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12 Typical Underwriting Guidelines of Homeowner's Insurance.

By
Services for Real Estate Pros with The Larsen Protection Team

This is a typical underwriting guide, written by an insurance company that insures homes in NY State. While this is pretty normal, there are exceptions to every rule and an underwriter's interpretation.

1.Risks with prior losses in the last 5 years need prior approval.
2.For dwellings under renovation, contact your Underwriter for approval.
3.Occupancy 1 & 2 family dwellings.
4.Risk must pass physical inspection.
5.Photo inspection required for all locations (dwelling front and rear and all other structures).
NYC HO 70A, Additional Location(s) Section II Liability must submit photo.
NOTE: If photo inspection is not submitted we will need specific driving directions for
locating the risk for inspection purposes.
6.All other structures on the residence premises and their usage must be disclosed to the company and photo must be submitted.
7.An ISO Home Value is required with all new applications.
8.No unsupported seasonal or secondary locations.
9.Coverage A Limits exceeding $1,000,000 refer to company. NOTE: Interior inspections are completed by Company for homes $500,000 & above.
10.Select Program (0 – 12 years old)
Special Program (13 – 30 years old)
- Coverage A must be written at 100% of Replacement Cost.
11.Renovator – Dwellings over 30 years, renovated within the past 10 years to include roof, heating, plumbing and wiring.
- Coverage A must be written at 100% of Replacement Cost.
12.No homes with fuses – must have 100% circuit breakers

Some older city homes maybe don't pass these guidelines but if you have a new buyer who plans on doing renovations, many insurance company underwriter's will understand but would aslo want pictures of the work in progress.

Posted by

Tom Larsen,

Buffalo insurance expert

You'll Switch for the savings, stay for the service!

Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

Bookmarked.  Very interesting material.  Thanks for educating me on this Monday morning. 

Mar 14, 2011 02:33 AM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

I think that it is helpful to lay people to understand how insurance policies are written (and when they are not).

Mar 14, 2011 02:33 AM
Larry Lawfer
YourStories Realty Group - Newton, MA
"I listen for a living." It's all about you.

This is a good source of material Tom, I have found that guidelines to alter from state to state and underwriter to underwriter, but you have shared the most common and it is appreciated. Thank you.

Apr 03, 2011 02:25 AM