Written by: Jennifer Vazquez, CPCU
This month, we are devoting this feature to addressing Frequently Asked Questions.
When can I apply the Book Transfer and Affinity Discounts? These discounts are only eligible to be applied to a policy if your agency has received pre-authorization from Lighthouse prior to use. Your local marketing representative can help you apply for use. For more information please see the March 2014 Underwriting Corner- Discounts.
When is a flood policy required? If the risk is located in a Special Hazard Flood Zone (any A or V zone), Lighthouse requires the insured to have an active and in-force flood policy that is equal to the policy dwelling limit or the maximum flood coverage limit, whichever is greater.
What losses need to be disclosed on an application? Lighthouse asks for the insureds loss history to be disclosed on the application and not only losses that occur at the risk location and includes Weather/ Act of God losses.
On a Dwelling Fire policy, who is eligible to carry Personal Liability coverage? Individual named insureds that own no more than 4 total properties can carry the optional Personal Liability coverage. Lighthouse does not offer this optional coverage to insureds that own 5+ properties or dwellings owned by non-human/ non-individual entities including, but not limited to, LLC’s, Trusts, Estates, Land Trusts.
When can I apply Wind Mitigation Discounts? The underwriting and eligibility requirements for these discounts were discussed in a previous Underwriting Corner. It is important to remember that these discounts should not be applied to the policy by the agency without the required supporting documentation in hand to ensure accurate application. For a reminder of the underwriting guidelines, please see the November 2013 Underwriting Corner- Wind Mitigation.
How far in advance can we quote/ bind coverage? Coverage can be quoted and bound up to 60 days in advance.
What documentation is required to be provided by the agency to Lighthouse after binding? Supporting documentation for wind mitigation discounts, including a wind mitigation affidavit completed by an approved inspector or photos (photos are acceptable proof for the hip roof discount), IBHS documentation and proof of recent updates if the Renovation discount is applied must all be provided after binding coverage. However, it is important to remember that all other documentation to support writing, binding and applying coverage must be maintained in the agency files and may be requested by Lighthouse for review or use and, if a risk is referred to underwriting prior to binding, the supporting documentation may be requested at that time.
Please note, not all discounts or coverages are available in all programs or states. Please refer to the Underwriting Manual of the program you are working with for additional information or Underwriting at (888)235-3837. The information provided here is only applicable to Lighthouse Property Insurance Corporation and should not be construed as underwriting guidelines for general knowledge.