Property insurance principles are covered in the national Property Insurance Basics guide: perils and hazards, ACV and replacement cost, coinsurance and the loss conditions. New Hampshire has its own New Hampshire Standard Fire Policy, set out in RSA 407:22. Every fire policy must follow it, except motor vehicle, marine, inland marine and reinsurance contracts (407:2). This guide covers that policy and the other fire insurance statutes in RSA 407.

The New Hampshire Standard Fire Policy (RSA 407:22)

Coverage

• Perils: fire, lightning and removal. Removed property is covered pro rata for 5 days at each place it's taken.
• Never covered: accounts, bills, currency, deeds, evidences of debt, money and securities.
• Not covered: theft, and the insured's neglect to save property at and after a loss.

When coverage is suspended

• while the hazard is increased by means within the insured's control or knowledge
• while the building is vacant or unoccupied beyond 60 consecutive days

Cancellation

• When the insured cancels, the refund is figured at short rate. When the company cancels, it's pro rata.
• For personal lines, though, all unearned premium is returned when either party cancels (RSA 412:15, VII). Short-rate refunds come up only on other policies.

Mortgagees. The mortgagee's interest can be canceled on 10 days' notice. If the insured doesn't file proof of loss, the mortgagee files within 60 days after notice.

After a loss

• Other insurance. Each policy pays its share in proportion to all the insurance, collectible or not (pro rata liability).
• Proof of loss. A signed, sworn proof of loss is due within 60 days.
• Appraisal. If the appraisers can't agree on an umpire in 15 days, a judge picks one. Each side pays its own appraiser and splits the umpire's cost.
• Company's options. The insurer gives notice of its option to repair or replace within 30 days after the proof of loss.
• No abandonment. The insured can't abandon property to the insurer.
• Suit. A lawsuit must be started within 12 months after the loss.
• Subrogation. The insurer may require an assignment of recovery rights to the extent it paid.

Other fire insurance statutes (RSA 407)

• Binders may be oral or written and include all the standard fire policy terms (407:6).
• Package policies may depart from the standard form if their fire coverage is at least equal to it and the mortgagee clause is unchanged (407:2-a).
• Applications. Statements of value and title in the application aren't warranties (407:9). The insurer is charged with the knowledge of whoever prepared the application (407:10).
• Valued policy law (407:11):
  • When a building is totally destroyed by fire or lightning, the amount insured is its value, unless the overinsurance was obtained by fraud.
  • Partial losses pay the actual loss, up to the limit.
  • The law doesn't apply to blanket coverage.
• Paying fire claims (407:12 to 407:15):
  • Adjustment begins within 15 days.
  • The loss is due 60 days after proof of loss.
  • Undisputed incidental costs are paid within 15 days.
  • An insurer that elects to rebuild starts within 20 days after adjusting the loss. If it neglects the work, the insured may repair at the insurer's expense or sue.
  • A written denial must warn of the 12-month suit deadline.
• Fire reporting. Insurers report suspected non-accidental fires of $1,000 or more to the state fire marshal, and file monthly reports on fire losses of $5,000 or more (RSA 153:13, 153:13-a).

Lines of authority (402-J:7)

The property line covers direct or consequential loss to property of every kind. The personal lines authority also lets a producer sell homeowners insurance.

Common exam traps

• The New Hampshire standard fire policy allows 12 months to sue.
• Vacancy beyond 60 consecutive days suspends coverage.
• The valued policy law covers buildings totally destroyed by fire or lightning only.
• Personal lines cancellations always refund all unearned premium.