HOMEOWNERS
AND DWELLING FIRE
UNDERWRITING GUIDE
August 2016
CONTACT INFORMATION
WEBSITE:
FedNat.com
CUSTOMER SERVICE/UNDERWRITING
(800) 293-2532 Option # 3 (M-F 8am-6pm)
(954) 733-7071 Fax
Email: uwinfo@FedNat.com
PTS Client file: Attach document feature under ‘Notes’ tab
MARKETING DEPARTMENT
(800) 293-2532 Option # 7
(954) 308-1397 Fax
Email: marketing@FedNat.com
CUSTOMER SERVICE HOURS OF OPERATION:
Monday – Friday
8:00AM - 9:00PM*
Saturday
9:00AM – 3:00PM*
Sunday
Closed
*New Hours as of 7/1/2016
CLAIMS DEPARTMENT
(800) 293-2532 Option #2
(954) 308-1236 Fax
CLAIMS HOURS OF OPERATION:
24 HOURS
ADDRESS: MAIL and CERTIFIED
FedNat Underwriters
14050 N.W. 14th Street, Suite180
Sunrise, FL 33323
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Homeowners and Dwelling Fire Manual
Use this Federated National Insurance Company (“FedNat”) underwriting guide, as well as bulletins, as
they become effective. Bulletins may change this guide.
Our rating/policy management software is located at: FedNat.com
All Correspondence/Information Submission Portals
FedNat’s Underwriting Department is now accepting “All Correspondence” via:
• Homeowners/PTS portal: policy access is activated the next business day after policy is bound
• Fax: (954) 733-7071
• US Mail: 14050 N.W. 14 Street, Suite 180, Sunrise, FL 33323
• e-mail: uwinfo@FedNat.com
New Business
All new business must be bound online via FedNat.com. Authorized agents have full binding authority on risks meeting our
published Underwriting Guidelines at time of binding. After fully completing an application, it must be signed by both
producer and insured(s). The insured(s) initials are required on the No Loss section of the application. Applications and
all supporting documents are to be retained by the agent in the client file and made available for audit to Federated National,
or its appointed representative, for a period of no less than 5 years from the date coverage is bound. NOTE: Applications
and all supporting documents must be submitted on risks with Coverage ‘A’ $750,000 and above.
Payment in full or down payment amount, as per payment option selected, must be collected at time of binding and
submitted within 15 days of the date coverage is bound. Agents may bind policies up to forty-five (45) days in advance
of the effective date. NOTE: Power of Attorney is acceptable; a copy of the Power of Attorney must be submitted to
Federated National.
Proof of Prior Coverage: Homes without proof of prior insurance or a coverage lapse of greater than 45 days are subject
to a 10% surcharge with underwriting approval. This surcharge does not apply to:
• New purchases provided a settlement statement is obtained.
• A new lease or rental agreement for HO-4 risks with an effective date within 45 days of the effective date of the
lease.
Homeowners Forms
HO-3, HO-4 & HO-6
Dwelling Fire Form
DP-3 only
Definition of Policy Forms & Coverage
Homeowners: HO-3 – Provides replacement cost coverage on the insured structures and replacement cost coverage on
personal property. Replacement cost coverage on contents is automatically included in the base coverage for HO-3 policies.
ACV coverage can be added by endorsement.
Tenants: HO-4 – Provides replacement cost coverage on improvements and betterments and actual cash value on personal
property. ACV coverage on contents is automatically included in the base coverage with Replacement Cost coverage
available by endorsement.
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Unit Owners: HO-6 – Provides replacement cost coverage on additions and alterations that are not the responsibility of
the association and actual cash value on personal property within the insured premises. ACV coverage on contents is
automatically included in the base coverage with Replacement Cost coverage available by endorsement.
Owner/Tenant: DP-3 – Provides replacement cost coverage on the insured structures and actual cash value (ACV) on
personal property. ACV coverage on contents is automatically included in the base coverage with Replacement Cost
coverage available by endorsement.
Minimum and Maximum Limits
Note : Tri-County defined as Miami-Dade, Broward and Palm Beach Counties
HO-3
Coverage A - $250,000 - *$3,000,000 (wind & x-wind, Tri-County)
Coverage A - $150,000 - *$3,000,000 (wind & x-wind, Non Tri-county)
Coverage B - 1%, 2%, 5%, 10%, 15% or 20% of ‘A’
Coverage C – 25%-70% of ‘A’ w/Replacement Cost (Coverage may be excluded)
Coverage D - 20 % of ‘A’
Coverage E - $100,000, $200,000, $300,000, $500,000 or $1,000,000
Coverage F - $1,000, $2,500, $5,000 or $10,000
* Limits in excess of $750,000 are only available with prior underwriting approval.
