Eligibility
A business with an insurable interest in a qualified property may apply to the Iowa FAIR Plan Association (Plan) if a notice of rejection, nonrenewal, or cancellation from an insurer has been received within the past six months. “Qualified property” means real and tangible personal property 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 the 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.
- 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 coverage limit on real and personal property at one location is $1,000,000. The coverage limit on the building cannot exceed the lesser of the actual cash value or the market value of the building. Market value is determined by the current assessment by the county.
- Coverage amounts greater than $500,000 require the approval of the Iowa FAIR Plan Association’s Governing Committee, and it may take longer to issue policies for such properties.
- The Iowa FAIR Plan does not provide commercial liability coverage.
- The Iowa FAIR 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 the 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.
The Plan will make the final determination as to what protection class will be used.
Deductible
- The 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 submit a completed, legible, and signed application to info@iowafairplan.com.