Page 28 - Personal Underwriting Mandates & Guidelines - Binder - Version 3

Buildings and Household contents
– The generator must be turned off and allowed to cool down prior to refuelling it. Fuel spilled on hot engine parts could ignite.
– The use of a naked flame, matches or a candle must be avoided near the generator or fuel tanks. Heritage homes
The sum insured for these buildings must be carefully considered to cater for the stringent requirements for repairs and reinstatement. Buildings older than 60 years are protected by the National Heritage Act. Permits need to be obtained before these buildings, or any part of them may be altered, modified, or demolished.
Home-based business
The client must tell us if they run a business from home.
The premises must predominantly be used for residential purposes, and the business may not increase the risk of loss of or damage to the home or contents. We may impose new terms, premiums and conditions.
Under the Household contents section, the intention is to cover stock you keep at the insured premises, for the business you run from home. This stock would typically be used to produce an end-product, such as wool intended to be used to make scarves and beanies to be sold to a home-industry shop.
A full description of the business, stock-in-trade (even though cover for stock may not be offered), access by clientele and presence of cash or hazardous materials will influence acceptance of the risk or not.
Examples:
○ A home-based business that must be referred to the binder manager to approve would be:
A client buys herself an industrial sewing machine as she has an opportunity to supplement her pension by making canopies for golf carts. When she gets orders she will purchase the canvas, make the canopy and they will collect it from her. She does not really have stock, and if she has it will be limited and for a short period.
○ A home-based business that may have and increased risk element and must be referred to the Hollard to approve, would be a caterer that cooks or bakes for functions. They could have a limited amount of stock and equipment at home that they want to insure. We may consider this, keeping in mind that a personal lines policy is not designed to provide commercial cover and liability cover for food poisoning would then be excluded.
○ Decline type risks would be home-based businesses like hairdressers, nursery schools, printing or manufacturing, automobile mechanics, welders, arms and ammunition businesses.
Office contents
This cover is for goods or equipment that are solely used for administrative or clerical work in the home office – for instance, any one-person business that is run on the premises. If, for example, the insured is a plumber we will cover the office desks, cabinets and computers but not any of the tools, equipment or material used to install or repair any plumbing.
Cover during the festive season
Historically Hollard and many other insurers have declined to take on new business during the months of November and December. For personal lines, this stance has been reviewed and new business may be accepted over this period. Any changes to this approach will be formally communicated.
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