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First Protector Program. Coverage. There are three (3) parts of coverage: Coverage Part A – Temporarily Uninhabitable Coverage Part B - Permanently Uninhabitable Coverage Part C - Policy Deductible. Product Description. In the event of a covered loss, this product covers:
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Coverage There are three (3) parts of coverage: • Coverage Part A – Temporarily Uninhabitable • Coverage Part B - Permanently Uninhabitable • Coverage Part C - Policy Deductible
Product Description In the event of a covered loss, this product covers: • Cov A - Monthly mortgage payment(s) should the home become temporarily uninhabitable • Cov B - Unpaid loan balance if the home becomes permanently uninhabitable • Cov C - Deductible on primary property insurance policy covering the home
Underwriting Companies • ABIC - American Bankers Insurance Company of Florida • ARIC – American Reliable Insurance Company* *Those previously under Voyager have renewed under ARIC
Policy Prefixes are: • AMI • ARI • AVI • FPA • FPR • FPW • FSG
Covered Property Is the premises described and occupied by the borrower listed on the Certificate of Insurance, their primary residence? New endorsements have rephrased this section to state: Covered property means the premises described on the policy that is owned by you.
Property Not Covered Policy states: 1) The Home is contained within a structure or on property containing more than two separate household units; 2) The Home is a mobile home; 3) The residence is not the Borrower’s primary residence. Note: The new endorsement has deleted this section in it’s entirety.
Changes to The Policy The new endorsement has extended to cover to allow for: • Secondary Homes • Rental Property • Condo • Duplexes • Mobile Homes (ARIC only)
Coverage Protects against risk of direct physical loss or damage to the home caused by such events as: • fire • flood • windstorm • earthquake • mud slide • volcanic eruption
Coverage Part A - Temporarily Uninhabitable A hurricane severely damaged the roof of the home. The home is exposed and is allowing water to come into several areas of the home. The condition of the home has made it uninhabitable. Is this loss covered under Coverage A? Hint: This coverage is all risks with exclusions! See pg.2
Coverage B – Permanently Uninhabitable A sinkhole has caused extensive structural damage to the insured property. The home was declared a total loss and the primary H/O carrier paid out policy limits. A county ordinance has declared the home must be demolished and unfit to rebuild on that land. Is this loss covered under Coverage B? See pg.3
Coverage C - Deductible A claim is reported under Coverage C to collect the policy limit of $500. The insured states that the loss was not covered under their primary insurance carrier. Is this loss covered under Coverage C? See pg.2
Coverage Part AQuestion: Claim is reported due to settling of the home. Exclusions – Covered or not Covered? Coverage Part BQuestion:Faulty, inadequate or defective surveying. Coverage Part CQuestion: Reimbursed $2,000 deductible
Limits of Liability – True or False Coverage Part ACov A is limited to (3) Monthly Payments if repair, reconstruction or restoration to the Home is not started within ninety (90) days of the date of loss. Coverage Part BWe will pay the Total Unpaid Balance of the Mortgage up to the Limit of Insurance shown under Coverage B regardless of any other insurance policy in place Coverage Part CThird loss within any consecutive twelve (12) month period.
Conditions - Coverage Part A Insurance provided under Coverage Part A is primary insurance. It will not be pro-rated with any other insurance in the event of a loss. What is meant be prorated?
Conditions - Coverage Part B and C Insurance provided under these coverages is EXCESS insurance and it applies only in excess of other collectible insurance up to the Limit of Insurance. What does it mean to be Excess?
Claims Administration Process Claim is reported by the borrower Set-up in iCE by the CSR Unit Claim is handled as a Desk File (Not assigned to an adjuster)
Claims Administration Process, continued Individual Case Reserves are set for Coverage A & B Reserve is set at $500 for Deductible Reimbursement Coverage C The examiner will create and send the acknowledgment letter and claim form to the insured to complete and submit with the required documentation.
Claims Administration Process, continued Required Documentation: Copy of police/fire report Copy of homeowners insurance company declaration page Copy of repair estimates
Claims Administration Process, continued Required Documentation: Copy of sworn statement in proof of loss form OR copy of settlement check(s). Copy of First Protector Certificate of Insurance.
Claims Administration Process, continued Examiner reviews the information submitted and issues payment if claim is eligible. Payment is to be made in accordance with the policy terms. **If the examiner determines additional information is necessary or claim is not eligible for payment, a letter of explanation is sent to the insured advising of such.
Payments • Under ABIC: • Coverage A & B are made to the lender and the insured. • Coverage C is made to the insured only. • Under ARIC • All payments are made directly to the insured, the lender is not named.
Introduction of First Protector Plus • Contractor Referral Service • Expert Tradesmen Advice Hotline • Do It Yourself Guidance • Expert Review of Contractor Quotes/Estimates • Emergency Home Assistance
Important! Adjuster must refer to the policy and it’s endorsements for specific coverage information
