This topic covers the specialty coverages beside the homeowners and auto policies: flood and earthquake, mobile homes, watercraft, personal inland marine floaters, the personal umbrella, and the residual market for property. The national guide covers the forms. Connecticut's own rules here are the Connecticut FAIR Plan (38a-328 and Regs. 38a-328) and the private flood statute.

The national concepts in brief

• Flood and earthquake are excluded from homeowners policies. Flood is written through the National Flood Insurance Program or private flood policies. Earthquake is added by endorsement or a separate policy.
• Floaters and scheduled property endorsements list valuables individually, with coverage above the homeowners special limits.
• A personal umbrella adds excess liability limits above auto and homeowners coverage.

Private flood in Connecticut

• Licensed homeowners and commercial property insurers may offer flood coverage, and may choose to offer it in only part of the state (38a-316f).

Connecticut FAIR Plan

• Purpose: makes basic property insurance available to people who can't buy it in the voluntary market (38a-328, Reg. 38a-328-1).
• Membership: every company licensed to write the covered lines must participate. Each shares writings, expenses, profits and losses in proportion to its premiums (Reg. 38a-328-7).
• What it writes:
  • Basic insurance means the standard fire policy, extended coverage, vandalism and malicious mischief, and sprinkler leakage, plus limited liability.
  • Liability is offered only on voluntary-market forms for dwellings of up to three families.
  • Auto, farm and excluded manufacturing risks are not written.
• Limits (Reg. 38a-328-8):

• Policy term: one year.
• Inspection: anyone with an insurable interest gets a free inspection, for example when the Plan won't write at regular rates or declines because of physical condition (Reg. 38a-328-4).
• Timing:
  • A binder or policy is issued within three working days after eligibility is set and the full premium is received.
  • To prevent gaps, coverage takes effect automatically on the 21st day after the application is received if the conditions are met (Reg. 38a-328-10).
• Ineligible risks (Reg. 38a-328-11):
  • vacancy of 60 days or more
  • unrepaired substantial damage
  • real estate taxes unpaid for two years or more
• Vacancy test: an owner-occupied dwelling of up to three families counts as vacant only if at least 75% of it is vacant. For other buildings the threshold is 65%.
• Notices: 60 days before nonrenewal, and 10 days to cancel for nonpayment (Reg. 38a-328-13).
• Appeals: to the manager within 30 days. The manager decides within 15 days. That decision can be appealed to the Commissioner within 30 days (Reg. 38a-328-14).
• Producer commission: 10% of premium, including condition charges (Reg. 38a-328-15).

Exam traps

• FAIR Plan limits are $350,000 on the dwelling, $75,000 on contents and $300,000 of liability.
• Coverage starts automatically on day 21. Policies are issued within 3 working days of eligibility and payment.
• FAIR Plan commission is 10%.