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

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)