Frequently Asked Questions about the Ohio FAIR Plan
- What is the Ohio FAIR Plan (OFP)?
- Can I get the same coverage through OFP as through a "regular" insurance company?
- Does OFP consider loss or credit history?
- Are there limits on the amount of coverage available?
- Is the cost for insurance coverage more expensive under the FAIR Plan?
- My property needs repairs. I want to insure it while it's in rehabilitation. Will the FAIR Plan insure the property?
- How do I know if FAIR Plan coverage is best for me, and how do I apply for coverage?
- Do FAIR Plan policies have deductibles?
- Do exclusions apply to FAIR Plan policies?
- Will I be assigned an insurance agent or company representative to contact with questions about my policy?
- Is my OFP premium higher if I have an agent?
- If I'm renting property, is there a way to obtain insurance coverage for my belongings? Can I get liability coverage?
- How do I file a claim with the FAIR Plan?
- Once I get coverage through the FAIR Plan, should I continue to check for coverage in the regular insurance market?
What is the Ohio FAIR Plan (OFP)?
OFP is a "property insurance pool" that was created by statute and is supported byall property insurance companies licensed to do business in the state of Ohio.Insurance coverage is available for eligible property under basic coverage formsat "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-occupieddwellings 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 coverageon jewelry, coins, and other such valuables are not available through OFP. Personalliability coverage is available only for owner-occupieddwellings or residential tenants insuring their personal property. Theft coverageis provided under our Homeowners and Farm Programs, but that coverage is alsoavailable 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 beconsidered 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 takensteps to avoid future losses.
Are there limits on the amount of coverage available?
Yes. Maximum coverage amounts are the actual cash value (current replacementcost of the property minus an allowance for depreciation, wear and obsolescence)or replacement cost of the property, dependent upon the coverage/contractavailable for an individual property. For all policies other than crime, themaximum coverage available is $1.5 million for all coveragescombined.
Is the cost for insurance coverage more expensive under the FAIR Plan?
The answer to this depends on the individual property. In most situationsthe cost of insurance may be somewhat higher, while in others the rates maybe 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. Commercialrisks under rehabilitation can be submitted with the Commercial RehabilitationApplication, and one- to four-family dwellings under rehabilitation can besubmitted with the Dwelling Property Rehabilitation Application. Copies ofcontracts, repair items, anticipated completion dates, and expenditures mustalso be forwarded. Coverage under the Rehabilitation Program is available forone 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) regardingyour particular situation and potential placement in the voluntary market. Theseinsurance professionals should be able to respond to specific questions regardingyour situation. If you can't obtain coverage in the voluntary market, any licensedproperty insurance agent can assist you in applying for coverage through the OhioFAIR Plan.
Do FAIR Plan policies have deductibles?
Yes, just like insurance coverage in the voluntary market, deductibles apply toFAIR Plan policies.
Do exclusions apply to FAIR Plan policies?
Yes, but they vary depending on the type of policy and the amount of insurancecoverage provided in the policy. You need to review your policy or check withyour insurance agent or the FAIR Plan regarding specific exclusions and limitationsof your policy.
Will I be assigned an insurance agent or company representative to contact withquestions about my policy?
No agent will be assigned to you. OFP has no agents, so any agent you selectwould 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 representativewhen corresponding with OFP. The FAIR Plan is the insurance company, and you cancorrespond 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 mybelongings? Can I get liability coverage?
Yes. Your agent will likely recommend Homeowners 4 coverage which is specificallydesigned 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 youhave 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 coveragein the regular insurance market?
Yes. It is required that consumers "shop" for insurance each year. If coverageis available in the standard market, you will not qualify for FAIR Plan coverage.
