QBE FlexHome Product Agency Training
Agenda 1. Introductions 2. FlexHome Coverages Overview 3. Underwriting Hot Topics 4. Inspection Process Overview 5. System Highlights 6. Q&A 2
QBE Personal Lines Key Contacts Underwriting Support Options Claims New Loss Reporting (24/7) Billing Support Underwriters 1-800-362-5448 Associate Underwriters 1-888-864-6283 or 1-800-362-5448 (Option 1, Option 1, ext 60-5306) PLAUrequest.US-BOX@us.qbe.com Email: newlossqbe@us.qbe.com Provides automated response confirming receipt Phone: (844) QBE-CLAIMS or (844) 723-2524 Fax: (888) 723-2567 (800) 553-4471 QBE-CSS-CustomerSVCInquiries.US- BOX@us.qbe.com Western States (AZ, CA, ID, MT, OR, UT, WA) Agency/XM Support (800) 456-1626, Ext.75-5470 agencyinterfacesupport@us.qbe.com Policy Changes Fax: (800) 881-5260 plagentmail@us.qbe.com Non-XM Quoting plagentmail@us.qbe.com Dwelling Fire Policy Changes All Other States (CT, GA, IA, IL, IN, MA, NE, MN, NY, OH, PA, SC, VA, WI) Agency/XM Support (866) 878-9225 GC-AgencySupportDesk.US@us.qbe.com Policy Changes Fax: (800) 926-6686 us-gc-pl-quickchange@us.qbe.com Non-XM Quoting us-gc-pl-quote@us.qbe.com Dwelling Fire New Business or Boat/RV New Business and Changes 3
FlexHome Programs FlexHome Value this policy is based on ISO s HO-3 and would be suitable for newly married couples or maybe empty nesters, as these households may have fewer personal belongings. They can find value in a product that provides less coverage for a reduced premium. FlexHome Plus this policy is also based on ISO s HO-3 and provides broad coverage that appeals to established households and families seeking a balance of price and coverage. FlexHome Ultra this policy is based on ISO s HO-5 and offers superior coverage and is suited for households and families needing more extensive property protection. We offer two condominium products, both based on ISO s HO-6. FlexHome Condominium - this policy may appeal to more price-conscious consumers. FlexHome Condominium Ultra - similar to our FlexHome Ultra policy, our Condominium Ultra policy offers high-end comprehensive coverage. FlexHome Renters This policy is based on ISO s HO-4. Our FlexHome Renters policy provides personal property and liability coverage to meet the needs of this consumer segment. 4
FlexHome Residential Forms Key Coverages FlexHome Value FlexHome Plus FlexHome Ultra Coverage A Coverage B Coverage C MIN $30,000 MAX: $350,000 2% of Cov A (can endorse up to 50%) 30% of Cov A (can endorse up to 100%) MIN $30,000 MAX: $1,500,000 10% of Cov A (can endorse to 2% up to 100%) 75% of Cov A (can endorse to 50% up to 100%) MIN $250,000 MAX: $1,500,000 20% of Cov A (can endorse to 2% up to 100%) 75% of Cov A (can endorse to 50% up to 100%) Coverage D 30% of Cov A 50% of Cov A 75% of Cov A Coverage E $100,000 $100,000 $300,000 Coverage F $1000 $1000 $3000 Replacement Cost Dwelling* Replacement Cost - Contents Coverage A Limit 25% above Cov A 50% above Cov A Offered Included Included Open Peril - Contents Not Offered Offered Included Agent Binding Authority for Coverage A is $800,000. Contact Your Underwriter to discuss exposures greater than $800,000. 5
FlexHome Residential Forms Loss Settlement Key Flex Home Feature FlexHome Value FlexHome Plus FlexHome Ultra Included Amount for Dwelling Replacement Cost Coverage A Limit 25% Above Coverage A Limit 50% Above Coverage A Limit Extended Replacement Cost (ERC) - Dwelling 25% above Coverage A is available 50% above Coverage A is available 100% above Coverage A is available Functional Replacement Cost Dwelling* Available default for homes built prior to 1940; not available if ERC is selected. Available default for homes built 1940 or prior; not available if ERC is selected. (25% still applies) Available default for homes built 1940 or prior; not available if ERC is selected. (50% still applies) Actual Cash Value - Dwelling Not Offered Not Offered Not Offered *Functional Replacement Cost is not available in all states. 6
FlexHome Condominium and Renters Forms Key Coverages FlexHome Renters FlexHome Condominium FlexHome Condominium Ultra Coverage A Not Offered $5000 included; MAX: Cov A $500,000 $10,000 included; MAX: Cov A $500,000 Coverage B Not Offered Not Offered Not Offered Coverage C MIN: $20,000 MAX: $500,000 MIN: $35,000 MAX: $500,000 MIN: $75,000 MAX: $500,000 Coverage D 20% of Cov C 50% of Cov C 75% of Cov C Coverage E $100,000 $100,000 $300,000 Coverage F $1000 $1000 $3000 Extended Replacement Cost - Dwelling Not Offered Not Offered 25% Above Cov A Replacement Cost - Contents Offered Offered Included Open Peril - Contents Not Offered Offered Included Personal Injury Offered Offered Included 7
FlexHome Deductibles Policy Level* (perils other than Wind/Hail) FlexHome Value, Plus and Ultra FlexHome Condo and Condo Ultra FlexHome Renters Defaults $1,000 $500 $250 Lowest Available $500 $500 $250 Wind/Hail* (Fixed Dollar or Percentage) (Must be equal to or higher than Sec I Deductible) Dollar Options 7 options available; $1,500 - $10,000 Percentage Options 1%, 2%, 3%, 5%, or 10% of Coverage A Vacancy Deductible If home has been vacant (empty of furnishings and contents) for more than 90 consecutive days prior to loss and we haven t been notified of this, a deductible of 25% of the Coverage A limit applies. *Some variances in minimum deductible requirements and optional deductible offerings apply based on state, location of risk, or loss history. 8
