The national guide covers the specialty and residual-market coverages:

• personal umbrellas;
• inland marine floaters;
• watercraft and mobile homes;
• flood insurance;
• FAIR plans in general.

Illinois's state questions in this area focus on the Illinois FAIR Plan and the Illinois Mine Subsidence Insurance Fund. P.A. 104-645 restructures the FAIR Plan law on January 1, 2027. The rules below are the ones in force before that date.

National concepts in brief

• Flood is excluded from homeowners policies. It is bought from the NFIP or a private insurer, and NFIP policies usually take effect 30 days after purchase. The Department of Insurance doesn't regulate NFIP policies; FEMA manages them.
• Earthquake coverage is available for an added premium.
• A personal articles floater insures valuables beyond the homeowners limits.
• A homeowners watercraft endorsement covers small boats. Larger boats need a boatowners or yacht policy.
• A personal umbrella adds liability limits above the auto and homeowners policies.

Illinois FAIR Plan

• Purpose: to make basic property insurance more available to Illinois residents who can't get it in the standard market (215 ILCS 5/522).
• What it covers: basic property insurance includes homeowners coverage, but excludes automobile, farm and manufacturing risks (215 ILCS 5/523).
• Eligibility: the applicant must show a diligent effort, meaning three attempts to buy basic property insurance (215 ILCS 5/524). The Department describes the plan as a not-for-profit association for people refused by at least three companies.
• Inspection:
  • The property is inspected.
  • If it fails, the applicant gets the reasons in writing.
  • A residential applicant can get one reinspection any time starting 60 days after the first (215 ILCS 5/524).
• Notice: private insurers' cancellation and nonrenewal notices must mention FAIR Plan eligibility (215 ILCS 5/143.22).

Mine subsidence

• What it is: ground movement caused by the collapse of a man-made underground mine. It does not include earthquakes, soil conditions or sewer collapse (215 ILCS 5/802.1).
• Required coverage:
  • Residential policies include it at a separately stated premium unless the insured waives it in writing.
  • Commercial buildings get it the same way (215 ILCS 5/805.1).
• Exempt counties: counties of 1,000,000 or more people and the counties next to them (215 ILCS 5/807.1).
• The Fund:
  • The Mine Subsidence Insurance Fund reinsures every insurer writing the coverage (215 ILCS 5/803.1).
  • Insurers cede 100% of what they write, up to the limits, in exchange for a ceding commission (215 ILCS 5/810.1).
  • Minimum reinsurance is $200,000 per residence or commercial building and $15,000 per condominium unit (215 ILCS 5/805.1(c)).
• Unrepaired damage: an insurer may refuse coverage on property with unrepaired subsidence damage until it is fixed (215 ILCS 5/808.1).
• Arbitration: disputes over whether mine subsidence caused the damage, though not the amount of loss, can go to arbitration. The policyholder must ask within 60 days of the insurer's written decision, and the loser pays the costs (215 ILCS 5/809.1).

Other personal lines rules

• "All other policies of personal lines" means any other policy issued to a natural person for personal or family protection (215 ILCS 5/143.13(c)).
• Credit scoring: Illinois's insurance credit law covers personal auto, homeowners, dwelling fire, boat and personal watercraft policies (215 ILCS 157/10).
  • Insurers may not deny, cancel or nonrenew solely on credit.
  • Scores may not use income, gender, address, ethnic group, religion, marital status or nationality.
  • Reports must be no more than 90 days old.
  • After a corrected report, the insurer re-rates within 30 days.
  • Adverse action notices list up to four reasons.

Common exam traps

• To qualify for the FAIR Plan, an applicant needs three attempts in the voluntary market. The plan covers homeowners but not auto or farm risks.
• Mine subsidence coverage is included unless waived in writing. Cook County and its neighbors are exempt.
• The subsidence Fund reinsures 100% of the coverage written. Arbitration decides only whether subsidence caused the damage.
• Flood policies are FEMA's, not the Department's, and usually take effect after 30 days.