Eligibility Rules for Building Update Requirements
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May 01, 2017
The Florida Office of Insurance Regulation (OIR) has approved changes to Citizens’ building update eligibility rules, to require proof of roof and/or electrical updates for older commercial buildings. These changes apply to new-business submissions and renewal policies with effective dates on or after July 1, 2017. The rules and PolicyCenter® updates are outlined below.
Note
The rules apply to all commercial policies that include building coverage except:
Builders Risk policies
Special Class items
Roof Eligibility Rule
Agents must upload a completed Commercial Roof Condition Inspection Form* to verify the roof covering has been updated or replaced, based on the age of the roof covering, as outlined below:
Roof Shape
Primary Roof Covering Type/Material
Age of Roof Covering
Flat (slope less than 2:12)
Built-up: Three-ply, tar and gravel, modified bitumen, membrane or other coverings not referenced below
Over 15 years
Hip, gable, mansard or other
Shingles: Fiberglass/asphalt composition, fiberglass dimensional/architectural or wood shake
Over 20 years
Metal
Over 30 years
Tiles: Clay, concrete or slate
Over 50 years
Electrical Eligibility Rule for Commercial Multiperil
For buildings constructed 1975 or earlier, agents must upload a Commercial Electrical Inspection Form* to verify the electrical system is updated or in good working condition.
*Log in to the Agents site to access links. Other acceptable documentation to confirm roof and electrical updates are outlined in the Required Document Guides (see Resources section below).
Policyholder Notice
For renewals effective on or after July 1, 2017, Citizens will inform current policyholders by including a notice in their renewal packages. The notice advises policyholders to provide their agent with building update inspection documentation within two years, to prevent the policy from nonrenewing and to remain eligible for coverage with Citizens.
Agent Activities
Agents will begin receiving PolicyCenter activities in 2018, for affected policies. These activities will advise agents that action is required. If agents do not update the policy and upload necessary supporting documentation, policies effective July 1, 2019, or later will be nonrenewed.
PolicyCenter Updates
If the risk meets any of the parameters above, agents will be required to complete applicable fields in the building’s Details tab for new-business submissions or when adding a building to a policy:
The Primary Roof Covering Material in the Construction section
Year of Last Primary Roof Update/Replacement (formerly named the Year of Last Update – Roofing) in the Improvements section
Roof Remaining Useful Life (Years) in the Improvements section
Year of Last Electrical Update/Inspection (formerly named the Year of Last Update – Electrical/Wiring) in the Improvements section
Resources
For more information, log in to the Agents site, go to the Commercial section, then select CR-M, CR-W, CNR-M or CNR-W under the Commercial column on the left to view:
Underwriting Guidelines: Select Manuals in the middle column to filter to the manuals.
Citizens Commercial Roof Condition Inspection Form and the Citizens Commercial Electrical Inspection Form: Select Submission in the middle column to filter to forms.
Policyholder Notices: Select Policyholder Notices in the middle column to filter to these notices.
Required Document Guides: Select a guide under the Spotlight column on the right. They’re also available in PolicyCenter.
Agents also can log in and select Search >Search Frequently Asked Questions at the top of any webpage, and enter 1161, 3525 or 2152 in the search field.
Citizens provides agent communications online for historical purposes only, and the communications have not been updated to include any changes that may have been made after publication. Agents can find the latest information by reviewing the applicable underwriting manuals, and by logging in and accessing our FAQs, which are available from the top of any page on our website.
