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2003 US FAIR Plans
Fair Access to Insurance Requirements (FAIR) Plans were created
to make property insurance more readily available to those who have
difficulty obtaining it because of abnormal exposure to risks over
which they have no control. The plans make insurance available to
properties regardless of location or exposure. FAIR Plan policies
typically insure against losses from fire, vandalism, riot and windstorm.
Georgia, Massachusetts and New York FAIR Plans provide wind and
hail coverage for certain coastal communities. These states do not
have Beach and Windstorm plans common to many coastal regions. New
Jersey does not have a Beach Plan but its WindMap operates in the
voluntary market to assist homeowners living in coastal areas with
their insurance needs.
The aggregate value for all lines of Ohio FAIR Plan exposure increased
from about $8.2 billion in 2002 to nearly $13.4 billion in 2003.
Ohio represented about 3.9% of the nation’s insurance provided
through FAIR Plans reporting coverage data. This is based on the
value of policies in force at year-end 2003, not on the number of
policies in force.
1 Exposure is the
estimate of the aggregate value of all insurance in force in each
state’s FAIR Plan in all lines (except liability,
where applicable, and crime) for 12 months ending September through
December
2 Citizens Property Insurance Corporation, which combined
the FAIR and Beach Plans
3 Includes a wind and hail option for certain coastal communities
4 Includes wind and hail coverage for any dwelling including those
in coastal communities
NA=Data not available
Source: Property Insurance Plans Service Office (PIPSO), reprinted
from Insurance Information Institute, Fact Book 2005
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Fewer than 2% of the millions of insurance claims
filed each year result from the total loss of a home.
(The New York Times, 8/31/04)
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