What it does
Replaces the 80% insurance-to-value requirement in the loss settlement condition with a lower percentage shown on the endorsement.
Who needs it
Homes that are hard to insure to 80% of replacement cost, such as older homes with high reconstruction costs.
Key provisions and limits
- Typical options are 50%, 60% or 70%.
Quoting and selling notes
- Explain the trade-off: a lower requirement avoids coinsurance-style penalties but does not raise the limit.
Editions and availability
Editions in use and where they apply: 03 22 (36 jurisdictions); 05 11 (3 jurisdictions: AL, CT, VI); 10 00 (1 jurisdiction: PR).
Homeowners endorsements are built for a specific program edition. When a carrier moves a state from the 2011 (05 11) program to the 2022 (03 22) program, the endorsement editions move with it, so match the endorsement edition to the policy form edition shown on the declarations.
