Homeowners 8 Underwriting Guidelines
Homeowners 8 policies may be issued for owner-occupied single family homes located in Iowa. Applicants must have received a notice of rejection, non-renewal or cancellation from an insurer within the past six months. Properties are ineligible for the Iowa FAIR Plan Association’s Homeowners 8 Program if one or more of the following conditions are present:
- The property is vacant and/or unoccupied and/or in foreclosure. (Note: An exception may be made for property in rehabilitation or reconstruction. )
- The property has physical conditions which have been declared unsafe by a local jurisdiction.
- The property has unsafe conditions, including but not limited to:
- broken, cracked, uneven or otherwise faulty steps, porches, decks, sidewalks, patios and/or similar areas.
- downspouts or drains which discharge onto sidewalks and/or driveways
- an unfenced swimming pool or private pond.
- missing or unsafe handrails when three or more steps are present.
- the property has non-operating vehicles, refrigerators, trampolines or other potentially dangerous objects in the yard.
- ownership of dogs that are known to be dangerous including but not limited to: Pit Bull, Chow Chow, Rottweiler, Akita, Bullmastiff, Greyhound, Briard, Malamute, Boxer, Persa Canario, Husky, Australian Cattle Dog, Dalmation, Mastiff, Old English Sheep Dog, Belgian Shepherd, Malinois, Great Dane, Border Collie, Doberman,, German Shepherd, Shar-Pei, and Great Pyrenese.
- Ownership of three or more horses or other riding animals, unless the applicant has in force a liability policy with limits of at least $100,000 per occurrence providing coverage for the ownership and use of the horses or other riding animals.
- The property has unsettled/unpaid claims from previous losses or has unresolved damages from previous losses.
- The property is on more than 5 acres.
- The property has a wood burning stove:
- and the stove is “homemade” or,
- the property has a garage/outbuilding with a wood burning stove.
- The property has been subject to more than two losses, each loss amounting to at least $500 or one percent of the insurance in force, whichever is greater, in the immediately preceding 12-month period, or more than three such losses in the immediately preceding 24-month period.
Coverages and limits available:
- Coverage A (Dwelling): At least $40,000 and up to $200,000 (ACV)
- Coverage B (Other Structures): 10% of Coverage A
- Coverage C (Personal Property): 50% of Coverage A
- Coverage D (Loss of Use): 10% of Coverage A
- Coverage E (Personal Liability): $50,000
- Coverage F (Medical Payment to Others): $1,000
The Iowa FAIR Plan Association uses the following forms on its Homeowners policies. This list is subject to change as new forms are filed and approved.
- HO FP DP 01 04 Policy Declarations
- HO 00 QR 01 04 Your Homeowner Quick Reference
- HO 00 08 10 00 Homeowners 8—Modified Coverage Form
- HO 01 14 06 08 Special Provisions—Iowa
- HO 04 26 04 02 Limited Fungi, Wet or Dry Rot, or Bacteria Coverage
- HO 16 09 01 09 Water Exclusion Endorsement
- HO 04 81 10 00 Actual Cash Value Loss Settlement
- HO 04 41 04 91 Additional Insured
- HO 04 44 04 91 Residence Premises (three or four family)
- HO 05 43 10 00 Residence Held in Trust
- HO 00 OS 01 04 Restrictive Amendment
The Iowa FAIR Plan Association (Plan) uses the following criteria to determine protection class:
- Protection Class 1-8: Inside city limits of protected city/town.
- Protection Class 9: Outside city limits of protected city/town but with hydrant within 1000 feet.
- Protection Class 10: Outside city limits of protected city/town with no hydrant within 1000 feet.
Property inspectors will provide information about location of property with regard to city limits, distance from hydrants, and any other pertinent information regarding the potential protection class designation and the Plan will make the final determination as what protection class will be used.
- The basic deductible is $500 with an option for $1000 or $2,500.
- We may require an increased deductible as a result of claims history and/or higher insured values.
An additional charge may be added to the premium if deficiencies are discovered during an inspection of the property. Deficiency charges may be an additional $1.00 -$3.00 per $1000 of dwelling and contents coverage depending on the inspection report. Such charges are usually the result of:
- Poor housekeeping, e.g., debris on the property or throughout the dwelling.
- Excessive deferred maintenance, e.g., peeling paint, curled shingles, overgrown trees and shrubs.
- Poor physical condition of the property, e.g., leaking roofs, sagging support structures, missing siding.
Producers do not have the authority to issue binders. The Plan does not issue binders.
- To request coverage a properly completed, legible, and signed application must be submitted.
- Applications submitted must be on forms designated by the Iowa FAIR Plan Association.
- Photos of the front and back of all buildings are required.
- All questions must be answered and both the applicant and producer must sign the form.
- The correct premium must also be submitted with the application.