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The following information is only a general
summary of the coverages offered by the FAIR Plan. The legal rights of the insured are
determined by their insurance policy and by Kansas Laws and
Regulations, not by this summary.
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DWELLING COVERAGES AND LIMITS
The maximum limit of property coverage written through the FAIR Plan in
one fire division under one ownership is its:
Insurable market value,
Actual cash value or
$400,000, whichever is less.
Limits apply jointly to real and personal property.
For dwelling risks, the limits are per location and mean real and personal
property in a single building. The total of real and personal property cannot
exceed the above limits.
ACTUAL CASH VALUE
FAIR Plan defines Actual Cash Value (ACV) as Replacement Cost less Depreciation.
An agent must submit ACV calculations with the application or the FAIR Plan guidelines will be used to determine ACV.
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FAIR Plan Actual Cash Value Guidelines:
(Used if agents figures are not submitted.)
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Multiply the total ground floor square
footage of the dwelling by:$70 for 1 story
$75 for 1 ½ story
$80 for 2 story
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An additional $5 per square foot is allowed
for masonry/brick construction.
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Depreciation is applied as shown in the FAIR
Plan Depreciation Guide.
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The following chart can be used to determine the appropriate amount of depreciation to be deducted from the replacement cost figures:
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DEPRECIATION GUIDE
(Percentage
to be taken off replacement cost figures.)
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Age
(Years)
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Excellent
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Very Good
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Good
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Average |
Fair
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Poor
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0-3
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0%
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0-5%
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5%
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10%
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15%
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20%
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4-8
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0-5
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5-10
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10
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15
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20
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25
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9-13
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5
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10
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15
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20
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25
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30
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14-18
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10
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15
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20
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25
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30
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35
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19-23
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15
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20
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25
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30
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35
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40
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24-28
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20
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25
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30
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35
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40
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45
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29-38
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25
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30
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35
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40
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45
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50
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39-49
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30
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35
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40
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45
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50
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50
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Over 49
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35
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40
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45
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50
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50
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50
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The definitions we use to determine the condition of the property are as follows:
Excellent – The building is in perfect condition
Very Good – The building has slight evidence of deterioration
Good – The building has minor deterioration
Average – The building has apparent deterioration
Fair – The building has marked deterioration
Poor – The building has substantial deterioration
MARKET VALUE/ PURCHASE PRICE
The current market value is the price the property would sell for in the open
market minus the land value.
FAIR Plan considers a recent purchase price to be the current market value unless
we receive evidence of increased value; such as, contracts, a list of improvements
or real estate appraisal.
MOBILE HOME VALUES
Mobile home values are established using the N.A.D.A. Manufactured Housing
Appraisal Guide or market value, whichever is lower.
COVERAGES AND LIMITS
FAIR Plan uses the ISO Dwelling Property 1 - Basic Form DP 00 01 and other
applicable forms.
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COVERAGES
AND LIMITS
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Coverage
A - Dwelling (ACV)
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Maximum
$400,000 combined real and personal property
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Coverage
B - Other Structures
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10% of
Coverage A (reduces Coverage A limit), or request a specific amount
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Coverage
C - Personal Property
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Request
specific amount
Maximum
$400,000 limit above applies
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Coverage
D - Fair Rental Value
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Not available
as a separate amount
Refer to
Form DP 00 01 "Other Coverages"
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Coverage
E - Additional Living
Expense
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Not
Available
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Coverage
L - Personal Liability
(Optional Coverage)
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$100,000,
Aggregate
$200,000 per policy period
Refer to eligibility
and exclusion section
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Coverage
M - Medical Payments
To Others
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$1,000
each person
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Coverage
N - Physical Damage
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Not
Available
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Theft
(Optional
Coverage )
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Request
specific amount in even thousands
Minimum
$1,000, Maximum $10,000
Refer to
eligibility and exclusion section
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Deductible
Options
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Standard
$500
Other -
$1,000 and $2,500
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PERILS
OFFERED
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Fire:
·
Fire or Lightning
·
Internal Explosion
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Available
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Extended
Coverage:
·
Windstorm or Hail
·
Explosion
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Riot or Civil Commotion
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Aircraft
·
Vehicles
·
Smoke
·
Volcanic Eruption
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Available
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Vandalism
or Malicious Mischief
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Available
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Theft
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Available
Refer to eligibility
and exclusions section
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PERILS
NOT COVERED
(Unless as a result of a covered peril.)
