[Title 44 CFR A]
[Code of Federal Regulations (annual edition) - October 1, 1996 Edition]
[Title 44 - EMERGENCY MANAGEMENT AND ASSISTANCE]
[Chapter I - FEDERAL EMERGENCY MANAGEMENT AGENCY]
[Subchapter B - INSURANCE AND HAZARD MITIGATION]
[Part 83 - COVERAGES, RATES, AND PRESCRIBED POLICY FORMS]
[Subpart A - Residential Crime Insurance Coverage]
[From the U.S. Government Publishing Office]




  44
  EMERGENCY MANAGEMENT AND ASSISTANCE
  1
  1996-10-01
  1996-10-01
  false
  
  A
  Subpart A
  
    EMERGENCY MANAGEMENT AND ASSISTANCE
    FEDERAL EMERGENCY MANAGEMENT AGENCY
    INSURANCE AND HAZARD MITIGATION
    COVERAGES, RATES, AND PRESCRIBED POLICY FORMS
  


             Subpart A--Residential Crime Insurance Coverage



Sec. 83.1   Description of residential coverage.

    (a) The purpose of this Sec. 83.1 is descriptive only, and it shall 
be subject to the express terms and conditions of the policy form 
prescribed in Sec. 83.5.
    (b) The initial policy issued by the insurer for residential 
properties shall be known as the residential crime insurance policy. 
Subject to its terms, the policy reimburses an insured for loss from 
burglary and larceny incident thereto, robbery (including observed 
theft), or attempt thereat, of personal property from the premises or in 
the presence of an insured, and for damage to the premises caused by any 
such attempt. It also covers damage to the interior of the part of the 
building occupied by the named insured's household at the described 
premises, and to the insured property both therein and away from the 
premises, caused by vandalism or malicious mischief: Provided, That with 
respect to damage to the building an insured is the owner thereof or is 
liable for such damage. The policy is subject to the exclusions set 
forth therein.
    (c) The residential crime insurance policy shall be written only for 
an individual or for a single family or household with respect to a one 
to four family house or separate living quarters in an apartment 
building or dormitory.

[[Page 383]]

Premises in hotels (other than residence hotels where normal occupancy 
exceeds 6 months in duration) and premises within residential properties 
used in whole or in part for business purposes are not eligible for 
coverage under the residential policy. A mobile home used as a residence 
may be insured on a residential application form provided the mobile 
home has been rendered immobile on a permanent foundation and anchored 
to resist flotation or lateral movement. A residential premises or a 
portion thereof owned or leased by a business, corporate or otherwise, 
may not be insured by said business under a residental policy. A model 
home held for eventual sale may not be insured under a residential 
policy. A storeroom used for temporary storage of personal property not 
pertaining to a business may be insured under a residential policy, 
provided that the storage area is surrounded by physical barriers which 
separate it from other storage areas available to other persons and that 
the storage area utilized by the insured complies with the protective 
device requirements applicable to residential premises.

[36 FR 24774, Dec. 22, 1971, as amended at 37 FR 15298, July 29, 1972. 
Redesignated at 44 FR 31177, May 31, 1979, as amended at 47 FR 19350, 
May 5, 1982]



Sec. 83.2  Limits of residential coverage.

    The residential policy may be written in amounts not less than 
$1,000 and not in excess of $10,000 for each insurable premises. An 
insurable premises is defined as a physically separate area occupied for 
residential purposes by one or more persons who are permanent members of 
a single household. The $10,000 limit of coverage for each insurable 
premises may not be increased by subdividing the premises shared by 
members of a common household. Any amount of insurance or fraction 
thereof, above a specified limit shall be charged the applicable rate 
for the next higher limit of coverage. Specified limits of coverage are 
set forth in Sec. 83.4.

[47 FR 19350, May 5, 1982]



Sec. 83.3   Amount of residential policy deductible.

    The residential crime insurance policy shall be subject to a 
deductible in the amount of $100 for each loss occurrence, or 5 percent 
of the gross amount of the loss, whichever is greater. The face amount 
of coverage specified in the policy is not reduced by the application of 
this deductible. Thus, if an insured having a $5,000 policy incurs a 
$5,000 covered loss, he would receive $4,750. If the loss were $6,000, 
he would receive the full $5,000.

