What are the two methods to obtain insurance under the FAIR Plan?

In Illinois, the FAIR Plan (Fair Access to Insurance Requirements) was established to provide coverage for properties that have difficulty obtaining insurance through the standard voluntary market. The correct method to qualify for coverage under the FAIR Plan involves demonstrating that attempts have been made to secure insurance through traditional markets.

The requirement to make three attempts to obtain coverage in the voluntary market is essential, as it shows that the property owner has actively sought insurance options but has been unable to secure coverage. Additionally, having nonrenewed coverage indicates that the homeowner may not be able to find suitable insurance due to various factors, making them eligible for the FAIR Plan.

This method underscores the intention of the FAIR Plan to assist those who are genuinely at risk of being uninsured due to their properties' conditions or perceived risk factors, reflecting the plan’s purpose of providing a safety net in challenging situations. The emphasis on direct attempts to obtain coverage reinforces the idea that the FAIR Plan should be a last resort for homeowners facing difficulties.