Adoption of 28 TAC 5.3800 concerning the implementation of the Voluntary Inspection Program (VIP), Commissioner Order No. 96-1184, effective 10/30/96.

Texas Department of Insurance 333 Guadalupe Street P.O.Box 149104 Austin,Texas 78714-9104 512/463-6169 October 31, 1996 # COMMISSIONER'S BULLETIN NO. B-0075-96 TO: ALL COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS, OR OTHER INSURERS WRITING PROPERTY AND CASUALTY INSURANCE IN THE STATE OF TEXAS Re: Commissioner's Order No. 96-1184, adoption of Rule 28 TAC §5.3800 concerning the implementation of the Voluntary Inspection Program (VIP) pursuant to Insurance Code, Article 5.33B. The Commissioner of Insurance by Commissioner's Order No. 96-1184, has adopted Rule 28 TAC §5.3800 to allow persons owning real or tangible personal property at a fixed location, who desire to purchase residential property insurance, to procure an independent inspection of the condition of the property by an independent inspector authorized to perform such inspections in order to obtain a certificate of insurability. The VIP is a statewide program and is not limited to the Market Assistance Program's (MAP) designated underserved areas, however the certificate of insurability may be used to qualify the property for participation in the MAP. The new rule provides standards for determining the condition of the property, forms to be used in the inspection process, specific forms and procedures for licensing and certification of qualified inspectors, outlines enforcement provisions to protect the integrity of the program, and provides complaint handling procedures. An individual may request an inspection from an inspector licensed or certified by the Department. The individual may obtain names and phone numbers of licensed or certified inspectors from the Inspections and Fire Safety Section of the Texas Department of Insurance by fax, telephone or mail. Individuals requesting an inspection of their residential property may be required to pay a reasonable fee not to exceed $50.00 per inspection. The residential property must meet the requirements set forth in the rule for average or better condition of the property in order to qualify the property for a certificate of insurability. The certificate is valid for 3 years. Issuance of a certificate of insurability does not guarantee an insurance policy will be provided by an insured. However, if a certificate is provided to an insurer as part of an application for residential property insurance, the insurer may not use property condition as grounds for refusing to issue or renew a residential property insurance policy unless the insurer reinspects the property and specifies in its declination letter the conditions of deficiency causing the residential property risk to be uninsurable. Individuals with residential property inspection experience, local recording agents, solicitors, adjusters, real estate appraisers, real estate agents and municipal building inspectors are eligible to apply to the Department for licensing/certification. Applications and licensed inspector information may be obtained from the Department by contacting: Inspections and Fire Safety, MC103-1D P. O. Box 149104 Austin, Texas 78714-9104 Phone 512-322-2259 FAX 512-322-3515 A copy of the residential property condition evaluation report form VIP-2 is enclosed for your review. A copy of the rule is printed in the Texas Register, October 18, 1996, Volume 21, page TexReg 10302 or a copy may be requested from the Department. The VIP becomes