Question About State Farm Policy

[Jerbond]

I have a prospect right now that has State Farm for all their policies. They have a primary residence, (3) autos, Umbrella, flood ins, and a secondary residence. In chatting with the client, it turns out the secondary property is a part time rental/vacation property. State Farm has this insured as a DP-3. Now it seems to me that this is incorrect coverage. Does anybody know if State Farm truly is covering this exposure? I think only Foremost and Lexington will cover this (not even CHUBB or Chartis interestingly enough). Can anybody clarify this for me? I would like to let the customer know that they are paying insurance premiums for no coverage at all! Please advise- my fellow guru's of P&C.

 

[joshb]

I have a prospect right now that has State Farm for all their policies. They have a primary residence, (3) autos, Umbrella, flood ins, and a secondary residence. In chatting with the client, it turns out the secondary property is a part time rental/vacation property. State Farm has this insured as a DP-3. Now it seems to me that this is incorrect coverage. Does anybody know if State Farm truly is covering this exposure? I think only Foremost and Lexington will cover this (not even CHUBB or Chartis interestingly enough). Can anybody clarify this for me? I would like to let the customer know that they are paying insurance premiums for no coverage at all! Please advise- my fellow guru's of P&C.

In Florida this is very common as we have "snow birds". There are carriers that write owner occupied DP3's for insureds that rent the home out most of the time, but occasionally occupy it themselves as well. Each carrier has their own guidelines for this. I have come across this against State Farm a few times, and I do believe they write these risks on Dwelling Fire policies. I am actually looking into getting a vacation home myself that I would rent out, and Nationwide has told me they would write this for me (I can get Nationwide because I represent them, but they do not write property insurance in Florida for the most part).

EDIT: By the way if I came across a client like yours here, I would light up like a Christmas tree. I love competing against State Farm.