UmialikXpress
Agency Bulletin
February 26, 2021
Umialik Homeowner Program Adds Functional and Modified Replacement Cost Options – Eff. 3-1-2021
As a result of direct feedback from you, our agency partners, we are offering Functional Replacement Cost and Modified Replacement Cost endorsements, effective March 1, 2021. We strive to update our coverage offerings continually to address the changing needs of our policyholders and appreciate your insights.
Check out the Umialik Personal Lines Advisor for additional information and underwriting guidelines for these new coverages.
New! Functional Replacement Cost Loss Settlement Terms - HO 4857 01 06
This endorsement provides coverage for repair or replacement of a building with commonly used, less costly construction materials and methods, which are functionally equivalent to obsolete, antique, or custom materials. This optional coverage is available in our Select Homeowner program.
The functional replacement cost can be calculated using our online replacement cost estimating tool. Simply select Standard in the Construction Type dropdown.
New! Functional Replacement Cost Loss Settlement Terms with Additional Amount of Insurance
You will have the option to select an additional amount of insurance of 10% or 25% of the Coverage A limit (when the loss exceeds the coverage amount). This optional coverage is available in our Select Homeowner program for homes insured at 100% of their functional replacement cost.
Click to view Functional Replacement Cost Loss Settlement Terms with Additional Amount of Insurance forms:
New! Modified Replacement Cost Terms - HO 4856 01 06
This optional coverage provides replacement cost coverage for partial losses when the amount of insurance is less than 80% of the estimated cost to rebuild the home, but equal to or greater than the percentage shown in the endorsement schedule. We recommend discussing the use of this tool with your underwriter on quality risks where the insured may not be able to insure their dwelling to 100% of the Coverage A value. This optional coverage is available in our Select Homeowner program.
If you have any questions, please contact your Personal Lines Underwriting Team or Sandy Holmes, Regional Agency Manager; they are eager to help in any way they can. Thank you for your partnership.
