Southern Region Property Inspection Major/Minor Conditions ...files.constantcontact.com/38c7840a001/b6eb515c-970...Sod roof homes Berm/earth homes - homes built completely underground

We expect adherence to this Risk Management Policy, although we recognize that these criteria cannot cover every

conceivable situation and we reserve the right to deviate where appropriate.

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© 2014 Allstate Insurance Company

Southern Region Property Inspection Major/Minor Conditions

Effective: February 6, 2017

Majors 1+ Major - Generates an Underwriting Referral

o If any Majors require remediation within Underwriting Review Period (URP): All listed Majors will require remediation within URP

3 Majors: Take action within URP

4+ Majors: Take action within URP, no remediation permitted (New purchases are allowed through the URP for remediation)

Minors Minors will contribute to the acceptability of the inspection for Manufactured Home (32).

o 3 Minors = 1 Major

Minors will not contribute to the acceptability of the inspection for Landlords (72) and Homeowners (70).

These guidelines apply to the following policy types:

Homeowner (Line 70)

Landlord Package Policy (Line 72)

Manufactured/Mobile Home (Line 32)

When a property inspection is returned indicating a major condition concern, the inspection receives an unacceptable rating and is referred to the Risk Management Business Center for handling. Please review the individual hazard descriptions for specific Underwriting actions.

o For additional information, or questions regarding mitigation and/or cancel/re-write opportunities, please contact Property Services within the RMBC by calling 800-336- 9400, options 1-1-2.

Glossary of Conditions

Brick Chimney

Broken/Cracked Windows

Business Exposure on Premise

Daycare

Detached Structure

Dogs/Vicious Animals

Doors

Dry Rot

Fences

Foundation

Gutters/Downspouts

Ineligible Exposures



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Landlord Policies

Manufactured/Mobile Homes

Paint Peeling

Pools/Hot Tubs

Renovation

Roof- Homeowner

Roof- LPP/MH

Sidewalks/Driveways

Siding

Steps/Porches

Trampolines

Trees

Vacant/Unoccupied Dwellings

Yard/Debris

Brick Chimney Major Condition:

Leaning chimney or imminent risk of collapse

Visible cracks compromising the stability (not hairline cracks)

Any missing bricks on chimney

Appears to be a wood stove chimney If Chimney has 20% or more of:

Bricks in need of mortar/tuck point,

Bricks that are damaged/spalling/crumbling/separating Minor Condition: If Chimney has less than 20% of:

Bricks in need of mortar/tuck point,

Bricks that are damaged/spalling/crumbling/separating Timeframe to correct - Within the Underwriting Review Period – based on severity if chimney is in immediate risk of collapse Timeframe to correct - Prior to the first Renewal – other chimney concerns

Business Exposure Major Condition:

Business signage on premise (unless permissible exposure*)

Commercial buildings and employees on premise

Any type of for-profit farming activity

Converted garages/coach houses or rooms

Any commercial-like activity that is not incidental

Premise that shares a parking lot with an adjacent business

Dwelling adjacent to a business without a separating fence



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It is not a major condition when the customer is interviewed and:

Customer gives part time instrumental/voice music lessons

Customer has a one chair beauty salon or one chair barbershop, but no employees

Insured owns farm animals that are not part of a business (# restricted per RMP)

There is incidental, non-commercial farming The following business exposures can be overturned:

Photography Studio, Interior Design, Architect, Accountant/ Bookkeeper, Locksmith/Key Shop, Real Estate Sales, Notary, Appliance / Machine / Computer Repair, Tailors / Seamstress, On Premises Landlord OR any commercial-like activity that is not incidental

Timeframe to correct - Within the Underwriting Review Period

Daycare Major Condition:

Adult care as part of a business being run in the household

Child day care with more children un-related to the insured as permitted by each state’s Risk Management Policy.


Detached Structure See "Siding" for detached structure condition concerns.

