How the Oregon FAIR Plan Association Supports Property Owners

The Oregon FAIR Plan Association (OFPA) plays a vital role in supporting property owners who face challenges in obtaining traditional homeowners insurance. If you own a high-risk property and have been struggling to find coverage in the regular insurance market, the OFPA is here to help.

The OFPA is an insurance pool supported by all licensed property insurance companies in Oregon. Its primary objective is to provide insurance options to property owners with high-risk properties that are deemed ineligible for coverage in the normal insurance market.

Whether you own a tenant or owner-occupied dwelling, farm building, apartment building, or commercial building, the OFPA offers basic coverage forms at standard rates. However, it’s important to note that certain coverage options, such as personal liability, theft, and personal article floaters, are not available through OFPA.

When it comes to coverage amounts, the maximum limit for dwellings is $600,000, while for commercial policies, it is $1,000,000. While credit history is not taken into consideration, your loss history may impact the type of coverage provided.

Before considering coverage through OFPA, it’s recommended to explore insurance options in the voluntary market. However, if you have been unable to secure coverage elsewhere, the OFPA can provide the necessary protection for your high-risk property.

Key Takeaways:

  • The Oregon FAIR Plan Association supports property owners with high-risk properties.
  • It provides insurance coverage options that are unavailable in the regular insurance market.
  • OFPA offers basic coverage forms for dwellings, farm buildings, apartment buildings, and commercial buildings.
  • Certain coverage options such as personal liability and theft are not available through OFPA.
  • Exploring insurance options in the voluntary market is recommended before considering OFPA coverage.

Eligibility and Coverage Limitations of the Oregon FAIR Plan Association

YouTube video

The Oregon FAIR Plan Association (OFPA) offers insurance coverage to property owners who are unable to obtain coverage in the regular insurance market. However, there are certain eligibility requirements and coverage limitations that property owners need to be aware of before considering OFPA coverage.

Vacant Properties

According to the OFPA’s Plan of Operations, insurance coverage cannot be provided for vacant properties. If you own a vacant building, you will need to explore other insurance options to ensure proper coverage.

Regular Insurance Market

To be eligible for OFPA coverage, property owners must demonstrate that coverage is unavailable in the regular insurance market. This means that you should reach out to at least two insurance companies or their agents in the voluntary market and confirm the unavailability of coverage for your property. Only then can you consider applying for OFPA coverage.

Loss History

The OFPA considers the loss history of the property when providing coverage. This means that if your property has a significant loss history, the coverage may be limited based on past losses. It is important to discuss your loss history with your insurance agent to determine how it may affect your coverage under the OFPA.

Coverage Limits

The OFPA offers coverage limits for both dwellings and commercial policies. The maximum coverage amount for dwellings is $600,000, while for commercial policies, it is $1,000,000. These limits represent the standard coverage amounts provided by the OFPA. However, higher total limits can be obtained through special facultative reinsurance, which is arranged on a case-by-case basis and requires additional premiums.

It is essential for property owners to understand the eligibility requirements and coverage limitations of the Oregon FAIR Plan Association before applying for coverage. Additionally, exploring insurance options in the regular insurance market and consulting with an insurance agent can help property owners make informed decisions about their insurance coverage.

Comparing Costs and Exclusions of the Oregon FAIR Plan

Comparison Chart

When it comes to the cost of insurance coverage, the Oregon FAIR Plan offers a range of rates depending on the property. In some cases, the rates may be slightly higher compared to the voluntary market, but in others, they can be comparable. It’s important for property owners to understand that the cost of insurance under the FAIR Plan may vary based on factors such as the property’s location, condition, and risk level.

Similar to insurance coverage in the voluntary market, FAIR Plan policies have deductibles. These deductibles act as the amount the policyholder agrees to pay out of pocket before the insurance coverage kicks in. The FAIR Plan offers minimum deductibles, though higher deductibles are available to reduce premiums. By opting for a higher deductible, property owners can potentially lower their insurance costs.

Exclusions are an essential aspect of any insurance policy. The Oregon FAIR Plan has specific exclusions that property owners should be aware of. These exclusions can vary based on the type of policy and coverage amount. It’s crucial for property owners to carefully review their policies or consult with their insurance agent to fully understand the exclusions and limitations of their FAIR Plan coverage.

Understanding the cost of insurance, comparing it to the voluntary market, knowing the deductibles, and being familiar with the exclusions is essential for property owners to make informed decisions about their coverage. By having this knowledge, property owners can ensure they are adequately protected while also considering their budget.

Comparison Table: FAIR Plan vs. Voluntary Market

Factors FAIR Plan Voluntary Market
Cost of Insurance Varies, may be slightly higher Varies, competitive rates
Deductibles Minimum deductibles, higher options available Varies, different deductible options
Exclusions Specific exclusions, varies based on policy type and amount Varies, specific to individual policies

Note: The comparison table above provides a brief overview of the cost, deductibles, and exclusions when comparing the Oregon FAIR Plan to the voluntary market. It is essential for property owners to consult with their insurance agent or company for detailed information specific to their individual circumstances and policies.

Applying for Coverage and Claims Process with the Oregon FAIR Plan

When it comes to securing coverage through the Oregon FAIR Plan, property owners need to follow a few important steps. It’s crucial to explore insurance options in the voluntary market first by checking with at least two insurance companies or their agents. This ensures that the availability of coverage in the regular insurance market has been thoroughly examined. If coverage is indeed unavailable, property owners can then move forward with applying for coverage through the FAIR Plan.

