DWELLING PROPERTY
NOTICE! Effective March 1, 2012 our Dwelling Property rates are changing. The base rates for a $250 deductible, protection class 1-8, owner-occupied dwelling are increasing by approximately 15%. Other rating factors-such as deductible credits, protection class 1-8 vs. protection class 9 and 10 relationships, two-family and multi-family occupancy relationships, frame vs. masonry factors, etc-will also be changing. Generally speaking, most existing policyholders will see increases of somewhere between 15% and 20%, but there may be unusual situations in which existing policyholders will see increases greater than 20%.
Also, effective March 1, 2012 our minimum premium will increase from $100 to $250.
Producers: If you use our old Producer's Manual regularly and would like a copy of our new base Dwelling Property rate pages please send us an e-mail and we will provide you with an Excel spreadsheet that contains our new base rates. However, due to the complexity of the changes we've made, we recommend that you consider contacting us for a quote rather than attempting to quote risks on your own.
QUALIFIED PROPERTY
Any person having on 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 at a fixed location in Iowa.
INELIGIBLE PROPERTY
The following properties are ineligible for coverage under the Iowa FAIR Plan Dwelling Property program. This is not necessarily an all-inclusive list.
- Vacant and/or unoccupied properties
- Properties which have outstanding code violations
- Non-owner occupied properties that do not have a current rental certificate (where applicable)
- Properties that are in foreclosure
- Properties that have unsettled/unpaid claims from previous losses
- Properties that have unrepaired/unresolved damages from previous losses
- Farms (Note: Farm dwellings and other farm structures may be eligible under the Farm Property program, or the farm dwelling may be eligible under the Dwelling Property program if all other structures are deleted.)
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. A verbal rejection is considered an acceptable notice of rejection.
- 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.
- Dwelling Property policies may be issued for owner-occupied or non-owner occupied one (1) through four (4) family dwellings used exclusively for private residential purposes. Properties with more than four (4) units must be written in the Commercial Property program. (Note: Occasionally a dwelling may have a low-hazard commercial occupancy such as beauty shop that may be considered on an exception basis. Contact the Iowa FAIR Plan for more information.)
MOBILE/MANUFACTURED HOMES
The Iowa FAIR Plan can provide coverage on mobile/manufactured homes and their contents. The Plan does not provide coverage on mobile/manufactured homes that have interior and/or exterior wood burning units unless the unit was factory installed and has been property maintained.
The following surcharges will be added to the normal dwelling premium on mobile/manufactured homes:
- Owner Occupied: $5.28 per $1000 of coverage on both dwelling and contents
- Non-Owner Occupied: $10.56 per $1000 of coverage on both dwelling and contents (Note: Deductible options do not reduce mobile/manufactured home surcharges.)
REQUESTS FOR COVERAGE
To request coverage a properly completed, legible, and signed Dwelling program application must be submitted. 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.
Quotes can be requested by noting that an application is being submitted for the purpose of obtaining a quote, in which case no premium should be enclosed with an application.
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 Dwelling Property policies. This list is subject to change as new forms are filed and approved.
| CL7 03 93 | Policy Declarations |
| DP 00 QR 07 88 | Dwelling Policy Quick Reference |
| DP 00 01 07 88 | Dwelling Property 1 Basic Form |
| DP 01 14-A 02 06 | Special Provisions—Iowa |
| DP 04 22 04 02 | Limited Fungi, Wet or Dry Rot, or Bacteria Coverage |
| DP 16 09 01 09 | Water Exclusion Endorsement |
| DP 05 38 06 08 | Cap on Losses from Certified Acts of Terrorism; Disclosure Pursuant to Terrorism Risk Insurance Act |
| DP 04 41 07 88 | Additional Insured |
| 28 05 11 | Restrictive Amendment |
LIMITS AVAILABLE
The maximum limit on dwelling and contents combined is $250,000. The policy limit cannot exceed the actual cash value/market value of the dwelling and/or contents.
DEDUCTIBLE OPTIONS
The basic deductible for all perils is $250. The Iowa FAIR Plan offers deductible options of $500 and $1000. In some cases we may require an increased deductible as a result of claims history and/or higher values.
COVERED PERILS
On owner occupied dwellings and on policies written on personal property only the Iowa FAIR Plan provides coverage against loss by:
- Fire or Lightning
- Windstorm or Hail
- Explosion
- Riot or Civil Commotion
- Aircraft
- Vehicles
- Smoke
- Volcanic Eruption
- Vandalism or Malicious Mischief (optional)
On non-owner occupied dwellings the Iowa FAIR Plan provides coverage against loss by:
- Fire or Lightning
- Windstorm or Hail
- Explosion
- Riot or Civil Commotion
- Aircraft
- Vehicles
- Smoke
- Volcanic Eruption
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 will be used.
PREMIUM AFTERCHARGES
Aftercharges may be added to the Dwelling Property premium if deficiencies are discovered during an inspection of the property. Such aftercharges are usually the result of poor housekeeping, poor physical condition of the property, etc. Aftercharges may be an additional $1, $2, or $3 per $1000 of dwelling 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.