*Definition for Sheds – less than 100 SF *Definition for Detached Structures - over 100 SF

Major Condition:

The Shed or Detached Structure is in imminent danger of collapse

Detached Structure Roof (Refer to Roof Rating 3 Guidelines)

Five or more outbuildings (applies only to structures over 100sq ft) Minor Condition:

Roof conditions (Refer to Roof Rating 2 Guidelines)

Rot

Peeling Paint

Cracked/missing window(s)

Rust

Mold

Ivy or vegetation Note: Not a major if there is a barn on the property in rural areas unless in danger of imminent collapse. Timeframe to correct (Urban) - Within the Underwriting Review Period Timeframe to correct (Rural) - Prior to the first Renewal

Dogs/Vicious Animals Major Condition:



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Any animal on the property with previous bite history or displays vicious, dangerous or aggressive tendencies

It is not a major condition if the dog is running loose (barking or not barking). Timeframe to correct - Within the Underwriting Review Period if a previous dog claim exists. Otherwise, No action. *The major condition only applies to an animal owned by the customer. Documentation of removal of animal from the premises is required (i.e. notarized letter from insured).

Doors Major Condition:

Floating door with no steps, porch, balcony or deck Floating doors permanently sealed / boarded and is visible from the exterior are

acceptable for new construction only

Entry doors with dry rot, damage, rust or corrosion that has created an opening water can penetrate, or compromises the door’s function

Timeframe to correct (no renovations/remodeling) - Within the Underwriting Review Period Timeframe to correct (active remodel/renovation) - Prior to the first Renewal

Dry Rot / Rot Major Condition: Rot on/which:

Alters the integrity of the building

Supporting beams/posts

Multiple decking or steps (presents an immediate liability concern)

Multiple rafter tails

Multiple soffits/facia/eaves

Multiple pieces of siding including wood siding chimney surrounds

Penetrates into any of the above items Minor Condition:

Wood on siding/window/other non-weight bearing sections of the house Timeframe to correct - Within the Underwriting Review Period

Fences Major Condition:

Multiple missing boards or section(s)

Significant leaning or warping

Collapse or rotting over 25% of overall structure or that allows access to a pool or trampoline or other hazard



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Retaining wall that is collapsing, or crumbling Minor Condition:

Slight lean, missing boards

Rot over less than 25% of overall structure Timeframe to correct - Prior to the first Renewal

Foundation Major Condition:

Foundation is rotted

Foundation is leaning/sinking

Cracks are 1/4 inch or greater in width, length of one brick or more, and crack is deep into the

structure or surface (water intrusion)

Foundation components need tuck point; deterioration of mortar which could allow water entry

into structure or could compromise its structural integrity

Damaged/spalling/crumbling or separating bricks

Foundation that is open; must be enclosed masonry foundation or an acceptable 10 ft pier

foundation (New Business Only)

o Manmade openings in block/brick to vent foundations must be screened

o Pier (up to 10ft) only allowed for homes with a year built 1990+, provided all utilities

under the home are enclosed

o Pier (between 4-10ft) only is unacceptable for homes built prior to 1990 or with exposed

plumbing/electrical/utilities

Curtain wall foundations with masonry curtain walls not woven into the piers

Missing crawl space doors or foundation vents; crawl space access holes w/o hinged doors must cover the entire opening and fit tight to foundation wall

Open foundations between 2 and 4 feet must be enclosed or have lattice work (Open foundations up to 2 feet acceptable)

Note: For a pier foundation to be acceptable, the home needs to be originally built with the pier foundation and no prior height adjustments made to the foundation Timeframe to correct - Within the Underwriting Review Period

Gutters/Downspouts Major Condition: Shows significant:

damage

vegetative growth

deterioration to a point in which the system does not function properly Minor Condition:



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Damage that does not impact the functionality of the gutter or downspout such as:

Rust

Denting

It is not a major condition when:

The house is designed not to have gutters or downspouts

Portions of the house don't have gutters as a design element

Partial gutters above entry ways Timeframe to correct - Prior to the first Renewal

Ineligible Exposures Major Condition:

Home with inability to determine replacement cost

Physically relocated homes

Homes on historic registry

Commercial farm property

Inaccessible by fire protection/repair services, or emergency response vehicles o Access road is not graded and graveled or all weather (asphalt) and is less than 14 feet

wide

More than 4 family units

Liability Exposures: o Permanent bicycle ramps o Permanent skateboard ramps

Uncommonly used buildings / materials (IE: Metal buildings which are used as a living space)

EIFS/Dryvit Pre-1996

Geodesic domes

Sod roof homes

Berm/earth homes - homes built completely underground or into a hillside. When built into the hillside - generally there is no exit on the hillside side of the house

Straw bale

Foam/Styrofoam

Recycled tires

Campers and travel trailers

Shipping Containers

100% Log homes


Landlord Policies (Occupancy) Major Condition:

