Chapter 4:Property Insurance
Ohio FAIR Plan
 

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

Occasionally a property doesn't meet minimum standards set by insurers or has experienced excessive or multiple losses, making it difficult to insure. Businesses and home owners unable to obtain coverage through the voluntary market can obtain coverage through the Ohio FAIR (Fair Access to Insurance Requirements) 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 farm owners.

Applications for this insurance are available from licensed insurance agents or the Ohio FAIR Plan Underwriting Association, 1-800-282-1772.
Coverage available

Policies available through the Ohio FAIR Plan include: homeowners, dwelling fire, farm, 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

At year-end 1998, 26,471 policies were in force under the Ohio FAIR Plan, which is less than 1% of property insurance policies written in the state. It is expected the number of policies written by the Ohio FAIR Plan will be about 25,000 by year-end 1999. Underwriting losses for the Plan were nearly $2.8 million in 1998, compared to $2.9 million in 1997. Losses for 1999 are estimated at $2.9 million as of December 1, 1999.

The table below provides premium/loss information for the Ohio FAIR Plan for 1994-1998.
Ohio FAIR Plan 1994-1998
Year 1994 1995 1996 1997 1998
Written premiums in millions $4.1 $4.6 $5.9 $7.2 $8.2
Underwriting gain or (loss) in millions ($1.0) ($1.7 ) ($2.6) ($2.9) ($2.8)
New policies 5,287 5,984 8,943 9,806 10,349
Renewals 13,135 13,536 15,138 18,694 16,122
Loss ratio 71.3 86.4 107.0 100.6 97.0
Expense ratio 39.7 38.4 37.7 39.1 36.8
Sources: Ohio Underwriter, May, 1996 and Ohio FAIR Plan