Henry County Mutual Insurance Manual

HenryCounty Mutual Insurance Manual

Applicants.

Applications are not to be submitted on the following individuals:

Persons whose habits or living conditions show a lack of responsibility for property or respect for the rights of others.
Persons with poor credit reputation.
Persons who are alcoholics, drug or narcotic addicts.
Persons who are mentally incapable of making sound judgments.
Persons engaged in illicit business of any kind or who has been convicted of a felony.

Applications:

Henry County Mutual Insurance Company applications must be used on all business submitted. Whenever coverage is bound, an application or binder must be received by the company within 48 hours (2 days) of the effective date of coverage. The Company then has the right to reject any application or portion thereof with the rejection to become effective upon the proper notice from the Company.

Applications may NOT be backdated.

The application MUST be fully completed and signed by the applicant and the agent.

The agent may NOT sign the application for the applicant.

The agent must accurately provide all information on the application including the general information regarding the previous carrier, losses or claims, cancellations or declines, and restrictive endorsements. The agent must ask the applicant every question and complete the questionnaire fully or have the applicant complete the questionnaire. No questions should be left blank. Henry county Mutual Insurance Company relies on the accuracy of these answers and if the policy is issued, it is based on its reliance that the answers given are correct. If false information is given and Henry County Mutual Insurance Company relies on that information (believing it to be true) and a claim occurs and if we then find the inaccuracies and they are material to the extent that had we known the truth we would not have issued the policy to begin with, then we have the right to cancel the policy as of its inception date based on material misrepresentation. In these cases a claim would not be paid. Thus, it is imperative that all information on the application is accurate. All solid fuel (wood, pellet or coal) heating devices must be specified on the application. A picture required for all solid fuel (wood, pellet or coal) heating devices which includes outside wood furnaces.

Unacceptable List.

Applications are NOT to be submitted on the following property:

Applicants with a fire or water damage loss in the past five years.
Property for sale.
Vacant or unoccupied property.
Premises which show a lack of maintenance.
Dwellings where the replacement cost exceeds the current market value by more than 40%.
Dwellings or outbuildings with flat roofs
Dwellings which have had or show any previous water damage or mold.
Dwelling with poor steps or handrails in need of repair.
Dwellings with 60 amp service.
Dwellings, which have a wood, shake or tile roof.
Property with unfenced swimming pools or diving boards.
Property with more than two mortgagees or additional interests.
Applicant, spouse, or resident of household who has a trained guard dog, a Staffordshire Terrier (Pit Bull, American Bull, Yankee Terrier), Rottweiler, wolf hybrid (Tundra Shepherd), Akita, or a dog which has bitten someone, or any animal which has viscous tendencies.
Portable buildings.
Single wide mobile homes, trailer houses, or house trailers unless it has a permanent foundation or skirting and tie downs installed.
Unusual property or property with unusual building characteristics.

Binding Authority.

Agents may bind coverage in accordance with these underwriting rules and manual rules found in this manual. Agents may not bind coverage on property listed in the Unacceptable List.

If there is reason to question the acceptability of a risk, do not bind coverage or accept any premium. These risks should be discussed with your Home Office Underwriter or Manager prior to binding. Risks that are questionable must received prior approval by the Manager.

Definition of binding: All applications are considered bound unless application has “unbound” or “trial application” prominently written on front of application or on an electronic application “unbound” is chosen and no premium is collected.

Minimum Annual Premium and Fees - Mandatory on all policies:

Minimum annual policy premium is $100.00.

Policy Fees

Policy Fee$ 30

Payment Plan Fee $ 15

Late Fee $ 25

NSF Fee $ 25

Policy Term:

Policies may be written on an annual, semi-annual, or quarterly basis.

Rates:

All rates shown are annual premium rates.

Photos.

Photos are required on all dwellings and all other structures covered under the policy. Front and Rear photos of the dwelling are required. Include photos of solid fuel appliances. Pictures of all structures not covered by this policy and the Exclusion Endorsement are to be submitted with the application.

Measurements.

Measurements of all structures insured are required on the application.

Losses.

Any loss notice is to be reported to the office immediately.
Agent is to explain to any insured if a cow is hit by lightning and not killed, such claim shall be void after 60 days if not settled in that length of time.
All livestock losses must be reported within 48 hours. All lightning and accidental gunshot requires vet report.
All livestock losses require pictures. Drowning losses require a vet report.
Two losses in three years or three losses in five years will result in underwriting review that may result in deductible increase or cancellation or non-renewal.

Dwellings.

The following information will help you determine what to look for in a Standard Dwelling Fire and Extended Coverage Policy. Dwelling must have average characteristics with basic quality interior and exterior construction and updated in every aspect.

