Illinois Fair Plan Insurance

FAIR Plan Insurance in Illinois?

If you are a resident in Illinois or one of the 31 states that have a state Fair plan and you are unable to purchase the appropriate homeowners insurance through traditional insurance avenues, Fair Plan Insurance Alternative may be the answer to your insurance concerns. Property owners can take advantage of the FAIR Plan to secure the appropriate insurance on the property so it meets the restrictions set forth in the mortgage agreement. If you do not qualify for traditional insurance or you will qualify in the near future, using the FAIR Plan temporarily to bridge that gap is one way to ensure your property is protected. If you do qualify for insurance in the private market you can typically find better rates and almost always find better coverage and this is why FAIR Plan is known as the insurance of last resort.

What Types of Coverage are Offered in Illinois?

The FAIR Plan provides renters, property owners, homeowners, and condominium owners the opportunity to purchase homeowner, commercial property, and dwelling property coverage. Although these different Fair Plan Insurance Alternative coverages are similar to what is currently available in the open market, they offer the purchaser protection from loss in the event of damage from smoke, hail, wind, explosion, lightning, fire, vandalism, and many other hazards. The coverage may sometimes protect the property against theft and burglary, as well as personal liability coverage in certain circumstances.

Does the Fair Plan Insurance Alternative Cover Earthquakes?

While these occurrences are rare in the Illinois, they do occur from time to time and property owners can request it be an endorsement to their policy if they so choose and if it is even offered in the area. The deductible can vary widely depending on the territory. The commercial property policies are often not eligible for the additional earthquake coverage.

Which Policy Do I Need?

If you cannot secure any type of coverage in Illinois after shopping for home insurance you can call any licensed agent or broker can assist you in finding the coverage if you are eligible. The proper amount of insurance that you are going to need is going to dictate the cost of the coverage. The market value of your home and replacement costs will all be determining factors in that cost.

Where Do You Apply for the Insurance?

After exhausting all other means of finding coverage, licensed producers can help you choose the right Fair Plan Insurance alternative coverage in Illinois and help you to complete the application for the insurance.

What are the Underwriting Standards?

Depending on the state, The FAIR Plan standards vary from basic things any property owner would do to ensure that the location is safe to strict guidelines that require high underwriting standards. Once you apply for the insurance, a representative will be sent to the property to ensure the underwriting terms are met.

Are Payments for the Insurance Flexible?

In some states you are required to pay the entire premium at once and in others you can utilize the installment program that requires a deposit that would be equal to at least 20% of the premium, then the rest is billed typically with service charges or interest.

As with all FAIR Plans, consumers are urged to try to find coverage in the private market and we can help you find an agent that can help you find alternatives to the FAIR Plan.