HO-4
Coverage C - $10,000 to $50,000
Coverage D - 20% of ‘C’
Coverage E - $100,000,$200,000, $300,000,$500,000 or $1,000,000
Coverage F - $1,000, $2,500,$5,000 or $10,000
HO-6
Coverage A - $25,000 to $500,000 (Tri-County)
Coverage A - $15,000 to $500,000 (Non Tri-County)
Coverage C - $10,000 to $200,000
Coverage C- $10,000 to $30,000 (If Tenant Occupied)
Coverage D - $40% of ‘C’
Coverage E - $100,000, $200,000, $300,000, $500,000 or $1,000,000
Coverage F - $1,000, $2,500, $5,000 or $10,000
DP - 3
Coverage A - $250,000 - $1,000,000 (wind & x-wind, Tri-County)
Coverage A - $150,000 - $1,000,000 (wind & x-wind, Non Tri-County)
Coverage B - 1%, 2%, 5%, 10%, 15% or 20% of ‘A’
Coverage C - 0% - 50% of ‘A’ (coverage increase in $5,000 increments.)
Coverage D - Loss of Fair Rental Value 10 % of ‘A’
Coverage E - Additional Living Expenses 10% of ‘A’
Coverage L - $100,000 or $300,000 only
Coverage M - $1,000 & $5,000
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High Value Homeowner Guidelines (HVHO) HO-3 & DP-3
Coverage ‘A’ of $750,000 and above has the following additional underwriting requirements. All HVHO risks are subject
to Underwriter approval.
•
•
Home cannot be rented to others at any time.
Must use Federated National’s Replacement Cost Estimator (MSB)
Policy Term & Payment
All policies will be issued on an annual policy period. Full term premium or company direct bill down payment is required
to be collected at time of binding and should be made payable to Federated National Insurance Company. Federated
National offers quarterly and semi-annual payment plans. If a policy premium payment is received without a payment
option indicated on the application, the policy will be set up to be paid on an installment payment plan relative to the
premium amount received.
Payment Plan Fee Structure
Two payment option/Semi-annual:
Down payment of 60% (base premium) + $10 (set up fee) + All Assessments & fees added back in.
Four payment option/Quarterly:
Down payment of 40% (base premium) + $10 (set up fee) + All Assessments & fees added back in.
Subsequent Payments
Total Premium including
Fees ranging from:
$0
to
$399
$400
to
$499
$500
to
$649
$650
to
$799
$800
to
$949
$950
to
$1,099
The fee per payment is:
$3
$4
$5
$6
$7
$8
Add $1 fee per payment for every $150 of total premium over $1,099.
HO-3 Deductibles
Standard deductibles are $1,000 for all-perils and 2% of Coverage ‘A’ for wind loss caused by hurricanes. Other options are
$500, $2,500 $5,000, and $10,000 for all other perils. Windstorm/Hurricane deductible options are $500, 2%, 3%, 4%,
5% or 10% of Coverage ‘A’. Mid-term changes to wind deductibles are not acceptable.
HO-4 Deductibles
Standard deductibles are $1,000 for all-perils and 2% of Coverage ‘C’ for wind caused by hurricanes. An optional $500
deductible is available.
HO-6 Deductibles
Standard deductibles are $1,000 for all-perils and 2% of Coverage ‘C’ for wind caused by hurricanes. Other options are
$500 or $2,500 for all perils. A $2,500 AOP deductible is only available if Coverage ‘C’ is above $125,000.
DP-3 Deductibles
Standard deductibles are $500 for all-perils and $500 for wind loss caused by hurricanes. Other options are$1,000, $2,500
and $5,000 for all other perils. Other Windstorm/Hurricane deductible options are 2%, 5% or 10% of Coverage ‘A’.
Deductibles may only be changed at time of renewal.
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Construction Definitions
• Frame – Exterior wall of wood or other combustible construction, including wood ironclad, stucco on wood or
plaster on wood, combustible supports and aluminum or plastic siding over frame.
• Masonry Veneer – Exterior walls of combustible construction veneered with brick or stone. Rated same as
Masonry.
• Masonry – Exterior walls constructed of masonry materials such as adobe, brick, concrete, gypsum block, hollow
concrete block, stone, tile or similar materials, and floors and roof of combustible construction.
• Superior Construction – Exterior walls, floors and roof constructed of masonry or other non-combustible
material(s).
Note: Mixed Construction (Masonry/Frame)
A combination of both frame and masonry construction shall be classified as frame when the exterior walls of frame
construction (including gables) exceed 33 1/3 % of the total exterior wall area.
Inspections
Federated National requires a 4 point inspection, no older than 12 months from desired effectuation of policy coverage on
any new risk where the year of construction is 50 years old or greater. The results of the 4 point inspection must yield that
the roof, electrical, HVAC and plumbing have at least a 5 year life expectancy
All High Value Homeowners (HVHO = Coverage A of $750,000 and above) are subject to additional underwriting criteria
in an effort to ensure acceptability, At the discretion of the Company, HVHO risks may be required to have an interior and
exterior inspection.
