INSURANCE POLICIES
§ 401.11. Eligibility for insurance.
(a) Structures located within the coal and clay regions of this Commonwealth are eligible for coverage.
(b) Only an owner of a structure may be named as the insured.
(1) If there is more than one owner of a structure, the owners shall designate one owner whose name shall appear on the insurance policy for billing purposes. The other owners shall be listed in the application for insurance as additional insureds.
(2) For a structure owned as a condominium or a cooperative:
(i) The insurance must cover all the common elements and units when the association is acquiring the insurance.
(ii) Only an association can acquire insurance covering a structure comprised of vertically stacked units.
(iii) For otherwise configured structures when the association does not acquire insurance coverage, a unit owner may purchase coverage for their unit and the related common elements necessary for the owner’s use of the unit. Related common elements include the unit’s roof, walls, floors, foundation, as well as, a fence, retaining wall, paved or improved patio, walk, or driveway. However, the association shall be listed in the application as an additional insured. Renewals will be sent to the unit owner.
(c) Structures which are at least 50% residential are eligible for residential rates.
(d) If a structure is damaged by mine subsidence or by another cause, and the Board, based upon an inspection of the structure, determines that either:
(1) The damage jeopardizes the structure’s integrity, the Board will not issue a policy until the damages identified by the inspection have been repaired as directed by the Board.
(2) The damage could not be separated or apportioned from subsequent damage and the damage does not jeopardize the structure’s integrity, the Board will issue a policy if the applicant either:
(i) First repairs the damages identified by the inspection as directed by the Board.
(ii) Submits to the Board an estimate, prepared by a reputable expert, of the cost to repair the damages to the Board’s satisfaction. The cost to repair, adjusted for inflation, would be excluded from any damage claim settlement. However, a policy would not be issued if the cost to repair exceeded the replacement cost of the structure or the policy limit, whichever is less, because the policy would have no value.
(e) The Board may refuse to issue a policy while the structure to be covered is being damaged by mine subsidence or by another cause, until the Board determines that the cause of damage has ceased.
(f) Multiple unit structures are insured as follows:
(1) Structures comprised of vertically stacked units are only insurable under a single policy.
(2) Other unit configurations are insurable under a single or multiple policy at the owner’s discretion.
Authority The provisions of this § 401.11 amended under the act of August 23, 1961 (P. L. 1068, No. 484) (52 P. S. § § 3201—3225).
Source The provisions of this § 401.11 adopted December 10, 1971, effective January 1, 1972, 1 Pa.B. 2288; amended May 3, 1974, effective May 4, 1974, 4 Pa.B. 880; amended December 21, 1979, effective December 22, 1979, 9 Pa.B. 4163; amended August 6, 1993, effective August 7, 1993, 23 Pa.B. 3687; amended December 11, 2009, effective December 12, 2009, 39 Pa.B. 6953. Immediately preceding text appears at serial page (312597).
Cross References This section cited in 25 Pa. Code § 401.1 (relating to definitions); and § 401.13 (relating to coverage limits and premiums for insurance).
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