FlexHome Endorsements Endorsement Home and Personal Security Endorsement Assisted Living Care Endorsement Details $10,000 - Credit Card, Fund Transfer Card, Forgery and Counterfeit Money $15,000 - Identity Fraud Expense Coverage with ID 911 Case Management. ($250 ded.) $500 - Key and Lock Replacement $7,500 - Mortgage Additional Expense - $500 per month $3,000 - Mortgage Acquisition Costs Provides contents and limited liability coverage for the relative of an insured who resides in an assisted living care facility, most commonly parents or grandparents. Coverage C: Min $5,000, Max $50,000 Coverage C Special Limits of Liability include - $1,500 for hearing aid, $300 for eyeglasses, $500 for false teeth or dentures, $250 for walking aids such as canes. Additional Living Expense: limits and duration of coverage vary by cause of loss. $100 deductible for first loss in annual policy period; $250 for subsequent in same period Student Away at School Endorsement Provides contents and liability coverage for an insured as a full-time student living away from the residence premises, residing on or off campus or in school sponsored housing. Personal Property Coverage - $5,000 Min and $20,000 Max. The Coverage C Limit for property at another insured location does not apply. The Coverage E - Liability Limit is the same as a primary policy. Deductibles No deductible applies except for the peril of theft. Deductibles vary for the theft peril for specific items such as bikes and electronic equipment ($100) ; cell phones and electronic game equipment (policy deductible); and all other covered personal property ($50). 9
FlexHome Discounts Discount* Claims Free Discount Longevity Discount Newly Purchased Home Professional Group Discount Residential Protection Systems Roof Type Credit Updated Home Discounts QBE Umbrella Details Eligible if policy is free of chargeable claims for 3 or more years. This discount applies to new and renewal business if the insured has been with their immediate prior carrier and/or QBE for 3 or more years. Qualifies if the home was purchased in the last 3 years (regardless of YOC). Same as offered on FlexAuto. Premium credits may be allowed for the installation of a burglar alarm, fire alarm or automatic sprinkler system in the dwelling. Additional credits may be available for a premises protected by security guards, locked gates or a perimeter security system using closed circuit TV or motion detection systems. Slate and tile roofs are eligible for credits. *Note that certain roof types may be subject to a surcharge and others are not eligible. Available for electrical and plumbing systems updated in the last 20 years. Available for heating systems updated in the last 8 years. Available for water heaters replaced in the last 10 years. Discount applies to the homeowners and auto policy. * This is a partial list and varies by state refer to the product manual for a complete listing of available discounts. 10
FlexHome Rating Rating Component Basement Claims Farm Animals Mortgages Roofs (eligibility varies by state contact Underwriting) Swimming Pools * Trampolines Woodstoves/Solid Fuel Burning Devices * Details The presence of a basement and percentage of basement that is finished affect only the perils of water and catastrophe. Any losses occurring within the last 36 months are surcharged. Up to 25 farm animals are eligible (maximum of 2 horses). The number of mortgages can impact the premium. No mortgage is a credit, one is neutral and two is a surcharge. Wood shake or wood shingles are surcharged. On renewal business, asbestos diamond shingles, built-up tar gravel and rolled roof/single ply shingles are subject to a surcharge and only written on an exception basis. It is important to note that pools are a rating component for liability. It is important to note that trampolines are a rating component for liability. Only netted and fenced trampolines are eligible. A surcharge will be applied when a home or outbuilding has an eligible woodstove or other type of solid fuel burning appliance on premises. This includes, but is not limited to, indoor and outdoor stoves, fireplace inserts and pellet or corn burning devices. *Does not apply to Tenant and Condo forms. 11
12 Underwriting Hot Topics
