Transcription of ALLEGANY CO-OP INSURANCE COMPANY HOMEOWNERS …
1 ED. 11/01/2004 1 ALLEGANY CO-OP INSURANCE COMPANY HOMEOWNERS underwriting rules AND GUIDELINES I. underwriting rules A. binding AUTHORITY OF AGENTS Homes that have been reviewed by agents of ALLEGANY CO-OP and that do not fall under the list of either Unacceptable Exposures or that fall under the list of Exposures Requiring Prior underwriting Approval may have coverage bound for the following maximum limits. Any limits exceeding these maximums must be submitted to the COMPANY on a Prior COMPANY Approval basis. Replacement Cost Coverage Coverage A. Up to $300,000 Coverage C. Up to $225,000 Personal Liability Limit Up to $500,000 Medical Payments Limit Up to $5000/ $25,000 Actual Cash Value (ACV) Coverage Coverage A.
2 Up to $ 150,000 Coverage C. Up to $ 125,000 Liability and Medical Payments Same as Replacement Cost B. PROPERTIES REQUIRING PRIOR COMPANY APPROVAL BEFORE binding COVERAGE The following situations require underwriting review before binding coverage to so that disputes with regard to pricing or coverage acceptability can be avoided. Without prior COMPANY approval the following may not be bound. 1. Homes or Prospective Insured s having been cancelled or non-renewed by another COMPANY or by ALLEGANY CO-OP during the past 5 years. 2. Homes that are or will be unoccupied for extended periods exceeding 3 months. 3. Homes that are currently for sale and are actively listed by the insured or by real estate agents.
3 4. Homes that have more than one boarder in residence. 5. Homes having horse exposures or farming operations being conducted on the insured premises. ED. 11/01/2004 2 6. Homes where there has been a lapse in coverage for any period of time. 7. Homes where the insured is known to have poor premium payment history or coverage lapses. 8. Homes under construction may be written under the Standard program providing that the home will be completed and occupied by the Insured within 120 days of the original application. During the construction phase no discounts of any kind will be granted. C. UNACCEPTABLE EXPOSURES The following HOMEOWNERS exposures are unacceptable to the COMPANY .
4 The COMPANY underwriting staff will not permit HOMEOWNERS coverage for these kind of exposures. 1. Homes that are vacant; 2. Homes having substandard maintenance The COMPANY makes a practice of conducting safety inspections on selected new business periodically on renewals. Elements of substandard maintenance can be readily observed. Some of the common items indicating that the home will not meet the COMPANY s underwriting standards are the following. a. Poor housekeeping both exterior and interior look for the presence of trash and junk lying around the property; b. The presence of any homemade wood burning stoves or furnaces; c. Deteriorated roof condition watch for build up of moss, curled or missing roof shingles evidence of extensive roof patching; d.
5 Evidence of electrical system problems uncovered breaker boxes or junction boxes, use of extension cords, temporary wiring, over fusing, outdated or inadequate wiring and service; e. Evidence of plumbing problems water damage to floors, ceilings and walls, outdated plumbing fixtures, evidence of incomplete plumbing repairs; f. Liability hazards lack of handrails, broken or rotted porch floorboards, torn carpeting, broken chimneys, raised sidewalks and insecure television antennas. 3. Homes with unfenced in-ground pools New York State law requires that all in-ground pools have adequate ED. 11/01/2004 3 fences with self-closing locking gates. Regulation part 744 and (f) of the New York State Uniform Fire and Building Code requires a high degree of care on the part of in-ground pool owners.
6 The exposure to small children makes an unfenced in-ground pool an uninsurable hazard. with slides. (Revised 2018) Breed and Disposition No insured will readilyadmit that their dog may be a hazard, however a sizablepercentage of HOMEOWNERS loss dollars are paid for dogbites. Any aggressive dogs must be noted on theapplication along with the breed of any dogs owned by theinsured. The following breeds are known to be breeds will be considered only in rare dog can be aggressive and the training and discipline exercised by the owner is a factor as important as the breed of the dog. ALLEGANY CO-OP inspectors are required to note on reports any aggressive behavior exhibited by dogs without regard to the breed.
7 The COMPANY reserves the right to decline or non-renew policies where aggressive dogs have been reported. The COMPANY requires a signed dog exclusion, excluding claims arising out of the ownership, care, or control of dogs in the household if the Underwriter makes an exception with regard to dog breeds and disposition. , Cattle and Large Animals Whenever thereare large farm animals located at the insured premises,special underwriting consideration must be made. Thecondition of fences, the proximity of animals to traveledroadways, and the knowledge and experience of the ownersin caring for and handling these animals are all factors toconsider when underwriting the exposures.
8 Ourunderwriters will need additional information with regardto these items in order to grant binding authority. If theexposure more than a minor one the account will bereferred to our commercial farmowners underwriting unitfor consideration under the farm 11/01/2004 4 7. Homes where the insured is known to have poor financial Management- Bankruptcy within the prior 5 years. 8. Submissions where the application information is not complete. II. underwriting GUIDELINES ALLEGANY CO-OP is able to insure a wide range of homes under its preferred, standard and non-standard programs. The COMPANY uses URB policy forms and has developed these underwriting guidelines to assist its agents in selecting both the pricing track and the coverage program best suited for those homes that fall into the acceptable risk range.
9 The COMPANY s underwriting knowledge of the Upstate New York marketing region combined with attractive pricing and superior levels of policy and claims service makes ALLEGANY CO-OP the right choice for HOMEOWNERS INSURANCE . ACORD POLICY APPLICATIONS ALLEGANY CO-OP exclusively uses the ACORD application format for all HOMEOWNERS submissions. The use of the ACORD format is an industry standard that will prepare the way for the day when we will be able to accept application transactions on line. We require a fully completed ACORD application that is signed both by the prospective insured and by the licensed agent. We will be unable to process or bind coverage where the application is unsigned or the information is not completed.
10 Incomplete applications received without full information will be returned as unbound coverage. REPLACEMENT COST AND ACV OPTIONS ALLEGANY CO-OP offers both Replacement Cost and Actual Cash Value Options under its Standard and Non-Standard Programs. Certain homes with relatively low Coverage A values may be accommodated under the ACV program. It is important to note that low valued properties must be correctly evaluated for both their condition and coverage amounts. A current edition cost estimator will develop the replacement cost estimate and must be completed. A depreciation table is used to develop an appropriate ACV amount. Homes that are more than 35 years of age but are otherwise in good condition must have had the following renovations in order to be considered for Replacement Cost Coverage.
