|
Underwriting
Guidelines Landlord's
Package Policy (LLP)
|
Return to Underwriting
Guidelines
In order to maintain reasonable rates, uniform
underwriting guidelines will be applied to avoid:
The LLP policy was designed to accommodate the
above‑average to average 1‑4 family dwelling. We are implementing the following new guidelines to help you make the decision if a risk is eligible for coverage with
Fulmont. 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 DWELLINGS 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 within the last
five years.
Please submit loss information from the prior carrier to the underwriter for
review.
2. The
agent has no binding authority on risks cancelled by another company for
underwriting reasons, 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.
Seasonal risks and mobilehomes are
not eligible for LLP.
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 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: In order to be eligible for forms FL-2B or FL-3B, there must be
central heat. To qualify for form FL-1R, Central heat or a Non portable space
heater is required. Woodburning Stoves, pellet stoves, fireplaces,
Kerosene heaters or any other type of portable heaters are NOT
ACCEPTABLE. Wood or coal furnaces must have lined chimneys.
12. ROOFS: In order to be eligible for forms FL-1R, FL-2B or FL-3B the roof
should be in good condition and be less than 20 years old. Please note any areas
in poor condition that you would like excluded from coverage.
13.
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.
14. There must be two exits for every unit above the ground floor.
15. FL 3 FORM & REPLACEMENT COST PROVISIONS CRITERIA: The plumbing, heating,
electrical installation, water heater, roof and chimney must have been updated
within the last 20 years or in accordance with industry standards or Company
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.
All apartments must be occupied. The Company reserves the right to deny FL-3 or
Replacement cost rating coverage based on information received on the
application or inspection report.
16. REPLACEMENT COST RATING is not available for dwellings over 40 years,
unless the risk meets Company Guidelines. The plumbing, heating, electrical
installation, water heater, roof and chimney must have been updated within the
last 20 years or in accordance with industry standards or Company 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. All
apartments must be occupied. The Company reserves the right to deny FL-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.
17. BUSINESS ACTIVITY: There is no coverage for incidental business
exposures on the rental premises. Day care services in the dwelling by
the owner of the building, tenant or any other resident ARE NOT PERMITTED.
18.
In accordance with an interpretation by the New York State Insurance Department,
the Company will only write 4 dwelling units per Landlord's Package policy. The
Company will write separate policies when there are more than four total units
owned by one policyholder. EXAMPLE: Five one family dwellings owned by one
policyholder would be written on two separate policies, one policy with four
dwellings, one policy with one dwelling. This is to avoid any possibility of
assuming that the policy is commercial.
19. Above-ground or in-ground swimming pools are not acceptable.
20. Any risk with a prior claim or cancellation involving a dangerous or
uncontrolled animal will not be accepted.
21. Risks with aggressive animals on premises are not acceptable, whether the
animal belongs to the insured, tenant or temporary resident.
22. RELATED PRIVATE STRUCTURES: The garage or 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 fire quote.
23. Exterior, uncovered upper deck stairways must be covered and not subject to
ice and snow buildup.
24. 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.
25. All Landlords Package policies will be issued with a General Liability
aggregate. A table is listed in the manual.
Return
to top of page
Return to Underwriting Guidelines
Revised-2012-09-
|