Hundreds of insurance companies aggressively compete for commercial and residential property insurance business in Ohio.
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 owners and homeowners 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 (OFP) 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.
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 to insured property due to windstorm, hail, aircraft damage, riot, civil commotion, vehicle, explosion and smoke)
- Vandalism and malicious mischief
- Mine subsidence
- Contents only coverage available to renters under dwelling and commercial fire policies
Ohio FAIR Plan by the numbers
At year-end 2004, about 78,200 policies were in force under the Ohio FAIR Plan. This represents less than 2% of the property insurance policies written in the state. OFP experienced an 11% increase in plan policies between 2003–2004. OFP underwriting losses in 2004 are estimated at $6.1 million, compared to $3.0 million in 2003. See the table below for Ohio FAIR Plan coverage information for 2000–2004.
NOTE: Access consumer information on the Ohio FAIR Plan at www.ohiofairplan.com/faqs.aspx.
|27% of homeowners have made an average of 1.3 claims on their homeowners insurance policies in the past 10 years. The most frequent perils leading to the claims:
• Lightning or hail (25%)
• Tornadoes or high winds (18%)
• Water from failure of indoor appliances (17%)
• Theft (14%)
(Insurance Research Council, May 2003 Public Attitude Monitor)