insurance checklistinsurancecommunityuniversity.com › checklists... · 2010-09-13 · insurance...

Insurance ChecklistResiden�al Exposure Survey

The Residence Exposure Survey is a guideline for providing the insurance company with the informa�on they need to accept and underwrite the personal lines residen�al risk and to obtain the necessary informa�on from the insured in an effort to provide them with appropriate insurance coverages. This survey does not replace the necessity to complete an applica�on but rather is supplemental informa�on necessary to analyze the risk. These surveys are only provided as guidelines and do not replace the need to complete company applica�ons or residen�al es�mators. There are two parts to conduc�ng a survey on a residence. First, the residence exposures must be iden�fied. Second, the appropriate insurance coverages must be chosen based on the exposures iden�fied. The following outlines the steps that must be taken to analyze the risk to the point of comple�ng the applica�on.

Step #1 Communicate with the prospec�ve insuredMost insurance companies expect that the broker/agent will personally meet with the prospect prior to wri�ng residen�al coverage. The underwri�ng of a residence property includes assessing the premises and the individual to be insured for acceptability.

Step # 2 Iden�fy the types of residences to be insuredAn insured may have one or more residences. Residences can include permanently a�ached homes as well as temporary or mobile homes. Some insureds live permanently in their mobile home, motor home, fi�h wheel or other RV. For that purpose, the survey will include them in the survey to iden�fy. The coverage checklist will include specific informa�on on the insurance coverages appropriate to those risks.

Step # 3 Iden�fy the types of occupancy for each residenceAn insured might have mul�ple residences that they own and/or rent. Some of the residences may be owner occupied as primary residences while others could be seasonal; part �me; or rented to others.

Step # 4 Conduct a Residence Inspec�on Prior to wri�ng new business for an insured on their residence(s), the broker/agent is expected to personally meet with the prospec�ve client and to visit the residence to be insured to determine if there are any obvious hazards and to u�lize the insurance company’s valua�on guidelines to assist the insured with understanding the “minimum” values for se�ng the insurance limits. Broker/Agents should re-inspect the premises as necessary especially at renewal to determine if there has been any change in occupancy, hazard, or if the insured has improved the premises. An independent inspec�on may be necessary and required by the insurance carrier.

Step #5 Iden�fy Hazards Based on the inspec�on of the property and other underwri�ng procedures, iden�fy the “physical” hazards at the residence premises. Indicate those hazards on the survey sheet and complete ques�onnaires rela�ng to the hazards iden�fied.

Copyright © 2010 Insurance Community Center - Materials created by Laurie Infan�no - www.InsuranceCommunityCenter.com


Step #6 Complete the Residence Loca�on Survey SheetComplete the Residence Loca�on Survey Sheet for each of the loca�ons the insured wants insured. There is space for ten residences.

Step #7 Obtain informa�on on the insured, ownership of the residence, and occupantsOnce you have iden�fied the physical “hazards” the next step is to determine the per�nent informa�on relat-ing to the ownership of the residence; iden�fy the “insured”; and individuals that occupy the home for the purpose of eligibility and issuance of the policy with the appropriate endorsements.

Step #8 Complete the Insurance Company’s Residence Es�matorMost insurance companies have an on-line cost es�mator for homes. Most insurance carriers require that the informa�on on the home be input in the es�mator to provide a “minimum” amount of insurance that would be acceptable. NOTE: It is very important to obtain as much specific informa�on as possible to input in the system so that the es�mator provides a realis�c figure. NOTE: the agent must communicate to the perspec-�ve insured that this is an es�mate ONLY and that it is the responsibility of the insured to approve and accept the amount proposed.

Step #9 Complete the Insurance Company Applica�onWhen all of the steps are finished, the insurance company’s applica�on should be completed. The perspec�ve insured is the individual that should be providing all of the informa�on to the agent. The informa�on will be transferred to an insurance applica�on. Some�mes the informa�on will be provided by a business manager, CPA or insured’s representa�ve. The informa�on will be used to complete the applica�on: NOTE: the insured must sign the applica�on. NOTE: any sec�on that needs to be completed by the insured must be highlighted to draw a�en�on to the insured to complete and review before signing.



