Key Takeaways
- The Indiana FAIR Plan (Indiana Basic Property Insurance Underwriting Association) was established in 1968 for high-risk properties
- Applicants must be declined by three or more non-related insurance companies to qualify
- Maximum dwelling coverage is $250,000 combined for building and contents
- Maximum commercial coverage is $1,000,000 combined for building and contents
- The FAIR Plan is intended as a last resort, not as competition with the standard market
Indiana FAIR Plan
Overview
The Indiana Basic Property Insurance Underwriting Association (Indiana FAIR Plan) was established on October 28, 1968 to make property insurance available to applicants who cannot obtain coverage through the normal insurance market.
Eligibility Requirements
Declination Requirement
To qualify for the Indiana FAIR Plan, applicants must:
- Be declined coverage by three or more non-related insurance companies
- Verify declinations in Section 2 of the FAIR Plan application
- Have insurable property that meets basic underwriting standards
Types of Properties Covered
The FAIR Plan covers properties that may be considered high-risk due to:
- Location in high-crime areas
- Age or condition of the property
- Prior claims history
- Inability to find coverage in the standard market
Coverage Limits
| Property Type | Maximum Coverage |
|---|---|
| Dwelling | $250,000 (combined building and contents) |
| Commercial | $1,000,000 (combined building and contents) |
Covered Perils
The Indiana FAIR Plan provides coverage for:
- Fire
- Vandalism
- Wind damage
- Hail
- Riot
- Explosion
- Smoke
- Snow and ice damage
- Water hazard (not flood)
How to Apply
- Any agent licensed to sell insurance in Indiana can provide a quote
- Applications must include photographs
- 25% deposit required with application
- Agents typically do not have binding authority
Funding
The Indiana FAIR Plan is:
- A voluntary association of licensed insurance companies
- Funded through premiums and assessments from member companies
- Intended as a last resort option, not competition with the traditional market
Exam Tip: The Indiana FAIR Plan requires applicants to be declined by three or more non-related insurers. Remember the $250,000 dwelling limit and $1,000,000 commercial limit.
How many insurance company declinations are required before an applicant qualifies for the Indiana FAIR Plan?
What is the maximum dwelling coverage available through the Indiana FAIR Plan?
When was the Indiana FAIR Plan established?