Alternative to the Montana FAIR Plan
We can help you find alternatives to the FAIR Plan in Montana.
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Alternatives to the Montana FAIR Plan
Montana is one of the most beautiful states in the country, but that does not mean it’s not safe from natural disasters. Over the past couple of years, Montana has suffered from significant natural disasters that could make it more challenging for homeowners to secure an insurance policy for their property.
Tornados tend to be a problem in Montana, specifically during the summertime. In 2010, the “Father’s Day” tornado ripped through Billings, Montana. The tornado remained on the ground for roughly 15 minutes, causing extensive property damage. Not only did many homes and businesses suffer damage, but the tornado also managed to rip the roof off the 10,000-seat Rimrock Auto Arena at MetraPark.
The tornado was not the only part of the storm that caused damage. The accompanying storm also brought hail and high winds, which then resulted in flash flooding.
Montana flooding also occurred in 2011, when the Musselshell River created more than 16 feet above its standard level. Central Montana had received an astounding eight inches of rain, which triggered the
flooding. The rain also caused significant snowmelt, which also contributed to the flooding.
Unfortunately, many of the homes in the area were not prepared to handle flooding of such proportions.
In the summer, Montana also tends to suffer from extreme heat and wildfires. There’s not much that homeowners can do to prevent fires, as they’re most often caused by dry terrain and hot, humid
temperatures.
Perhaps most concerning to Montana residents is the fact that the area is prone to so many earthquakes. One recent survey that the state of Montana suffered three earthquakes in 24 hours and
71 earthquakes in the past month. Between May 2018 and May 2019, researchers measured more than 748 earthquakes in the state of Montana that were at least an M1.5 magnitude.
The primary reason why Montana is prone to so many earthquakes is that it sits on the Intermountain Seismic Belt. Montana is the fourth-most seismically active state in the nation.
The Montana Insurance Commissioner monitors insurance agencies that operate in the state. However, the state’s Commissioner’s website states that it has “virtually no regulatory authority over the rates an insurance company charges.”
Although Montana does not have a FAIR Plan, consumers still have a wide selection of options in most cases. exists to protect high-risk homeowners in the state. Montana residents would be wise to compare all of their options and see if they qualify for any alternatives.
Unable to Obtain Coverage?
Many consumers opt to allow their mortgage companies to add “force-placed" or “lender-placed" coverage to their homes. Unfortunately, mortgage companies often fail to clearly state that these policies typically do not cover personal property, loss of use, or liability. They are typically insurance policies that the consumer pays for, but they mostly benefit a bank rather than the consumer. Mortgage-forced policies are the least safe option in the market.
Since FAIR Plans are considered the market of last resort (and MT does not have one), Montana consumers will be best served when they find an agent with experience in high-risk insurance as well as the right resources and carriers. Ultimately the end goal is to obtain the right coverage at a competitive price and with the right agent; that can be accomplished in almost any situation.