What is the primary purpose of the FAIR Plan?

The primary purpose of the FAIR Plan (Fair Access to Insurance Requirements Plan) is to provide insurance coverage to individuals in high-risk areas who are unable to secure coverage through standard insurance markets. This is particularly important in regions prone to natural disasters or situations that elevate the risk of loss, such as floods or wildfires.

The FAIR Plan was established to ensure that homeowners and property owners can obtain coverage that protects against various hazards, despite their location's risk factors. By offering a safety net for those in high-risk areas, the FAIR Plan helps maintain stability in the housing market and ensures that individuals have access to the necessary protection for their properties.

This focus on high-risk areas distinguishes the FAIR Plan's purpose from other options, which do not directly relate to this critical function of providing essential insurance coverage where it is otherwise unavailable.