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Talk to another agency. You may still be able to find a private insurer who'll write a policy.
Even if you have to use FAIR, go thru an agent. If for no other reason than FAIR is notoriously slow at processing payments. Your policy may lapse without any fault of yours, or that of your mortgage company. If an agent accepts payment on behalf of FAIR, documenting that payment may help avoid denial of a claim due to their sloppy bookkeeping practices.
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