Eligibility
A business having an insurable interest in a qualified property may apply to the Iowa FAIR Plan Association (Plan) if within the past six months a notice of rejection, nonrenewal, or cancellation from an insurer has been received. “Qualified property” means real and tangible personal property that is located at a fixed location in Iowa primarily with habitational occupancy. Merchandise held in storage or for sale is ineligible for coverage.
Applications submitted must be on forms designated by the Plan. All questions must be answered and the applicant must sign the form. Incomplete applications may be returned causing delays in processing and effective dates of policies.
Properties are ineligible if one or more of the following conditions listed below are present.
- is vacant and/or unoccupied and/or in foreclosure.
- has physical conditions that have been declared unsafe by a local jurisdiction.
- has grossly inadequate and/or defective heating, wiring, or plumbing and/or is in exceptionally poor physical condition and/or has exceptionally poor housekeeping.
- has unsettled/unpaid claims from previous losses or has unresolved damages from previous losses. (Notice to Producers: Effective 7/1/2024 the eligibility rule "The property has unsettled/unpaid claims from previous losses or unresolved damages from previous losses." is temporarily suspended. The claims report for previous losses or unresolved damages must be submitted to the IFPA before a policy can be issued.)
- is a rental property with more than 65 percent vacancy and/or the property lacks a current rental certificate where required.
- The property has been subject to more than two losses, each loss amounting to at least $500 or 1 percent of the insurance in force, whichever is greater, in the immediately preceding 12-month period, or more than three such losses in the immediately preceding 24 month period, provided that the cause of such losses is due to the conditions which are the responsibility of the owner named insured or due to the actions of any person defined as an insured under the policy.
Coverage Limits and Forms
- The maximum limit on real and personal property at one location is $1,000,000. The limit on the building cannot exceed the actual cash value of the building.
- Coverage amounts greater than $500,000 requires the approval of the Iowa FAIR Plan Association’s Governing Committee, and it may take longer to issue policies for such properties.
- The Plan uses the following forms for Commercial Property policies. This list is subject to change as new forms are filed and approved.
- Commercial Property Application
- CP 00 99 04 02 Standard Property Policy
- CP 01 97 11 05 Iowa—Standard Fire Policy Provisions
- IL 09 52 03 08 Cap on Losses From Certified Acts of Terrorism
- CP 12 18 06 95 Loss Payable Provisions
Protection Class
The Plan uses the following criteria to determine protection class:
- Protection Class 1-8: Inside city limits of protected city/town.
- Protection Class 9: Outside city limits of protected city/town but with hydrant within 1000 feet.
- Protection Class 10: Outside city limits of protected city/town with no hydrant within 1000 feet.
Property inspectors will provide information about the location of the property with regard to city limits, distance from hydrants, and any other pertinent information regarding the potential protection class designation and the Plan will make the final determination as to what protection class will be used.
Deductible
- The basic deductible for all perils is $2,500.
Binding Authority
- Producers do not have the authority to issue binders. The Plan does not issue binders.
Requests For Quotes or Coverage
- To request a quote a properly completed, legible, and signed application must be submitted to info@iowafairplan.com.