Key Takeaways
- Ohio follows standard ISO homeowners policy forms (HO-2, HO-3, HO-4, HO-5, HO-6)
- The Ohio FAIR Plan provides coverage for high-risk properties unable to obtain voluntary market coverage
- Ohio requires 30 days notice for cancellation (after the first 60 days) and 30 days for non-renewal
- Ohio prohibits unfair discrimination in property insurance underwriting
- Insurers cannot cancel solely based on filing claims within specified timeframes
Ohio Homeowners Insurance Requirements
Ohio has specific property insurance regulations that producers must understand.
Ohio Homeowners Policy Forms
Ohio uses standard ISO policy forms for homeowners insurance:
Common Policy Forms
| Form | Coverage Type | Dwelling | Personal Property |
|---|---|---|---|
| HO-2 | Broad | Named perils | Named perils |
| HO-3 | Special | Open perils | Named perils |
| HO-4 | Contents | N/A (renters) | Named perils |
| HO-5 | Comprehensive | Open perils | Open perils |
| HO-6 | Unit-Owners | Named perils | Named perils |
Exam Tip: Ohio uses standard ISO forms. HO-3 is the most common homeowners policy, providing open perils on the dwelling and named perils on contents.
Key Coverage Requirements
- Replacement cost coverage commonly available
- Actual cash value as alternative
- Building code upgrade coverage available
- Ordinance or law coverage endorsements
- Flood damage excluded (NFIP available separately)
Ohio FAIR Plan
The Ohio FAIR Plan (Fair Access to Insurance Requirements) provides coverage for properties unable to obtain voluntary market coverage:
FAIR Plan Overview
| Feature | Details |
|---|---|
| Coverage | Fire and extended coverage |
| Territory | All of Ohio |
| Eligibility | Declined by voluntary market |
| Administration | Industry pool |
| Inspection | Property must pass inspection |
Who Qualifies
Properties may qualify for FAIR Plan if:
- Declined by 2 or more admitted insurers
- Located in high-risk areas
- Property meets minimum standards
- No outstanding code violations
FAIR Plan Coverage
- Basic fire coverage
- Extended coverage perils
- Vandalism and malicious mischief
- Limited liability coverage available
Cancellation and Non-Renewal Requirements
Ohio has strict requirements for canceling or non-renewing property insurance:
Cancellation Notice Requirements
| Timeframe | Notice Required | Reason |
|---|---|---|
| First 60 days | 10 days | Any reason (new business) |
| Non-payment | 10 days | Premium not paid |
| After 60 days | 30 days | Limited reasons only |
| Fraud/misrepresentation | 30 days | Material misrepresentation |
Permitted Cancellation Reasons (After 60 Days)
After the first 60 days, an insurer may only cancel for:
- Non-payment of premium
- Fraud or material misrepresentation
- Substantial increase in hazard
- Loss of reinsurance
- Violation of policy terms
Non-Renewal Notice Requirements
| Requirement | Details |
|---|---|
| Notice Period | 30 days before expiration |
| Reason Required | Must provide reason upon request |
| Written Notice | Must be in writing |
Ohio Consumer Protections
- Cannot cancel/non-renew for filing 1 claim in 24 months
- Must provide specific reason upon request
- Right to appeal to ODI
- Refund of unearned premium required
Flood Insurance
- Standard property policies exclude flood damage
- National Flood Insurance Program (NFIP) available
- Private flood insurance growing in Ohio market
- Agents should disclose flood exclusion
- Many Ohio properties in flood zones near rivers
Credit Scoring in Underwriting
Ohio allows credit-based insurance scoring with restrictions:
- Must notify consumer of adverse action
- Consumer can request reason
- Cannot use absence of credit as sole factor
- Must use valid statistical model
How many days notice must an Ohio insurer provide for non-renewal of a homeowners policy?
What does the Ohio FAIR Plan provide coverage for?