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. Business 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 FAIR Plan insurance are available from licensed
insurance agents or the Ohio FAIR Plan Underwriting Association,
1-800-282-1772.
Coverages 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
FAIR Plan by the numbers
At year-end 2000, 31,617 policies were in force under the Ohio
FAIR Plan. This number of policies represents less than 1% of the
property insurance policies written in the state and is about a
27% increase in FAIR Plan policies issued in 1999. Underwriting
losses for the Plan in 2000 were about $3.2 million and in 1999
were approximately $3.0 million. At year-end 2001, policy counts
were down by 3% from the 2000 counts. See the table below for FAIR
Plan information for 1997–2001.
Source: Ohio FAIR Plan
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The National Association of Realtors reports
that about 15% of all US homes are bought directly from owners.
The Ohio Association of Realtors estimates 13% of all transactions
in the state are by-owner sales, including sales between family
members.
(Toledo Blade, 9/9/01) |
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