Frequently Asked Questions
Frequently Asked Questions about the Ohio FAIR Plan
What is the Ohio FAIR Plan (OFP)?
OFP is a "property insurance pool" that was created by statute and is supported by
all property insurance companies licensed to do business in the state of Ohio.
Insurance coverage is available for eligible property under basic coverage forms
at "standard" rates if coverage is unavailable in the normal insurance market.
Can I get the same coverage through OFP as through a "regular" insurance company?
OFP can provide basic insurance coverage for tenant and owner-occupied
dwellings and personal property; farm buildings, machinery, tools, livestock,
harvested crops, and personal property; apartment buildings and personal property;
commercial buildings and contents. Personal article floaters for specific coverage
on jewelry, coins, and other such valuables are not available through OFP. Personal
liability coverage is available only for owner-occupied
dwellings or residential tenants insuring their personal property. Theft coverage
is provided under our Homeowners and Farm Programs, but that coverage is also
available separately under our Residential and Commercial Crime Programs.
Does OFP consider loss or credit history?
Credit history is given no underwriting consideration. Loss history will be
considered in determining the type of coverage that will be provided. For example,
if you have had multiple theft losses, OFP will provide coverage for fire,
lightning, etc., but no theft coverage will be offered unless you have taken
steps to avoid future losses.
Are there limits on the amount of coverage available?
Yes. Maximum coverage amounts are the actual cash value (current replacement
cost of the property minus an allowance for depreciation, wear and obsolescence)
or replacement cost of the property, dependent upon the coverage/contract
available for an individual property. For all policies other than crime, the
maximum coverage available is $1.5 million for all coverages
combined.
Is the cost for insurance coverage more expensive under the FAIR Plan?
The answer to this depends on the individual property. In most situations
the cost of insurance may be somewhat higher, while in others the rates may
be comparable to the voluntary market.
My property needs repairs. I want to insure it while it's in rehabilitation.
Will the FAIR Plan insure the property?
The FAIR Plan has a Rehabilitation Program for such situations. Commercial
risks under rehabilitation can be submitted with the Commercial Rehabilitation
Application, and one- to four-family dwellings under rehabilitation can be
submitted with the Dwelling Property Rehabilitation Application. Copies of
contracts, repair items, anticipated completion dates, and expenditures must
also be forwarded. Coverage under the Rehabilitation Program is available for
one year only.
How do I know if FAIR Plan coverage is best for me, and how do I apply for coverage?
Check with at least two insurance companies (or their insurance agents) regarding
your particular situation and potential placement in the voluntary market. These
insurance professionals should be able to respond to specific questions regarding
your situation. If you can't obtain coverage in the voluntary market, any licensed
property insurance agent can assist you in applying for coverage through the Ohio
FAIR Plan.
Do FAIR Plan policies have deductibles?
Yes, just like insurance coverage in the voluntary market, deductibles apply to
FAIR Plan policies.
Do exclusions apply to FAIR Plan policies?
Yes, but they vary depending on the type of policy and the amount of insurance
coverage provided in the policy. You need to review your policy or check with
your insurance agent or the FAIR Plan regarding specific exclusions and limitations
of your policy.
Will I be assigned an insurance agent or company representative to contact with
questions about my policy?
No agent will be assigned to you. OFP has no agents, so any agent you select
would be your agent. You are encouraged to select an insurance agent. As an advisor,
the agent can answer your questions, address your concerns, and be your representative
when corresponding with OFP. The FAIR Plan is the insurance company, and you can
correspond with them directly if that is your preference.
Is my OFP premium higher if I have an agent?
No, your premium is not affected by whether you have an agent or not.
If I'm renting property, is there a way to obtain insurance coverage for my
belongings? Can I get liability coverage?
Yes. Your agent will likely recommend Homeowners 4 coverage which is specifically
designed to cover renters' property and liability risks.
How do I file a claim with the FAIR Plan?
If you have selected an insurance agent, you should call your agent. If you
have not chosen an agent, you should notify the FAIR Plan of any claims.
Once I get coverage through the FAIR Plan, should I continue to check for coverage
in the regular insurance market?
Yes. It is required that consumers "shop" for insurance each year. If coverage
is available in the standard market, you will not qualify for FAIR Plan coverage.
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