The Massachusetts Fair Plan Massachusetts Property Insurance Underwriting Association was created when a Federal Law was passed in the 1960s to allow states to establish FAIR PLANS to respond to the need for insurance coverage for difficult to underwrite risks.  When originally established in Massachusetts, FAIR PLANS insured many properties in urban areas.   Most recently the PLAN has been writing insurance on houses and businesses on or near the water or that have a large windstorm exposure.   

The MASSACHUSETTS FAIR PLAN uses industry standard forms and policies.  The classic HOMEOWNER’S POLICY is essentially the same policy available with other carriers that write in the State.  The FAIR PLAN even has many endorsements they can add to a policy in order to expand or extend coverage. 

Claims Service: The Massachusetts FAIR PLAN is recognized for their excellence in handing claims.  They work quickly and fairly.  With rare exceptions they are given the highest ratings for quality of claims service. 

Financial Strength:

“The Massachusetts Property Insurance Underwriting Association (MPIUA) is a residual market insurance association in which all companies writing basic property insurance in the Commonwealth are required to participate with losses shared among the member companies on a premium volume basis”  - (  

This means that each and every insurance carrier that writes property business in Massachusetts is basically guaranteeing the MA FAIR PLAN.  Stated another way:  The FAIR PLAN is stronger than any Massachusetts insurance carrier, because it is guaranteed by every Massachusetts carrier.

It is interesting to note that if LOSSES exceed PREMIUMS, the other Massachusetts insurance carriers must make up the difference.  However, in recent years the FAIR PLAN has run a surplus and is saving for the future. 

The Massachusetts FAIR PLAN isn’t always the lowest cost option for an insured, however with the plan's great financial strength and great claims service it can be an excellent option when considering an insurance carrier under adverse underwriting conditions. 

Interested in learning if this plan may be right for you? We'd be happy to discuss all your options in person or over the phone. Contact Bearce today for a customized recommendation!

From your friends at BEARCE Insurance.