- Ask your insurance agent if there is anything you can do to keep the current coverage, e.g., fixing a roof, cleaning debris from the property, removing animals, etc.
- Ask your insurance agent to shop for replacement coverage in the voluntary market. Many agents have other insurance carriers that may be willing to insure your property.
- If you are unsuccessful in finding voluntary coverage, ask your insurance agent for assistance in applying for coverage through the Iowa FAIR Plan Association. All applications for coverage must be submitted by a licensed insurance agent.
- If you need help finding an insurance agent willing to help you with an Iowa FAIR Plan Association application contact us.
- Read the Frequently Asked Questions (FAQ) for more information.
The Iowa FAIR Plan is changing billing from agency bill to direct bill. Also we are implementing a new quarterly pay plan.
- We are discontinuing the current 4-pay plan and replacing it with a quarterly pay option for new business and renewals. This new plan requires 25% of the premium as a down payment plus a $5 service fee for each payment. The remainder will be due in 3, 6 and 9 months.
- Policyholders will be direct billed from the Iowa FAIR Plan 30 days before each installment is due.
- Effective July 2015 all Iowa FAIR Plan producers will receive monthly commission statements and a commission check for transactions from the current month.
- Refunds for midterm cancellations or endorsements will be sent directly to the policyholder or mortgage company.
- Any required return of commission will post to your commission statement.
We appreciate your patience and support as we implement these changes. We are certain that your policyholders will appreciate the new payment option.
If you have questions, comments or concerns about these changes please contact us at (515) 255-9531 or by e-mail at firstname.lastname@example.org.
The DP-1 and HO-8 policy forms do not define ACV and that can leave it to case law. Some courts have interpreted ACV to mean fair market value, i.e., the amount a willing buyer would pay a willing seller in an arm’s length transaction. Other courts have upheld the insurance industry’s traditional definition: the cost to replace with “like kind and quality” less depreciation. The courts have varied in their rulings as to whether or not depreciation includes obsolescence, e.g., loss of usefulness as a result of outmoded design or construction.
So how do you determine ACV? There is no single correct answer but a useful method is to use the average of:
- Current market value (the amount a willing buyer would pay a willing seller in an arm’s length transaction)
- Assessed value (from the County Assessor)
- Depreciated value (the current replacement cost less depreciation)
If there is a wide variance in the values using the highest value is the only way to be sure there is adequate coverage.
Producers and consumers must work together to in the important process of determining the correct amount of coverage needed.
The Iowa FAIR Plan uses an independent inspection firm to inspect all properties, and such inspections are done at the expense of the Plan. All properties written by the Iowa FAIR Plan are subject to inspection for eligibility and pricing.
Inspectors usually will not go inside the property unless there is evidence of a wood burning device or such a device was reported on an application. In such cases appointments will be made with consumers so inspectors can inspect the wood burning device, check clearances, take photos, etc.
Failure of a consumer to comply with such an inspection request or failure to keep an appointment with an inspector will result in the cancellation of the policy.