FAIR Plan writes a basic fire policy with named perils. Listed
below are some, but not all, of the perils not covered. Refer to
the policy forms for specific coverages and exclusions.
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Falling
Objects
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Not Available
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Weight of
Ice, Snow or Sleet
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Not Available
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Freezing
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Not Available
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Collapse
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Not Available
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Sinkhole
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Not Available
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Accidental
Discharge or
Overflow
of Water or Steam
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Not Available
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Water
Damage
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Not Available
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Flood
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Not Available
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Earth
Movement
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Not Available
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Glass
Breakage
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Not Available
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Ordinance
or Law
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Not Available
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All other
perils not listed
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Not Available
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FAIR Plan reserves the right to limit perils offered due to underwriting
reasons.
Optional Personal Liability - Eligibility Requirements and Exclusions
Eligibility Requirements:
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PERSONAL
LIABILITY
ELIGIBLITY
REQUIREMENTS
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One
or two family owner occupied dwellings and mobile homes (not seasonal)
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Renter's contents coverage in any number of
dwelling units
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Risks
that are structurally sound
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Risks
that do not endanger life, health or safety
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Personal liability coverage cannot be purchased separately. If eligible, this coverage may be added to
our Dwelling Fire Policy.
Exclusions:
The FAIR Plan Personal Liability Form is a modified version of the ISO Personal Liability Form and includes the following additional exclusions:
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PERSONAL
LIABILITY
ADDITIONAL
EXCLUSIONS TO ISO FORM
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Bodily
injury or property damage caused by animals
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Bodily
injury or property damage caused by lead paint, asbestos or pollution
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To view the FAIR Plan Personal Liability Form with the full list of exclusions, go to
Personal Liability - KFP/DL04.
FAIR Plan
reserves the right to limit coverages offered due to underwriting reasons.
Optional Theft - Eligibility Requirements and Exclusions
Eligibility Requirements:
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THEFT
COVERAGE
ELIGIBLILTY
REQUIREMENTS
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One or
two family owner occupied dwellings and mobile homes (not seasonal and not
with roomers or boarders)
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Renter's
contents coverage in any number of dwelling units
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Properties
with:
·
Deadbolt locks on all accessible doors
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Locks on all accessible windows
·
Secondary locking device or other device that
would prevent unwanted entry on accessible
sliding glass doors
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Since the Theft Coverage Form is added to the FAIR Plan Dwelling Fire Policy,
we require that the policy carry Fire, EC and V&MM perils.
Exclusions:
The FAIR Plan Theft Coverage Form is a modified version of the ISO Broad Theft
Coverage Form and includes the following changes, additions to special limits and additional property not covered:
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THEFT
COVERAGE
CHANGES AND ADDITIONS TO SPECIAL
LIMITS
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$1,000
on firearms
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$1,000
on silverware
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$1,000
on collections which include sports cards, comic books and stamps
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$1,000
on entertainment systems and media
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THEFT
COVERAGE
ADDITIONAL
PROPERTY NOT COVERED
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Cash
which includes money, coins and medals (including collections) and
bank
notes
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Electronic
data processing system and equipment and the recording or storage media used
with that equipment including the data or information stored thereon
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Cellular
telephones and related equipment
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To view the Theft Coverage Form with the full list of special limits and property not covered,
go to Theft Coverage - KFP/DP03.
FAIR Plan
reserves the right to limit coverages offered due to underwriting reasons.
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