Specifications:

Waiver Type:                            New Origination

Insurance Type:                        Property

Insurance Term:                        Ordinance and Law - Increased Period of Restoration

Template Outline:

#1 - What to include in articulating the water's purpose and type?

Those applying for a waiver must ensure that the document's opening clearly states the requestor's identity and the purpose of the waiver. Provided below are a few examples of the opening statement can be structured.

<Organization name> is seeking the waiver of Coverage A/B/C/D of the Law and Ordinance coverage requirements for non-conforming properties.

<Agent name> is requesting a waiver on behalf of the <Company name/Client name> for Coverage A/B/C/D of the Law and Coverage requirements for non-conforming properties.

#2 - How to emphasize existing insurance coverage?

When applying for a waiver, it’s important to provide details of the existing insurance coverage. Providing such details can help demonstrate a certain degree of compliance with the Law and Coverage requirements for non-conforming properties. An example for further guidance is provided below:

<Organization name> currently has coverage for the protection of the value of the undamaged portion of the building, the cost of the demolition and debris haul away, and the increased cost of coverage. These coverage requirements entail compliance with Coverage A, Coverage B, and Coverage C.

#3 - How to demonstrate financial stability?

When applying for a waiver for certain requirements of the Law and Ordinance coverage requirements, the subject must show financial stability as it demonstrates their ability to account for various costs pertaining to demolition and reconstruction.

In addition, it establishes the fact that such costs, if imposed, would not be a financial burden to the subject. The example provided below can be used for further assistance if required.

<Organization name> currently has an effective gross income (EGI) of <dollar amount>, <name 1> and <name 2> serving as the guarantors of the combined net worth of <dollar amount> and liquidity of <dollar amount> at the time of applying for the waiver.

#4 - How to showcase compliance efforts?

In addition to using existing coverage to show compliance, the subject must also provide details of the effort that is currently being made to ensure complete compliance.

Moreover, they should mention why the current non-compliance exists due to lack of availability from the provider and costs associated with switching providers mid-term (if application). Provided below is an example of how such statements can be written.

<Organization name> currently lacks compliance due to the unavailability of <coverage name> from the current insurance provided. Efforts to ensure complete compliance are being made by changing providers. However, switching coverage mid-term would incur additional costs of <dollar amount>.

#5 - What to include when justifying the waiver?

It is paramount to justify why the waivers should be approved. When providing the justification, it’s important to include all information demonstrating financial stability, current compliance, and efforts to increase compliance.

In addition, the justification may also include geographical advantages that reduce the severity of meeting the Law and Ordinance Coverage requirements.