Submission Guidelines

We recommended that new business applications be submitted well ahead of the date the coverage is needed.

The application is the basis for the acceptance or rejection of coverage. It is the responsibility of the broker and the applicant to ensure that the information submitted is in all respects accurate. Inspections, where made, are for the purpose of determining the physical condition of the property, occupancy or for the presence of a brush/wildfire exposure (Commercial only). They are not for the purpose of correcting omissions or inaccuracies in the information submitted on the applications for insurance. Inspectors hired by the FAIR Plan do not make any determination of the value of the property, the adequacy of the insurance requested by the applicant.

As an insurer of last resort, the FAIR Plan receives applications for many varied types of buildings. Following are several of the more common factors that can impact the insurability of and the cost of insuring a building.

Existing Building Damage

The FAIR Plan will not insure any building(s) with existing damage UNLESS a copy of a repair contract signed by the applicant and an independent licensed contractor is submitted with the application.

The contract must stipulate the scope of work needed to repair the damage and indicate the estimated completion date for the repairs.

Vacant Buildings

The FAIR Plan will not offer insurance on any building that has been substantially vacant or unoccupied (more than 50% of the building area is vacant or unoccupied) for one (1) year or longer prior to the date the application was received in the FAIR Plan office.

In addition, the FAIR Plan will not offer a renewal of a policy covering a vacant property.

All substantially vacant or unoccupied buildings potentially eligible for coverage are inspected.

To be considered for coverage, substantially vacant or unoccupied buildings must be in good condition with all doors and windows secure and no broken windows.

There is no Vandalism or Malicious Mischief (VMM) coverage for properties vacant or unoccupied for more than 30 days. An applicant may purchase a vacancy permit to restore this coverage. There is a higher premium applied to this coverage, since substantially vacant or unoccupied buildings are subject to a higher frequency and severity of loss than other buildings.

Violation of Federal, State, or Local Law

A property being used for any purpose in violation of federal, state, or local law is NOT eligible for coverage. For example, the cultivation and sale of marijuana is a violation of federal law, so a property being used for those purposes would not be eligible.

The above items do not represent our complete Underwriting Guidelines. Other factors could impact the insurability of and cost of insuring the building(s).