reinsurance Association, accessed 2026-09-02
Keep reading
FAIR Plans: insurance of last resort, explained
FAIR Plans are state-organized insurers of last resort — expensive, fire-focused, and thinner than they look. What they are, what they cost, and how homeowners get back to regular insurance.
The gap policy: Difference in Conditions (DIC) insurance, explained
A DIC policy is the gap-filler that turns bare-bones FAIR Plan coverage back into something like normal home insurance. What it covers, what it costs, and how to buy one.
The California FAIR Plan, explained
What the California FAIR Plan is, what it really costs with the second policy you'll need, what happens if it runs out of money — and how homeowners get back to real insurance.