[39 FR 2361, Jan. 21, 1974. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 47 FR 19350, May 5, 1982]



Sec. 83.4  Residential crime insurance rates.

    The specific limits of coverage for applicable annual premiums for 
residential crime insurance coverage are revised to read as follows:

                                                                        
                                                                 Annual 
                                                                premium 
                                                                        
Policy limits:                                                          
    $1,000...................................................        $32
     2,000...................................................         42
     3,000...................................................         52
     4,000...................................................         62
     5,000...................................................         74
     6,000...................................................         84
     7,000...................................................         94
     8,000...................................................        104
     9,000...................................................        116
    10,000...................................................        126
                                                                        

[53 FR 11276, Apr. 6, 1988]



Sec. 83.5   Required residential policy form.

    The following shall constitute the policy form for the residential 
crime insurance policy and no other policy form shall be used. Coverage 
will commence at 12 noon following the date of a U.S. Post Office 
affixed postmark or proof of Certified or Registered mailing. In the 
absence of such postmark or other proof sufficient to substantiate the 
date of mailing, coverage will be effective at 12 noon following receipt 
by the servicing company, unless a later date is specified in the 
application.
    (a) Owner's or tenant's Residential Crime Insurance Policy form:

[[Page 384]]

                    Federal Insurance Administration

                   residential crime insurance policy

    The Federal Insurance Administrator, herein called the Insurer, 
agrees with the insured, named in the Application made a part hereof, in 
consideration of the payment of the premium and in reliance upon the 
statements in the Application, and subject to (1) the provisions of 
title VI of Public Law 91-609 (12 U.S.C. 1749bbb-10a, et seq.) and 
subchapter B, chapter I, title 44 of the Code of Federal Regulations (44 
CFR parts 80 through 84), and (2) the limits of liability, exclusions, 
conditions, deductibles, and other terms of this Policy with respect to 
the following criminal acts:

                           Insuring Agreements

    I. Loss by burglary and larceny or robbery, including observed 
theft. (a) To pay for loss by burglary and larceny incident thereto, or 
robbery, including observed theft, of all personal property from the 
premises or in the presence of an insured.
    II. Damage. To pay for damage to the premises and to the insured 
property by burglary or robbery, including observed theft, or attempt 
threat, and for damage to the interior of that portion of any building 
occupied by the named insured's household at the premises and to the 
insured property therein or away from the premises by vandalism or 
malicious mischief which occurs during a burglary or robbery, provided 
that with respect to damage to the building an insured is the owner 
thereof or is liable for repairing such damage.
    With respect to loss occurring at any part of the premises not 
occupied exclusively by the named insured's household, this Insuring 
Agreement applies only to property owned or used by an insured.
    III. Application of insurance while the premises are rented to 
another. Such insurance as is afforded for loss at or damage to the 
premises applies while the premises are rented by an insured owner or 
tenant to another for use as a private residence only, subject to the 
following provisions:
    1. The insurance applies only with respect to property owned by an 
insured.
    2. The insurance does not apply (a) to money, securities, jewelry, 
watches, necklaces, bracelets, gems, precious and semiprecious stones, 
and articles of gold or platinum, furs, fine arts, antiques, coin or 
stamp collections, or (b) to loss caused by a tenant of such premises or 
any of his employees or members of his household.
    IV. Application of insurance while the premises are occupied by 
three or more persons not related to the named insured. Such insurance 
as is afforded for loss at or damage to the premises applies while the 
premises are occupied by three or more persons not related to the named 
insured owner or tenant, subject to the following provisions:
    1. The insurance applies only with respect to property owned by the 
named insured.
    2. The insurance does not apply (a) to money, securities; gems, 
precious and semi-precious stones, gold or platinum (other than 
jewelry); antiques, coin or stamp collections; or (b) to loss caused by 
a tenant of such premises or any of his employees or members of his 
household.
    3. Under this insuring agreement, the actual cash value of any one 
article of jewelry (including watches) shall be deemed not to exceed 
$50.
    V. Removal to other premises. If the named insured moves to other 
premises which he intends to occupy permanently as his private 
residence, such insurance as it afforded for loss at or damage to the 
premises designated in the Application applies subject to the following 
provisions:
    1. During the moving, for a period not to exceed thirty (30) days, 
the insurance applies at the premises and at the other premises and to 
the insured property while in transit.
    2. Upon completion of the moving the insurance applies at the other 
premises and no longer applies at the original premises: Provided, That 
all coverage under this policy shall cease at the end of the thirty (30) 
day period, and the policy shall be deemed canceled by the Insurer as of 
such date.
    VI. Policy period, territory. This policy applies only to loss which 
occurs during the policy period within a State, the District of 
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, the 
territories and possessions of the United States and the Trust Territory 
of the Pacific Islands as defined in 12 U.S.C. 1749bbb-2 and set forth 
in 44 CFR 55.1.

