The Indiana Basic Property Insurance Underwriting Association, commonly known as the FAIR Plan, was established on October 28, 1968, to provide essential property insurance options for individuals who have difficulty obtaining coverage through the conventional insurance market. This organization serves as a crucial resource for Indiana residents who have been declined insurance coverage by at least three unrelated insurance companies, allowing them to secure basic protection for their properties as a last resort. The FAIR Plan operates as a voluntary association made up of insurance companies licensed to offer property insurance within the state.
The services provided by the FAIR Plan primarily focus on dwelling and commercial insurance. For dwelling risks, policy coverage can reach up to $250,000, which applies to both building and contents. On the other hand, commercial insurance may cover up to $1,000,000 for the same categories. This structure aims to alleviate the insurance gap for those unable to find suitable options in the voluntary market, ensuring that everyone has access to basic property insurance.
Funding for the FAIR Plan is derived from premium income collected from its policies and, if necessary, through assessments levied on member companies to cover policy losses and administrative expenses. It emphasizes that the FAIR Plan is not a competitor to the traditional insurance marketplace but serves as a supplementary solution for those in urgent need of coverage.
In light of the COVID-19 pandemic, the FAIR Plan has implemented measures for visitors, requiring appointments for those wishing to visit their offices in person. The organization also provides information for other insurance plans, like the Indiana Automobile Insurance Plan (IAIP), which offers automobile insurance to individuals similarly unable to procure coverage through voluntary channels.
Overall, the Indiana FAIR Plan plays an indispensable role in providing essential insurance services and maintaining stability in the property insurance landscape for residents across Indiana.