Older Home Rules
• HO-3 & DP-3: Homes that are 30 years old or older will be subject to a 4-Point interior/exterior inspection; the
inspection will be provided to the insured at no cost. Do not bind any risk unless the insured agrees to provide
interior access to the insured residence and verbal verification is obtained that the insured residence has been
properly updated, prior to binding. An unacceptable inspection and/or failure to allow access could result in the
risk being cancelled. All homes with a shingle or flat roof over 20 years of age may also be subject to inspection.
•
HO-3, HO-6 & DP-3: Homes that are 50 years old or older must be submitted with a photo of the front and rear
of home and must submit an acceptable 4 point inspection as outlined above.
Seasonal /Secondary Homes: HO-3 & HO-6
• A Seasonal residence is a residence that is not the insured’s Primary home, with continuous unoccupancy of three(3)
or more consecutive months during any one(1) year period. Only one seasonal dwelling is allowed.
• A Secondary residence is a residence that is not the insured’s Primary home and is subject to continuous
unoccupancy of not more than three(3) consecutive months during any one(1) year period.
• Both Secondary and Seasonal Homes must also have at least one of the following four features to be eligible:
Note: A 10% surcharge will apply.
1. Located within a gated community
2. Located within a guarded community (Proof must be on association letterhead)
3. Caretaker (Need full name and contact information, must visit location at least 2 times per month)
Note: Insured cannot be their own Caretaker.
4. Monitored burglar and fire alarm (Alarm certificate must be dated within one (1) year of desired effective date)
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Unit Owners Rental to Others: HO-6
Must include Unit Owners Rental to Others Endorsement. Secondary, Seasonal & dual occupancy accepted. If rented, the
term of lease must be at least 3 months or greater. Rental terms less than 3 months(quarterly) are ineligible.
If seasonal, must have at least one of the following:
1.
Located within a gated community
2.
Located within a guarded community (Proof must be on association letterhead)
3.
Caretaker (Need full name and contact information, must visit location at least Two (2) times per month)
Note: Insured cannot be their own Caretaker
4.
Monitored burglar and fire system (Alarm certificate must be dated within one (1) year of desired effective date)
Occupancy: All lines
Any Property under construction or renovation that are not occupied within 30 days of the effective date of the policy and
are being renovated, updated, or altered to a degree that would otherwise make them uninhabitable during this time frame
are ineligible for coverage. This does not include moderate renovations which are defined for the purposes of eligibility to
be painting, updating of flooring and/or other light renovations that otherwise would not make the home uninhabitable
during this time period.
Acceptable Occupancy: DP-3 only
Owner occupied as a Primary, Secondary or Seasonal residence acceptable. Tenant occupied DP-3 risks must be rented to
others for a period of not less than 1 week at a time to be eligible. Rental periods less than 1 week are ineligible.
Replacement Cost Estimator (RCE): HO-3 & DP-3
An easy to use RCE link is now available at the rating/policy management site. We prefer you use our MSB/RCE tool
although we do accept other companies’ RCE’s. If using another company’s RCE, please submit the detailed report
and not just the summary page. If you use our MSB/RCE, please retain in the agency file. An appraisal can only be used to
validate Coverage ‘A’ limits if the estimated cost new is greater than what the RCE indicates. Coverage ‘A’ must be at least
100%, but not more than 120%, of the appraisal or RCE, whichever is greater. Coverage should be rounded up to the
nearest ‘thousand’.
Note: If Coverage ‘A’ is $750,000 and above the use of our MSB is mandatory.
Replacement Cost Estimator: HO-6
An RCE is required for all HO-6 risks legally organized under a Homeowners Association and not a Condominium
Association. The provisions of Chapter 720 of the Florida Statutes regarding Homeowner Associations are unlike Chapter
718 of the Florida Statues which govern Condominium Associations and their mandate of specific insurance requirements. It
is the agent’s responsibility to determine, and document, which type of association the risk is subject to prior to binding.
Premium
Premium shall be returned pro-rata upon mid-term cancellations. All coverage will be rounded to the nearest thousand, and
all premiums will be rounded to the nearest dollar.
Changes and Mid-Term Premium Adjustments
All changes shall be made pro-rata subject to the rules and rates in effect at the inception date of the policy or latest
subsequent renewal date thereafter. If insurance is increased, decreased, or cancelled, the additional or return premium
shall be calculated on a pro-rata basis subject to the minimum premium requirement. The agent’s signature is required in
order to make changes to policies. All cancellation requests must be signed by the insured and agent.
Windstorm Exclusion, Contents Exclusion and Screen Enclosure Endorsements can only be done at time
of renewal. Endorsement requests must be postmarked within 15 days of the renewal to be eligible for
processing on the renewal term.
Note: Screen Enclosure coverage can be added mid-term if proof that the Screen Enclosure is newly added
within 30 days of request.
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APPLICABLE ENDORSMENTS AND ELIGIBILITY
Aluminum wiring
Risks with aluminum multi-strand wiring are acceptable without any retro-fitting requirements. Risks that have
aluminum single strand (solid) wiring are ineligible.
