Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 5 - PROPERTY AND CASUALTY INSURANCE
Subchapter T - FAIR PLAN
Division 1 - PLAN OF OPERATION
Section 5.9914 - Maximum Limits of Liability and Limitations

(a) The maximum limits of liability for residential property insurance per location through FAIR Plan are $1,000,000 dwelling and $500,000 contents. FAIR Plan is authorized to reinsure some or all risks that are within or at these maximum limits.

(b) The maximum limit of liability for property owners' association insurance through FAIR Plan is $3,000,000 per structure, including business personal property. FAIR Plan is authorized to reinsure some or all risks that are within or at the maximum limit.

(c) FAIR Plan may not provide windstorm and hail insurance coverage for a risk eligible for that coverage under Insurance Code Chapter 2210, concerning Texas Windstorm Insurance Association.

(d) FAIR Plan may issue a policy that includes coverage for an amount in excess of a liability limit set forth in subsection (a) of this section, if FAIR Plan first obtains, from a reinsurer approved by the commissioner, reinsurance for the full amount of policy exposure above the limits for any given type of risk.

(e) The premium charged by FAIR Plan for the excess coverage must be equal to the amount of the reinsurance premium charged to FAIR Plan by the reinsurer, plus any payment to FAIR Plan that is approved by the commissioner.