Delta Lloyds Insurance Company Homeowner Underwriting Guidelines For Mobile Homes

Transcription

1 Delta Lloyds Insurance Company Homeowner Underwriting Guidelines For Mobile Homes As of November 15, 2012 Available Homeowner Program for Mobile Homes Delta Lloyds Insurance Company of Houston Texas provides a homeowner market for owner occupied dwellings used exclusively as private residences. The HO A policy form is the standard Texas form promulgated by the Texas Department of Insurance. Acceptability Requirements Owner occupied and used for year-round residence. Must be the owner s principal residence for at least five consecutive months during the year. Must be at least eight feet by thirty-two feet (8x32) to qualify. Homes must be tied down in compliance with local and Texas laws. Homes must demonstrate pride of ownership, good housekeeping and be free of debris. Roof, electrical, plumbing, foundation and appliances must be in good condition. Policies require 100% of ACV value as validated by the Delta Lloyds Replacement Cost Calculator or other valuation guides such as the NADA Guide or Kelly Blue Book. Annual adjustment to building value is required. Ineligible Risks Homes over 25 years in age. Homes on raised poles or pilings. Homes located on a dealer's lot. Vacant homes with no prospects for immediate occupancy. Insureds who are unemployed, unless retired or on disability. Barns used to house or feed animals. Single wide mobile homes joined together. Homes with wood stove, fireplace, or any type of portable heater as primary heat source. Homes with kerosene heaters of any type. Rental or tenant occupied dwellings. Secondary used for week-end or occasional use. No travel trailers. Homes without utility services. Homes with metal or aluminum siding. Homes under renovation. Isolated risks. Risks with unacceptable exposure to wildfire. Risks that have above average brush exposure or are adjacent to undeveloped land of greater than 5 acres are unacceptable. Properties in any stage of foreclosure. 1

2 General Underwriting Guidelines The information in this section is general in nature. It is intended to provide a broad view of our Homeowner program. Additional or more specific information may be found in the rules following. Amount of Insurance Minimum Coverage A Value - $15,000 Maximum Coverage A Value Protected $150,000 New or Renewal Unprotected $100,000 New, $125,000 Renewal Maximum Liability limits $100,000 - Maximum available. $1,000 Medical Payments Scheduled Personal Property Maximum limits: $ 20,000 Total Schedule $ 5,000 any one item * $ 2,500 any one gentleman s jewelry item * *Appraisals are required on all items $1,500 or higher. (Appraisal must be within last 5 yrs) Minimum Premium - $ Deductibles: Minimum Deductibles: Wind / Hail the greater of 1% or $1, All Other Perils the greater of 1% or $1, Exceptions: Dallas and Tarrant Counties Wind / Hail the greater of 2% or $1,000 All Other Perils the greater of 1% or $1,000 Insurance to Value All policies written on HO B policy forms must be insured for 100% of Replacement Cost. All policies written on HO A policy forms must be insured for Actual Cash Value. Delta Lloyds has provided a Replacement Cost/ACV estimator on our website. Underwriting will use this calculator to confirm the amount of insurance to value on all submissions. Inflation Guard At each renewal, the coverage limits will be adjusted to account for inflation. The amount of increase will be reviewed annually and apply to all policy forms. 2

3 Inspection requirements All dwellings are subject to inspection by independent inspection services. Condition of the dwelling, liability exposures, square footage and replacement cost will be confirmed by this inspection process. Roof For new business submissions, the roof cannot be over 15 years of age and must be in good condition. There can be no loose or missing shingles. Condition of the roof will be verified by inspection. With specific written approval from the underwriter, the roof may be excluded from coverage using DLX RWD endorsement that is signed by the insured. The following roof types are not accepted: Wood or Wood shingle, Slate or Clay Tile Asbestos Shingle - roof Aluminum, Metal or Steel (regardless of application type)* Flat roof on primary structure, porch or addition Overlay of comp over wood roof More than 1 overlay of comp over comp *Metal roofs on Mobile Homes in Territories 2,3,4,15N, 16C, 16N, 16 S, 17, 18, 19C, 19N and 20 are no longer acceptable. Current Mobile Homes in the other territories, with Aluminum, Metal or Steel roofs remain acceptable, as long as the installation/application of the roof is of a type standard/common to Mobile Homes and the total roof area does not exceed 1,500 square feet. ACV on all roofs over 15 years of age. Endorsement DL 901 PR will be applied to all roofs that are over 15 years of age on the subsequent renewal. Unprotected and Isolated Protection Classes used in this program are determined by the Texas Department of Insurance and are based on the community of the residence. These determinations are continually updated by ISO in conjunction with local fire departments. Protection classes 8, 8B, 9 and 10 are considered unprotected in this homeowner program. Unprotected risks must be in a mobile home park or within sight of another dwelling. Risk must be on 3 acres or less. No isolated locations are accepted. Loss History Loss history reports will be ordered on all new business, to confirm the information supplied by the applicant. The maximum claims history allowed: HO A - 2 losses within the past 3 years. However, if the risk has 2 losses, they cannot be from the same cause of loss. If any loss exceeds $10,000 the risk should be submitted for approval. 3

