Landlord's Package Policy (LLP) | Return to Underwriting Guidelines

• After reviewing previous year's Loss Statistics, we found we must take active measures in underwriting the LLP policies. Our study finds several areas, which we note as follows:
  
• Tenant vandalism is becoming a major problem. Some landlords are looking to the Insurance Company for a SOLUTION.
  
• Below average dwellings are being insured with FL-3 coverage.
  
• Below average dwellings are being insured to Replacement Cost value. The LLP policy was designed to accommodate the above average to average 14 family dwelling.
  
• We prefer to insure the owner who demonstrates pride in their property, not the owner who is interested only in collecting rental income. To decrease our losses and to help increase your BONUS POTENTIAL AT YEAR END, we are implementing the following new guidelines, to help you, as an agent make the decision if a risk is eligible for coverage with Fulmont.
  
• The agent has no binding authority on risks with Property or Liability claims over $2,500. each within the last three years. The Application must be submitted to your underwriter for approval. Please submit loss information from the prior carrier.
  
• The agent has no binding authority on risks cancelled by another company for underwriting reasons, claims frequency or non payment of premium. Please contact your underwriter prior to submitting application.
  

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• Student housing is unacceptable due to higher VMM exposure.
  
• Row houses are generally not accepted.
  
• Seasonal risks and mobile homes are not eligible for LLP.
  
• Rehabilitation Projects are not acceptable, until work is completed. It may be written on a Dwelling Fire policy at limited coverage, with acceptable supporting business. Please submit to your underwriter for approval.
  
• When requested by underwriter, proof of lease with security depos-4 policy.
  
• 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.
  
• BUILDING HOUSEKEEPING: The apartments and surrounding areas must be kept free of debris, trash and other attractive nuisances.
  
• ELECTRICAL: All units must have proper electrical systems. If a fused system, proper amperage fuses must be used. Electrical services must be approved by a licensed electrician or building (code enforcer) inspector.
  
• HEATING: Central heat or a Non portable space heater is required. Wood burning Stoves, Kerosene heaters or any other type of portable heaters are NOT ACCEPTABLE. Chimneys utilized for solid fuel (wood or coal furnace) systems must be lined.
  
• ROOFS: The roof should be in good condition. Please note any areas in poor condition.
  
• SMOKE DETECTORS: They must be operational in all units and hallways. Batteries should be checked and replaced periodically. Fire extinguishers are recommended.
  
• There must be two exits for every unit above the ground floor.
  

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• FL-3 FORM CRITERIA: Below-average dwellings are not acceptable. Dwellings under renovation are not acceptable. Interior and exterior must show no signs of deterioration or lack of maintenance. The plumbing, heating, electrical installation, water heater, roof and chimney must have been updated in accordance with the Acknowledgement Form (ACK 7/93). All apartments must be occupied. The Company reserves the right to deny ML-3 coverage based on information received on the Acknowledgement form, photos, application or inspection report.
  
• REPLACEMENT COST RATING is not available for dwellings over 40 years, unless they meet Company Guidelines. The Acknowledgement Form includes the information needed for the Company to determine if Replacement Cost could apply. Belowaverage dwellings are not acceptable. Dwellings under renovation are not acceptable. Interior and exterior must show no signs of deterioration or lack of maintenance. Plumbing, heating and electrical installation must have been updated in accordance with Company guidelines. A Replacement Cost Estimator must be completed. The Company reserves the right to deny Replacement Cost Rating, based on information received on the Acknowledgement Form, photos, application or inspection report.
  
• BUSINESS ACTIVITY: There must be no business activity including day care services in the dwelling by the owner of the building, tenant or any other resident.
  
• 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.
  
• Swimming pools, above or in-ground, are not acceptable.
  
• Any risk with a prior claim involving a dangerous or uncontrolled animal will not be accepted.
  
• Risks with aggressive animals are not acceptable whether the animal belongs to the insured, tenant or temporary resident.
  
• Trampolines or any other dangerous outdoor play equipment are not acceptable. If the risk is otherwise acceptable, we will give the policyholder the opportunity to remove the item, with a reinspection immediately following. If the risk is otherwise acceptable, we will give the policyholder the opportunity to remove the item, with a reinspection immediately following.

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