Ohio FAIR Plan

Commercial and residential property insurance in Ohio is readily available, with hundreds of insurance companies aggressively competing for property protection business.

When a property doesn’t meet insurer underwriting guidelines or has experienced excessive or multiple losses, it’s insurabilty through the standard voluntary market may be difficult. Business and home owners unable to obtain coverage through the voluntary market can obtain coverage through the Ohio FAIR (Fair Access to Insurance Requirements-OFP) Plan Underwriting Association.

About the Ohio FAIR Plan

The Ohio FAIR Plan is comprised of all insurance companies licensed to transact fire insurance business within Ohio. Each company shares in the losses of the Plan in direct proportion to its volume of business in the state, determined by its premium volume.

The Ohio FAIR Plan was established in 1968 to provide insurance coverage for eligible property unable to obtain voluntary market insurance. Initially, 10 cities (Cleveland, Cincinnati, Columbus, Akron, Canton, Youngstown, Dayton, Toledo, Lima and Springfield) were designated for FAIR Plan underwriting. By 1977 the entire state was eligible for basic property insurance, including farmowners.

Applications for FAIR Plan insurance are available from licensed insurance agents or the Ohio FAIR Plan Underwriting Association, 1-800-282-1772. Estimated premium quotes are available online from the OFP Web site at www.ohiofairplan.com.

Coverages available

Policies available through the Ohio FAIR Plan include: Homeowners, dwelling fire, farm fire, commercial fire, and commercial and residential crime.

Coverages available through the FAIR Plan are:

• Fire and lightning
• Extended coverage (direct loss due to windstorm, hail, aircraft, riot, civil commotion, vehicles, explosion and smoke)
• Vandalism and malicious mischief
• Theft
• Liability
• Earthquake
• Mine subsidence
• Contents only coverage available to renters under dwelling and commercial fire policies

Ohio FAIR Plan by the numbers

At year-end 2003, about 70,700 policies were in force under the Ohio FAIR Plan. This represents less than 2% of the property insurance policies written in the state. With the “hardening” of the US homeowners insurance market (a market where insurance costs rise and is in shorter supply) in recent years, OFP experienced a 65% increase in Plan policies between 2002–2003. OFP underwriting losses in 2003 are estimated at $3.0 million, compared to $2.4 million in 2002. See the table below for Ohio FAIR Plan coverage information for 1999–2003.

NOTE: Access consumer information on the Ohio FAIR Plan at: www.ohiofairplan.com/public/faqs.asp.

Source: Ohio FAIR Plan

Total dollar claims against homeowners jumped from $3.4 billion in 1997 to $4.8 billion in 2002. (Insurance Information Institute)