4 If the loss resulted in property damage, the risk must be submitted with a Statement of Loss Repair and approved by a Delta underwriter prior to binding coverage. Ineligible loss history includes, but is not limited to: Risk with any prior personal liability claim in the past 5 years. Risk with open or pending claims Risk with an excessive frequency of prior losses. Risk with any prior slab damage or evidence of settling in the structure Unrepaired or uncompleted repairs due to loss prior to submission. Following Counties are closed: All First and Second Tier Counties Montgomery Waller TERRITORY LIMITATIONS: Territory specific guidelines Territory 1N & 1S, Harris County Closed for new business Territory 8, Galveston Closed for new business. Abilene No new business for zip codes 79601, 79602, or Endorsements State promulgated endorsements All state mandatory endorsements and the following optional endorsements: HO-101- Replacement of Personal Property. HO B only HO-105 Residence Glass HO-110 Increased Limit on Jewelry, Watches and Furs HO-112 Increased Limit on Money/Bank Cards HO-120 Television and Radio Antenna HO-126 Personal Computer coverage HO-160 Scheduled Personal Property HO-201 Personal Injury HO-301 Additional Insured Company Endorsements DLX DBS - Swimming Pool, Diving Board and Slide Exclusion Endorsement (HO A and B) DLX DLE Dog Liability Endorsement FCS Roof and Interior Damage Exclusion Endorsement DLX FWD Foundation Water Damage Exclusion DLX OS Other Structures Exclusion (HO A and HO B) DLX TR Trampoline Exclusion Endorsement DL HOXW Windstorm, Hurricane and Hail Exclusion DL 1048 A Tropical Cyclone Endorsement (HO A) DL 1049 B Tropical Cyclone Endorsement (HO B) 4

5 DL 170P Additional Extended Coverages (HO A) DL 170P LWH Additional Insured Perils and Limited Water Damage (HO A) DL 901P Replacement Cost Coverage A (HO A) DL 901 PR Replacement Cost Coverage A (Dwelling) with Actual Cash Value on Roof Surfacing DL 902 P Replacement of Personal Property (HO A) DL AME HO-Amendatory Mandatory Endorsement Cancellation of Policy All Cancellations are in accordance with Texas Department of Insurance Regulations Evidence of Cancellation: We accept the Original Policy, a signed Lost Policy Voucher or signed Acord Cancellation Request which bears the witnessed signatures of each named insured. We require that requests for flat cancellation be in our office within 30 days of the effective date of the policy and the original policy returned. If the original policy or proof of other coverage cannot be provided, we will process the request and cancel with 14 days notice to the insured. If additional information or evidence is required, after receiving the request to cancel, we will allow 14 days for the information to be provided. Flat Cancellations: We require the Original Policy or signed Lost Policy Voucher be in our office within 60 days of the effective date of the policy. Duplicate Coverage: Send a copy of the duplicate coverage s declarations page along with the Original Policy or signed Lost Policy Voucher. Reinstate / Rewrite Policy day lapse With underwriting approval, will reinstate with signed No Loss Statement. Over 30 days lapse With underwriting approval, new application with current date and a signed No Loss Statement BINDING RESTRICTIONS HURRICANE, HURRICANE WATCH OR WARNING New Or Inforce Business: Agents may NOT BIND any new risk, increase the amount on an existing risk, or add additional coverage to an existing risk under any form of insurance if the risk is located in Territories 1, 8, 9, 10 and 11 and a Named and Designated Storm is within the boundaries of 80 degrees west longitude and 20 degrees north latitude. This restriction will remain in force until the storm has passed and for 24 hours after the storm watch or warning has been lifted. Renewal Business: Any renewal business that meets the requirements of Delta s current underwriting guide can be renewed during a Hurricane, Hurricane Watch or Hurricane Warning for the same coverages as the expiring policy. Renewal policies may not be bound or issued for additional limits or perils. 5

6 WILDFIRE New Or Inforce Business: Agents may NOT BIND any new risk, increase the amount on an existing risk, or add additional coverage to an existing risk under any form of insurance when a wildfire watch or warning has been issued in the county that the risk is located until the fire has been fully contained and the watch has been lifted. Renewal Business: Any renewal business that meets the requirements of Delta s current underwriting guide can be renewed during a Wildfire Watch or Warning for the same coverages as the expiring policy. Renewal policies may not be bound or issued for additional limits or perils.