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 1999, 26,471 policies were in force under the Ohio FAIR Plan, which is less than 1% of property insurance policies written in the state and nearly a 7% decrease in FAIR plan policies in force compared to 1998. It is expected the number of policies written by the Ohio FAIR Plan will be about 26,500 by year-end 2000. Underwriting losses for the Plan were about $3.0 million in 1999, compared to $2.8 million in 1998. Losses for 2000 are estimated at $6.5 million as of December 8, 2000.

The table below provides premium/loss information for the Ohio FAIR Plan for 1995–1999.