- Having property insurance is an important requirement when owning a property.house image by hans slegers from Fotolia.com
Property owners in Ohio should be aware of the laws associated with property insurance. Laws are in place to protect property owners, insurance companies, and the public from discrimination, injury and loss. One of the most important aspects of property insurance laws in Ohio relates to what is legal or illegal regarding discrimination of insurance applicants. Ohio residents should investigate the laws that impact them if they own property or plan to own property in the state. - According to state code section 4112.02, it is unlawful to discriminate against any property insurance applicant based on the applicant's "race, color, religion, sex, sexual orientation, gender identity, military status, familial status, ancestry, disability or national origin." This means that any property insurance applicant should be eligible to receive homeowners insurance, provided the applicant meets all other qualifying criteria.
In addition to the anti-discrimination policy with regards to homeowners insurance, the law also states it is unlawful to discriminate against any person with regard to the terms or conditions related to selling, transferring, renting or leasing housing accommodations. - Property insurance providers in Ohio are allowed to have their own underwriting standards when selecting properties they agree to insure. Having underwriting standards allows an insurance company to discriminate against an applicant based on allowable criteria. Allowable underwriting standards for Ohio property insurance providers include the condition of an applicant's property, an applicant's claims history, an applicant's credit history (including bankruptcies) and the ownership of pets that an insurance company deems dangerous. Every property insurance company is at liberty to discriminate against insurance applicants as long as the basis for discrimination does not relate to race, color, ancestry, religion and other prohibited conditions.
Also, "red-lining" is unlawful in Ohio. Red-lining occurs when an insurance company refuses to sell insurance for properties in certain areas. Individuals should report any discriminatory practices, such as red-lining, to the Ohio Department of Insurance. - Property owners in Ohio are legally entitled to form mutual protective insurance associations, according to state code 3939.01 Mutual Protective Insurance Upon Property. This code states that homeowners may form an association through which they insure one another's property against damage and theft. To form such an association, the group must have at least 10 members, and it needs to be legally organized. It should also file its current policy forms with the state's Department of Insurance and renew its certificate annually and as changes are made to the association.
A mutual protective insurance association can provide insurance for many types of properties, including residential houses, churches, farm buildings, farm machinery and equipment, household goods and personal effects and utility vehicles. However, the association cannot provide insurance for motor vehicle damage or loss that results from a collision.
