| (a) Purpose and Scope. The purpose and scope of this section is to adopt a plan of operation for the Voluntary Inspection Program which specifies procedures, standards and forms for the implementation of the inspection program. This section addresses the following: (1) Procedures, standards and forms governing the independent inspection of the condition of residential property to determine insurability, pursuant to the Insurance Code, Article 5.33B; (2) Procedures and forms governing the licensing or certification of qualified inspectors to conduct inspections of the condition of residential property to determine the insurability of such property; (3) Enforcement provisions to protect the integrity of the inspection program; and (4) Procedures for handling complaints relating to these inspections. (b) Definitions. The following words and terms, when used in this section,
shall have the following meanings, unless the context clearly indicates otherwise. (1) Article 5.33B--Article 5.33B of the Texas Insurance Code entitled Voluntary Inspection Program. (2) Certificate of insurability--A certificate issued by an inspector pursuant to Article 5.33B indicating that the condition of the property meets or exceeds the minimum standards for insurability that are specified in subsection (f) of this plan of operation. (3) Commissioner--Commissioner of Insurance of the State of Texas. (4) Department--Texas Department of Insurance. (5) Inspection--The physical inspection of the property for which residential property insurance is sought whether the inspection is for a new or renewal certificate of insurability. (6) Inspector--A person authorized by the Commissioner to perform inspections under Article 5.33B.
(7) Program--Voluntary Inspection Program pursuant to Article 5.33B of the Insurance Code. (8) Residential property condition evaluation report--The form completed by an inspector which provides specific information regarding the condition of the property and is used to determine the insurability of the property. (c) Eligibility for Inspection. (1) Any person having an insurable interest in real or tangible personal property at a fixed location may request an independent inspection of the condition of the property proposed to be insured. (2) The independent inspection must be performed by an inspector authorized to perform inspections under Article 5.33B, Insurance Code and this plan of operation. (d) Procedures to Obtain Inspection. (1) An individual may request inspection from an inspector licensed or certified by the Department in accordance with
Article 5.33B, Insurance Code and this plan of operation. The purpose of the inspection is to complete the Residential Property Condition Evaluation Report (Form VIP-2) to determine the insurability of the residential property. (2) An individual may obtain names and phone numbers of licensed or certified inspectors from the Inspections and Fire Safety Section of the Department by telephone, fax, or mail. (e) Fees. (1) Individuals requesting an inspection of their residential property may be required to pay a fee for the inspection in accordance with this subsection. The fee may be required to be paid prior to the inspection. (2) An inspector may charge a reasonable fee not to exceed $50 per inspection for the inspection of a residential property risk. (3) An inspector may charge a reasonable fee not to exceed $25 per follow-up inspection in the event repairs are made within 90 days of
the initial inspection. (4) Inspection fees shall include the cost of photographs. (f) Minimum Standards for Insurability. The residential property shall comply with the following requirements for average or better condition of the property to qualify for a certificate of insurability. (1) The general physical condition of residential property shall indicate: (A) Good maintenance of structure; (B) No unrepaired previous damage; and (C) Any construction, installation and repair to the residential structure have been made in accordance with generally accepted standards applicable at the time of the construction, installation or repair. (2) Good housekeeping is maintained throughout the residential premises. (3) The residential property proposed for insurability must meet the requirements for average or better condition, as
specified in this subsection. Determination of the condition shall be based on the following criteria: (A) Exterior. (i) Structural. (I) Only minor cosmetic foundation related cracks on the slab or above windows and doors; (II) No major cracks, separation or evidence of shifting or movement in walls, walks and driveway; (III) No missing window or door panes; (IV) No signs of active termites or unrepaired insect damage; (V) Exposed wood (siding, fascia, soffit, doors, steps, etc.) in good condition with no evidence of significant deterioration or significant peeling of paint; (VI) Pier and beam foundations enclosed under all outside walls; and (VII) Additions, modifications, or repairs to the exterior made in accordance with generally accepted standards at the time of construction.
(ii) Premises. No accumulation of trash, brush or other debris in yard. (B) Roof. (i) No roof coverings that are curling, cracking or have missing shingles; (ii) No roof coverings that show signs of significant deterioration; and (iii) No roofs that have been improperly installed or repaired. (C) Interior. (i) No visible water damage; (ii) No major cracks or separation in interior walls, flooring and ceiling; (iii) Major appliances in good working condition; and (iv) Additions, modifications or repairs to the interior made in accordance with generally accepted standards at the time of construction. (D) Electrical. (i) Electrical wiring in good working condition; (ii) No evidence of fuses repeatedly blowing or breakers tripping;
(iii) No flickering lights or evidence of overheating wiring; and (iv) Additions, modifications, or repairs to electrical wiring made in accordance with generally accepted standards applicable at the time of installation. (E) Plumbing, Heating, Cooling Systems. (i) Plumbing, heating and cooling systems in good working condition; (ii) Free from leaks; (iii) Space heaters and hot water heaters properly vented and appropriate distance maintained from walls and furnishings; and (iv) Additions, modifications, or repairs to plumbing, heating and cooling systems made in accordance with generally accepted standards applicable at the time of installation. (F) Other Conditions. (i) Outbuildings and fences in good condition; (ii) No business or commercial exposures on premises; (iii) No
vacancy of the property; (iv) Property accessible to fire equipment; and (v) No unfenced swimming pools, hot tubs, fish ponds, bodies of water or trampolines. (g) Inspection Certification Process. (1) An inspection for residential property insurability shall be made within 30 days from the date of the request and payment of any applicable fee. (2) The inspection process shall include the completion and issuance of a Residential Property Condition Evaluation Report (Form VIP-2) promulgated by the Department. (3) The information obtained in the Residential Property Condition Evaluation Report (Form VIP-2) shall be used to determine the insurability of the residential property. This information includes general information on the age and construction of the risk, the condition of the property, identifiable hazards of the property, and diagrams and photographs of the
property. (4) The individual requesting the residential property inspection shall be provided a copy of the Residential Property Condition Evaluation Report (Form VIP-2) within ten days of the completion of the inspection. (5) If the residential property inspected meets the minimum standards provided in subsection (f) of this plan of operation, the inspector shall issue within ten days of completion of the inspection a Certificate of Insurability (Form VIP-1). (6) The Certificate of Insurability (Form VIP-1) is promulgated by the Department. (7) A Certificate of Insurability (Form VIP-1) is valid for a term of three years from the date of issuance to the individual requesting the inspection so long as no substantial changes have been made to the property. If substantial changes are made to the property, an additional inspection may be required by the insurer. (h) Insurer Processing. Cont'd... |
