SCOTTSDALE INSURANCE COMPANY/SCOTTSDALE INDEMNITY COMPANY HOMEOWNERS UNDERWRITING GUIDELINES

Transcription

1 SCOTTSDALE INSURANCE COMPANY/SCOTTSDALE INDEMNITY COMPANY HOMEOWNERS UNDERWRITING GUIDELINES Territory: AL, DC, DE, FL, GA, MD, MS, NC, NJ, PA, SC, TN, VA REFER TO STATE SPECIFIC GUIDELINES WIND REQUIREMENTS: Wind and Hail Deductible (not named storm) - Refer to state guidelines WIND EXCLUSION REQUIREMENTS: All X-Wind policies must provide evidence of wind coverage or signed wind exclusion form Policy Types: HO3 (1-4 Family), HO4, HO6, HO8, DP1 and DP3 Quoting Authority: Risks outside of binding authority/territory can be referred to underwriting for consideration Coverage A Dwelling RCV & ACV available Maximum: 1 million TIV (Total Insured Value of Dwelling, Other Structures & Contents Coverage) Minimum o $125,000 in Alabama and Mississippi o $100,000 in all other states Coverage B Other Structures Minimum: 10% of dwelling coverage Coverage C Personal Property RCV & ACV available Minimum: 50% of dwelling coverage Coverage D Loss of Use (Loss of Fair Rental Value for Tenant Occupied) Minimum: 10% of dwelling coverage Coverage E Liability Minimum: None Maximum: $1,000,000 o With underwriter company only o Not available in all states. Liability can be extended from a Primary dwelling to 1 location, up to a 4-Family dwelling Coverage F Medical Payments To Others Minimum: None Coverage F Medical Payments To Others Wind and Hail Deductible Refer to state specific guidelines SC o 0 3 miles to coast exclude wind o 4 10 miles to coast 3% wh deductible o Over 10 miles to coast and located in Territory A & B 2% wh deductible o Over 10 miles to coast wind and hail is built into AOP deductible for non-coastal counties NC o Exclude wind for all risks in outer banks including; Carova Beach, Carolla, Duck, Southern Shores, Kitty Hawk, Kill Devil Hills, Nags Head, Manteo, Wanchese, Rodanthe, Waves, Salvo, Avon, Buxton, Frisco, Hatteras, and Ocracoke o 0 2,000 feet of ocean and/or bay 3% wh deductible o 2,001 feet 1 mile of ocean and/or bay 2% wh deductible o 1-3 miles to ocean and/or bay 1% wh deductible o Over 3 miles to ocean and/or bay wind and hail is built into AOP deductible GA o 0 2,000 feet of coast exclude wind apply 20% credit o 2,001 feet 2.5 miles to coast 2% wh deductible

2 o Over 2.5 miles to coast if any wind or hail losses within 3 years apply $1000 mandatory wind and hail deductible, otherwise wind and hail deductible is built into AOP deductible Optional: Mold Refer to state specific guidelines Optional: Water Sewer Back Up Refer to state specific guidelines Optional: Personal Article/Scheduled Items & Personal Injury Info: - Refer to state specific guidelines Items valued between $1,000 - $15,000 require a bill of sale Items valued $15,000+, require an appraisal less than 3 years old If the total value exceeds $50,000, a Central Station Alarm is required with receipt of an alarm certificate Optional: Personal Injury Refer to state specific guidelines Named Insured: Estate Names are acceptable Insured in the name of a bank is eligible only if it fits the following: Single Interest Policy DP1 insured to the loan amount written in the mortgage name, dwelling must be occupied NO foreclosure and the MMS2 (single interest form) Bank Owned Vacant DP1 insured with premises only liability written in the mortgage name and property must be for sale with signs LLC s, HOA s, COA s: Must be for Individual use only, tax purposes, family protection, or as a personal investment. If in the name of an LLC, HOA, or COA is used for commerce, or the individual s sole income, the risk will be ineligible Subject to fully completed LLC Questionnaire with approval from underwriting The bi-laws maybe be requested for a description of what is covered. A Separate HO6 policy should be in place by the unit owner to cover contents HO3/HO4/HO6/HO8 Occupancy (Owner, Secondary and COC s ONLY): Primary: Must be occupied by the owner full time Secondary/Seasonal: Occupied by the owner with 0-16 weeks rental exposure Renovation Home must be occupied. HO3 requires a 12 month policy term. If Vacant and under renovation, home must be quoted as vacant Builder s Risk HO3 requires a 12 month policy term o Home or significantly renovated property must be completed by a General Contractor with a minimum of $1MM of liability coverage validated by their GL Policy (if possible) o The insured must subcontract 100% of the work to a licensed contractor. The insured is not permitted to complete the renovation or construction DP1/DP3 Occupancy (Owner, Tenant, Secondary, Vacant, Seasonal, Coc s): Tenant: Occupied by a full-time tenant OR Seasonal tenant for more than 16 weeks. Tenant can not be sorority, fraternity, college students, half-way house residents, or specialized group living Vacant HO3 requires a 12 month policy term. Visitation is required by the insured, family member, real estate agent etc every 2-3 weeks. In the event of a claim, the insured may need to provide a visitation log Renovation Home must be occupied. HO3 requires a 12 month policy term. If Vacant and under renovation, home must be quoted as vacant Builder s Risk HO3 requires a 12 month policy term o Home or significantly renovated property must be completed by a General Contractor with a minimum of $1MM of liability coverage validated by their GL Policy. (if possible)