                               Exclusions

This Policy does not apply:
    (a) To loss committed by an insured;
    (b) To loss of (1) any aircraft, motor vehicle (other than motorized 
equipment designed for service purposes and not licensed for highway 
use), trailer, boat or the equipment thereof, (2) articles carried or 
held as samples or for sale or for delivery after sale, or (3) animals, 
fish or birds;
    (c) To loss sustained by a person not related to an insured who pays 
board or rent to an insured;
    (d) To loss of property pertaining to a business, trade, profession 
or occupation of an insured;
    (e) To loss if the premises are not protected in accordance with the 
regulations of the Federal Insurance Administration, as published at the 
time of the inception of the then current term of the Policy in Crime 
Insurance Program 44 CFR part 80 et seq.

[[Page 385]]

    (f) To any burglary loss from a motor vehicle.
    (g) To loss while the property is vacant.

                               Conditions

    1. Definitions--

    (a) Named insured. ``Named Insured'' means the insured named in the 
Application. ``Insured'' means the named insured and any person while a 
permanent member of the insured's household, including a residence 
employee, but not including a tenant who is not related to the named 
insured, the named insured's spouse, or any other permanent member of 
the named insured's household, and who pays board or rent to the named 
insured.
    (b) Premises. ``Premises'' of paragraph 1 means the premises 
designated in the application and includes garages and other 
outbuildings incidental thereto.
    (c) Burglary. ``Burglary'' or ``burglary and larceny incident 
thereto'' mean the felonious abstraction of insured property from within 
the premises by a person making felonious entry.
    (d) Robbery. ``Robbery'' or ``robbery, including observed theft,'' 
means the taking of insured property (1) by violence inflicted on an 
insured; (2) by putting him in fear of violence; (3) by any other overt 
felonious act committed in his presence and of which he was actually 
cognizant, provided such other act is not committed by an insured; or 
(4) from the person or direct care and custody of an insured who has 
been killed or rendered unconscious.
    (e) Money. ``Money'' means currency, coins, bank notes, and bullion.
    (f) Securities. ``Securities'' mean all negotiable and nonnegotiable 
instruments or contracts representing either money or other property and 
includes revenue and other stamps in current use, tokens, and tickets, 
but does not include money.
    (g) Business. ``Business'' includes trade, profession, or 
occupation.
    (h) Loss. ``Loss'' includes damage.
    (i) Residence employee. ``Residence employee'' means an employee of 
an insured who performs duties in connection with the maintenance or use 
of the residence premises, including household or domestic service.
    2. Interests covered. The insurance does not apply to the interest 
in insured property of any person or organization, unless included in 
the named insured's proof of loss.
    3. Limits of liability; settlement options. The Insurer shall not be 
liable on account of any loss unless the amount of such loss shall 
exceed the amount of the deductible described in the Application which 
is made a part of this Policy and the Insurer shall then be liable only 
for such excess over and above the deductible, subject to and within the 
limit of insurance covered by the Policy. The limit of the Insurer's 
liability for loss or damage in any one occurrence shall not exceed the 
applicable limit of insurance stated in the Application, nor what it 
would cost at the time of loss to repair or replace the property with 
other of like kind and quality, nor the actual cash value thereof at the 
time of loss: Provided, however, that the limit of the insurer's 
liability for loss of money is $200 and for loss of securities is $500, 
and for loss of jewelry, including without limitation, watches, 
necklaces, bracelets, rings, gems, precious and semi-precious stones, 
and articles of gold, silver or platinum, including flatware and 
holloware, furs, fine arts, antiques, coin or stamp collections is $500 
for any one article and $1500 in the aggregate per occurrence.
    If there is a loss of an article which is part of a pair or set, the 
measure of loss shall be a reasonable and fair proportion of the total 
value of the pair or set, giving consideration to the importance of said 
article, but such loss shall not be construed to mean total loss of the 
pair or set.
    The applicable limit of insurance stated in the application is the 
total limit of the Insurer's liability with respect to all loss of 
property of one or more persons or organizations arising out of any one 
occurrence.
    All loss incidental to an actual or attempted fraudulent, dishonest 
or criminal act or series of related acts at the premises, whether 
committed by one or more persons, shall be deemed to arise out of one 
occurrence.
    The Insurer may pay for the loss in money or may repair or replace 
the property and may settle any claim for loss of property either with 
the named insured or the owner thereof. Any property so paid for or 
replaced shall become the property of the Insurer. Any property 
recovered after settlement of a loss shall be applied first to the 
expense of the parties in making such recovery, with any balance applied 
as if the recovery had been made prior to said settlement, and loss 
readjusted accordingly. The insured or the Insurer, upon recovery of any 
such property, shall give notice thereof as soon as practicable to the 
other.
    4. Insured's duties when loss occurs. Upon knowledge of loss or of 
an occurrence which may give rise to a claim for loss, the insured shall 
(a) give notice thereof as soon as practicable to law enforcement 
authorities and to the Insurer through its authorized agent and (b) file 
detailed proof of loss, duly sworn to, with the Insurer through its 
authorized agent within sixty (60) days after the discovery of loss 
unless such time is extended by the Federal Insurance Administrator in 
writing. The administrator may, in his/her discretion, waive the 
requirement that the proof of loss be sworn to. Upon the insurer's 
request, the insured and every claimant hereunder shall submit to 
examination by

