Home Guard

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The Home-Guard Policy is a package policy that provides both property and personal liability coverages. The property coverage is provided by Hay Creek Mutual. The liability coverage is provided by Grinnell Mutual. The success of the Home-Guard program and the ability to provide competitive rates and coverages depends on the agent's ability to select good business. The purpose of these general rules is to help the agent in selecting good business.

1. The Home-Guard Policy is a named peril coverage policy with a minimum coverage limit of $50,000. To broaden the coverage for dwellings with a minimum coverage limit of $50,000, coverage for risks of direct physical loss to the dwelling and other structures can be obtained with the Additional Coverage Endorsement (HCM 106).
2. The Home-Guard Select Policy is a program available for certain qualified homeowners. The benefit of this program is that the Additional Coverage (HCM 106), Dwelling Depreciation (HCM 107), and Personal Property Replacement Cost (HCM 90) coverages are automatically included in the policy with no additional charge. Also, the Personal Property Coverage will automatically be 70% of the Dwelling Coverage.
3. The Tenant Home-Guard Policy provides for coverage to unscheduled personal property for a tenant (non-owner) of a dwelling or apartment. Minimum coverage is $5,000. Personal Property Replacement Cost (HCM 90) is included in the rates.

The agent is the first line underwriter in selecting applicants which exhibit pride in ownership through the appearance of their property and their favorable loss history. The agent must strive to accurately identify all exposures to loss presented by the prospective insured and select the proper coverages available under the Home-Guard Program to cover those exposures in a manner acceptable to both the applicant and the insurer.

4. PHOTO REQUIREMENTS

Two photos, taken from opposite corners, of each dwelling and one photo of each appurtenant structure to be insured are required to be submitted with each fully completed application.

Additional photos are required when requesting Coverage A and/or B to be increased more than 10% of their present policy limits.

5.      INELIGIBLE RISKS

The following exposures are not eligible for coverage under the Home-Guard Program:

a.       Dwelling(s) poorly maintained or poor general housekeeping.

b.      Dwelling(s) with three or more roomers or boarders.

c.       Dwelling(s) not owner occupied.

d.      Insureds who have had more than two claims in the past three years, not including losses caused by natural causes such as lightning or wind and hail.

e.       Dwellings not used for residential purposes.

f.        Dwellings with portable, space, or kerosene heaters, and dwellings which have improperly installed wood-burning stoves.

g.       Any dwelling with a roof pitch of less than 3 feet rise for every 12 running feet.  Flat roofs or roofs with rolled roofing material will be ineligible.

h.       Dwellings valued less than $50,000.

i.         Owners of vicious dogs, domesticated wildlife, or dangerous animals. Vicious dogs may include Pit Bulls, Dobermans, or Rottweilers.

j.        Steps without railings or steps/sidewalks poorly maintained.

k.      Uncontrolled or unfenced swimming pools.  Swimming pools that do not have a locking gate shall be deemed to be an ineligible risk.

l.         Any property which does not have functioning smoke detectors installed in the property.

m.     Any insured who has a trampoline located on the insured premises.

n.       Any insured who you could not recommend or who has a poor character reference.

6.    UNDERWRITING REQUIREMENTS

1. Home-Guard Dwelling - $50,000
2. Home-Guard Select Dwelling - $100,000
3. Tenant Home-Guard Personal Property - $5,000

 

7.    ADDITIONAL POLICY   UNDERWRITING   REQUIREMENTS

1. Home-Guard Policy

1)      Dwelling must be owner occupied.

2)      Dwellings built prior to 1950 are acceptable but only if the dwelling has been rehabilitated since 1950.  A rehabilitated dwelling includes new wiring, heating, and plumbing systems.

3)      Dwelling must be insured at actual cash value.  Deduction for depreciation should not exceed 50% of the dwelling's replacement cost.

4)      Dwelling must be situated on a continuous wood, masonry, or concrete foundation under all exterior walls, except porches and decks.

5)      Must carry a minimum deductible of $250.

2. Home-Guard Select Policy

1)      Dwelling must be owner occupied.

2)      Dwelling must be insured to at least 90% of replacement cost.

3)      Dwelling must be less than 25 years old or have been completely or partially rehabilitated in the past 25 years.  A rehabilitated dwelling includes new wiring, heating, roofing, and plumbing systems.