3 o The insured must subcontract 100% of the work to a licensed contractor. The insured is not permitted to complete the renovation or construction Claims: All risks with claim history must be approved by underwriting prior to binding Open Claims not eligible Claims with a $0 pay out, still count as one claim Property Damage claims: Past 3 years Claims arising out of negligence: Past 5 years Online Quoting Available if 1 claim, less than $5,000 pay out o $500 AOP Deductible not available for risks with any claim history Please Submit: o 1 Claim with a $5,000+ pay out o More than 1 claim of any pay out amount Construction Type - Interior & Exterior: - Refer to State Specific Guidelines Exterior: NOT ELIGIBLE o Modular Homes o Manufactured Home o Mobile Homes or Converted Mobile Homes o Underground or Earth Homes o Yurts o Balloon Construction o EIFS (Exterior Insulated Finish System; aka:synthetic Stucco) o Log Homes Require AOP deductible of $2,500 SUBMIT FOR UNDERWRITING APPROVAL o Fiberglass Homes o Homes made of unconventional materials or unusual construction, design and/or not originally intended as a dwelling o Converted Structures o Solar Heated Homes o Flat Roofs; also requires $2500 minimum deductible Interior: ELIGIBLE o Homes built on stilts o Home with propane tanks (above or underground) note HO3 policies exclude pollution o All other homes not listed above NOT ELIGIBLE o Polybutelene Plumbing o Fuses o Portable Space Heaters or Kerosene Heaters o Aluminum Knob & Tube Wiring SUBMIT FOR UNDERWRITING APPROVAL o Baseboard heaters o Wood Burning Stove Must be professionally installed, maintained to manufacturer s recommendations Must meet all codes, and used as a secondary heating source Stove must have own lined masonry chimney and be at least 2 feet from any combustible wall If manufacturer specifications allow for shorter clearances, supporting documentation is required

4 ELIGIBLE o Operational Heating is required on all homes portable units not acceptable o Circuit Breakers must have 100 amp minimum o Window air conditioning units Must be thermostatically controlled Year Built & Updates: Refer to State Specific Guidelines Homes built in 1950 or earlier are required to be endorsed with a Modified Functional Replacement Cost and are not eligible for Extended Replacement Cost Updates are required as follows: o Plumbing, Electrical, Heating: Within 30 years (partial updates okay as long as risk is being maintained) o Roof: Within 20 years (unless documentation can be provided showing longer life span of roof) Age requirements do not apply to slate, tile, or tin roofs, if properly sealed Tar paper rolled, plywood boards and stapled roofs are unacceptable regardless of age Flat Roofs require underwriting approval with a minimum deductible of $2,500 (may not be available in all states) PC 9 ad PC10: Refer to State Specific Guidelines Requires approval from underwriting with a fully completed Unprotected Questionnaire with submission. Properties without a responding fire department are not eligible with this program Requires Fire Department response time of 15 minutes or less If Fire Department response time is 15+ minutes, we will require o Central Station Fire Alarm o Or Interior Sprinkler System Swimming Pools: Refer to State Specific Guidelines Coverage is available for all occupancy types - maximum liability limit of $500,000 Diving boards are acceptable with a maximum liability limit of $500,000. All swimming pools must be fully fenced with a lockable gate. Please submit to underwriting if HOA or community does not allow fences on the property. Swimming Pool Exclusion form will be applied to any risk with a drained pool. Docks: Refer to State Specific Guidelines Coverage is available through Coverage B (Other Structures) if: o Dock is located on deeded property o No rental exposure (unless home is Tenant occupied and reflected as such on policy dec page) Business On Premises: Refer to State Specific Guidelines Daycare is eligible All other is not eligible for liability or medical payments coverage Commercially zoned properties must be submitted to underwriting for approval Mortgage Companies: No more than two mortgage companies are acceptable Acreage: Refer to State Specific Guidelines Acreage of any size is acceptable Farming Exposure not acceptable Rental of land for any reason is not acceptable Insurance-to-Value:

