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Special Multi Peril Policy (SMP) | Return to Underwriting Guidelines Special Multi Peril Manual Eligibility | Programs | Other Guidelines | Commercial - SMP Prohibited List The SMP manual provides property & liability coverages for eligible property as described under programs. The SMP Policy is designed to insure the average-to above-average commercial risk. In order to maintain our competitive premiums, please adhere to our underwriting guidelines for the SMP policy. The following guidelines are designed to assist the agent in determining risk acceptability.
The following are not eligible: 1. Operations engaged in manufacturing or processing. 2. Operations involving a substantial bailee exposure. 3. Auto service stations, dealers or garages. 4. Dealers in second hand or salvage stocks, pawnbrokers, auctions. 5. Fuel, gas and petroleum products distributors. Institutional May be written to cover property occupied by an educational, religious, charitable, governmental or non-profit organization. Processing or Service May be written to cover the following risks: 1. Dry cleaners or laundries. 2. Installation, servicing and repair of
3. Printing and similar services (photographers). 4. Warehousing 5. Miscellaneous
[ Return to Top ] Special Commercial Farm May be written on farm properties, independent of the Farmowners Program, that meet following conditions: 1. The farm ownership is a partnership, unincorporated association or corporation; 2. The name of the partnership, unincorporated association or corporation is the only named insured on the Declarations; 3. Property, both real and personal, shall be covered only if wholly owned by the named insured as stated on the Declarations; and Personal Liability forms shall not be added to a Special Commercial Farm Policy. 1. 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. 2. 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. 3. Student housing is unacceptable due to higher VMM exposure. 4. Row houses are generally not accepted. 5. Seasonal risks are generally not acceptable. 6. Rehabilitation Projects are not acceptable, until work is completed. It may be written on a Commercial Fire policy with 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. 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: Dwelling and surrounding areas must be kept free of debris, trash and other attractive nuisances. 10. 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. 11. HEATING: Central heat is required. The following are not acceptable central heating sources-WOODBURNING STOVES, FIREPLACES, KEROSENE HEATERS or any type of portable heater as the main heating source. Portable kerosene heaters are forbidden, even as a supplemental heat source. Chimneys utilized for solid fuel (wood, coal) systems must be lined. 12. ROOFS: The roof should be in good condition. Please note any areas in poor condition. 13. SMOKE 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. SF-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 within the last twenty years. All apartments must be occupied. The Company reserves the right to deny SF-3 coverage based on information received from the photos, application or inspection report. 16. REPLACEMENT COST RATING: The Company reserves the right to deny Replacement Cost Rating, based on information received from the photos, application or inspection report. 17. REPLACEMENT COST PROVISIONS CRITERIA: Below-average buildings are not acceptable. Buildings 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. Any apartment must be occupied. 18. Any risk currently on our Prohibited List. 19. Risks with unusual recreational activities involving horses or recreational vehicles are generally not acceptable. 20. Any risk with a prior claim involving a dangerous or uncontrolled animal will not be accepted. 21. Risks with aggressive animals are not acceptable whether the animal belongs to the insured, tenant or temporary resident. [ Return to Top ] COMMERCIAL - SMP PROHIBITED LIST Unacceptable Classes:
IN SOME OF THE ABOVE CASES, LIABILITY COVERAGE IS UNACCEPTABLE, OR IS LISTED ON OUR REINSURANCE PROHIBITED LIST. PLEASE CONTACT YOUR UNDERWRITER FOR POSSIBLE PROPERTY COVERAGES AVAILABILITY. [ Return to Top ] Return to Underwriting Guidelines |