4)      Dwelling must be on a continuous wood, masonry, or concrete foundation under all exterior walls, except  porches and decks.

5)      Must carry a minimum deductible of $250.

6)      No modular or mobile homes.

7)      The Application for Superior Dwelling Discounts must be completed to qualify for discounts to the Home-Guard Select base premium.

 

8.      Fire Protection Classifications

Use the proper fire protection classifications when quoting the Home-Guard premium.  If you need fire town classifications, contact your underwriter.  The following rules should be observed when determining classifications:

1. where classified areas are published with a single classification number, properties within that classified area should receive that classification number.
2. Where classified areas are published with a split classification (i.e. 6/9), the classification number is determined as follows:

1)      five road miles or less to responding fire station and with fire hydrant within 1,000 feet, use first listed classification.

2)      Five road miles or less to responding fire station and with fire hydrant more than 1,000 feet, use class 9.

3)      More than five road miles to fire station, use class 10.

3. Class 10 applies to all areas not

Listed.

9.      AUTO/HOME PACKAGE DISCOUNT

      A 10% discount may be applied to the property and liability premium if the agent also writes the private passenger automobile policy.

1. To verify supporting insurance, submit a copy of the automobile declarations page or new business application with the Home-Guard application.
2. The Home-Guard named insured must also be the named insured on the auto policy.

10.  CONSTRUCTION CLASSIFICATIONS

       Frame - A dwelling with walls of wood, or metal sheathed, or stuccoed frame construction, or with walls of metal or metal lath and plaster on combustible supports.  A dwelling shall be classified as frame construction when the area of frame construction exceeds 33 percent of the total exterior wall area.

     Masonry - A dwelling with walls of masonry or masonry-veneered construction.

 

11.  MASONRY DISCOUNT

A discount of 10% may be applied to the property premium if the dwelling is masonry construction.

 

12.  POLICY PERIOD

The policy issued by Hay Creek Mutual is an annual policy with a two-year continuous renewal period.  On the third anniversary, the agent must complete a renewal application.  Once the renewal application is processed, Hay Creek Mutual will issue a new policy with all the applicable forms.  The policy number will remain the same.

 

13.  CANCELLATION

1. When the policyholder cancels the policy, any remaining unearned premium will be refunded, pro-rata, within 30 days following the insurer's receipt of the notice of cancellation.  In most circumstances, the refund check will accompany the cancellation notice.
2. If the company initiates cancellation, cancellation can not be effective unless the company returns any unearned premium with the notice of cancellation or so that the insured receives the premium refund due no later than the effective date of the cancellation.

 

14.  RATE CREDIT FOR LOWER LIMITS

When the policy provides "B" (other structures) and/or "C" (personal property) on an actual cash value basis, the policyholder may select limits for those two coverages that are less than the amounts that are included in the standard policy.  If the policy does not include replacement cost coverage for the dwelling  and/or personal property, the policyholder may choose policy limits which are less than the 10% included for appurtenant structures or the 70% included for personal property.  A rate credit listed on the rate page  will be applied to the reduced limits.  Note: this credit does not apply if coverages "B" and "C" are settled on a replacement cost basis.

 

15.  COMPLETE APPLICATION

The insurance application must be completed in it's entirety and must be signed by both the insured and the agent.  The application must list the dimensions of the structures and the legal location of the property.  A post office box or a rural route address is not sufficient for the property inspector or the claims adjuster.

 

The back of the application must be completed in detail.  If the answer to question 12 is "yes", enough information about the cancellation must be included to allow Hay Creek Mutual to comply with Minn. Statue 72.A.20, Subd.13.  If the applicant has had prior claims, please provide enough information to allow Hay Creek Mutual to determine if the loss was caused by natural causes, if the prior insurer made payment, and if there was any subrogation.

 

Hay Creek Mutual will accept Accord applications.

 

Hay Creek Mutual uses a digital imaging system for policy files.  This system uses the insured’s social security number as a universal identifier.  We request that the insured’s social security number be included on the application.

 

Our insurance processing system can also record birth dates, driver license numbers, work phone numbers, cell phone numbers, and email addresses.  We request this information if it is available.