effective October 30, 1996. Lyndon Anderson Lyndon Anderson Associate Commissioner Property and Casualty, MC103-1A Enclosure THE LONDON NUMBER # TEXAS # RESIDENTIAL PROPERTY CONDITION EVALUATION REPORT | Voluntary Inspection of Property Condition as Prescribed in Article 5.33B, Texas Insurance Code | | | | --- | --- | --- | | INSURED: | | | | NAME: | | | | PROPERTY OWNER: | | | | NAME: | | | | ADDRESS: | ,Lot/Block # | /# ,Addition Name or Subdivision | | CITY/COMMUNITY: | TEXAS | ZIP: | | DAY TIME PHONE: | DATE OF INSPECTION: | | # I. GENERAL INFORMATION TYPE OF DWELLING: | Single | ☐ | | --- | --- | | Duplex | ☐ | | Townhouse | ☐ | | Condo | ☐ | | Mobile | ☐ | | Modular | ☐ | | Other (Describe) | ☐ | AGE OF DWELLING: | Year Built or approximate age | | | --- | --- | | 1-10 Years | ☐ | | 11-20 Years | ☐ | | 21-30 Years | ☐ | | 31-40 Years | ☐ | | 41-50 Years | ☐ | | Over 50 Years | ☐ | TYPE OF CONSTRUCTION: | (Comprising 50%) | | | --- | --- | | Frame (wood frame) | ☐ | | Stucco (wood frame) | ☐ | | Brick Veneer (wood frame) | ☐ | | Solid Masonry (load bearing) | ☐ | | Non Combustible (steel frame) | ☐ | | Fire Resistive | ☐ | ROOF MATERIAL: | Composition Shingle | ☐ | | --- | --- | | Built Up Tar and Gravel | ☐ | | Wood Shingle/Shake | ☐ | | Composition over Wood Shingle | ☐ | | Rolled Roofing | ☐ | | Concrete Tile | ☐ | | Clay Tile | ☐ | | Metal | ☐ | | Slate | ☐ | | Number of Roof Overlays | | | Age of Roof | | | FOUNDATION: | Yes | No | | --- | --- | --- | | Slab | ☐ | ☐ | | Pier and Beam | ☐ | ☐ | | Fully Enclosed | ☐ | ☐ | | Number of Stories | | | | Basement | ☐ | ☐ | | GARAGE: | | | | Attached | ☐ | ☐ | | Detached | ☐ | ☐ | | Carport | ☐ | ☐ | | Number of Cars | | | AREA: | (Heated/Cooled) | | | --- | --- | | Grade Floor | sf | | 2nd | sf | | 3rd | sf | | Garage | sf | | Basement | sf | | Finished Attic (storage) | sf | | Other structures on premises | | | (Describe) | | # II. CONDITION OF PROPERTY* CONDITION OF PROPERTY: | 1 = Very Good | | --- | | 2 = Good | | 3 = Average | | 4 = Poor (Describe) | | Exterior | ☐ | | --- | --- | | Roof | ☐ | | Interior | ☐ | | Electrical | ☐ | | Plumbing, Heating, Cooling | ☐ | | Outbuildings and Fences | ☐ | *See Page 4 for criteria in determining average or better construction. | | Yes | No | | --- | --- | --- | | Any unrepaired previous damage | ☐ | ☐ | | Good housekeeping | ☐ | ☐ | | Good maintenance | ☐ | ☐ | | Business or commercial exposures on premises | ☐ | ☐ | | Vacancy of the property | ☐ | ☐ | | Unfenced swimming pools, hot tubs, fish ponds, other bodies of water, or trampolines | ☐ | ☐ | | Property accessible to fire equipment | ☐ | ☐ | | All modifications, additions or repairs made with generally accepted standards of construction/installation | ☐ | ☐ | (Describe all adverse responses) Form VIP-2 1 INSPECTION NUMBER ### III. PROTECTION AND HAZARDS | PROTECTION: | Yes | No | | --- | --- | --- | | Is structure isolated? | ☐ | ☐ | | Is structure inaccessible to fire equipment? | ☐ | ☐ | | Is property inside city limits? | ☐ | ☐ | | Distance to responding fire department (miles) 0-3 ☐ 3-5 ☐ Over 5 ☐ | | | | Over paved roads | ☐ | ☐ Over unpaved roads ☐ ☐ | | Paid fire department | ☐ | ☐ Volunteer fire dept. ☐ ☐ | | Distance to nearest fire hydrant (feet) 0-500' ☐ 500'-1000' ☐ Over 1000' ☐ | | | | | Yes | No | | --- | --- | --- | | Automatic Sprinkler System | ☐ | ☐ (Name and Type) | | Fire/Smoke Detectors | ☐ | ☐ (Number of Detectors) | | Fire Extinguishers | ☐ | ☐ (Number of Extinguishers) | | Burglar Alarm | ☐ | ☐ (Name and Type) | | Deadbolt Locks | ☐ | ☐ | | Security Lighting | ☐ | ☐ | | HAZARDS | Yes | No | | Yes | No | | --- | --- | --- | --- | --- | --- | | Major cracks in walks or driveways? | ☐ | ☐ | Fireplace? | ☐ | ☐ | | Dwelling hidden from view or obscured? | ☐ | ☐ | Woodburning stove? | ☐ | ☐ | | Is property built on steep grade or slope? | ☐ | ☐ | Space heaters ? | ☐ | ☐ | | Is property vacant or used as seasonal dwelling? | ☐ | ☐ | Circuit breakers present? | ☐ | ☐ | | Any business or farming conducted on premises? | ☐ | ☐ | Deteriorating steps? | ☐ | ☐ | | Playground, school or park within one block of dwelling? | ☐ | ☐ | Trees overhang dwelling ? | ☐ | ☐ | | Any evidence of vandalism? | ☐ | ☐ | Is property built over water? | ☐ | ☐ | | Boats, aircraft, golfcarts, go-carts, motorcycles on premises? | ☐ | ☐ | | | | Type of electrical wiring (copper, aluminum, other) | | Yes | No | | Yes | No | | Yes | No | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Pets or livestock on premises? | ☐ | ☐ | Enclosed by fence? | ☐ | ☐ | Aggressive? | ☐ | ☐ | | Trampoline? | ☐ | ☐ | Enclosed by fence? | ☐ | ☐ | | | | | Swimming pool? | ☐ | ☐ | Enclosed by fence? | ☐ | ☐ | | | | | Interior water damage? | ☐ | ☐ | Repaired? | ☐ | ☐ | | | | DIMENSIONAL SKETCH/DIAGRAM:  Form VIP-2 2 INSPECTION NUMBER ### III. PROTECTION AND HAZARDS | PROTECTION: | Yes | No | | --- | --- | --- | | Is structure isolated? | ☐ | ☐ | | Is structure inaccessible to fire equipment? | ☐ | ☐ | | Is property inside city limits? | ☐ | ☐ | | Distance to responding fire department (miles) 0-3 ☐ 3-5 ☐ Over 5 ☐ | | | | Over paved roads | ☐ | ☐ Over unpaved roads ☐ ☐ | | Paid fire department | ☐ | ☐ Volunteer fire dept. ☐ ☐ | | Distance to nearest fire hydrant (feet) 0-500' ☐ 500'-1000' ☐ Over 1000' ☐ | | | | | Yes | No | | --- | --- | --- | | Automatic Sprinkler System | ☐ | ☐ (Name and Type) | | Fire/Smoke Detectors | ☐ | ☐ (Number of Detectors) | | Fire Extinguishers | ☐ | ☐ (Number of Extinguishers) | | Burglar Alarm | ☐ | ☐ (Name and Type) | | Deadbolt Locks | ☐ | ☐ | | Security Lighting | ☐ | ☐ | | HAZARDS | Yes | No | | Yes | No | | --- | --- | --- | --- | --- | --- | | Major cracks in walks or driveways? | ☐ | ☐ | Fireplace? | ☐ | ☐ | | Dwelling hidden from view or obscured? | ☐ | ☐ | Woodburning stove? | ☐ | ☐ | | Is property built on steep grade or slope? | ☐ | ☐ | Space heaters ? | ☐ | ☐ | | Is property vacant or used as seasonal dwelling? | ☐ | ☐ | Circuit breakers present? | ☐ | ☐ | | Any business or farming conducted on premises? | ☐ | ☐ | Deteriorating steps? | ☐ | ☐ | | Playground, school or park within one block of dwelling? | ☐ | ☐ | Trees overhang dwelling ? | ☐ | ☐ | | Any evidence of vandalism? | ☐ | ☐ | Is property built over water? | ☐ | ☐ | | Boats, aircraft, golfcarts, go-carts, motorcycles on premises? | ☐ | ☐ | | | | | Type of electrical wiring (copper, aluminum, other) | | | | | | | | Yes | No | | Yes | No | | Yes | No | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Pets or livestock on premises? | ☐ | ☐ | Enclosed by fence? | ☐ | ☐ | Aggressive? | ☐ | ☐ | | Trampoline? | ☐ | ☐ | Enclosed by fence? | ☐ | ☐ | | | | | Swimming pool? | ☐ | ☐ | Enclosed by fence? | ☐ | ☐ | | | | | Interior water damage? | ☐ | ☐ | Repaired? | ☐ | ☐ | | | | DIMENSIONAL SKETCH/DIAGRAM:  Form VIP-2 2 INSPECTION NUMBER ATTACH 35 mm color PHOTOGRAPHS (FRONT AND REAR): SUMMARY): (State reasons if property does not meet the criteria for average or better condition, be specific on any deficiencies/problems noted.) I