Residence Exposure Survey Informa�on Account Name

Address Type of Residence

Occupancy Hazard Date Built

Square Ft

Purchase Price

Type of Residence(a) Single Family Dwelling (b) Duplex (c) 3-4 Family Dwelling (d) Townhouse (e) Condominium (f) Coopera�ve (g) Apartment Unit (h) Mobile Home (i) RV (Motor Home, Fi�h Wheel, Other)

Type of Occupancy1. Own the residence and Occupy as primary residence 2. Own the residence and Occupy as a secondary or part �me residence 3. Own the residence and Occupy as a residence on a farm4. Own the residence on a farm and rent it out5. Own and Occupy in part and rent out part of the residence (Duplex, 3-4 Family Dwelling)6. Own and Rent to Others 7. Rent

Hazard(BR) Brush; (FL) Flood; (EQ) Earthquake; (W) Wind; (V) Vacant



Hazard Ques�onnaire and Solu�ons

Brush Hazard Ques�ons

1. Are any of the residences located in or near hazardous brush? Yes______ No______

If Yes:

a. Which residence is located in brush? Residence #_______________.

b. What steps has the insured taken to clear the brush from the site? __________________________________________________________________________

c. What is the distance of the brush from the home?__________________________________

d. What steps has the insured taken to further protect their home from brush fire damage such as:

1. Boxing in the eaves: Yes______ No______

2. Elimina�ng any combus�ble shrubbery: Yes______ No______

3. Installing fireproof vents so that embers do not enter roofing system: Yes______ No______

e. Does the insured have a sprinkler system? Yes______ No______

If Yes:

1. Does the house have an opera�ve par�al, interior sprinkler system? Yes______ No______

2. Does the house have an opera�ve “full” interior sprinkler system? Yes______ No______

3. Does the house have an opera�ve par�al exterior sprinkler system? Yes______ No______

4. Does the house have an opera�ve full exterior sprinkler system? Yes______ No______

5. Does the house have an opera�ve roof sprinkler? Yes______ No______



Brush Hazard Solu�ons

1. Determine if the residence is eligible for coverage with standard markets.

2. If not eligible for standard markets, consider placing coverage with an E & S Broker.

3. If not eligible for standard markets or E & S, consider the FAIR Plan and addi�onal coverage such as a DIC or Wrap Around.

4. If wri�ng with a FAIR Plan check the maximum amount available. If sufficient limit is not available with the FAIR Plan then an Excess Insurance policy can be purchased for the addi�onal limits required. If excess insurance is being purchased you must no�fy the FAIR Plan. Check all states programs as they may differ in eligibility and amounts available.

Flood Hazard Ques�ons

1. Determine the designated flood zone for the residence (Use FEMA mapping to determine Flood Zone) FEMA mapping informa�on is available with the Flood Carriers. If Yes:

a. What is the numerical coding for the flood zone and is there an eleva�on cer�ficate? ________

b. What is the distance to Tidal Water? Miles ___________Feet____________

Flood Hazard Solu�ons

1. Check with the primary carrier to make certain the residence is eligible for standard coverage such as a Homeowners Policy.

2. Offer Flood Insurance Coverage either directly through the NFIP or with a Write Your Own Flood Carrier.

3. Check the limits available through the Flood Program. Not only is the NFIP limited in terms of the amount of coverage available, there are also many categories of property not covered or subject to restric�ve language.

4. Addi�onal limits can be provided with the E & S market through Excess Flood Policies.



Earthquake Hazard Ques�ons

1. Determine if the residence is in an earthquake prone area. Yes______ No______

If Yes:

a. Most insurance companies have catastrophe mapping. This will determine rate and indicate EQ factors and suscep�bili�es such as liquefac�on; PML; and company capacity in a given area.

b. The type of construc�on is a major considera�on in the earthquake suscep�bility for a home. Determine what steps have been taken to “earthquake proof” the home.

i. Retrofit the home: Yes______ No______

ii. Bol�ng to founda�on: Yes______ No______

iii. Cripple Wall Bracing: Yes______ No______

iv. Seismic Gas Shutoff Value: Yes______ No______

Earthquake Hazard Solu�ons

1. Check with the primary carrier to make certain the residence is eligible for standard coverage such as a Homeowners Policy.

