House Corporation Property and Liability Application

(Construction type refers to the actual construction of the fraternity house, not necessarily what is on the outside of the building.   For example, many buildings have brick or masonry veneer on the exterior but are actually frame buildings.   Some buildings have siding yet are concrete block masonry construction.    When answering this question, consider what a resident might encounter when drilling a hole in an exterior wall – if there is concrete block behind the drywall the building is likely a masonry constructed building.)

CLAIMS

Is the property protected with any of the following:

Does the property have any of the following:

DESIRED PROPERTY COVERAGE

FRMT offers insurance on a replacement cost basis or functional replacement cost basis.   If your property is historic and unique (for example, a house with Plaster walls and oak hardwood floors) some clients desire to replace the structure or property with a functional yet cheaper replacement (e.g. Drywall and Laminate flooring), resulting in a lower insured value and premium.  In this case, you might consider selecting functional replacement cost coverage.     Other clients would prefer to replace their building or property with like kind and quality that they had prior to the loss, in which case you would want to select replacement cost coverage.

This is the dollar value to rebuild the building, not what the building is “worth” on the open market. You can report an estimate (or what level of coverage you currently have) or leave this field blank and we will estimate reconstruction costs for your review and approval with your quote.

This is the dollar value to replace any business property you might own at the house. This includes items such as dining room furniture, ritual equipment, kitchen equipment and supplies, etc.

This coverage could cover loss of income if a covered peril damaged the house and tenants had to move out. Most fraternal insurance clients elect something between 50% and 100% of their annual rental revenue.   If a total loss forced your tenants to vacate the premises, some variable expenses (e.g., Gas, Water) might be significantly reduced or eliminated, but other expenses (e.g., Mortgage, Taxes, and Insurance) will continue.

This is the amount it would cost to comply with laws, codes and ordinances in the event of a partial or total loss of the property.   For example, building codes or local ordinances today might require all fraternity houses to have fire sprinkler systems. If your fraternity house experiences a significant or total loss, the local authority having jurisdiction might require installation of a sprinkler system; since the building insurance will replace the building “as it was”, law and ordinance coverage can cover additional costs associated with these types of requirements.  Note that the maximum coverage available for Law and Ordinance coverage is 50% of the building value.

Depending on your risk tolerance, a deductible from $2,500 to $25,000 can be elected. Higher deductibles generally result in lower insurance costs.

DESIRED LIABILITY COVERAGE

(Broad coverage will broadly cover the house corporation for Hazing, Sexual Assault, Alcohol and Assault, with standard exclusions for “Participants” in these activities.    Limited coverage will exclude these risks completely.   Some house corporations do not desire coverage for these activities since their tenant chapter is already covered for these risks.   Your risk tolerance as well as the degree of separation from the chapter should be carefully considered when weighing whether or not you require these coverages.)

Please attach 5-year loss run PDF to this document or request it and email to property@frmt.freshdesk.com.