The national Homeowners Policy guide covers the ISO homeowners forms, the Section I and Section II coverages, and loss settlement. This guide covers the West Virginia rules for owner-occupied residential property insurance in Article 17A of Chapter 33: what the article covers, how insurers may decline, cancel or nonrenew, and the notices they must give.

What Article 17A covers (33-17A-2, 33-17A-3)

• Residential real property of the named insured with no more than four dwelling units, plus household personal property in a dwelling.
• Not covered: inland marine policies and policies written through a residual market mechanism.
• A policy term shorter than six months is treated as six months. A term longer than one year is treated as one year.
• These aren't terminations:
  • a reasonable deductible or limit change at renewal, tied to the hazard
  • a move to an affiliated insurer, though notice and reasons are still required

Declining an applicant (33-17A-4(a), 33-17A-6)

• A declination comes with a written explanation of the specific reasons at the time it is made.
• An insurer may not decline or terminate because:
  • the applicant had coverage through a residual market plan
  • another insurer declined
  • the applicant was never insured before, or has a gap in coverage
  • solely an adverse credit report or credit score

Cancellation (33-17A-4(b), 33-17A-5)

• Every cancellation notice is written, delivered or mailed first class, and gives the effective date and specific reasons.
• After coverage has been in force 60 days, or once a renewal takes effect, an insurer may cancel only for listed reasons, including:
  • nonpayment of premium
  • a change in the risk that substantially increases a hazard insured against
  • property taxes delinquent two years or more and still unpaid when notice is sent

Renewal and nonrenewal (33-17A-4)

• The insurer gives notice of its renewal intention at least 30 days before the policy period ends.
• A renewal that removes or reduces coverage, changes the deductible or adds an exclusion needs an explanation, unless the insured asked for it or the law requires it.
• A policy in force four years or more may be nonrenewed only for 33-17A-5 reasons or a valid underwriting reason involving a substantial increase in risk.
• Such a policy also can't be cancelled or nonrenewed solely because of one wind, hail, lightning, wildfire, snow or ice claim in 36 months, unless poor maintenance contributed.
• Alternative nonrenewal method (33-17A-4a):
  • Nonrenewals are capped at 1% of policies in force per year, statewide and in each county, with at least one per county allowed.
  • The notice gives the reasons, the right to a hearing, and possible eligibility for the West Virginia Essential Property Insurance Association.

Enforcement (33-17A-8)

The Commissioner may order a policy reinstated to the end of its term. The Commissioner may also issue a cease and desist order and a penalty of up to $5,000 per willful violation.

Related West Virginia property rules

• Valued policy law (33-17-9): in a total loss of insured real property by fire, the insurer owes the full amount stated in the policy. In a partial loss it owes the full loss up to the amount of insurance. The law doesn't apply when two or more insurers cover the same interest, or to the Essential Property Insurance Association.
• Mine subsidence: in most counties, a policy insuring a structure includes mine subsidence coverage at a separately stated premium unless the insured waives it. In certain listed counties it is provided only on request. See the West Virginia Other Casualty guide.

Common exam traps

• Article 17A covers owner dwellings of up to four units.
• Cancellation reasons are limited after 60 days.
• Delinquent property taxes of 2+ years are a valid cancellation reason.
• A policy in force 4+ years can't be dropped for a single weather claim in 36 months unless maintenance was poor.
• Credit alone can't be the reason to decline or terminate.
• Renewal intention notice is 30 days.
• West Virginia has a valued policy law for total fire losses.