2. Offer Earthquake Insurance either through the a standard market or with an E & S Carrier.

3. Some states, such as California, have a residual risk pool known as the CEA which some companies par�cipate in.

4. Earthquake insurance typically has a high deduc�ble expressed as a percentage of insured value. Some insurance carriers will provide a coverage known as “Deduc�ble Buyback Insurance.”



Windstorm Hazard Ques�ons

1. Are any of the residences located in a designated windstorm area?

If Yes:

a. Which residence is located in the windstorm area? Residence #___________

b. Are there Storm Shu�ers at the home Yes_________ No______

c. Is the glass Hurricane Resis�ve Yes_________ No______

Windstorm Hazard Solu�ons

1. Check with the primary carrier to make certain residence is eligible for standard coverage, such as a Homeowners Policy.

2. Check the primary policy to make certain there are no windstorm exclusions or limita�ons.

3. Check to see if the property is eligible for Windstorm Pool coverage, which is available in some states.

Vacancy Hazard Ques�ons

1. Are any of the residences vacant beyond 30 consecu�ve days? (This does not include RV residences) If Yes:

a. Which residence is vacant? Residence #___________

b. How long has the home been vacant?_______________

c. Was the home ever occupied by the insured? Yes______ No______

d. If the home is currently vacant, when does the insured intend to move in the premises? ____________________________________________________________________

e. Is the home undergoing any remodeling or renova�on? Yes_______ No______



f. If yes, when will the renova�on be completed? ____________________________

g. Is the home in foreclosure? Yes_______ No______

h. Is the foreclosure the reason for the vacancy? Yes_________ No______

i. Is the home in foreclosure AND the insured is s�ll residing in the home? Yes______ No______

j. Are any of the residences unoccupied for more than 60 consecu�ve days? (This does not include RV residences) Yes______ No______

Vacancy Hazard Solu�ons

1. Check with the primary carrier to make certain residence is eligible for standard coverage, such as a Homeowners Policy. Most insurance companies will not write Homeowners Insurance on a vacant home, however, some carriers will issue the coverage but will surcharge the policy and endorse with a “vacancy permit.”

2. If a Homeowners Policy is not available, then the homeowner must purchase a Dwelling Fire Policy, however, many carriers will not write a Dwelling Fire Policy on a vacant property. The vacancy must be divulged to the carrier for considera�on.

3. If a Dwelling Fire Policy is not available to the insured on the vacant property through normal insurance carriers, then they can seek coverage through the FAIR Plan.

Other Hazard Ques�ons

Ques�ons rela�ng to a sprinkler system were asked under the Brush Hazard sec�on of this survey. However, a home may not be located in a brush area but based on size and construc�on type will be required to have a sprinkler system so these ques�ons need to be answered.

1. Does the insured have a sprinkler system? Yes______ No______

If Yes: a. Does the house have an opera�ve par�al, interior sprinkler system? Yes______ No______ b. Does the house have an opera�ve “full” interior sprinkler system? Yes______ No______ c. Does the house have an opera�ve par�al exterior sprinkler system? d. Does the house have an opera�ve full exterior sprinkler system? Yes______ No______ e. Does the house have an opera�ve roof sprinkler? Yes______ No______



2. Does the insured have a burglar alarm? Yes_________ No______

3. Is the burglar alarm a local or silent center installa�on? Local_________ Silent Central______

4. Has the burglar alarm been ac�vated? Yes_________ No______

5. Are there smoke detectors in the home and are they ac�vated? Yes_________ No______

6. Is there a gas shutoff valve? Yes_________ No______

7. Is there a water leak detector? Yes_________ No_____

8. Is the home in a gated community? Yes_________ No_____

Residence Ownership and Occupancy Ques�onnaire and Solu�ons

Name on the Deed of Trust Issues

1. The name on the policy should be the same as the deed of trust. If the spouse is not named on the Deed of Trust and their name is not included as a Named Insured, then they must be named as Addi�onal Insureds.

