INDIANA BASIC PROPERTY INSURANCE UNDERWRITING ASSOCIATION

FREQUENTLY ASKED QUESTIONS BY CONSUMERS

1.    Does the Fair Access Insurance Requirement (FAIR) Plan insure all property?

NO, some property does not meet the FAIR plan underwriting guidelines. 

For example, the FAIR Plan does not insure vacant and/or unoccupied property.  The Plan does insure owner occupied and non-owner occupied dwellings along with some occupied commercial buildings.   The Plan also can insure personal property coverage on owner occupied property and contents coverage for renters and condominium owners.

 

2.    Are vacant unoccupied buildings eligible for coverage?

NO, vacant and/or unoccupied buildings are NOT eligible, unless it is under active renovation by a licensed contractor and work will be completed and home will become occupied within 90 days.  

 

3.    How to obtain a quote? 

Consumers must contact a licensed insurance agent.   Any licensed agent can access our website and our quote program.  Once an agent has registered with us they can have access to provide quotes.  Contact your local agent or any agent licensed to sell property insurance in the State of Indiana.  

 

4.    How to apply? Who to Contact? How to submit an application?

 A consumer must apply to the Plan through a licensed Indiana agent. We do not have agents but any agent licensed to write property insurance in the State of Indiana can assist you in applying for coverage. Contact an agent in your local area for assistance.

 

Your agent can complete an application from this website.  You and your agent  are required to sign an application and submit that to us with your premium deposit of $250.00 or the annual quoted premium.   

 

5.    Do Agents have binding authority? 

NO, agents do not have binding authority.  No coverage is in place until FAIR Plan approval, acceptance and written acknowledgement is provided.   We date stamp all applications when received in our office as a possible effective date.  

  

6.    What coverages are available?

 

The FAIR Plan provides several different types of policies.  The Plan offers a

Dwelling Fire DP1 Basic policy, Dwelling Fire DP2 Broad policy, Homeowners

Modified 8 Basic policy, and Homeowners 2 Broad policy.   The Plan also offers a Commercial Fire policy for commercial risks that meet the Plan’s underwriting guidelines.  

 

Dwelling Fire Basic DP1 policy includes the following coverages: Fire, Extended

Coverages, and Vandalism and Malicious Mischief. Extended Coverages include: Windstorm, Hail, Explosion, Riot or Civil Commotion, Aircraft, Vehicles, Smoke, and Volcanic Eruption.  

 

Dwelling Fire Broad DP2 policy offers some additional perils along with the Basic coverages: Falling Objects, Weight of Ice, Snow or Sleet, Freezing, Artificially

Generated Electrical Current, Collapse, Accidental Discharge /Overflow of Water,

Sudden and Accidental Tearing Apart

 

* Dwelling Fire policies do not offer Theft or Liability coverage. 

 

Homes that are owner occupied can apply for a Homeowners policy which includes Theft and Liability coverage along with Loss of Use Coverage. 

  

Homeowners (HO-8) policy provides the following basic coverage: Fire, Extended Coverages and Vandalism and Malicious Mischief. Extended Coverages include: Windstorm, Hail, Explosion, Riot or Civil Commotion, Aircraft, Vehicles, Smoke, and Volcanic Eruption.  

 

Homeowners (HO-2) policy provides the following basic coverage along with some additional perils: Fire, Extended Coverages and Vandalism and Malicious Mischief. Extended Coverages include: Windstorm, Hail, Explosion, Riot or Civil Commotion, Aircraft, Vehicles, Smoke, and Volcanic Eruption. 

Additional perils:  Falling Objects, Weight of Ice, Snow or Sleet, Freezing,

Artificially Generated Electrical Current, Collapse, Accidental Discharge

/Overflow of Water, Sudden and Accidental Tearing Apart

 

 

*Earthquake and Mine Subsidence coverages are optional coverages which  can be applied for under both Dwelling Fire and Homeowners Policies if homes are owner occupied. 

 

All Policies written by the Plan are Actual Cash Value polices.

 

The Plan does not offer a Replacement Cost option.  

 

The definition of ACV is replacement cost less age, wear and tear, depreciation. It is the responsibility of the applicant and their agent to determine adequate insurance limits for property that is to be insured through the Plan.

Your agent can help you determine which policy and plan of coverage may be best for you.  Please discuss coverages and policy types with your agent.

Your agent can provide you a QUOTE.   You must work with an agent. 

Agents do not have binding authority. Coverage is not in place until FAIR Plan approval, acceptance and written acknowledgement is provided.  Premium deposit $250.00 or the full annual premium is required with your application.

 7.          How do you decide or determine coverage limit amounts? 

 

Your agent and you are best to determine the actual cash value of your home.  The FAIR Plan takes depreciation into account and will not insure a home for its replacement cost value.

 

8.          What are the coverage limits?

Maximum coverage limit for Dwelling Fire Policy is $250,000 which includes both the building and its contents within this limit. 

The Homeowners Policy maximum building coverage limit is $250,000.

The maximum coverage limit for a Commercial Fire policy is $1,000,000.

9.          Does the FAIR Plan offer payment plans? 

 

NO- The FAIR Plan’s only mode of payment is annual. The Plan does not accept any payments by phone or credit card.

  

10.      How are inspections conducted?  What kind of inspection is required?

You will be contacted by an inspection company (inspector) to set up a time for an interior and exterior inspection. The inspector will try to accommodate your schedule when making inspection appointments, but we also ask that you make every effort to keep your appointment. Inspectors will ask to see interior and exterior parts of the building.  Please make sure all tenants are aware of the inspection. Basements will be inspected. Coverage will be declined or limited if inspection cannot be completed. 

ALL INSPECTORS CARRY IDENTIFICATION. NOW WOULD BE A GOOD TIME FOR YOU TO MAKE ANY NECESSARY REPAIRS.

11.      How is a policy renewed?

Policies written through the FAIR Plan are written with one year terms.  At the end of the term year, you and your agent may need to complete a renewal application. At that time, you must again show proof that you have been declined by 3 different insurance carriers within the prior 60 days.  

Should you find other insurance while your current policy is in force, you may cancel your FAIR Plan policy and receive a refund of unearned premium at any time by notifying our office and your agent in writing.  The Plan does not backdate cancellations.

12.      How to report a claim?  Who to contact? 

 

If you should incur a loss, you should contact your agent to submit a claim to our office.  Covered property claims are resolved based on the terms of your policy.

 

13.      How are overpayments and refunds handled?

 

If there is an overpayment or return premium as a result of an endorsement or policy cancellation, the Plan will return the premium to the insured. 

 

If the premium finance company has requested cancellation or a return in premium, then the premium finance company will be added as a payee.