Polybutylene Plumbing: HO-3 Only
Risks with Polybutylene plumbing are acceptable with the Water Damage Exclusion Endorsement. Risks are eligible to add
the available $10,000 Limited Water Damage Endorsement. (Please read this endorsement carefully as it is a limited peril
endorsement and is not a complete buy-back of the exclusion)
Ineligible Roof coverings
Wood shake/shingle roofs are not eligible for coverage. Roofs that are in poor condition and/or have less than 5 years of
remaining life are ineligible. Roof coverings (tile or shingle) that have been sealed/coated with any coating system without
proof that the underlying roof cover has a minimum of 5 years of remaining life are ineligible. These types of coatings are
typically applied to roofs in need of repair/replacement in an effort to extend the usable life which makes the risk ineligible.
Roof Shape
In the Homeowners/SRM quoting portal we ask about roof shape in two separate areas. The first area is on the tab titled
‘Property Construction and Occupancy’ which asks about the ‘Predominant Roof Shape’. This question is only asking what
comprises 50% or more of the shape of the roof. This is a data collection point that has no effect on premium. The second
area is on the tab titled ‘Windstorm Load Construction Information’ which asks about the Roof Geometry as it pertains to
the OIR-B1-1802 form. This question is for MITIGATION premium credits which defines a Hip Roof as a ‘Hip roof with
no other roof shapes greater than 10% of the total roof system perimeter’. The selection of the Hip roof credit at this point
requires that an approved Windstorm Mitigation Inspection be available or that the roof is ‘clearly’ eligible for the credit. If
any other roof shapes are present a visual determination may not be sufficient and additional underwriting information or a
Windstorm Mitigation may be required to qualify the risk for the requested credit. Please call underwriting PRIOR to
binding any risk with this credit that does not have a supporting mitigation inspection.
EIFS – Exterior Insulation and Finish Systems
Risks with EIFS over a home with exterior walls of masonry construction are eligible for coverage. EIFS applied over frame
exterior walls are ineligible. Proper documentation must be submitted during the quote approval process.
HO-3 Contents Coverage – ACV Request
The ACV Coverage form (FNIC HO 39 05 10) is required to be maintained in file by the agent.
• Mid-term endorsements ADDING or REMOVING the ACV Endorsement is allowed.
Screen Enclosure Coverage
If the screen enclosure coverage is rejected: a signed acknowledgement form (FNIC-FLORIDA HO99 (10/08)) for HO-3
or (FNIC-DP3 SESR (10 13) for DP-3 rejecting coverage must be retained in file by the agent.
• No mid-term endorsements or REMOVING screen enclosure coverage is allowed unless proof that the
structure has been removed, or newly installed, is submitted.
Screen Enclosure & Carport Buy Back Option
Please be advised that screen enclosures and carports are excluded for hurricane damage’s. You may buy back up to
$50,000 in coverage for the Screen Enclosure’s and Carports through the quoting system under the “Optional Coverage”
section of the quoting process.
Water Damage Exclusion: HO-3, HO-6 & DP-3
Risks that are greater than 40 years of age (30 years of age for DP-3) will have the Mandatory Water Damage Exclusion
applied. The exclusion will apply to all new and renewal policies. This mandatory endorsement can be removed on homes
greater than 40 years old (for HO-3 & HO-6) with underwriting approval. Proof of complete plumbing renovation
required (i.e. all plumbing lines/fixtures from the slab up are required to be replaced to be eligible for this mandatory
exclusion to be removed) along with a roof reflecting a minimum remaining life expectancy of 5 years.
Note: Removal of the Water Damage Exclusion is not available for DP-3 risks over the age of 30 for new and renewal.
Exclusion of Water Damage on DP-3risks less than 30 years of age is not available.
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Limited Water Damage Buyback: HO-3, HO-6 & DP-3
If the Water Damage Exclusion is applied you can buyback a $10,000 Limited Water Damage Coverage. This is not a total
buyback of the exclusion. Please read the limited endorsement carefully.
Water Back Up & Sump Overflow: HO-3, HO-4 & HO-6
An optional endorsement providing $5,000 in Water Back Up and Sump Overflow coverage. This coverage is not available
if the Water Damage Exclusion is endorsed.
Golf Cart Physical Damage and Liability: HO-3 & HO-6
Optional endorsement that extends Section I and II Coverage’s to losses arising from the ownership and personal use of a
golf cart. $50,000 CSL or $100/$300/$100 limits are available.
Refrigerated Personal Property: HO-3, HO-4 & HO-6
The policy may be endorsed to provide $500 of coverage for covered property stored in freezers or refrigerators on the
residence premises for loss caused by power service interruption or mechanical failure. A $100 deductible will apply.
Identity Theft Expense and Resolution Services Coverage: HO-3, HO-4 & HO-6
When the optional $25 Identity Fraud Expense Coverage endorsement is attached to the policy, $25,000 of coverage is
available to pay for expenses incurred by an insured as a direct result of any one identity fraud first discovered or learned of
during the policy period.