Home Underwriting Frequently Asked Questions Central Alarms Course of Construction Required for Coverage A of $1,000,000 or above. Required for homes with Coverage A over $500,000 if home is in PC9 or PC10 Verification of monitoring required (copy of agreement) Maximum Coverage A is $500,000. Please contact your Underwriter for homes over $500,000 for Underwriting consideration. PC 9-10 require Underwriting approval prior to binding Not eligible for any discounts until the home is fully complete EIFS Dwellings with EIFS exterior siding (in whole or in part) are not eligible if home is built prior to 2004 Extending Liability Maximum number of 5 dwellings with no more than 10 total units 2 family = 1 dwelling/2 units, 3 family = 1 dwelling/3 units Handrails Four or more stairs or risers require handrails Ineligible dog breeds Akitas, American Staffordshire Terriers (or any variety known as pit bulls ), Chow Chows, Rottweilers and wolf hybrids Jewelry Appraisals Appraisal within 5 yrs. required for any item valued at $10,000 and above Log Homes Ineligible Pools Must have 4ft fencing with self closing and latching gates. Above-ground pools must have a deck with self-latching gates or removable ladders Pools with diving boards/slides require a depth of at least 8ft. Trampolines Netted trampolines acceptable if yard is fenced, otherwise trampoline liability exclusion must apply Seasonals QBE must also provide coverage for the primary residence 13
Home Underwriting Frequently Asked Questions Proximity to Fire Station Electric, Heating, and Plumbing Farming Exposure Dwellings more than 8 miles to the primary responding fire station are ineligible. Protection Class 9 and 10 s will be referred to underwriting for review The home must be on modern circuit breakers with at least 100-ampere service Ineligible: knob and tube wiring, aluminum wiring, fuses, or a Federal Pacific Stab Lok panel Farm exposures must be purely incidental to the residential home exposure. The following risks are ineligible: > 25 acres at the primary location > 1,000 owned acres at another location rented to others for farming activities > 2 horses, 25 cattle or other livestock that are owned or boarded $10,000 or more in annual gross receipts Home Daycare Ineligible, even when the primary coverage is written elsewhere Vacant or Unoccupied Homes Losses (note: guidelines may vary by state; contact your Underwriter if questions) Ineligible Risks are ineligible if the paid and closed, or open and reserved loss history includes: Any fire, theft, water or liability losses in the last 3 years More than 1 loss of any type, including designated catastrophe losses in the last 3 years Renewal business: More than 2 losses of any type, including designated catastrophe losses in the last 5 years, with one of those losses in the past 12 months 14
Home Underwriting Coverage Exclusions or Restrictions As an alternative to policy termination, several endorsements are available to either restrict or exclude the coverage we provide (endorsements available vary by state). Coverage Restriction Offered Trampoline Exclusion Outbuilding Exclusion ACV Roofing Loss Settlement (may be required in some states) Other Structures ACV Settlement Roofing Limitation Description Excludes liability for all trampolines whether netted or not. Excludes property coverage for a damaged outbuilding and the contents contained therein. Allows roof damage losses to be settled on an ACV basis. Allows outbuilding losses to be settled on an ACV basis. Excludes coverage for the roof, as well as coverage for the interior of the building and personal property, resulting from damage caused by water, rain, sleet or snow leaking or entering the dwelling from the excluded roofing. 15
16 Inspection Process Overview
Home Inspections Process Overview When are they ordered What types of inspections are completed Inspection Notification Process Existing Business: Properties are inspected every 10 years unless Coverage A exceeds $1.2 million. These higher value homes are inspected every 5 years. New Business: QBE uses an automated, rule driven, inspection ordering process to determine which homes need to be inspected. Examples include: Homes 50 years old and older Wood burning stoves (WBS) Coverage A limits of $1,000,000 or greater Homes with special hazards. Examples: PC 9 or 10 properties; Seasonal or Secondary homes; Homes with older roofs; Other structures with significantly increased coverage limits Exterior inspection: Coverage A up to $700,000 Interior and Exterior inspection: Coverage A over $700,000 Special Notes: Regardless of Coverage A amount, homes 50 years old and older will get both an exterior inspection and an interior Electrical / Heating / Plumbing (EHP) supplement completed Inspections on properties with Wood Burning Stoves or similar structures will include the required photos and completion of the WBS questionnaire Agent Notification: Automated agent email notification sent to the agency when an inspection is ordered. The email will include Policy Number, Insured Name, and Address. Insured Notification: Letters are sent to your client on QBE letterhead in a QBE envelope to inform them of the following: Exterior Inspection: The client does not need to be home at time of the inspection. Interior Inspection: The inspector will be calling the client to set up an inspection appointment 17