Owner occupied



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If policy is dated future effective, the agent must provide a rental contract coinciding with, or inclusive of, the effective date of the policy


Manufactured/Mobile Homes Major Condition:

If the policy is a Homeowner or a Landlord Package Policy and you determine the structure is a manufactured/mobile home

o Mark as a major condition concern and take detailed photos - if possible take a photo of the manufactured/mobile home placard affixed to the outside of the manufactured/mobile home

Manufactured/Mobile Home without skirting or other type of material leaving the foundation open of partially open o Skirting - this should be marked "yes" when there is either skirting or some other type of

material (concrete, concrete block, etc) that encloses the foundation. o Only mark "no" when the foundation is open or partially open. Marking "no" gives an

unacceptable assessment

Manufactured/Mobile Homes without tie downs o Mark "yes" when you can verify there are tie downs or you cannot verify there are tie

downs. Do not take skirting off to verify o Mark "no" if you can actually verify/observe the manufactured home is not tied down -

marking "no" gives an unacceptable assessment

Alterations that make the dwelling structurally unsound (Sagging, leaning, separating, etc.)

Additional Mobile Home/Manufactured Home on premises (same address) regardless of conditions or use

Park models - recreation vehicles primarily designed as temporary living quarters for recreation, camping, or seasonal use

Additions with square footage that is over 50% of the original structure

Additions which are not professionally constructed and do not meet code standards

Manufactured homes not owner occupied

Adult care and child daycare Timeframe to correct - Within the Underwriting Review Period Park Definition: A planned or named community of manufactured homes which have permanently installed water, electricity and sewage utility services; which are collectively managed; and whose residents recognize common bylaws or rules.

Paint Peeling * Major Condition:

25% or more of the dwelling, siding, fascia, soffit and eave has peeling paint



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Minor Condition:

Less than 25% of the dwelling, siding , fascia, soffit and eave has peeling paint Timeframe to correct - Prior to the first Renewal

Pools/Hot Tubs (In/Above Ground) Major Condition:

Unfenced in-ground pool or above ground pool that is less than 4’ above grade

Empty and uncovered in-ground pools

Permanent fencing (no missing boards/sections) less than 4’ high around dwelling perimeter /

pool.

Above ground pools in un-fenced yard acceptable, as long as they are enclosed by a

secure, locked gate or have a fold-up locked ladder

Hot tubs without a hard cover in an unfenced yard

Above ground pool is collapsing

Unusable pools Minor Condition:

Pool has a torn vinyl cover Timeframe to correct - Within the Underwriting Review Period Note: Rural homes do not require a fence (rural area and must not have visible neighbors)

Renovation Major Condition:

Exterior renovation that is not current.

(may be identified due to construction materials are faded)

Dwelling is vacant and gutted


Exterior or interior renovation is current and the dwelling is occupied - evidence of building materials at site or workers on site

Timeframe to correct (if no BR endorsement) - Within the Underwriting Review Period Timeframe to correct – (if renewal inspection or BR endorsement) Prior to the Renewal

Roof – Homeowner - Ineligible roof types that cannot be written:

Solar Shingles

Example: DOW PowerhouseTM Solar Shingles

Asbestos tile.



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"Storybook-Style" roofing materials (wood shake or composition)

Corrugated metal type roofing The roof condition will be captured on a scale of Roof Rating One, Roof Rating Two, or Roof Rating Three. Roof Rating One This is the best rating and will be assigned to a roof by the inspector that is showing no signs of wear, with a several years of life remaining. See the list above for ineligible roof types; these roof types cannot receive a Roof Rating One. The following roof types are ineligible for Roof Rating One, but if the condition of the roof is acceptable, they can be written as Roof Rating Two.

T-lock interlock shingle (all types)

Pastel Composition

Examples include, but are not limited to: TAMKO 3-Tab Pastel Brown, TAMKO 3-Tab Pastel Green, and/or TAMKO 3-Tab Pastel Red

Fiberboard/Fiber Cement

Examples include, but are not limited to: Masonite Woodruff, American Cemwood Shake, American Cemwood Pacific Slate, Permatek Shakes, Permatek II Shakes, HardiShake, HardiSlate, MaxiShake, MaxiSlate, Fire Free Shake, Fire Free Slate, or CalShake

Roof Rating Two** This rating will be assigned to a roof showing some signs of age; there is life remaining, with no immediate exposure to loss. See the list above for ineligible roof types; these roof types cannot receive a Roof Rating Two. The following roof types are eligible for a Roof Rating Two, if the condition is acceptable:


Pastel Composition




Major Condition:

Slight granular loss or deterioration, lifting/buckling, curling, etc.