Equipment Breakdown Coverage: HO-3, HO-4 & HO-6
When the optional $50 Equipment Breakdown Coverage endorsement is attached to the policy, $50,000 of coverage is
available to pay for loss to home systems and property caused by mechanical or electrical breakdown. A $500 per
occurrence deductible will apply.
Personal Injury Coverage: All Forms
Provides liability coverage for personal injury to others for offenses such as false arrest, detention or imprisonment, libel,
slander, defamation of character, invasion of privacy and wrongful eviction or wrongful entry.
Flood Policy Discount: All Forms
A 2.5% credit to the total premium will be applied if the policyholder has an active flood insurance policy issued by
Federated National Insurance Company via NFS. This discount applies to the Homeowners policy upon the effective date of
the concurrent flood policy. This discount is removed from the homeowners policy effective upon cancellation, nonrenewal, or termination of the flood policy.
Senior Discount: All Forms
A premium discount will be applied to the All Other Peril premium if at least one named insured is 55 years or older as of
the effective date or renewal of the policy.
Dog Liability: All Forms
Dog liability is excluded from the policy; however, this endorsement provides a $50,000 personal liability sub-limit. This
endorsement may NOT be added for breeds of dogs with vicious tendencies such as Akitas, American Bull Dogs,
Beaucerons, Caucasian Mountain Dogs, Chow Chow, Doberman Pinschers, German Shepherds, Great Danes, Keeshonds,
Pit Bulls, Presa Canarios, Rottweilers, Staffordshire Terriers, or any mix thereof, or any dogs with a history of biting.
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Scheduled Personal Property: HO-3
Policies with coverage ‘A’ $300,000 and above are eligible for the Scheduled Personal Property Endorsement. The single
item maximum limit is $10,000. The maximum scheduled limit for all items is $50,000. Any single item worth $2,000 or
more must be submitted with an appraisal or bill of sale not older than three(3) years old upon binding.
Item
Bicycles
Cameras &
Projection
Equipment
Collectibles
Fine Arts and
Antiques
Furs
Golf Equipment
Guns
Personal Jewelry
Property to which rule applies
All types of bicycles except motor bicycles or any other motor powered conveyances or
vehicles of any kind.
Home Video Cameras, VCRs, Portable sound and Recording devices,
Personal
binoculars, telescopes and microscopes. Blanket coverage up to a max.
Professional
of $1,000 may be purchased to cover films, tapes, and articles of
equipment.
Includes Die Cast Cars, Sports Memorabilia, Shells, Medals and War Memorabilia, Comic Books,
Magazines, Dolls, Model Trains, Sports Cards, Animal Mounts, and autographed collectibles.
Paintings, Etchings, Pictures, Tapestries, Art Glass Windows and other bona
No Breakage
fide works of art of rarity, historical value, or artistic merit.
Breakage
Includes imitation furs and fur rugs and garments trimmed with fur or consisting principally of fur.
Ensembles such as coat, muff, and hat may be scheduled as a single item.
Individually owned clubs, golf clothing, and golf equipment. Blanket coverage to a max. of $1,000
may be purchased to cover unscheduled articles of equipment.
Blanket coverage up to a max. of $1,000 may be purchased to cover
Collectible
unscheduled articles of equipment and supplies.
Fired
Articles of personal adornment composed in whole or part of silver, gold,
Zone 1
platinum, or other precious metals and alloys, whether or not containing pearls
jewels, precious or semi-precious stones. For engagement rings and bridal sets,
Zone 2
policies may be issued in the name of the 2 interested individuals, as interest
Zone 3
may appear, irrespective of domicile.
Jewelry stored in the vault of a bank or a non-bank security facility specializing Vault Credit
in vault storage service.
Miscellaneous Personal Property
Instruments, sheet music, and equipment. Blanket coverage up to a
Personal
Musical
max. of $1,000 may be purchased to cover unscheduled sheet music
Instruments
Professional
and equipment.
Other Sports
Other sports equipment not listed elsewhere and not excluded in the policy.
Equipment
Includes silver plate, gold ware, gold plate, and pewter ware. Excludes: pens, pencils,
Silverware
flasks, smoking implements, or accessories, or articles of personal adornment.
There is no blanket coverage. Each stamp, coin or any pair, strip, block, series,
Stamps
sheet, cover, frame, card, or the like must be separately
Coins
Stamp and Coin scheduled.
Collections
Safe Credit: A lower rate is available subject to agreement by the insured to keep not less than 75%
(by value) of the property insured in a fireproof safe or vault equipped with a combination lock,
when such property is not in use or on exhibition.
Rate per
$100
$9.35
$1.75
$2.75
$3.00
$0.75
$1.25
$0.40
$1.40
$1.00
$1.60
$2.15
$2.00
$1.75
$0.27
$1.00
$0.60
$1.55
$3.00
$0.60
$0.50
$1.85
$0.30
*The three zones for personal jewelry are defined as follow:
Zone 1: Broward, Dade, Palm Beach, Monroe
Zone 2: Alachua, Charlotte, Collier, Hillsborough, Indian River, Lee, Martin
Zone 3: All Others
All filed and approved policy forms and endorsements can be viewed under the e-Forms Library in the
FedNat.com agent portal.
