FREQUENTLY ASKED QUESTIONS BY CONSUMERS
1. Does the FAIR Plan insure all property?
No - The FAIR Plan insures one to four family dwellings, tenant and owner occupied
dwellings and some commercial buildings.
The FAIR Plan can also provide contents coverage for renters, condominiums and some commercial risks.
2. Is vacant /unoccupied property eligible for coverage?
Vacant and/or unoccupied property is NOT eligible for coverage through
the FAIR Plan, unless it is under active remodeling by a licensed contractor
and will be completed and occupied within 90 days.
3. How does one obtain a quote?
Contact your agent to obtain a quote.
4. How does one submit an application?
A consumer must apply to the FAIR Plan through a licensed Indiana agent.
Any agent licensed to write property insurance in Indiana can
assist you in applying for coverage.
Agents can furnish an application, help you properly complete it and send it to the FAIR Plan.
5. Do Agents have binding authority?
No - Agents do not have binding authority.
Once an application and premium deposit check are received at the FAIR Plan, the application is date stamped and then reviewed.
If the application is approved, the date stamp date will be used as the binding date.
6. What coverage is available?
The FAIR Plan provides basic property insurance for dwellings and commercial
risks. Coverage includes fire, extended coverage and vandalism. Extended
coverage includes windstorm, hail, explosion, smoke and vehicles or aircraft.
The FAIR Plan basic property insurance does NOT include personal liability and theft coverage. This coverage is available for owner occupied dwellings only under a separate form for an additional premium.
NOTE: Policies are written at Actual Cash Value.
Replacement cost coverage is NOT available.
Policies are written on the Actual Cash Basis (ACV). The definition of ACV is:
Replacement Cost less Age, Wear and Tear Depreciation
It is the responsibility of the applicant to determine adequate insurance
limits for property that is to be insured through the Plan. Your agent can help you
determine how much insurance you may need. Agents DO NOT have binding
authority. Coverage may be bound upon receipt of a deposit and review of your
application by a FAIR Plan underwriter.
7. How do you decide or determine coverage amounts?
You and your agent 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.
8. What are the coverage limits?
Maximum coverage limit for dwellings is $250,000.00.
The maximum coverage limit for commercial buildings is $1,000,000.00.
These limits include both the building and its contents.
9. Does the FAIR Plan offer payment plans?
No, only payment mode is annual.
The FAIR plan does not accept payment via phone or credit cards.
10. How are inspections conducted? What kind of inspection is required?
You will be contacted by the 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. Our inspectors will ask to see all areas 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 effective for one year, assuming the Plan
has accepted the risk and the annual premium has been paid. At the end of the policy year, you and your agent must complete a renewal application. At that time, you must again show proof that you have been declined coverage by three other insurance companies in the preceding 60 days.
Should you find other insurance coverage while your FAIR Plan 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.
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.