Pennsylvania's homeowners questions test how state law changes the national HO forms and limits insurers' underwriting. The main sources are:

• The Special Provisions – Pennsylvania endorsement.
• 31 Pa. Code Chapter 59 and 40 P.S. 1171.5(a)(9) on cancellation and nonrenewal.
• The anti-discrimination rules in the Unfair Insurance Practices Act.
• The FAIR Plan.

The HO forms themselves (HO-2, HO-3, HO-5, HO-4, HO-6, Coverages A-F, perils and conditions) are covered in the national Homeowners guide.

The Pennsylvania endorsement

• ISO's Special Provisions – Pennsylvania endorsement (HO 01 37) amends the homeowners policy to conform to Pennsylvania law.
• Dwelling policies use DP 01 37 for the same purpose.

Who Chapter 59 protects

• Chapter 59 covers policies on owner-occupied private residences: residential buildings with four or fewer household units, at least one occupied by the owner (31 Pa. Code 59.2-59.3).

Cancellation and nonrenewal

The first 60 days

• A new policy may be canceled for any reason.
• The insurer must give at least 30 days' notice, sent no later than the 60th day (59.9(b)).

After 60 days

• Midterm cancellation is allowed only for statutory reasons, such as:
  • Nonpayment of premium.
  • Material misrepresentation.
  • A substantial increase in hazard.
• An insurer may also cancel a non-farm policy if the property would no longer meet FAIR Plan eligibility rules (59.4a).

Notice

• At least 30 days for cancellation or nonrenewal.
• The notice must mention possible FAIR Plan eligibility.
• The insured may ask the Insurance Commissioner to review the action within 10 days of receiving the notice (59.7).

What counts as a nonrenewal

• A renewal must give coverage types and limits at least equal to the expiring policy. Offering only lower limits is a nonrenewal (40 P.S. 1171.5).
• Offering to move the insured to an affiliated company in the same group is still a refusal to renew by the first insurer (59.4).
• Mailing a renewal premium notice at least 30 days before expiration counts as an offer to renew. If the insured doesn't pay, the policy ends under its own terms without a separate nonrenewal notice (59.9(a)).

Prohibited reasons

• The insured is a victim of domestic abuse (1171.5(a)(14)).
• The insured's race, religion or national origin, or the geographic location of the risk (redlining) (1171.5(a)(7)(iii)).

Other Pennsylvania rules that affect homeowners

• Death of the named insured: property coverage continues, if premiums are paid, until the home is sold or 180 days after the death, whichever comes first (40 P.S. 636.1).
• Standard fire policy minimums: the HO form must give at least the protection of the standard fire policy, except where an open-perils form isn't required to use it (40 P.S. 636). The key numbers are in the Pennsylvania Property Insurance Basics guide.
• No free look: homeowners and personal auto policies have no statutory free look. Pet insurance has a 30-day one.
• Credit information: an insurer that uses credit must follow the FCRA notice and adverse-action rules.
• Guaranty protection: an insolvent homeowners insurer's covered claims are paid by the Pennsylvania Property and Casualty Insurance Guaranty Association, up to $300,000 per claimant.

Hard-to-place homes

• The Pennsylvania FAIR Plan writes basic property insurance (standard fire policy and extended coverage perils) for property the voluntary market won't insure. It inspects the property first.
• Details are in the Pennsylvania Other Property Insurance guide.

Common exam traps

• First 60 days: any reason, but still 30 days' notice.
• After 60 days: only for statutory reasons, with 30 days' notice. The insured has 10 days to ask for the Commissioner's review.
• Lower renewal limits, or a move to an affiliate, count as a nonrenewal.
• Domestic abuse and redlining are never valid reasons.
• Chapter 59 covers owner-occupied homes of four units or fewer.