The Ohio Fair Plan explained

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When property cannot obtain insurance through the market, there are often “insurance pools” that provide coverage under a program. The Ohio Fair Plan is one of America’s thirty programs that gives property coverage to those who aren’t eligible. These programs are supported by insurance companies within the state for which the insurance applies. However, eligibility requirements vary by each program.

The Ohio Fair Plan was created as a result of the riots in the 1960s. Cities across the country obtained significant losses due to the riots, and many were unable to have their properties covered under insurance policies. Loans and mortgages were also unavailable or difficult to secure on property, and property repairs could not be made. Under President Johnson, the Federal Riot Reinsurance Act was passed and signed into law in 1968 by Congress to provide reinsurance to properties for significant loss by riots. This led to the FAIR plan, which provided insurance for properties ineligible for coverage with other insurance companies.

What is the Ohio Fair Plan?

The Ohio Fair Plan (OFP) is an insurance coverage program that was established in 1968 by statute after what happened with the riots across the country. It began as serving a few metropolitan areas in Ohio but later expanded to the state for all properties, including farms.

Under the Ohio Fair Plan, property that cannot obtain standard insurance through the regular insurance market in Ohio can receive coverage. It can be cheaper or more expensive depending on the type of coverage that your property needs. However, it is definitely not the cheapest property insurance in Ohio, nor is it the most expensive.

To see how the Ohio Fair Plan compares to other insurance companies, you can compare the rates of several insurance companies. You may want to look at the average cost of homeowners insurance in your state to get a better understanding of how much you can expect to pay for property insurance. The Ohio Fair Plan is supported by all property insurance companies in the state of Ohio.

What does the Fair Plan cover?

The OFP offers all of the basic coverage options for your property. If property coverage is not available in the normal insurance market for your property, the OFP offers basic coverage at standard rates. The property in the state of Ohio can obtain coverage for the structure and contents of the property. However, to obtain coverage under the Fair Plan, the property must meet the criteria.

Some of the coverage options that the OFP offers include, homeowners, renters, crime, rehabilitation, dwelling fire and farm fire coverage. Each coverage option covers a different number of family dwellings. For example, one to four family dwellings can obtain the dwelling fire coverage, whether it is occupied by a tenant or owner. On the other hand, one and two family dwellings that are the owner’s first residence can obtain homeowners insurance.

Who is eligible for the Ohio Fair Plan?

To be eligible for the OFP, a number of criteria must be met:

  • All property taxes, assessments, penalties, and other charges must have been paid on time and in full.
  • The insurer must have applied to regular insurance companies. At least two insurance companies must have denied property coverage after applying.
  • At least 50% of the property must be occupied and safe from any type of trespass.
  • Property must not violate any building, housing, pollution, sanitation, health, or fire safety code or rule. It must not provide any type of health or safety hazard.

How do you use the Ohio Fair Plan?

The Ohio Fair Plan does not have any agents to help with the application process, so if you meet the criteria for applying, how can you get started?

You must first request a login ID and submit an application through the Agent Online Services portal. Once you receive your ID confirmation and password, you can select the application that best aligns with your property type and which coverage. After identifying if the property meets the eligibility requirements, you can submit the application through the portal.

If you want to apply for a binder coverage, there is a binder deposit at the end of the application process which can be paid through different methods. Once an application is submitted, the application goes through an underwriting process. The earliest date that the property can receive coverage is the day after OFP has received a completed application along with the binder fee.

Frequently asked questions

Who is the Ohio Fair Plan for?

The OFP is for any Ohio state property that has been denied coverage by at least two insurance companies and that meets the following eligibility to apply. If you are a first-time homeowner in Ohio, depending on if you have met the criteria, you may be able to apply for the OFP. The OFP is for property owners who have been denied insurance by at least two insurance companies.

What coverage options does the OFP offer?

The OFP offers coverage at the basic level and standard rates. It offers homeowners, renters, crime, farm and fire coverage options for multiple family dwellings, depending on the type of coverage.

Does the OFP have agents?

Unlike other insurance companies that have local agents to assist with the application process, the OFP does not have any agents to assist. If you are a property owner in Ohio who has been denied insurance from at least two insurance companies, you would need to create a login ID and submit an application to get a property insured. There may be a binder coverage at the end of the application process.

Is the OFP better than other insurance policies?

Whether the OFP is better or worse than other insurance policies depends on what you are looking for and what you need in an insurance policy. To compare, check out the best homeowners insurance companies nationally and the best homeowners insurance in Ohio.

Written by
Grace Kim
Insurance Contributor
Grace Kim has two years of experience in writing for finance and insurance domains such as The Cheapest Car Insurance Companies in New Jersey at Bankrate and Reviews.com. She has written about auto, homeowners, renters and life insurance. She holds an M.Sc from New York University in Corporate Communications and has spent most of her professional experience writing about finance and tech topics.
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