The national guide covers the ISO homeowners forms (this page uses HO 00 03 05 11) and Coverages A through F. Georgia's own rules for policies on natural persons' residential property are in O.C.G.A. 33-24-46. They cover cancellation, nonrenewal, claims-based underwriting and required notices.

Forms in brief

• HO-3: the dwelling and other structures are covered on an open-perils basis. Personal property is covered for named perils.
• Coverage B: other structures set apart by clear space, or connected only by a fence or utility line.
• Coverage C: personal property anywhere in the world.
  • Theft of jewelry, watches and furs is limited to $1,500 unless scheduled.
  • Watercraft, including trailers and motors, is limited to $1,500.
• Coverage D: additional living expense, fair rental value and civil authority.
• Coverage F: medical expenses of others, incurred within three years of the accident, regardless of fault.
• Ordinance or law: up to 10% of the Coverage A limit for increased costs from building codes.
• HO-4 covers a tenant's property and liability. HO-6 covers a condo unit owner's property, plus alterations and fixtures under Coverage A.
• Flood and earthquake are excluded.

Cancellation and nonrenewal (33-24-46)

• Scope: policies naming natural persons that insure residential real property and its contents.
• After 60 days, or after a renewal takes effect, the insurer may cancel only for:
  • nonpayment
  • fraud or material misrepresentation
  • a substantial increase in hazard
  • violation of material policy terms
• Notice periods:
  • 10 days for nonpayment, and for any reason during the first 60 days (33-24-44(d))
  • 30 days for other cancellations (33-24-44(b))
  • 30 days for nonrenewal, with the reasons
• Reduction in coverage: a separate notice titled "NOTICE OF REDUCTION IN COVERAGE" in capital letters of at least 12-point type, at least 30 days ahead.
• FAIR Plan notice: any cancellation other than for nonpayment, and any nonrenewal, must tell the insured about the Georgia FAIR Plan and how to contact it.
• Claims-based nonrenewal:
  • A claim means contacting the insurer to seek payment. A loss report or coverage question alone is not a claim.
  • An insurer may not nonrenew for two or fewer claims in the past 36 months that weren't caused by the negligence or intentional acts of the insured or residents.
  • It may not nonrenew because the insured has no other business with it.
• Agency terminations: ending an agency relationship is a valid reason to nonrenew. But if the insured applies through another of the insurer's agents before the nonrenewal date, the insurer must renew.
• Disputes: an insured who received proper notice must file a written objection with the insurer before the nonrenewal takes effect in order to challenge it later.

Valuation and other rules

• Insurable interest in property must exist at the time of loss (33-24-4).
• Georgia's consumer guidance stresses insuring to at least 80% of replacement value. The HO-3 pays full replacement cost only if the limit meets that level.
• Unfair discrimination: a home's age or location within a rated fire district can't be used without objective loss experience.

Exam traps

• Notice periods: 10 days for nonpayment or in the first 60 days, 30 days otherwise, and 30 days to nonrenew.
• Two or fewer non-negligent claims in 36 months can't be the reason for nonrenewal.
• Nonrenewal and non-payment-related cancellation notices must mention the FAIR Plan.