To initiate the application process, any licensed property insurance agent can assist property owners in submitting an application to the FAIR Plan. These agents play a crucial role in guiding property owners through the process and ensuring that all necessary information is provided. If you’re unable to reach your insurance agent, don’t worry. The FAIR Plan has a convenient option for property owners to directly notify them by completing the Claim Notification form.

Once coverage is in place, it’s essential to understand the claims process and how to properly navigate it. In the event of a claim, property owners should notify their insurance agent, who will then handle the notification process with the FAIR Plan. This efficient communication ensures a seamless experience and allows for timely claims processing.

It’s important to remember that even after obtaining coverage through the FAIR Plan, property owners should continue checking for coverage options in the voluntary market. Insurance needs may change over time, and there could be new opportunities available that best align with your requirements.

Make sure to consult with your insurance agent throughout the process to ensure you’re fully informed and taking advantage of all available options.

Keep in mind that the FAIR Plan is committed to supporting property owners and offering coverage when other options are unavailable. By working closely with your insurance agent and following the necessary steps, you can ensure that your property is adequately protected.

Now that we’ve explored how to apply for coverage and navigate the claims process, let’s take a closer look at the role of insurance agents and how to cancel FAIR Plan policies if needed.

Role of Insurance Agents and Cancelling FAIR Plan Policies

When it comes to the Oregon FAIR Plan, property owners have the freedom to choose their own insurance agent. The FAIR Plan does not assign agents, giving you the flexibility to work with any licensed property insurance agent in Oregon. Your chosen agent can assist you with your FAIR Plan application and act as your representative when communicating with the FAIR Plan. Having an insurance agent does not affect your premium, and you have the right to switch to another agent if your current one is unwilling to help you secure coverage through the FAIR Plan.

If, for any reason, you need to cancel your FAIR Plan policy, you have the option to do so at any time. Simply provide the proper notice, and the cancellation will be processed. The premium refund you receive will be calculated based on the duration that the policy has been in effect. This means you only pay for the coverage you used, giving you flexibility and peace of mind. The FAIR Plan understands that situations change, and they aim to provide a hassle-free cancellation process for policyholders.

When it comes to payment plans, the FAIR Plan offers different options to suit your needs. You can choose a single pay plan, making a one-time payment for your policy. Alternatively, you can opt for a time pay plan, which allows you to pay over a designated period. The three pay plan divides your premium into three installments, providing budget-friendly flexibility. The FAIR Plan understands that financial circumstances differ, and they strive to offer payment options that work for you.

FAQ

How does the Oregon FAIR Plan Association support property owners?

The Oregon FAIR Plan Association, also known as OFPA, provides insurance coverage to property owners with high-risk properties where coverage is unavailable in the regular insurance market. OFPA offers basic coverage forms at standard rates for various types of properties including dwellings, farm buildings, apartment buildings, and commercial buildings.

What are the eligibility requirements and coverage limitations of the Oregon FAIR Plan Association?

To be eligible for OFPA coverage, property owners must demonstrate the unavailability of coverage in the regular insurance market. The Plan of Operations prohibits insurance coverage on vacant properties. Loss history is taken into consideration in determining the type of coverage provided. The maximum coverage amounts are $600,000 for dwellings and $1,000,000 for commercial policies.

How do the costs and exclusions of the Oregon FAIR Plan compare to the voluntary market?

The cost of insurance coverage under the FAIR Plan can vary depending on the property and may be somewhat higher or comparable to the voluntary market rates. FAIR Plan policies have minimum deductibles, with higher deductibles available to reduce premiums. Exclusions vary based on policy type and coverage amount. It is important for property owners to review their policies or consult with their insurance agent to understand the specific exclusions and limitations of their FAIR Plan coverage.

How do I apply for coverage and file a claim with the Oregon FAIR Plan?

Prior to applying for coverage through the FAIR Plan, property owners should check with at least two insurance companies or their agents in the voluntary market to determine coverage availability. If coverage is unavailable, any licensed property insurance agent can assist in applying for coverage through the FAIR Plan. In the event of a claim, property owners should notify their insurance agent, who will then notify the FAIR Plan. Property owners can also directly notify the FAIR Plan by completing the Claim Notification form. It is still advisable to continue checking for coverage in the voluntary market even after obtaining FAIR Plan coverage.

What is the role of insurance agents and can FAIR Plan policies be cancelled?

The Oregon FAIR Plan does not assign insurance agents to property owners. Property owners can select any licensed property insurance agent in Oregon to assist with their FAIR Plan application and act as their representative when corresponding with the FAIR Plan. The premium remains unaffected by having an insurance agent. If a property owner’s agent is unwilling to help secure coverage through the FAIR Plan, they can switch to another agent who is willing to assist. FAIR Plan policies can be cancelled at any time with proper notice, and the premium refund will be calculated based on the time the policy has been in force. The FAIR Plan offers different payment plans, including a single pay, time pay, or three pay plan.

Source Links

Would You Like Us To Review Your Policies?

Request Your Proposal Here

Are you ready to save time, aggravation, and money? The team at Vantage Point Risk is here and ready to make the process as painless as possible. We look forward to meeting you!

Call Email Claims Payments