COMMERCIAL PROPERTY
QUALIFIED PROPERTY
Most businesses having an insurable interest in qualified property may apply to the Iowa FAIR 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. The Plan can provide coverage for a variety of commercially occupied buildings. We suggest potential applicants contact a local insurance agent who can then contact the Plan to determine eligibility and/or obtain a premium quote.
INELIGIBLE PROPERTY
Although not necessarily the only class of business that the Iowa FAIR Plan cannot write, those properties designated by the Insurance Services Office as “manufacturing” are not eligible for the Commercial Property program.
ELIGIBILITY REQUIREMENTS
Note: All applications are subject to underwriting approval by the Iowa FAIR Plan; there is no guaranteed eligibility.
- Applicants must have received within the past six months a notice of rejection, nonrenewal or cancellation from an insurer.
- Properties must be located at a fixed location in Iowa.
- Properties must meet the Plan’s underwriting requirements. (Note: See the Underwriting Rules & Guidelines page for additional information.)
- Separate applications must be submitted for each property location. Applications submitted must be on forms designated by the Iowa FAIR 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. Please include the correct premium and recent clear photos of the front and back of the home as well as any detached structures.
REQUESTS FOR COVERAGE
To request coverage a properly completed, legible, and signed Commercial Property program application must be submitted along with at least two (2) photos of the property (front and back). The correct premium must also be submitted with the application.
COVERAGE EFFECTIVE DATE/TIME
If we receive an application via fax before noon the policy effective date will be noon that same day. If we receive an application after noon the policy effective date will be effective the following day at noon. In either case the effective date will be dependent upon receiving the original application and correct premium that are postmarked the date the fax is received. A later effective date can also be chosen if the policy is not needed immediately.
CONDITIONS OF COVERAGE AND DECLINATIONS
If an application is accepted the Iowa FAIR Plan will determine what coverage forms and endorsements will be used, the effective date coverage will begin, any restrictions or limitations, the deductible that will apply, etc. The Plan may decline a request for coverage, in which case the applicant and the producer will be notified by mail within five (5) business days after receipt of an application.
CHECKS OR MONEY ORDERS
Checks or money orders should be made payable to the “Iowa FAIR Plan”. The Plan cannot accept cash.
NO BINDING AUTHORITY
Producers do not have the authority to issue binders and the Iowa FAIR Plan does not recognize any binders that may be issued by producers. The Plan does not issue binders.
FORMS
The Iowa FAIR Plan uses the following forms on its Commercial Property policies. This list is subject to change as new forms are filed and approved.
| Policy Declarations | |
| 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 |
COVERAGES AND LIMITS AVAILABLE
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 Governing Committee, and it may take longer for the Plan to accept and issue policies for such properties.
DEDUCTIBLE OPTIONS
The basic deductible for all perils is $500. The Iowa FAIR Plan offers deductible options of $1000 and $2500. In some cases we may require an increased deductible as a result of claims history and/or higher values.
COVERED PERILS
On Commercial Property policies the Iowa FAIR Plan provides coverage for the following Covered Causes of Loss:
- Fire
- Lightning
- Explosion
If an applicant desires coverage for the following Covered Causes of Loss coverage is generally available for an additional premium:
- Windstorm or Hail
- Smoke
- Aircraft or Vehicles
- Riot or Civil Commotion
- Sinkhole Collapse
- Volcanic Action
In some cases the following Covered Cause of Loss may be available for an additional premium:
- Vandalism
PROTECTION CLASS
The Iowa FAIR 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 location of property with regard to city limits, distance from hydrants, and any other pertinent information regarding the potential protection class designation to the Iowa FAIR Plan, and the Plan will make the final determination as what protection class should be used.
MINIMUM PREMIUM
The minimum premium for Commercial Property policies is $250.
PREMIUM AFTERCHARGES
Aftercharges may be added to the Commercial Property premium if deficiencies are discovered during an inspection of the property. An aftercharge may be added to the Commercial Property premium to contemplate additional exposures not known to the Iowa FAIR Plan when originally quoted and/or written. Such aftercharges are usually the result of poor housekeeping, poor physical condition of the property, etc. Aftercharges may be in increments of an additional $.25 to $1.00 per deficiency that is added directly to the base rates for building and contents coverage. If the Plan makes an aftercharge the producer will receive a letter explaining the specific reason for that charge. The producer will be responsible for submitting any additional premium to the Iowa FAIR Plan on or before the due date noted in the letter. If the additional premium is not received Direct Notice of Cancellation for nonpayment will be sent.