[[Page 386]]

the insurer, subscribe the same under penalty of 18 U.S.C. 1001 
pertaining to fraud and false representation, and produce all pertinent 
records, all at such reasonable times and places as shall be designated, 
and shall cooperate in all matters pertaining to loss or claims with 
respect thereto. The insured shall as a condition of continued coverage 
take reasonable action immediately following the discovery of a loss to 
protect the premises from further loss.
    5. Other insurance. If there is any other valid and collectible 
insurance which would apply in the absence of this Policy, the insurance 
under this Policy shall apply only as excess insurance over such other 
insurance; provided, that the insurance shall not apply: (a) To property 
which is separately described and enumerated and specifically insured in 
whole or in part by any other insurance; or (b) to property otherwise 
insured unless such property is owned by an insured.
    6. No benefit to bailee. The insurance afforded by this Policy shall 
not inure directly or indirectly to the benefit of any carrier or 
bailee.
    7. Appraisal. If the named insured and the Insurer fail to agree as 
to the amount of loss each shall, on the written demand of either made 
within sixty (60) days after receipt of proof of loss by the Insurer, 
appoint a competent and disinterested appraiser, and the appraisal shall 
be made at a reasonable time and place within thirty (30) days after the 
two appraisers are appointed. If the appraisers fail to agree, they 
shall jointly select a competent and disinterested third appraiser and 
submit the question to him within fifteen (15) days thereafter. The 
first two appraisers shall state separately the actual cash value at 
time of loss and the amount of the loss. Subsequent agreement in writing 
by any two of the three appraisers within thirty (30) days after the 
third appraiser was selected shall be considered by the Insurer in 
determining the amount of the loss but shall not be considered binding 
upon him and shall not be admissible as such in court. The named insured 
and the Insurer shall each pay its chosen appraiser and shall bear 
equally the expenses of the third appraiser and the other expenses of 
appraisal.
    The Insurer shall not be held to have waived any of its rights such 
as, without limitation, the right to deny liability under the Policy by 
any act relating to appraisal.
    8. Action against insurer. No action shall lie against the Insurer 
unless, as a condition precedent thereto, there shall have been full 
compliance with all the terms of this Policy, nor until ninety (90) days 
after the required proofs of loss have been filed with the Insurer, nor 
at all unless commenced within 2 years from the date when the insured 
first has knowledge of the loss and within 1 year after the date upon 
which the claimant received written notice of disallowance or partial 
disallowance of the claim. Any such action shall be brought in a U.S. 
district court, as required by 12 U.S.C. 1749bbb-11.
    9. Subrogation. In the event of any payment under this Policy, the 
Insurer shall be subrogated to all the insured's rights of recovery 
therefor against any person or organization and the insured shall 
execute and deliver instruments and papers and do whatever else is 
necessary to secure such rights. The insured shall do nothing after loss 
to prejudice such rights.
    10. Changes. Notice to any agent or knowledge possessed by any agent 
or by any other person shall not effect a waiver or a change in any part 
of this Policy or estop the Insurer from asserting any right under the 
terms of this Policy; nor shall the terms of this Policy be waived or 
changed, except by endorsement issued to form a part of this Policy, as 
approved by the Federal Insurance Administrator.
    11. Cancellation. This Policy may be canceled by the named insured 
by surrender thereof to the Insurer or any of its authorized agents or 
by mailing to the Insurer written notice stating when thereafter the 
cancellation shall be effective. The grounds for cancellation of 
coverage by the Insurer shall be limited to those set forth in 
subchapter B, parts 80 et seq., chapter I, title 44 of the Code of 
Federal Regulations. Except as otherwise provided by such regulations 
and by Insuring Agreement V(2), notice of cancellation by the Insurer 
shall be mailed to the named insured at the address shown in this 
Policy, stating when not less than thirty (30) days thereafter such 
cancellation shall be effective. The premium due notice for installment 
or renewal premiums is issued to notify the insured that the policy will 
be cancelled or will expire, as appropriate, unless the insured pays the 
premium in sufficient time for it to be received by the insurer, or 
postmarked by the United States Postal Service, on or before the due 
date. The mailing of any premium due notice, cancellation notice, or any 
other notice required by the policy, to the mailing address shown on the 
application or policy shall be conclusive evidence of notice to the 
insured. The mailing of notice as aforesaid shall be sufficient proof of 
notice. The time of the surrender or the effective date of cancellation 
stated in the notice shall become the end of the Policy period. Delivery 
of such written notice either by the named insured or by the Insurer 
shall be equivalent to mailing.
    In the event of cancellation, earned premium shall be computed in 
accordance with the customary short rate table and procedure, unless 
otherwise specifically provided in said regulations issued by the 
Insurer. Premium adjustment may be made either at the time cancellation 
is effected or as soon