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Sinkhole Coverage
Sinkhole Loss Coverage is excluded in the basic policy but may be purchased for an additional premium. A 10% sinkhole
deductible will apply to all policies that include Sinkhole Loss Coverage. Sinkhole Loss Coverage cannot be added or
removed midterm.
If Sinkhole Coverage is rejected: a signed acknowledgement form (FNIC HO 44 (05 15)) for HO-3 or (FNIC DP2 SHR (08
13) for DP-3 rejecting coverage must be submitted. If it is not submitted with the application, a request for missing
information letter will be generated giving the agent 15 days to comply. If form is not received within the 15 days, a Notice
of Cancellation will be issued.
If Sinkhole Coverage is selected: a signed acknowledgement form (FNIC HO 37 (10 12)) for HO-3 or (FNIC DP3 SHE (07
13) for DP-3 must be submitted. If the required form is not submitted with the application a request for missing
information letter will be generated giving the agent 15 days to comply. If the form is not received within the15 days a
Notice of Cancellation will be issued.
If the property is located in the counties of Alachua, Citrus, Dixie, Gilchrist, Hamilton, Hardy, Hillsborough, Jefferson,
Lake, Lee, Leon, Levy, Manatee, Marion, Orange, Osceola, Pinellas, Polk, Seminole, Sumter, Suwannee, Taylor, Volusia,
Wakulla and Washington the following applies:
New Business may not be bound with Sinkhole Loss Coverage.
For existing policies in these counties, policies which include Sinkhole Loss Coverage will be non-renewed. A new
policy that excludes Sinkhole Loss Coverage will be offered.
• New Business and Renewal Business: If the applicant / policy holder requests the option of Sinkhole Loss Coverage,
an approved structural inspection of the home, completed within 45 days of the coverage request date must be
completed prior to adding the coverage. The inspection will document existing damage, evaluate the structural
integrity of the dwelling, and verify that there is no current sinkhole or sinkhole activity within one mile of the
insured property that has not been disclosed.
• Where there is an inspection in our underwriting file, underwriting will have the discretion to waive the inspection
requirement. An “Approved” inspection service is one that has been designated by us as competent to perform the
evaluation, and whose report meets our informational requirements. The insured will contract directly with the
approved inspection service and pay an arranged fee we have negotiated with the inspection service. Both parties
will receive a copy of the inspection. The fee will not be refundable no matter how the underwriting decision is
reached.
An inspection from an inspection service that has not been designated by us as “Approved” may be submitted for
consideration in meeting this requirement. Such an inspection must have been completed by a professional
engineer, professional geologist, or other individual or entity recognized by us as possessing the necessary
qualifications to properly complete the inspection, and must meet all requirements outlined above with regard to
timing, content and format.
If the inspection results in company underwriting approval, the Sinkhole Loss Coverage endorsement will be added
to the policy.
These inspection requirements apply to the named counties only.
•
•
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10
Transfer or Assignment
No transfer or assignment of the coverages offered under the policy may be made.
Ownership / Title of property:
The following outlines the acceptability of a risk depending on the titled owner.
• Individual name(s)
• Personal Trust (i.e. Living Trust, etc.)
• Non Personal Trust (i.e. Realty Trust,
Land Trusts, Family Ltd Partnership etc.)
• Limited Liability Corporation (LLC)
• Other Entity not listed
HO-3
Yes
Yes+
HO-4/HO-6
Yes
Yes
DP-3
Yes
Yes
No
No
Yes++
No
No
No
No
Yes++
Submit
+ If property is Not in the name of an acceptable Individual or Personal Trust the risk is only eligible for a DP-3 excluding
Liability and Medical Payments with an option to add Liability and Medical Payments with form (DL 24 11) as mandatory
which limits liability coverage to the insured premises.
++Risks in the name of an LLC, Corporation, Non-Personal Trusts or other entity; Liability and Medical Payments will be
automatically excluded. The option to add form (DL 24 11) Premises Liability is available.
Protection Class Limitations
1. Risks located in a Protection Class rating of 9-10 require underwriting approval.
2. In a classified area where two or more classifications show (i.e. 4/9), the classification is determined as follows:
DISTANCE TO FIRE STATION/FEET TO FIRE HYDRANT
5 road miles or less AND within 1,000 feet = use 1st PC listed
5 road miles or less AND beyond 1,000 feet = use 2nd PC listed
Over 5 road miles = PC 10
In an area classified as Protection Class 9 or 10 where the responding Fire Department will certify their response distance is
less than five road miles AND the availability of a fire hydrant or acceptable Alternate Water Source within 1,000 feet of the
structure use the 1st rate class indicated for that jurisdiction.
Acreage Limitations
1. Risks located on over five (5) acres of land require underwriting approval.
2. Farming equipment is unacceptable
3. Commercial/business activity prohibited on property
General Property Condition
1. Risk must show pride of ownership
2. Property must be clear of clutter/debris
3. Excessive or unusual liability expose is unacceptable. This would include but not be limited to skateboard
ramps, bike ramps, excessive debris, junk/unregistered vehicles, etc.
