Some of the changes in the special provisions reflect various state laws regarding coverage, such as the valued property laws; others, again in accordance with state laws, amend the cancellation or nonrenewal provisions. For example, the unamended policy calls for an underwriting period for new business of 60 days. This is the length of time an insurer has to make a final decision as to the acceptability of the risk. During the 60 days, the insurer may cancel for any reason, giving a 10 day notice. But in some states, notice of cancellation requires only five days if certain conditions exist.

After the 60-day period is over, the unamended policy limits the reasons for cancellation to nonpayment of premium, material misrepresentation on the part of the insured, or substantial change in the risk. The insurer is required to give a 30 day notice, if canceling for any reason besides nonpayment of premium. However, the various states may amend the reasons or the time required in the mandatory special provisions. The allowable reasons for cancellation are indicated as numbers in this discussion. In general, proof of mailing is sufficient proof of notice; exceptions are noted.

As of this writing, Florida's provisions are being amended as a result of the past two years of severe hurricanes, but the changes are not yet approved. They are, however, noted. Some of the provisions are not currently effective, but are approved to be attached to policies during 2006. For this reason, they are included. Please be sure to note the edition date prior to making any coverage determinations based on a special provisions form. The states are described alphabetically, with the current special provisions form number and edition indicated.

Cancellation reasons are:

1.     Nonpayment of premium.

2.     Material misrepresentation or fraud. (In applying for the policy, in presenting a claim, or both.)

3.     Increase in hazard.

4.     Substantial change in risk.

5.     Conviction of certain crimes, which increase a hazard.

6.     Acts (or omissions) by the insured which increase any hazard.

7.     Failure by the insured to reduce conditions which have contributed to a loss or may do so in the future.

8.     Violation of any local fire, health, or safety code that increases the hazard.

9.     Material violation of a policy provision.

10.     Vacancy and/or unoccupancy of longer than 60 consecutive days.

11.     Failure to begin repairs within 30 days after payment for a previous loss.

12.     The building has: an outstanding order to vacate; an outstanding order to be demolished; or been declared unsafe by a governmental authority.

13.     Fixed and salvageable items are being removed-but not being replaced-from the home.

14.     Failure by the insured to supply the necessary utility service to the home for 30 consecutive days; and failure to pay property taxes.

15.     Transfer of the property to another person.

16.     Failure to comply with underwriting requirements, as established during the underwriting period.

17.     All insureds in the state with this policy are being cancelled.

18.     A determination by the insurance commissioner that continuation of the policy would be a violation of the law.

19.     Breach of contractual duties, conditions, or warranties.

20.     Financial impairment of the insurer.

21.     Loss of, or inability to obtain, reinsurance on the risk.

22.     Evidence of arson.

23.     Any reason approved by the insurance commissioner.

24.     Physical changes that make the property “uninsurable.”

25.     Material changes in the property, its use, or the insured's interest in the property that now make the property uninsurable.

26.     Physical changes in the property which are not corrected within a reasonable time after they occur and which result in the property becoming uninsurable.

27.     Completion of repairs has not occurred within 60 days of loss payment.

28.     The building is in danger of collapse.

29.     Property taxes have been delinquent for two or more years.

30.     The insurer stops writing homeowners business in the state or ceases operations in the state altogether.

31.     Failure of the insured to pay membership dues required by the insurer as a condition of issuance and maintenance of the policy.

32.     Claims frequency.

Alabama

Alabama's special provisions endorsement (HO 01 01 05 01) contains a definition of actual cash value that applies wherever the term is used throughout the policy. The Section I exclusion for intentional loss is deleted and replaced so that if the named insured commits an act with the intent to cause a loss related to and in furtherance of domestic abuse, an innocent insured victim of such abuse may be afforded coverage.

The subrogation condition is amended. An insured may waive all rights of recovery in writing before a loss, unless that insured is an innocent victim of domestic abuse. In that case, the insurer is entitled to subrogate to recover for any amounts paid for property damage.

Alabama does not amend the ISO homeowners cancellation provisions, so a policy may be cancelled for reasons 1, 2, 4, or 23.