Farmers Mutual Hail Insurance Company of Iowa

Carrier appetite summary

As of the Iowa Property Manual effective 11-1-22, FMH’s P&C Division continues to actively underwrite Iowa property risks, including homeowners and farm dwelling/business property, with detailed producer procedures and eligibility rules. Preferred / target business (Home & Farm Dwelling) - Owner-occupied primary dwellings (town or farm) and farm properties written to at least 80% of actual value; 100% of replacement cost required when replacement cost is elected (e.g., certain seasonal dwellings). ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Well-maintained structures with good repair and sound heating, electrical, plumbing, and roofing; properties that can meet inspection/photo and valuation documentation requirements. - Dwellings without indoor solid‑fuel heat as a primary source; solid-fuel heat allowed only as supplemental heat subject to questionnaire, photos, surcharge, and underwriter approval. ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Farm accounts placed via FMH’s online quoting and application platform, with complete location descriptions (911 address and legal: section, township, range, county) and full photo documentation of insured dwellings, buildings, and bins. Key eligibility, restricted and declined risks - Ineligible risks include: any structure or dwelling in poor repair, poor maintenance, or poor physical condition; dwellings with indoor wood heat (or other solid fuel) as the primary heat source; licensed vehicles, licensed trailers, or licensed recreational vehicles (these are not eligible property classes here). ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Vacant property: must be pre‑approved by underwriting; broad form coverage is not available; supporting coverage is preferred; mandatory minimum $2,500 deductible; all vacant dwellings must carry a repair/rebuilding requirement endorsement. ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Seasonal dwellings (cabins, lake cottages) are eligible but must be non‑mobile, have supporting coverage, and cannot be written as a package policy. Mandatory minimum deductible $2,500; supplemental heat subject to underwriting approval. Replacement cost is available only if written at 100% of replacement cost with a minimum Coverage A of $150,000. ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Mobile homes: owner‑occupied only, in good condition; heating, cooling, plumbing, and electrical systems must all be 15 years old or newer for basic Class A; Class B (Broad) requires systems all 10 years old or newer. No fireplaces or supplemental solid‑fuel devices allowed; minimum coverage $8,000; replacement cost not available. ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Modular homes: owner‑occupied, in good condition, with heating, cooling, plumbing, and electrical systems 1992 or newer. No fireplaces or supplemental solid‑fuel devices; must be permanently tied down to block, concrete footing, or pillars per manufacturer’s specs; photos required. Minimum dwelling limit $35,000. Modular homes permanently installed on a basement or pad may be considered for package policy subject to inspection. ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Multiple-layer roofs: two-layer roofs are not eligible for Replacement Cost. Roofs with three or more layers require a total Roof Exclusion endorsement (FMH‑4010). ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) Deductibles and special peril treatment - Standard all‑peril deductible options with credits: $1,000 (no credit), $2,500 (10% credit), $5,000 (20% credit), $10,000 (25% credit), $25,000 (30% credit). Split deductibles allowed on farm policies (e.g., lower deductible on dwelling package vs. higher on other property). ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Windstorm or hail deductibles (Forms FMH‑4022/4023) may be higher than the all‑peril deductible and apply only to scheduled structures and dwelling‑related coverages (Coverages A–D and related incidental coverages). Not applicable to farm personal property. A minimum $2,500 wind/hail deductible applies. ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) Geographic / territory notes - Manual is specific to Iowa property business written through the FMH P&C Division. Territory pages include Iowa county zoning by territory, and producers must provide accurate legal descriptions and fire/911 addresses for all property locations. ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) Submission and binding requirements (producer instructions) - New business - Agent inspections and photos are required on all new business; do not submit applications without photos. - Business should be written at least to 80% of actual value; complete building and personal property descriptions and all application questions must be fully answered. - Applicant and agent signatures required on applications, endorsements, farm blanket schedules, cancellations, and loss notices as applicable. - All farm risks must be quoted and submitted through FMH’s online quoting and application software on the FMH website. - For any supplemental heating device (indoor or outdoor solid‑fuel or wood boilers), submit a completed supplemental heating device questionnaire and photos; coverage is subject to underwriting approval and often a surcharge or specific endorsements. ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Binding authority - Producer binding authority is limited to 30 days. A written binder must be sent to the home office within 5 days of the initial bind date. - Applications must be received in the home office within 30 days of the effective date. - No binding authority on special or unique risks without prior underwriting approval, and no binding authority for risks with exposure of $5,000,000 or more at a single location. ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Agent transfers - FMH does not accept agent transfer letters. Business must be cancelled and rewritten by the new agent, including current cost guide and photo documentation. - Forms - ACORD forms may be used for losses, cancellations, endorsements, and binders in addition to FMH-issued forms. Policy term, billing, cancellation and reinstatement - Policy period is one year with a policy review every three years; can be billed annual, semi‑annual, quarterly, or monthly EFT (no service fee for EFT; $6 per installment for semi‑annual or quarterly billing). ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Premium notices are mailed about 30 days prior to due date; a past‑due notice is mailed on the due date if unpaid and serves as the final notice before cancellation. Policy cancels 10 days after the past‑due notice if payment is not received; cancellation notice goes to insured, agent, and mortgagee where applicable. ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Reinstatement for nonpayment: may reinstate back to cancellation date if within 45 days, subject to underwriting approval, with Statement of No Loss plus premium and a $15 reinstatement fee. Beyond 45 days requires a rewrite (treated as new business) with completed application and payment; effective date cannot precede date payment and signed application are secured; application and payment must reach home office within 5 days of effective date. FMH will not rewrite if prior policies have been rewritten more than three times for nonpayment. ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Flat cancellation allowed within 30 days of inception upon return of policy or signed cancellation request. Company‑initiated cancellations are pro rata and must follow required notice rules. Coverage features / notable endorsements - Dwelling and contents - Dwelling coverage includes building equipment and fixtures; excludes trees, shrubs, plants, lawns, fences, and TV/radio antennas. - Household and personal effects coverage applies to contents usual to occupancy, owned by insured/family (and, optionally, a servant or guest) while on premises. - Additional living expense available when a covered loss renders the premises untenantable, limited to the amount shown on the declarations (also available when only contents are insured, up to the declared limit). - Package enhancements - Home Security and Farm Security Programs (I, II, III, III+) provide tiered coverage packages, with certain tiers (e.g., Farm Security III Plus, expanded replacement cost) unavailable if indoor solid‑fuel devices are present. - Special coverages - Replacement value endorsement for household goods and personal property is available on owner‑occupied risks (not mobile homes). - Limited coverage and buy‑up options for submersible or electric well pumps and outside wiring/poles/transformers; minimum typical limit $1,000 when specifically insured. - Satellite / dish antennas must be specifically scheduled with minimum limits (large dishes at least $1,000); small 18‑inch dishes are covered under personal property. - Debris removal is provided on covered property for cleanup costs after an insured peril. - Total Loss endorsement (FMH‑3364) restricts coverage on designated buildings to total losses only (defined as at least 75% destruction of exterior structure); no partial loss coverage on those items. - Earthquake coverage (FMH‑2054 or FMH‑3354) may be added only by endorsement to existing package policies, only on the policy anniversary date, and is subject to a separate earthquake deductible. - Water backup and sump discharge/overflow (FMH‑2008) is available only on III and III+ package policies and only by endorsement at the policy anniversary date, due to adverse selection. ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) Farm personal property / blankets - Open Peril Farm Blanket and Open Peril Excluded Farm Blanket provide all‑peril blanket coverage for farm equipment and related items (subject to exclusions), with: - Minimum blanket total of $100,000 and at least two items; 80% coinsurance requirement (FMH recommends writing at 100% of inventory value). - All farm property must be insured with FMH to qualify for blanket coverage. - Certain classes excluded from blanket (e.g., portable buildings, poultry, licensed vehicles/trailers, and specific other items). Combines and heads are expressly excluded from blanket and must be specifically scheduled under a separate endorsement (FMH‑3021). ([fmh.com](https://www.fmh.com/docs/librariesprovider81/manuals-and-forms/iowapropertymanual.pdf)) - Maximum livestock limits per animal type (e.g., $5,000 per head for swine, horses, sheep, cattle) when included in blanket coverage. Operational notes for brokers / producers - Expect mandatory inspections and photos for all new property business, strict documentation of property locations and values, and strong underwriter control over nonstandard exposures (vacant, seasonal, supplemental heat, multiple‑layer roofs, large TIV locations). - Do not bind unusual or high‑value single‑location risks (> $5M TIV) without contacting underwriting for prior approval. - No internal agent‑of‑record transfers—changing agents requires a cancel/rewrite process with full underwriting submission. - For late premium payments and reinstatements, coordinate quickly with the home office, obtain a Statement of No Loss, and collect the reinstatement fee when applicable. Note: FMH announced an exit from acting as a P&C carrier for some markets in 2023 and is increasingly using brokerage placements for P&C; however, this Iowa Property Manual (11‑1‑22) remains the operative reference for existing Iowa P&C Division property business and should be followed unless superseded by more recent FMH communications or state filings. ([mtayrnews.com](https://www.mtayrnews.com/2023/12/13/local-home-and-auto-insurance-options-disappearing/?utm_source=openai))

Referenced source pages