[[Page 387]]

as practicable after cancellation becomes effective, but payment or 
tender of unearned premium is not a condition of cancellation.
    12. Assignment. Assignment of interest under this Policy shall not 
bind the Insurer until its consent is endorsed hereon; if, however, the 
named insured shall die, this Policy shall cover the named insured's 
spouse, if a resident of the same household at the time of such death, 
and legal representative as named insured: Provided, That notice of 
cancellation addressed to the insured named in the Application and 
mailed to the address shown in this Policy shall be sufficient notice to 
effect cancellation of this Policy. If the legal representative of the 
named insured is not a person who was a permanent member of the named 
insured's household at the time of the death of the named insured, this 
Policy shall apply as it applied prior to such death but shall not apply 
to loss of property owned or used by such legal representative, a member 
of his household or a residence employee thereof, unless such loss 
occurs at a part of the premises occupied exclusively by said named 
insured's household.
    13. Declarations. By signing the Application or by acceptance of 
this Policy the named insured certifies and agrees, under penalty of 
Federal law dealing with fraud and false representation (18 U.S.C. 
1001), that the statements in the Application are his agreements and 
representations, that this Policy is issued in reliance upon the truth 
of such representations, that he is aware of the applicability of the 
Regulations issued by the Insurer, and that this Policy and said 
regulations embody all agreements existing between himself and the 
Insurer or any of its agents relating to this insurance.
    In witness whereof, the Federal Insurance Administration has 
accepted the declarations of the Insured set forth in the Application 
and has caused this Policy to be issued.
                                 ------------------------------------,  
                                       Federal Insurance Administrator. 

    (b) Such endorsements to the owner's or tenant's Residential Crime 
Insurance Policy forms as the insurer may approve.

[36 FR 24774, Dec. 22, 1971. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 45 FR 41951, 41952, June 23, 1980; 48 FR 19371, Apr. 29, 
1983; 49 FR 43472, Oct. 29, 1984; 52 FR 30686, Aug. 17, 1987; 54 FR 
31681, Aug. 1, 1989]