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Iowa Fair Plan Update
In case you missed it, please see below from the Iowa Insurance Division regarding use of the Iowa Fair Plan.
The Insurance Division has received information from both consumers and insurance producers sharing challenges with finding insurance coverage after consumers receive a notice of cancellation or non- renewal from a carrier. In particular, some of these consumers have found themselves in a situation where their property was damaged by a storm event after receiving notice of cancellation or nonrenewal from their insurer, but before securing new coverage with a different insurer. Now, due to existing damage (that will be covered by the previous insurer) the consumer is unable to get new coverage in the voluntary market as the repairs are not yet completed.
According to the Iowa FAIR Plan Association website https://iowafairplan.com/producers, the existing eligibility guideline excluding properties that have unsettled/unpaid claims from previous losses or has unresolved damages from previous losses, has been temporarily suspended effective July 1, 2024.
Insurance producers are encouraged to help identify Iowans who may fit the above scenario. Insurance producers should shop for replacement coverage in the voluntary market, but if these efforts still result in coverage not being available, agents are encouraged to follow the steps provided at https://iowafairplan.com/producers to determine if Iowa FAIR Plan coverage is an option.
Coverage offered by the Iowa FAIR Plan to those needing it as a last resort will provide comfort and stability to Iowans finding themselves in a coverage gap through no fault of their own. The FAIR Plan was created not only out of an urgency and concern for the Iowans but for the entire insurance industry.
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