Basic/Economy – Homes of this quality are typical of manufactured housing usually 1 story, small and plain.

Modest/Fair – Materials and construction for this house exhibit moderate craftsmanship or a low degree in quality. These houses are small, plain and unpretentious. They are also noted to have little or no ornamentation or decoration.

Average/Standard – Materials for this house would typically be found at a Home Depotor other major buildingmaterial store chain.

Above Average/Upgraded – A house of this quality usually an upgraded version of a builder’s plan with high qualitymaterials. A few of the rooms or part of the house are customized for the owner.

Dwelling must be in average condition (new or good as new) showing evidence of proper maintenance and good housekeeping within the dwelling and about the premise and with roof in better thanaverage repair.

Dwelling must have a heating system consisting of one of the following:

Heating sourceplant consisting of permanently installed warm air furnace, hot water or steam plant resting on an incombustible base, and vented to a masonry chimney built from the ground, or a U.L. listed factory made vent pipe. (Warm air furnaces fueled by wood or coal must be vented to a tile-lined masonry chimney built from the ground) or a permanent modern electric heating system installed by a competent electrician in compliance with building code requirements. Wood or coal fueled stoves, gas or oil fueled stoves, and gas or oil fueled floor or wall furnaces are not acceptable as the primary heating plant but will be acceptable as supplemental heat to an approved system. Supplemental wood or coal fueled stoves must be vented to a tile-lined masonry chimney built from the ground or to a U.L. listed metalbestos pipe.

Dwellings must have a serviceable interior plumbing system, being a permanent pipe system, supplied by water from a continuous reliable source.

Dwellings must have an electrical system in good condition properly installed in compliance with building code requirements. Dwellings with a 60 amp service are NOT acceptable.

Dwelling must have a continuous foundation under all exterior walls.

No roof replacement endorsement will be offered on modular/manufactured/mobile homes of any size/type unless roof has been replaced with approved installation/material type since factory installed. (Subject to agent/underwriting verification.)

Wood stoves and Fire places.

$50 charge for all appliances capable of burning solid fuels.
Picture is required of each installation.
Appliance must be at least three (3) feet away from any wall or flammable material.
Fireproof backing installed on floor and wall behind stove.
No wood heat in single wide mobile homes.
Modular our Double-wide homes wood heat permitted if installed by the factory.
Requirement of regular professional cleaning of chimney and solid fuel appliances.
Must be installed and maintained according to NFPA 211 standards and manufacturers’ instructions.
Outside solid fuel (wood, pellet or coal) heating devices must be at least 25 feet away from home or according to manufacturers specifications. Agent should check chimney height and roof line. Well pump casing cannot be used a flue.

Seasonal Homes:

Cabins and weekend dwellings are considered seasonal dwellings by the fire company.
No broad form coverage on seasonal properties. Vandalism coverage is optional with charge for premium.

Rentals:

If a dwelling is provided for a member of the family with or without rental charges, rental rate is charged.
No vandalism coverage or broad form coverage on rental properties.

Dwelling coverage:

A water softener system is included in the dwelling coverage
Outside wiring is covered by our policy when such wiring is attached to the dwelling. However, wiring attached to outbuildings is not covered. To receive this coverage, an amount must be listed on line 14 of the application for private power and light pole coverage.
Pumps are included in one buyback with the dwelling
Tools and satellite antennas will be considered an extension of household goods and charged as one risk for deductible buyback.

Vacant or Unoccupied Dwellings:

Dwellings that are unoccupied for 60 days or more are considered vacant.

Uninsurable items:

Dogs are not insurable.

Theft and Vandalism:

Theft and vandalism coverage cannot be written on rental, seasonal, vacant or unoccupied property.
All theft or vandalism losses require police report.

Outbuildings and Other Structures:

Outbuildings over 50 years old are excluded unless electrical systems are updated.
A pump house is considered an appurtenant structure unless specifically line itemed as a pump house.
Structures that do not meet underwriting requirements are to be excluded from coverage by submitting a signed exclusion endorsement and picture.
Portable buildings are not to be insured.

Personal Property:

All terrain vehicles should be specifically listed. Make, model, year and serial number required. Physical damage and liability rate charged for each vehicle.

Self Propelled Machinery:

Year, Make, Model and Serial numbers will be required an all self-propelled machinery.

44 - Fire & EC Policies

Class 8 and 10 residence:

Dwelling must have basic characteristics with basic interior and exterior construction.
Dwelling must show pride in ownership.
Foundation under all exterior walls must be of continuous construction.
Wood Heat is not acceptable as a primary source of heat (Surcharge applies) No wood heat in rentals.
No water or total fire claims in past five years.
Age of roof no older than 30 years.
Homes must be 50 years or newer unless substantially remodeled.
Must be member of Fire District if membership is required.

