This tool is meant as a guide. We should always strive to find the correct information or recommended limits. If the event this information cannot be found, this page can be used as a guide for assumptions.

Homeowners Coverage Assumptions:

  • Dwelling coverage = 100% of the determined reconstruction cost 
      • 100% 
      • 75% 
      • 50% 
      • 25% 
  • Liability Limits: Based on square footage of the home 
    • Under 1.500 = $300,000 liability limit 
    • 1,500 – 2.500 square feet of living area – $500,000 
    • Over 2,500 square feet of living area – $500,000 liability with $1,000,000 umbrella.  
  • When selecting Water Backup, use this rule of thumb 
    • House 2,000 sq feet and under, select $25,000 of coverage 
    • House over 2,000 sq feet, select $50,000 of coverage 
  • Water damage (also called Seepage and Leakage)  
    • Always include 
  • Deductibles: 
    • AOP (all other perils) and Wind and Hail Deductibles, select In this order of preference 
      • $1,000 
      • 1% 
      • 2% 
  • If animal coverage is an option, always include
  • If Replacement Cost is an option, always include

 

Homeowners Underwriting Assumptions:

Quote assumptions: (Try to verify these items – if not verified, indicate that they are assumed to the agent) 

*if the home cannot be found in a public data source where you can obtain a street view of the home, please refer back to the agent that you cannot locate the home to determine to underwrite. 

  • Home purchase 5 years ago 
  • House was constructed 10 years ago 
  • If verified that the home was constructed more than 10 years ago, assume the following:  
    • Updates in the last 10 years: 
      • Roof – Full 
      • Plumbing – partial 
      • Electrical – partial 
      • HVAC – full 
  • Foundation type:
    • if the foundation is open, select the following:
      • For Texas = pier and beam
      • All other = open crawl space, unless enclosed then closed crawl space
  • Plumbing:
    • House on slab
      • Built before year 2000 – select copper
      • Built year 2000 or after – select PEX
    • House on crawlspace
      • Built before year 2000 – select PVC
      • Built year 2000 or after – select PEX
      •  
  • Electrical
    • Always assume circuit breakers
  • Others Assumptions:
    • Yes to on paved road
    • Yes to has deadbolt locks
    • Yes Has working smoke detectors that are battery operated
    • Yes to insurance score being ran
    • Yes to has fire extinguishers
  • Number of bedrooms and bathrooms 
    • 3 bedrooms and 2 bathrooms if the home is 1,500 square feet or less 
    • 3 bedrooms and 3 baths if the home is 1,599 to 2,500 square feet 
    • 4 bedrooms and 3 baths if the home is over 2,500 square feet 
  • Security: 
    • Deadbolt locks 
    • Fire extinguishers 
    • Local fire alarm 
    • Local burglar alarm 
    • Do not assume gated community 
    • Do not assume sprinklered 
  • Hazards: 
    • Assume no pool 
    • Assume no trampoline 
    • Assume no dogs 
  • Occupations: Both spouses are assumed office executives 
  • Education: Both spouses have a bachelors degree 
  • Home is visible to neighbors 
  • On a paved road 
  • On less than 1 acre of land 
  • In a suburb 
  • Not for a loan closing 
  • Prior insurance is State Farm 
  • Home insurance expiration date is within 1 month from date of quote 
  • Assumed married with 2 children 

Personal Auto Coverage Assumptions:

Selecting Limits: 

  • Auto Liability Limits: 
    • If the home is 2,000 sq feet or under, select limits of $100,000 / $300,000 / $100,000 
    • If the home is over 2,000 square feet, select $250,000 / $500,000 / $250,000 
  • Uninsured Motorist 
    • Match auto liability limits 
  • Uninsured Motorist Property Damage 
    • If in Louisiana and the quote includes Comprehensive and Collision, do not include Uninsured Motorist Property damage. 
    • All other states include it and a limit equal to the Property Damage limit on the auto liability limits.
  • Medical Payments
    •  
  • Comprehensive Deductible is $500 
  • Collision Deductible is $1,000 
  • If auto is less than 7 years old, loan/lease coverage, unless there is no lien. 

Personal Auto Underwriting Assumptions:

  • Select 1 year as a policy term.  If only 6 months is permitted then show the annual amount, but note to the agency that it is a 6 month policy. 
  • Prior insurance: 
    • State Farm 
    • Same Liability Limits 
    • No Claims 
    • 5 years with prior insurance company 
    • Current expiration date is within a month of the quote date 
  • Occupations: Both spouses are assumed office executives 
  • Education: Both spouses have a bachelors degree 
  • Assumed married with 2 children 
  • Own home

 

  • Assume about autos: 
    • Used bought 2 years after the model year. Examples: 
    • Model year 2020 – add 2 years. bought in 2022 
    • Model year 2015 – add 2 years. Bought in 2017 
  • Own or lienholder: 
    • If over 7 years old, assume owned 
    • If 7 years or less, assume lienholder  
    • * Assumptions are based on 26% of the population buys new cars. 

 

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