My Property Insurance Was Cancelled

So you just received a cancellation or a nonrenewal from your insurance carrier – now what should you do? We recommend that you follow these steps: [Read more…]

Payment Options

New Business

  • Full payment by check or money order with a new application or 25% plus $5 to use the quarterly payment plan.

Payment Frequency Options

  • Annual. 100% of the annual premium with no service fee.
  • Quarterly. This plan requires 25% of the premium plus a $5 service fee for each payment. The Iowa FAIR Plan Association will direct bill a policyholder 30 days before each installment is due.

Mortgagee Billing Options

  • Mortgagees and/or additional insureds can be billed on renewals only.

Payment Types

  • Checks or money orders should be made payable to the “Iowa FAIR Plan Association”.
  • A current bill can be paid directly from a checking account, debit or credit card.  Click here for more information.
  • The Iowa FAIR Plan Association does not accept cash.

Eligibility

The Iowa FAIR Plan Association does not guarantee policy issue. Non-acceptable dwelling or commercial risks include any property that:

  • is vacant or unoccupied or;
  • has one or more open claim(s) or;
  • has unrepaired damages from any previous claim(s) or;
  • is noncompliant with local building codes and/or condemned.

Additionally, properties are ineligible for the Homeowners 8 Program if there are unsafe conditions, including, but not limited to: [Read more…]

Actual Cash Value (ACV)

The DP-1 and HO-8 policy forms do not define ACV and that can leave it to case lawSome 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:

  1. Current market value (the amount a willing buyer would pay a willing seller in an arm’s length transaction)
  2. Assessed value (from the County Assessor)
  3. 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.

 

Property Inspections

The Iowa FAIR Plan Association 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.