Rental properties:

Dwelling must have average or basic characteristics with average or basic interior and exterior construction.
Dwelling must show pride in ownership.
Foundation under all exterior walls must be of continuous construction. .
Wood Heat is not acceptable as a primary source of heat (Surcharge applies). No wood heat in rentals
No water or total fire claims in past five years.
Age of roof no older than 30 years.
Homes must be 50 years or newer unless substantially remodeled.
Must be member of Fire District if membership is required.

Seasonal Properties:

Dwelling must have average or basic characteristics with average or basic interior and exterior construction.
Dwelling must show pride in ownership.
Foundation under all exterior walls must be of continuous construction. .
Wood Heat is not acceptable as a primary source of heat (Surcharge applies) No wood heat in seasonal rentals.
No water or total fire claims in past five years.
Age of roof no older than 30 years.
Homes must be 50 years or newer unless substantially remodeled.
Must be member of Fire District if membership is required.

Vacant or Unoccupied properties:

Vacant or unoccupied dwelling are unacceptable.

Mobile Home Policies:

Mobile Homes and Personal Property 0-30 years of age

Minimum dwelling coverage of $5,000; $100 minimum premium applies
Owner occupied or rental. Vacant or unoccupied are not permitted.
Good maintenance and upkeep showing high pride of ownership
Modern electrical system – no fuses
Primary heating system consists of any of the following: Forced air furnace Electric Floor, ceiling, or wall furnace
Supplemental wood heat acceptable, but not as a primary source(surcharge applies)
NO WOOD HEAT IN SINGLE WIDE MOBILE HOMES
Age of roof no older than 30 years
Must be a member of Fire District if membership is required.
Skirting and tied down mandatory.

Mobile Package Policy 0-10 years of age

Minimum dwelling coverage of $10,000
Owner occupied only
Good maintenance and upkeep showing high pride of ownership
Modern electrical system – no fuses
Heating system consists of any of the following: Forced air furnace Electric Floor, ceiling, or wall furnace
Wood heat acceptable, but not as a primary source (surcharge applies). NO WOOD HEAT in single-wide mobile homes
Age of roof no older than 10 years
Must be member of Fire District if membership is required.
Skirting and tied downs mandatory.

Farm Homeowners

Insurable value of primary structure from $25,000-250,000.
Dwelling must have average characteristics with an average interior and exterior construction and updated in every aspect.
Dwelling must show pride in ownership.
Foundation under all exterior walls must be of continuous construction. .
Wood Heat acceptable as a secondary source of heat (Surcharge applies)
No water or total fire claims. (per home office approval)
Age of roof no older than 30 years. If HO3 Replacement policy recommend 15 years
Homes must be 50 years or newer. (Unless has been rewired, reroofed and re plumbed)Per home office approval.
Homes must be insured at least 80% to value.
Must be member of Fire District if membership is required.

Coverages Provided:

Dwelling – amount of insurance
Other Structures - 10% of dwelling amount
Personal property - 50% of dwelling amount
Loss of use - 20% of dwelling amount

Homeowners Policy:

Insurable value of primary structure from $80,000 - $250,000

Dwelling must have above average characteristics with excellent quality interior and exterior construction and modern in every aspect.
Dwelling must show excellent pride of ownership.
Foundation under all exterior walls must be of continuous construction.
Dwelling must have a central heat and air. (No baseboard heat allowed as primary source)
Dwelling must have modern electrical system in excellent repair.
Wood Heat acceptable as a secondary source of heat (Surcharge applies)
No water or total fire claims in the past five years.
Age of roof no older than 20 years . (per home office approval)
Homes must be 50 years or newer. (per home office approval)
Homes must be insured at least 100% to value.
Must be member of Fire District if membership is required.

Coverages Provided:

Dwelling – amount of insurance
Other Structures - 10% of dwelling amount
Personal property - 50% of dwelling amount
Loss of use - 20% of dwelling amount

Policy Checklist

Application must be fully completed and all questions answered.
Signatures of insured and agent.
Underwriting of insured completed.
Underwriting of home completed. (sq ft, age, etc.)(roof age for replacement)
Serial numbers, year, make, model, cc’s, for MH, machinery or atv.
Pictures of home, outbuildings and excluded or not covered outbuildings. (All sides-unrestricted)
Pictures of solid fuel appliances (wall behind stove, connections, piping, flue).
Payment
Million liability questionnaire. (If applicable)
E2Value.
Policy Effective date.

Consolidated Underwriting Manual- pg1