The homeowners forms, Coverages A through F, perils, exclusions and loss settlement are covered in the national Homeowners guide. This guide covers the New Hampshire laws that apply to homeowners and other personal property policies:

• the personal lines cancellation law (RSA 417-B)
• the fire insurance statutes (RSA 407)
• the property claim rules (Ins 1002)

New Hampshire has no FAIR plan. Instead, RSA 404-C lets the Commissioner adopt risk sharing plans for risks that can't get voluntary coverage.

Cancellation and nonrenewal (RSA 417-B)

Scope. RSA 417-B covers policies, other than auto and workers' comp, that insure personal, family and household risks: real or personal property, or legal liability.

Allowed reasons for cancellation (417-B:3). After 90 days, an insurer may cancel only for:

• nonpayment
• a conviction for certain crimes
• fraud or material misrepresentation, including fraud by the named insured in pursuing a claim
• grossly negligent acts that substantially increase a hazard
• physical changes that make the property uninsurable
• the insured's request

Notice (417-B:4)

• 45 days before the effective date.
• 10 days for nonpayment, or for a new policy (not a renewal) canceled within its first 90 days.
• Nonrenewal also requires 45 days' notice.

Claims and inquiries (417-B:3-a)

• An insurer can't nonrenew solely because of one valid claim in the current or previous term.
• A coverage inquiry isn't a claim.

Prohibited underwriting. An insurer can't cancel, refuse or nonrenew solely because of:

• age, residence, race, creed, national origin or marital status
• a lawful occupation, including military service
• another insurer's refusal
• credit information alone, without other permitted factors (417-B:2, 417-B:2-a)

Premiums and renewals

• Refunds. On personal lines, premium is earned pro rata, and all unearned premium is returned when either party cancels (412:15, VII).
• Paying on the deadline. A nonpayment cancellation is void if payment reaches the insurer or its agent, or is sent by certified mail, before the cancellation date and time (402:80).
• Reductions at renewal. A coverage reduced or removed at renewal stays in force unless a printed notice explaining the change is attached to the renewal (412:6-a).
• Unpaid premium offset. An insurer may hold back premium that's been unpaid 60 days from a claim payment. It can't do so against a mortgagee's share (402:77).

Notices and coverage required by statute

• Flood notice (407:23-a). At issue and at each renewal, the insured is told that the policy doesn't cover flood and how to reach the NFIP. Missing the notice doesn't invalidate the flood exclusion.
• Domestic workers (281-A:6). Insurers writing these policies must provide workers' compensation for domestic employees unless the employer has a separate WC policy.
• Lenders can't require property insurance above the value of the buildings. At a closing, a lender may require a binder, not the original policy (417:4, XVI).
• Home mitigation grants. RSA 407-E funds grants to strengthen owner-occupied homes against severe weather.

Paying a property loss

Valued policy law (407:11)

• When an insured building is totally destroyed by fire or lightning, the insured amount is its value, unless overinsurance was obtained by fraud.
• The rule doesn't apply to blanket coverage on several buildings.
• For partial fire losses, the insurer pays the actual loss, up to the amount insured.

Fire loss timeline (407:12 to 407:15)

• Adjustment begins within 15 days of notice.
• The loss is due 60 days after proof of loss.
• Undisputed incidental costs, including rent, are paid within 15 days after a valid proof of loss.
• An insurer that chooses to rebuild must start within 20 days after adjusting the loss.
• A written denial must warn that a suit is barred unless brought within 12 months of the denial.

Contractors and valuation (Ins 1002.09, 1002.16, 1002.18)

• The insurer can't require a particular contractor. It must supply a willing contractor at its appraised price, or pay the reasonable excess.
• Repair agreements must cover hidden damage connected with the claim.
• Non-auto total losses are valued in the local community, including purchase and shipping costs.
• Jewelry settlements must reflect local market value. The insured has the right to an independent appraisal.

Common exam traps

• New Hampshire has no FAIR plan. It uses risk sharing plans under RSA 404-C.
• Homeowners cancellation or nonrenewal needs 45 days' notice. Nonpayment, or a new policy in its first 90 days, needs 10 days'.
• One valid claim isn't enough to nonrenew, and an inquiry isn't a claim.
• Personal lines refunds are pro rata. Short rate applies only to other policies.
• Valued policy: a building totally destroyed by fire or lightning pays the policy amount.