certify that the inspected property does or does not meet the criteria for average or better condition for property insurability under Article 5.33B, Texas Insurance Code as set forth in Section II of this report. Inspector I. D. Number Date Company/entity represented Address *NOTICE: THIS REPORT DOES NOT GUARANTEE OR PRECLUDE YOUR ABILITY TO PURCHASE RESIDENTIAL PROPERTY INSURANCE. PRESENT THIS REPORT AND THE CERTIFICATE OF INSURABILITY, IF ISSUED, TO YOUR INSURANCE AGENT/COMPANY. Form VIP-2 3 INSPECTION NUMBER _________ # Criteria in Determining Average or Better Condition # Exterior - Only minor cosmetic foundation related cracks on the slab or above windows or doors - No major cracks, separations or evidence of shifting or movement in walls, walks and driveway - No missing window or door panes - No signs of active termites or unrepaired insect damage - No accumulation of trash, brush or other debris in yard - Exposed wood (siding, fascia, soffit, doors, steps, etc.) in good condition with no evidence of significant deterioration or significant peeling of paint - Pier and beam foundations enclosed under all outside walls - Additions, modifications or repairs to the exterior made in accordance with generally accepted standards at the time of the construction # Roof - No roof coverings that are curling or cracking or missing shingles - No roof coverings that show signs of significant deterioration - No roofs that have been improperly installed or repaired # Interior - No visible water damage - No major cracks or separation in interior walls, flooring and ceiling - Major appliances in good working condition - Additions, modifications or repairs to the interior made in accordance with generally accepted standards at the time of the construction # Electrical - Electrical wiring in good working condition - No evidence of fuses repeatedly blowing or breakers tripping - No flickering lights or evidence of overheating wiring - Additions, modifications or repairs to electrical wiring made in accordance with generally accepted standards applicable at the time of installation # Plumbing, Heating, Cooling Systems - Plumbing, heating and cooling systems in good working condition - Free from leaks - Space heaters and hot water heater properly vented and appropriate distance maintained from walls and furnishings - Additions, modifications or repairs to plumbing, heating and cooling systems made in accordance with generally accepted standards applicable at the time of installation # Other Conditions - Outbuildings and fences in good condition - No business or commercial exposures on premises - No vacancy of the property - Property accessible to fire equipment - No unfenced swimming pools, hot tubs, fish ponds or bodies of water or trampolines Form VIP-2 4 INSPECTION NUMBER _________ ATTACH 35 mm color PHOTOGRAPHS (FRONT AND REAR): SUMMARY): (State reasons if property does not meet the criteria for average or better condition, be specific on any deficiencies/problems noted.) I certify that the inspected property does _________ or does not _________ meet the criteria for average or better condition for property insurability under Article 5.33B, Texas Insurance Code as set forth in Section II of this report. Inspector I. D. Number Date Company/entity represented Address *NOTICE: THIS REPORT DOES NOT GUARANTEE OR PRECLUDE YOUR ABILITY TO PURCHASE RESIDENTIAL PROPERTY INSURANCE. PRESENT THIS REPORT AND THE CERTIFICATE OF INSURABILITY, IF ISSUED, TO YOUR INSURANCE AGENT/COMPANY. Form VIP-2 3