Family Trust or Other Trust Issues

Many insureds have a Family Trust. All proper�es owned by the family should be in the name of the Family Trust.

1. Does the insured have a Family Trust? Yes ______ No_____

If Yes:

a. Is the residence owned by the Family Trust and the Deed of Trust taken out in the name of the Family Trust? Yes _______No_______

b. What is the name of the trust? __________________________________________________

c. Who are the members of the Trust? ______________________________________________

d. Who is the trustee of the Trust? _________________________________________________



Family Trust or Other Trust Solu�ons

The name on the policy must include the name of the Family Trust. Insurance companies have different procedures in adding the trust.

a. One method is to name the trust as a Named Insured with trustees as Named Insureds. However, if this is done, the CPL will respond to anyone who acts on behalf of the trust, which is very broad. Most companies do not want to name the Family Trust as the Named Insured because of the broadness of the CPL coverage.

b. A preferable solu�on is to name the trust as an Addi�onal Insured, either by entry on the Declara�on or a�achment of an Addi�onal Insured Endorsement.

Limited Liability Company (LLC) Issues

Some insureds have formed Limited Liability Companies (LLC) for ves�ng of their homes and other proper�es. This is also done for tax purposes as well as a privacy issues.

1. Does the insured have a LLC? Yes ______ No_____

If Yes:

a. Is the residence owned by an LLC and the Deed of Trust taken out in the name of the Family Trust? Yes _______No_______

b. What is the name of the LLC? __________________________________________________

c. Who are the members of the LLC? ______________________________________________

d. Who is the trustee of the LLC? _________________________________________________

Limited Liability Company (LLC) Issues

1. LLC’s are typically added as Addi�onal Insureds on residence policies.



Mortgagee and Other Lenders on the Residence Issues

1. Is there a lender or mortgagee on the residence holding a First Trust Deed? Yes ______ No_____

2. Is there a second mortgagee on the residence holding a Second Trust Deed Note? Yes ______ No_____

3. Is there any other lien holder on the residence? Yes ______ No_____

Mortgagee and Other Lenders on the Residence Solu�ons

1. The mortgagee holding the First Trust Deed must have a mortgagee clause built in the policy or endorsed on the policy which provides them with non-deriva�ve (separate) protec�on from the insured.

2. If there are “Addi�onal Interests” that are lenders, they must be added to the policy, typically with an Addi�onal Interest Endorsement.

Residents in the Household Issues and Solu�ons:

1. Do both spouses live in the residence? Yes ______ No_____

If NO: If a spouse is not in the residence and is not a named insured on the policy then they have no coverage under the Homeowners Policy and must obtain their own policy.

2. For an “owned” property are there any unrelated people living in the home (not a tenant paying rent)? Yes ______ No_____

If YES: For an unrelated person living in the home the company should add the Other Members of Your Household Endorsement.

3. Are there any unrelated people living in the home that are tenants paying rent? Yes ______ No_____

IF YES: There is no coverage for the property of the renters. They would have to buy their own Tenants Package Insurance.



4. Does the insured have a rela�ve in an assisted living care facility? Yes ______ No_____ If YES: If the insured has a rela�ve in an assisted living care facility, the rela�ve would have an exposure for both personal property and liability. The insurance company can endorse the Homeowners Policy with the Assisted Living Care Endorsement.

5. Does the insured have any children that are students residing away from the premises while in school? Yes ______ No_____

If YES: For children living away while in school, the insurance company can endorse the Homeowners Policy with the Addi�onal Insured—Student Living Away From the Residence Premises Endorsement, however, some insurance policies automa�cally provide coverage.

If there are two unmarried people living in a rented residence, both names must appear on the insurance policy.


insurance checklistinsurancecommunityuniversity.com › checklists... · 2010-09-13 · insurance...

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