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Foundations:
The following are acceptable foundations for new business subject to verification by underwriting:
•
•
•
Foundation
HO-3
HO-4/HO-6
DP-3
Slab on grade
Yes
Yes
Yes
Crawl Space
Yes*
Yes
Yes*
Piers, Posts and Pilings
Yes*
NA
Yes*
Foundation construction requirements• If risk has a foundation of reinforced masonry Piers/Posts/Pilings the following guidelines apply:
o Minimum post dimension of 8” X 16”
o Maximum distance between posts located under the living area is 20 ft.
• If risk has a foundation of wood Piers/Posts/Pilings the following guidelines apply:
o Piers/Post/Pilings must be constructed of Pressure Treated Timber
o Risk must be no more than 25 years of age at time of binding
o Minimum post dimension of 10” X 10” or 10’ in diameter
o Maximum distance between posts located under the living area is 10 ft.
* A 10% surcharge will be applied to all risks not defined as 100% slab on grade.
Risks with any part of the living area constructed over water are not acceptable.
Wind Pool
We do write policies in the Wind Pool as long as they do not fall under The Prohibited Risks Section of our guidelines.
Under no circumstances is coverage to be backdated.
There is complete animal liability exclusion on all policies. Option to purchase Dog Liability is available
for qualifying risks. See page 9 ‘Dog Liability’ for list of unacceptable breeds.
HURRICANE, TROPICAL STORM AND OTHER IMPENDING DANGER BINDING RESTRICTIONS
No application for new business, endorsement for increased coverage or reduction in any deductible amount may be bound,
written, or issued, or monies received, regardless of effective date, when The Company issues a notice of binding
restrictions due to a Tornado, Tropical Storm or Hurricane Watch or Warning that has been issued by the National
Hurricane Center. Binding will only be restricted in areas identified as ‘Closed’ by the Company and are effective
immediately upon notice being issued.
PLEASE REFER TO BULLETINS AT FedNat.com FOR BINDING RESTRICTIONS & UPDATES
Please self-monitor the storms. The Company reserves the right to immediately suspend binding authority during periods of
potential floods, mud slides, brush fires or other natural disaster or national emergency.
Claim Reporting Procedures
Please be advised that we have a toll free number available 24/7 for homeowner claims. To expedite claim service efficiently
and effectively please instruct your insureds and claimants to call our Claims Department directly at (800) 293-2532,
Option #2 or report on-line at FedNat.com.
Credits/Discounts
Policies received without the proper documentation will have the applicable credits removed resulting in the generation of
an additional premium billing.
Changes in Policy Terms
Existing policies may be offered a renewal with a Notice of Change in Policy Terms (FNIC HO 42 (10 12))
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Prohibited Risks
The following are not acceptable for Federated National’s Homeowners and/or Dwelling Fire program:
Type
1. Risks with excessive or unusual exposure including but not limited to skateboard or bicycle ramps, trees in close
proximity to the home with limbs/branches overhanging any part of the structure, etc.
2. Risks with trampolines, pools or similar structures that are not completely screened, fenced or walled. The
surrounding structure must be permanent and lockable with a minimum height of four feet.
• (Child gates/fences, Bushes, Chicken wire, Hog wire, other wire fence material are not acceptable)
3. Risks in poor condition and/or are poorly maintained.
4. Risks heated, in whole or in part, by solid fuel heating devices, such as wood burning stoves or “fireplace inserts”
(wood burning stoves inserted into masonry fireplaces), or heated by any other device which is not controlled by a
wall-mounted thermostat.
• Exception: Factory or professionally installed central heat systems or fireplace systems.
5. Mobile homes, Pre-fabricated homes, Log Homes or kit homes. Including but not limited to Dome homes, Pyramid
homes other uniquely shaped homes.
6. Modular homes not on a continuous, concrete foundation.
7. Risks with Asbestos siding
8. Risks that do not have circuit breakers on all branched wiring.
9. Risks made of EIFS, synthetic stucco applied over frame.
10. Risks with Cloth, Knob and Tube or Aluminum single strand branched wiring. Note: Multi strand Aluminum wiring
is acceptable.
11. Risks that have electrical fuses on any portion of the interior branched wiring.
12. Risks that have polybutylene pipes without the Water Damage Exclusion Endorsement. Limited Water Damage
endorsement is available.
13. Risks that have unapproved roofs, such as cedar/wood shingles.
14. Risks that have a remaining life expectancy of less than five (5) years on any of the following: roof, electrical or
plumbing.
15. Risks that are not insured to 100% of the replacement cost of the appraisal, or RCE, whichever is greater.
16. Risks with more than two mortgages.
17. Risks not owned in an individual name or acceptable Trust Account for HO3 & HO-6.
18. Risks owned as part of a Timeshare for all lines.
19. Risks that have been moved from their original foundation
20. Risks that have been previously rejected, cancelled or non-renewed by any company for underwriting reasons without
first obtaining underwriting approval.
