Specifications:

Waiver Type:                         Renewal/New Origination

Insurance Type:                    Property

Insurance Term:                   Ordinance and Law - Limit - Coverage A, Ordinance and Law - Limit - Coverage B_C, Ordinance and Law - Limit

Template Outline:

#1 - How should the introductory section of the waiver be written?

The introductory section of the waiver should clearly state the requestor’s identity and the purpose/type of exception being requested. The examples provided below can be used for further assistance if required.

<Organization/Borrower name> is currently seeking the waiver of <coverage requirement details> pertaining to the Ordinance or Law coverage.

<Agent name> is currently seeking the exception of <coverage requirement details> pertaining to the Ordinance or Law coverage on behalf of <Organization/Borrower name>.

#2 - What property details should be included in the waiver?

When writing the waiver, it’s important to include all relevant details pertaining to the borrower’s property. Such details may include the property address, number of buildings, and managerial details. Providing these details can help determine the applicability of the current coverage. Below is an example that can be used for further assistance if required.

<Organization/Borrower name> currently owns <Property name> in <City, State>. The property is located on <Property address> and has a total of <number of buildings> buildings. The property has been managed by <Property management company name> since <date>.

#3 - How to elaborate upon the current coverage?

It’s important to provide all details about the current coverage the borrower has in place, as it can help demonstrate a certain degree of compliance. Such details may include the name of the coverage provider, types of coverage in place, coverage limits, and the replacement cost of the building. The example below can be of assistance when writing this section.

<Property name> is currently insured by <Insurance Provider name>. The property currently has coverage for <Coverage 1>, <Coverage 2>, and <Coverage 3>. As of <date>, the coverage limit for <Coverage 1> is <dollar amount>, and coverage limits for <Coverage 1> and <Coverage 2> are <dollar amount> each. In addition, as of <date>, the estimated replacement costs for all buildings pertaining to <Property name> is <dollar amount>.

#4 - How to elaborate on the reasons for the non-conforming status?

The organization/borrower should also mention why the property is categorized as non-conforming. In addition, the borrower can also mention if the property was previously categorized as legally conforming. Below is an example that can be used for further assistance if needed.

<Property name> located in <City, State> has been categorized as legally conforming since <date>. However, due to <reason(s) for non-conforming status>, the property was categorized as non-conforming as of <date>.

#5 - How to emphasize compliance efforts when applying for a waiver?

When applying for a waiver, it’s important for the borrower to provide details about all their efforts that demonstrate compliance. Such effort may include details about seeking compliant coverage options. In addition, this section may also include details about the failure to acquire compliant coverage due to unavailability or additional premium costs and when compliant coverage will be acquired. The example below can be used for additional guidance if needed.

<Organization/Borrower name> has acquired compliant quotes from <Insurance Provider 1> and <Insurance Provider 2>, however, acquiring the compliant coverage mid-term would lead to additional expenses resulting in an increase of <dollar amount> in premium payments. The current coverage is expected to be renewed on <date> therefore, compliant coverage can be added upon renewal.

#6 - How to demonstrate financial stability?

Those applying for a waiver should provide financial details that demonstrate stability. Providing such details can help demonstrate the organization/borrower’s ability to account for damages that may exceed coverage requirements. Below is an example of how this section can be written.

<Property name> currently has an annual expense of <dollar amount>. The annual income generated from <number of buildings> of <Property name> is <dollar amount>. In addition, the remaining <number of buildings> of <Property name> result in an annual income of <dollar amount>, indicating that the <Property name> is capable of generating a total of <dollar amount>.

#7 - How to justify the request for approval?

Prior to submitting the request for exception, the borrower should justify why their request should be approved by the concerned department. This justification can be made on various factors that include financial stability and current coverage details that demonstrate a certain extent of compliance. In addition, other factors, such as details about attempts to find compliant coverage and attempts to acquire complaint coverage upon renewal, can help strengthen the request for exception.