Home Inspections MSB s and Coverage A 8 key characteristics The following items identified from an exterior inspection will cause a change in the MSB and a subsequent change in Coverage A Exterior wall construction that is > 51% incorrect (i.e. brick to frame; vinyl to aluminum) Solar Panels (i.e. will be added to MSB if omitted) Foundation (i.e. concrete slab to unfinished basement) Dwelling Type (i.e. 2-story to townhome) Garage (i.e. garage left off; listed as 1 car vs. 2) 18 Roof Type (i.e. asphalt to tile) If one of these items triggers a change in the MSB, we will update all exterior features evident per the inspection, including percentage of exterior wall. No interior features will be changed unless an interior inspection has been completed Number of Units (i.e. Need to match; if insuring a duplex = 2 units, etc) Square Footage (i.e. if +/- 100 on square footage)
19 System Highlights
FlexHome Screen Tips Protection Class Determination on Location Screen Protection Class assignment will be validated on this screen based on the property address. It is very important to ensure that Feet to Hydrant is correct. Failure to update this field for hydrants within 1,000 feet can result in higher protection class assignments and corrections and rework after the quote is submitted. 20
FlexHome Screen Tips Updating the Dwelling Screen The Dwelling screen is one of the most important screens in your FlexHome quote. The information entered on this screen needs to be consistent with the information in the RCT calculator in order to generate an accurate Coverage A value. Some commonly missed items include: Updating the update years for Heat, Electrical, Roof, Plumbing and Water Heaters these are critical for driving policy credits. Garage: select None for a detached garage to ensure it does not get incorporated into Coverage A amount. 21
FlexHome Screen Tips Completing the RCT Estimator on the Dwelling Screen Complete the Dwelling screen up through the Valuation section. Click the Link to Estimate button to open the RCT cost estimator and then validate the home s characteristics and features used to calculate the estimated Coverage A value. S T E P 1 Once you complete the RCT estimator, click on Calculate Estimate to reflect the updated Coverage A amount. S T E P 2 22
FlexHome Screen Tips Completing the RCT Estimator on the Dwelling Screen Review each of the RCT Express screens to confirm the characteristics and features used to calculate the home s estimated value and make any changes needed. When finished reviewing the RCT, navigate to the Reports/Calculate screen to finalize and close the valuation. 23
FlexHome Screen Tips Completing the RCT Estimator on the Dwelling Screen The Reports/Calculate screen will provide the final cost calculations, as well as provide options to print or download a copy of the results. When finished, click Finish/Close to close the RCT Express window as Save & Complete. 24
FlexHome Screen Tips Completing the RCT Estimator on the Dwelling Screen Clicking on Finish/Close will open a separate pop-up box with options for closing the RCT. It is important to make sure Complete is checked before closing. 25
FlexHome Screen Tips Accounting for Mortgages The number of mortgages on a policy can impact the premium: 1 mortgage is neutral 0 mortgages is a credit 2 or more mortgages are a surcharge The system will reconcile the number of mortgages shown on the Quote UW screen with the number of mortgagees entered on the Dwelling screen. If the two screens do not match, an error will be generated and need to be cleared before submission. 26
FlexHome Screen Tips Scheduled Personal Property Matching Coverage Limits When adding a new class of Scheduled Personal Property, it is important that the coverage limits for individual items match the total coverage limit for the class. Example: An error message is generated to indicate that the total coverage limit for the Furs class ($15,000) does not equal the sum of the individual items shown ($14,000) 27
FlexHome Screen Tips Payment Purchase Popup A Pop Up Window will always display in front of the Payment/Purchase screen to confirm: - The ability to bind the submission - Whether the submission may be bound but will be referred to an U/W for review (also called a soft referral ) - If the submission cannot be bound at all but may be submitted to an underwriter for evaluation and possible exception (also called a hard referral or hard stop ) Click Continue to access and complete the Payment Purchase screen 28
FlexHome Screen Tips Soft Referrals Soft referrals(10 points): Will refer to underwriting as a bound application Underwriter will verify/validate needed information and follow up with agency if necessary If multiple soft referrals, and points total 100 or more, application is treated as hard referral and cannot be bound 29
FlexHome Screen Tips Hard Referrals Hard referrals (100 points): Will refer to underwriting as unbound application Underwriter will verify/validate needed info and approve the application for the agent to finish the process if the policy is accepted Agent will need to finalize the application by finishing the payment/purchase screen and hit submit 30
Training Materials 31
Training Materials 32
Questions? Training-Feedback.US-BOX@us.qbe.com 33