FULMONT MUTUAL INSURANCE COMPANY

Underwriting Guidelines HOMEOWNERS POLICY (HO)| Return to Underwriting Guidelines

The Homeowners Policy is designed to insure the average to above average one‑two family dwelling.  In order to maintain our Homeowners premiums in line with industry standards, we must implement strict underwriting guidelines for the Homeowners policy.  The following guidelines are designed to assist the agent in determining risk acceptability. If the policy does not fit these guidelines, it may fit another type of policy. Please consult with your underwriter if you have questions.

*** ALL HOMES WILL BE REVIEWED PRIOR TO RENEWAL ***

FOR ELIGIBILITY BASED ON THESE GUIDELINES

1.         The agent has no binding authority on risks with Property or Liability claims totaling $2500. and above within the last five years. Existing policies with current claims exceeding $2500. will be reviewed and could face possible nonrenewal. Please consult with the Company to determine if limited coverage is available in these circumstances.

Please submit loss information from the prior carrier.
Please submit digital photos. They may be emailed to your underwriter.

2.         The agent has no binding authority on risks cancelled by another company for underwriting reasons, more than one nonpayment of premium or claims frequency.  Please consult with the Company to determine if limited coverage is available in these circumstances.

3.         Student housing is unacceptable due to higher VMM exposure. 

4.         Row houses are not acceptable. If your risk is within 10 feet of the adjoining dwelling, please submit for pre-inspection.  

5.         Mobilehomes are not eligible for Homeowner Policy. Please consult with the Company to determine if limited coverage is available in these circumstances.

6.         Rehabilitation Projects are not acceptable, until work is completed. It may be written on a Dwelling Fire policy at limited coverages, with acceptable supporting business. Please submit to your underwriter for approval.

7.         When requested by underwriter, proof of lease with security deposit for each tenant or proof of tenant's HO 4 policy. We strongly suggest that you recommend to your customer that the tenants’ obtain their own insurance, to protect the property owner if a loss occurs due to tenant negligence. If the risk is a two-family dwelling, we will be attaching form ML-59, which is a lead paint exclusion that applies to the rental portion of the dwelling.

            If the risk has any of the problems listed in items #8-#12, the risk is not eligible for coverage.

8.         BUILDING MAINTENANCE: The building must be kept up to date. Plumbing, heating, and electrical installations must be up to code. There must be no water stains or loose plaster on ceilings or walls; floor coverings must not be ripped; light fixtures must be installed properly; hallways must be well lit; sidewalks must be even and free of ice and snow when applicable; porches & steps must have railings; steps must be even; no holes in floorboards.

9.         BUILDING HOUSEKEEPING: The apartments and surrounding areas must be kept free of debris, trash and other attractive nuisances.

10.        ELECTRICAL: All units must have proper electrical systems. A minimum of 150-amp service is required with proof of wiring updates. Electrical services must be approved by a licensed electrician or building (code enforcer) inspector.

 11.       HEATING: The following are not acceptable central heating sources - WOODBURNING STOVES, FIREPLACES, KEROSENE HEATERS or any type of portable heater.  If you have a Woodburning stove, fireplace or other type of supplemental heat source, please submit an interior photo, showing the set up of the heat source.  Portable kerosene heaters are forbidden, even as a supplemental heat source.  Chimneys utilized for solid fuel (wood, coal) systems must be lined.  In order to be eligible for forms ML-2 or ML-3, there must be central heat.  To qualify for form ML-1R, Central heat or a non‑portable space heater is required.

            Chimneys must be constructed or maintained as follows:  

             Built from the ground.

             Loose brickwork or loose mortar must be repaired.

           . Wood stove or fireplace chimneys must be flue lined.              

12.        ML‑3 FORM CRITERIA: Plumbing, heating, electrical, water heater, roof and chimney must have been updated within the last 20 years or in accordance with guidelines in effect at the time of policy issuance or renewal.  This information must be listed on the application or renewal update form.  Failure to submit required underwriting information could result in a cancellation being issued.  The Company reserves the right to deny ML-3 coverage based on information received on the application or inspection report.     

13.        REPLACEMENT COST RATING is not available for dwellings over 40 years, unless the risk meets Company Guidelines.  The plumbing, heating, electrical, water heater, roof and chimney must have been updated within the last 20 years or in accordance with guidelines in effect at the time of policy issuance or renewal.  This information must be listed on the application or renewal update form.  Failure to submit required information could result in a cancellation being issued.  All apartments must be occupied.  The Company reserves the right to deny ML-3 or Replacement cost rating coverage based on information received on the application or inspection report.  An accurate Replacement Cost estimator must be on file.             

14.        ROOFS: In order to be eligible for forms ML-1R, ML-2 or ML-3 the roof should be in good condition and be less than 20 years old.  Please note areas in poor condition that you would like excluded from coverage.  

15.        SMOKE DETECTORS & CARBON MONOXIDE DETECTORS: They must be operational in all units and hallways.  Batteries should be checked and replaced periodically.  Fire extinguishers are recommended. 

16.        There must be two exits for every unit above the ground floor.  

17.        COVERAGE B ‑ RELATED PRIVATE STRUCTURES:  The garage/shed must be in good condition.  It cannot be in danger of collapse or have a poor or unacceptable roof.  Identify all buildings that are located on the premises.  If the outbuilding is more than a three-car garage or basic utility shed, the building does not qualify as a related private structure.  If the building is a barn or commercial-type building and it is in good condition, it may qualify for fire coverage on a separate policy.  Contact your underwriter for a quote.      

18.        The form ML 10, Farmers Comprehensive Personal Liability, (FCPL) may be attached to a Homeowners Policy when an insured has a farm exposure of any type (except for full time farming) such as farmland rented to others at the initial and/or additional locations. When there is a possible farm exposure, it is to the insured's advantage to have the FCPL endorsement attached to provide the necessary additional coverage. Operating farms must be written on a Farmowner Policy.

19.        Policyholders residing in rented homes or apartment buildings may obtain a policy that provides the protection for personal property and liability under form ML‑4.  This form is similar to the coverages found in form ML‑2, with the exception of Coverage A, Dwelling and Coverage B, Related Private Structures. 

20.        An Inland Marine endorsement may be added to a Homeowners policy to provide coverage for items such as boats, computers, jewelry items, furs, cameras, musical instruments and other items as listed in the Inland Marine section of the Rating Manual.  Please submit a copy of the bill of sale or appraisal.  If you do not locate a particular rate, please contact your underwriter. 

           21.         Exterior, uncovered upper deck stairways must be covered and not subject to ice and snow buildup. 

           22.         Snow and ice diverters must be placed on risks where there is a potential for ice or snow to fall off the building and to land on a sidewalk, porch or other entrance or exit way. 

               23.           Any risk with a prior claim or cancellation involving dangerous/uncontrolled animal will not be accepted. 

24.       Risks with aggressive animals on premises are not acceptable, whether the animal belongs to the insured, tenant or temporary resident. 

25.        Above-ground pools must have proper locks and gates and in-ground swimming pools must be fenced.  Pools are not acceptable on two-family residences. 

26.           BUSINESS ACTIVITY: There is no coverage for incidental business exposures, without Company approval prior to binding. Day care services in the dwelling by the owner of the building, tenant or any other resident ARE NOT PERMITTED.

 

REVISED 09-2012