Any roof that has:



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Up to three missing tabs

Up to three detached or slipping shingles

Moderate shrinkage

Moderate splitting of wood roof shingles

Mild to moderate blistering

Single layer roofs that exhibit mild waviness or appear uneven due to poor venting and leads to stretching and displaced roof shingles

Deteriorated rubber boots/auto cocks or pipes exiting the roof Roof Rating Three** This rating is assigned to a roof that needs to be repaired or replaced due to extensive damage that needs to be addressed. This rating is also assigned to the ineligible roof types; see the list above. Major Condition:

Composition shingles over wood shake

Roofs with more than 2 layers

Any roof with inadequate roof ventilation; nail pops

Four or more missing tabs

Four or more detached or slipping shingles - not in the same area

Moderate to extensive lifting/buckling

Moderate to extensive curling/cupping of shingles

Moderate to extensive clawing shingles

Moderate to extensive granular loss - shingles appear shiny (exposed fiberglass) and/or have black stains (exposed asphalt) indicative of damage

Extensive blistering (typically found on south slope at top of ridge)

Any impact marks or circular indentions (man-made or damage from the elements) on the roof, shingles or skylights

Shingles are brittle or have no visible life remaining

Moderate to extensive patching

Any patch using sealant, tar, roofing cement, etc., on shingles, flashing, skylights, chimneys, satellite dishes, or exhaust pipes

Roofs that are hail damaged or exhibit any other kind of damage

Roofs that have tarps covering any portion

Multiple damaged/broken shingles or tiles

Tile roofs with broken or missing tiles

Wood shakes that are dry, curling or cupping, and/or have extensive splitting. Wood shakes that are rotting, curling up, lifting by three inches or more

Moss on 20 percent or more of the roof

Overgrown, pervasive, penetrating Ivy on roof

Metals roofs with any damage that is more than cosmetic

Any rot on wood areas surrounding chimney flue

Moderate to extensive rust in metal valleys or on vents

Any structure that has been nailed/bolted to shingles that compromises the integrity



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Composition shingles on roof pitch less than 3/12

Rolled asphalt roofing material on a roof pitch greater than 2/12

Roof life is less than five years (other roof majors should be noted)

Satellite dish damaging roof surface (photo required)

Missing roof vent covers

Flashing that is lifting or not properly installed

Moderate to extensive wavy roof - usually indicative of multi-layer or decking issues

Repairs that are not up to industry standards **A roof with a Roof Rating Two will have a roof minor condition listed on the inspection. It is not a major condition when:

Water stains on roof

House is tented for insect fumigation - go back to inspect at a later time

The roofing material is a stone-coated steel roofing system which is designed to be installed over the existing roof surface (documentation required)

Roof - Landlord Package/Non House and Home Policy Ineligible roof types that cannot be written:


Pastel Composition




Solar Shingles


Asbestos tile

"Storybook-Style" roofing materials (wood shake or composition) Major Condition: See the list of Roof Rating Two and Roof Rating Three major conditions for Roof - Homeowner. Although the Roof Ratings will not apply for a Landlord Package or Non House and Home Policy, the major condition will generate an unacceptable inspection result.

Roof - Manufactured/Mobile Home Ineligible roof types that cannot be written:

Solar Shingles


Asbestos tile

"Storybook-Style" roofing materials (wood shake or composition) Major Condition:



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See the list of Roof Rating Two and Roof Rating Three major conditions for Roof - Homeowner. Although the Roof Ratings will not apply for a Manufactured/Mobile Home policy, the major condition will generate an unacceptable inspection result.

