ISO, NATIONWIDE PRODUCTS OKAYED

The Texas Department of Insurance (TDI) has cleared the way for insurers to provide expanded homeowners coverage options by approving both the Insurance Services Office Inc.’s (ISO) Homeowners 2000 program and new homeowners, condominium and tenants policies offered by Nationwide Insurance Company. With the addition of Texas, ISO’s Homeowners 2000 program has been accepted by insurance regulators in 43 ISO jurisdictions. Approved were ISO’s six policy forms and 93 coverage endorsements for homeowners and mobile homeowners. The department stipulated that insurers using the ISO forms must file their initial rates and rate changes for policies written through any of their Lloyd’s companies or reciprocal exchanges with the department on an informational basis for a period of two years. ISO’s Homeowners 3-Special Form is analogous to Texas’s HO-B policy form. While the ISO policy form covers water damage from sudden or accidental discharge, it does not cover losses caused by constant or repeated seepage or leakage of water from a household appliance or from a sewer or drain backup. Policyholders’ savings on insurance would vary by geographic locations of homes and coverages chosen. New applicants and existing policyholders will also be able to select ISO endorsements that cover dwelling foundation damage, and water damage from constant or repeated seepage or leakage of water from a household appliance or from a sewer or drain backup. Nationwide’s approved policies are similar to the forms it uses in other states. The policies allow customers to choose basic coverage similar to other states at a savings, or to add coverage for losses caused by foundation damage, water damage caused by seepage and leakage, or mold testing and remediation. Policies then would be priced accordingly. The company said that consumers choosing coverage similar to other states, without the added mold, water and foundation coverage endorsements, could save between 17 percent and 56 percent from current full coverage. Those who move from current basic coverage to the Nationwide basic policy could realize savings between 8 percent and 27 percent. The average premium savings on the Nationwide basic policy will be about 16 percent. Nationwide’s current Texas customers would be moved to the new policy as their existing policies come up for renewal.