Occupancy
1. HO-3: A single family home that is occupied by more than two families.
2. HO-4 & HO-6: Homes occupied by more than two families.
3. DP-3: Timeshares, Short-Term Rentals (i.e. less than 1 week)
4. Multiple family homes with more than two units. A duplex is acceptable as long as the owner is a resident.
5. A single family dwelling, that has more than two roomers or boarders.
6. Fraternity and sorority dwellings or any similar housing arrangement.
7. Dwellings used for commercial or business purposes.
8. A home that is under construction.
9. All vacant and or unoccupied dwellings.
10. Any Dwellings undergoing renovation that is not occupied within 30 day from the policy inception.
(Continued on next page)
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Prohibited Risks
Location
1. Risks within one mile of a confirmed sinkhole.
2. Risks located where there is past or current sinkhole activity.
3. Risks located on a farm, ranch, orchard or grove; or where farming activities or ranching operations take place.
4. HO-3 & DP-3 Risks located in territories 5 & 7.
5. HO-4 & HO-6 Risks in territories 5 & 7 that do not exclude wind.
6. Risks subject to brush or forest fire.
7. Risks under a tornado, tropical storm, or hurricane watch or warning.
8. Risks located in a condemned area due to conditions such as urban renewal or highway construction.
9. Any insured location constructed partially or entirely over water.
Loss History
1. Applicants convicted of arson in the past 25 years.
2. Applicants that have been cancelled for insurance fraud in the past 15 years
3. Applicants that have had a material misrepresentation on an application for insurance in the past seven years.
4. Applicants that have incurred three or more claims in the three years immediately preceding the policy effective date.
Exception: An act of God.
5. Applicants which have had a property or contents loss due to theft within the past three(3) years over $5,000 and does
not installed and currently have a monitored Burglar and/or Fire alarm system(s) and had damage repaired.
6. Applicant(s) that has suffered one or more water damage claim(s) in excess of $10,000 in the past three(3)years for
new business and more than two water damage claims in the past 5 years for renewal business.
Loss History Surcharge
Properties that have a history of prior losses with the company shall receive an additional surcharge. An eligible loss is any
property or liability loss incurred by the insured, within the most recent 36 month period were $500.00 or more was paid
by the company.
Any loss resulting from windstorm, hail, earthquake, sinkhole collapse, mine subsidence, or an act-of- God shall not be
considered in the history of prior losses.
Losses where payment was made only under Medical Payments to Others or similar coverage is not considered in the history
of prior losses.
Surcharges apply to the non-wind portion of the premium only.
Please Note: In an effort to manage our exposure, Federated National may close certain geographical areas. Federated
National may accept risks in certain closed geographical areas with additional underwriting information.
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Requirements for Submission
•
Money & Paperwork
All money and required documents must be received within 15 days of the date coverage is bound via:
•
•
•
•
Homeowners/PTS portal: policy access is activated after policy is bound
fax: (954) 733-7071
US Mail: 14050 N.W. 14 Street, Suite 180, Sunrise, FL 33323
e-mail: uwinfo@FedNat.com
•
RCE
We prefer you use our MSB/RCE but we do accept other companies RCE’s.
If using another company’s RCE, please submit the detailed report and not just the summary page. If you use our
MSB/RCE, please retain in the agency file.
•
Sinkhole Coverage Form
Applicable Sinkhole acknowledgement or rejection form.
•
Uniform Mitigation Verification Inspection Form
New Business – (HO3, HO4, HO6, & DP-3)
All inspections occurring after February 1, 2012 must be on the new OIR-B1-1802 Rev. (01/12) or the credits will
be removed. Effective 1/1/2016 we will no longer accept the OIR-B1-1802 Rev. (02/10) for new business.
Existing Policies – (HO3, HO4, HO6, & DP-3)
All endorsement requests submitting the OIR-B1-1802 on or after February 1, 2012 must be done so on the 01/12
revision. This includes first time requests and those seeking to amend current mitigation credits on their existing
policy.
Note: HO-6 mitigation inspections in the Association Name completed on the Citizens MIT-BT II & III (8/2008) &
(2005) will continue to be accepted for roofing features only.
If the form is signed by a Certified Home Inspector we require a copy of the inspectors Course
Completion Certificate.
NOTE: Mitigation and 4-point inspections may be verified by the Company.
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Piers/Pilings Guideline
Unacceptable
(This is a mobile home on Pilings)
Wood posts are not sufficient in diameter
and are spaced more than 10 feet apart.
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Piers/Pilings Guideline (cont’d)
Acceptable
• Reinforced Masonry pilings under living area – Acceptable
• Wood posts are under porch and not living area – Acceptable
• Wood Posts are not more than 10 feet apart at any given point - Acceptable
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Crawl Space Guideline
Unacceptable
Acceptable
Final approval on acceptability will be made by the Underwriting Department. Pride of
ownership should exist on all submitted risks.
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Roof Shapes
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