Sidewalks/Driveways Major Condition:

Significant unevenness in pavement that would cause abnormal risk or trip hazard

3” or greater holes/drops/rises in sidewalks/driveways

Crumbling

Window well that’s in a high traffic area (i.e. immediately adjacent to or incorporated into a patio or deck, next to a main walkway, and/or next to steps) where possible liability exposure exists; the window well depth is greater than 3 feet deep and uncovered

o “Covered” meaning that the well is protected by a weight-bearing, secure grate

Timeframe to correct - Prior to the first Renewal

Siding *Also see Rot and Peeling Paint (Applies to Dwelling and Detached Structures – Excluding Sheds) Major Condition: - Timeframe to correct - Within the Underwriting Review Period

Visible damage (i.e. hail, wind, melted)

Holes or missing sections that moisture can penetrate

Rusted out sections

Hanging/loose/detached sections

Asbestos/obsolete material

More than 10% brick siding is damaged Major Condition: - Timeframe to correct - Prior to the first Renewal

Moss or Mold on at least 25% of any side, excluding brick

Overgrown, non-manicured, pervasive or penetrating ivy on siding

Brick siding is in need of mortar / tuck point Minor Condition:

Moss or Mold on less than 25% of any side

Dents/dings that don’t penetrate into the siding

Steps/Porches Major Condition:

Missing

Crumbling

Rotting

Leaning

Collapsing

Cracking



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Steps that are:

60” high or greater without a handrail on each unprotected side o Vertical, horizontal, and/or diagonal railing openings between balusters at 24” intervals

Between 48” and 59” without a handrail on each unprotected side Porches that are:

60” high or greater without a railing o Vertical, horizontal, and/or diagonal railing openings between balusters at 12” intervals

Between 48” and 59” without a railing Minor Condition:

Steps or Porches that are between 36" and 48" without a railing One step that is:

Rotting

Leaning

Cracking It is not a major condition when:

The drop to the ground is less than 48 inches

Steps are built into the landscape Timeframe to correct – Based on severity condition can warrant action within the Underwriting Review Period or Prior to the first Renewal

Trampolines Major Condition:

All un-netted trampolines

The trampoline is in disrepair Timeframe to correct - Prior to the first Renewal

Trees Major Condition: - Timeframe to correct - Within the Underwriting Review Period

Branches, limbs or leaves touching roof causing noticeable damage

Tree trunks leaning on the structure or within 3 feet of the dwelling

Tree limbs that are able to touch any electrical line

Limbs over the dwelling or detached garage, >6” in diameter and in imminent danger of falling (broken or cracked)

Major Condition: - Timeframe to correct - Prior to the first Renewal

Dead or unhealthy limbs >6” in diameter hanging over the customer’s or neighbor’s roof

Tree is leaning severely and within striking distance of the insured or neighboring property

Vacant/Unoccupied Dwellings Major Condition:



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If there are condition concerns such as boarded up windows or doors, etc., it will be noted as vacant property

o Includes property in foreclosure, abandoned, condemned, or vacant Timeframe to correct - Within the Underwriting Review Period

If new business and home newly purchased, (occupied within 30 days) - No action

Windows Major Condition:

Broken out windows including those in doors (Shards of glass)

2+ Windows are boarded up (except those in conjunction with an air conditioner)

3 or more cracked windows, includes those in doors

Missing whole windows, including those in doors

Heavy Rot around window frames Minor Condition:

Up to 2 cracked windows Timeframe to correct - If conditions are related to vacancy or abandoned home - Within the Underwriting Review Period - or - Timeframe to correct - If conditions are related to detached structures, new purchase, or not related to vacancy or abandonment - Prior to the first Renewal

Yard Debris Major Condition: Timeframe to correct - Within the Underwriting Review Period

Significant amounts of vegetation/growth, debris, garbage, non-working appliances, accumulating building materials strewn around the premises and no evidence of recent work being done to the home

Discarded vehicle(s) in disrepair, appears unusable. May have flat tires, broken windows, no tires, vegetation growing up around vehicle

Major Condition: Timeframe to correct - Prior to the first Renewal

Treehouse, swing set, playset in disrepair Minor Condition:

A piece of equipment, article of personal property, or a fixture on the property which by its nature or appearance attracts interest in it and unauthorized use by the public presents a recognizable hazard to the user

o Mattress

o Exercise equipment


The accumulation of debris for old owners moving out



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Debris/materials are stacked for bulk garbage pick-up

Appliances are positioned near the curb for bulk garage pick-up

An outside appliance is allowed as long as it is operable.

Documents

Southern Region Property Inspection Major/Minor Conditions ...files.constantcontact.com/38c7840a001/b6eb515c-970...Sod roof homes Berm/earth homes - homes built completely underground