5 Arson or Fraud: Bankruptcy: 100% of the calculated Replacement Cost is required, unless ACV is requested 80% co-insurance penalty applies to all policies An applicant with a prior arson or fraud charge or conviction is unacceptable If arson was committed by someone other than the insured, it must be submitted to underwriting for quoting Must be discharged Must be submitted to underwriting for quoting Animals/Pets Animal Liability is automatic but can be excluded: Animals that are ineligible o Farm Animals or Exotic Pets o Akita o Pitt Bull Terrier o Chow Chow o Doberman Pinscher o German Shepard o Rottweiler o Staffordshire Terrier o Bull Mastiff o Huskie o Alaskan Malamutes o Great Dane o St. Bernard o Rhodesian Ridgeback o Any Cross-breed of the above o Any wolf breed or hybrid Property Inspections No photos required from agent at time of binding Satisfactory inspection required for all new business within 60 days of the inception date, which will be ordered by Johnson & Johnson Satisfactory inspection required every 4 th renewal term Exterior Only Inspections: Properties valued less than $1,000,000 Exterior & Interior Inspections: Properties valued $1,000,000+ All inspections require photos, replacement cost value estimator, with hazard identification o Post-Inspection Underwriting by Johnson & Johnson will take place to address any and all areas of concern identified by the inspection. These include: Replacement Cost Adjustment Hazard Mitigation Rating Discrepancies o All efforts should be made to physically verify all information listed below. When unable to physically verify, the insured should be interviewed and asked to verify the information by phone or in person. All inspections should contain: Name and status of person interviewed Square footage measurements Calculated RCV based on square footage Protection Class and construction verification Liability exposure, hazards or other problem conditions noted and photographed. Roof Quality Comments on inability to withstand high winds Storm shutter and hurricane strap verification Age of home Distance to water in feet and miles, and elevation above water Comments on the condition and value of other structures on the premises

6 PC9 and 10 water source information property accessibility, responding fire department information (paid, volunteer) should be verified Verification of functioning alarm system Discrepancies in Value: If the inspection report indicates that the Replacement Cost Value (RCV) is at least 10% higher than the current Coverage A policy limit, the retail agent will receive an underinsured notice If the inspection report indicates that the Replacement Cost Value (RCV) is at least 15% lower than the current Coverage A policy limit, the retail agent will receive an over insured notice If the retail agent disagrees with the inspection RCV Estimator, they may submit a RCV Estimator to underwriting for review and consideration. Appraisals may be considered only if it includes the replacement cost value Common Inspection Recommendations: Inspections are subjective and are not limited to the following. Inspection recommendations must be completed within 30 days, or policy may be subject to a change in coverage or cancellation Handrails: Any set of steps that requires 3 steps to climb (landing included as the top step), must have handrails to prevent a fall hazard. Underwriting will also consider the width of the steps to determine if an exception can be made. Also, If the city or county codes or ordinance does not require the handrails, the retail agent may inform underwriting, which will be taken into consideration Railings: Any porch which is 3+ feet above the ground requires a railing to prevent a fall hazard. If the city or county code or ordinance does not require railings around a raised porch, the retail agent may inform underwriting, which will be taken into consideration Pools: Must be fenced with a lockable gate, unless community does not allow fencing Debris: Must be removed to prevent a fall hazard Exposed Wiring: Must be secured Open Foundation: Must be closed Roof: Must be in good condition no missing or curling shingles Roof Fascia: must be in good condition Business on Premises If found, risk may not be eligible for liability Other structures: must be in good condition Abandoned Vehicles: must be removed from property Trampolines: If the policy does not have a Trampoline Excl Endt, the trampoline will be asked to be removed.