Founders Insurance Company

Carrier appetite summary

Founders writes personal lines property business for homeowners, condo/townhome (HO-6), and older or harder-to-place homes on an actual cash value HO-8 form, marketed through independent agents in approximately 22 states. Preferred / target home risks (standard HO forms, including HO-3 and HO-6, as described on the public homeowners page): - 1–2 family owner-occupied homes or eligible condos/townhomes, generally up to 100 years old for the standard homeowners program. - Homes and townhomes with typical exposures and basic updates where any space heaters present are acceptable within guidelines. - Clients may have up to 2 losses in the last 3 years, with no more than 1 fire loss, and can still be eligible. - Prior insurance is not required, making the product suitable for first-time buyers or previously uninsured customers. - For HO-6 condo/townhome, typical target values include up to $100,000 in dwelling (building) coverage, up to $150,000 in personal property, and up to $500,000 in personal liability limits. - For HO-8, target is owner-occupied or eligible occupancy dwellings needing named-peril, actual-cash-value coverage where full replacement cost is not appropriate or available. Programs and basic eligibility (by form): - Standard Homeowners (HO-3 type – not explicitly labelled but implied on the Homeowners Insurance page): - 1- or 2-family homes, generally up to 100 years old. - Up to 2 losses in past 3 years (max 1 fire loss). - No prior insurance required. - Space heaters allowed subject to underwriting. - Policy must be submitted to underwriting to rate; no instant bind from the public side. - Condo/Townhome HO-6: - Condos/townhomes with dwelling coverage limits up to $100,000. - Personal property up to $150,000 and personal liability up to $500,000. - Up to 2 losses in past 3 years (max 1 fire loss). - No prior insurance required. - All HO-6 risks are also “submit to underwriting to rate.” - Actual Cash Value HO-8: - Dwellings written on a named-perils, ACV basis for up to 3 families. - Homes of any age are eligible (explicitly including very old dwellings). - More tolerant of risk characteristics, including use of space heaters and fuses. - Up to 3 losses in the past 3 years (max 1 fire loss). - No prior insurance required. Underwriting philosophy and notable rules: - Founders explicitly markets that it does not use credit scoring in underwriting; instead it emphasizes traditional risk characteristics and the relationship with the producer, giving agents more flexibility with insureds whose credit would be an issue at other carriers. This is positioned as a competitive advantage and part of their risk appetite strategy. - Homeowners, condo, and HO-8 business is clearly positioned as somewhat flexible on prior insurance and loss history, with structured but more forgiving loss-count thresholds compared to many standard-market carriers. - All homeowners forms on the public page are listed as “Submit to underwriting to rate,” signaling that underwriters review new submissions rather than pure straight‑through processing, and that agents should expect possible questions or conditions before bind. Discounts and pricing levers (important for submissions): - Prior coverage discount (encourages maintained insurance but is not a hard eligibility requirement). - Loss-free renewal discount up to 10% across the homeowners family of products. - Package credits for placing auto with Founders: - Up to 20% package discount on homeowners when combined with Founders’ auto. - Up to 5% package discount for HO-6 and HO-8 forms when auto is also placed with Founders. Coverage options / endorsements (operationally relevant): - Optional endorsements commonly available on homeowners, HO-6, and/or HO-8 include: - Replacement cost on contents. - Equipment breakdown. - Water back-up. - Identity fraud expense. - Loss assessment (HO-6). - Incidental office (HO-6; townhome-specific water backup noted). - Not all coverages or services are available in all states; producers should confirm state-specific forms and endorsements when quoting. Restricted / declined characteristics (inferred from appetite): - Risks exceeding the stated loss count thresholds in the last 3 years (over 2 for HO-3/HO-6, over 3 for HO-8, or more than 1 fire loss) will typically be outside appetite or require special underwriting approval. - Homes beyond 2 families are only contemplated on the HO-8 form (up to 3 families); >3-family dwellings are likely ineligible in the homeowners program domestic lines. - While space heaters and fuses are specifically allowed on certain forms, risks with more serious life-safety or habitability issues (e.g., severe electrical deficiencies, uncorrected hazards, or highly unmaintained structures) are likely to be declined after underwriting review, even if not stated explicitly on the public summary. Geographic notes: - Founders is headquartered in Des Plaines, Illinois, and writes homeowners and related personal lines across approximately 22 states, primarily via independent agents. The public homeowners page is not state-specific; availability, exact forms, and coverage limits vary by jurisdiction. Agents should check their state’s appetite or rating manuals in the agent portal for detailed territorial eligibility and surcharge rules. Producer / broker instructions and submission expectations: - Business is placed exclusively through appointed independent agents; the consumer site directs prospects to contact independent agents rather than apply online. - All homeowners, HO-6, and HO-8 submissions are explicitly “submit to underwriting to rate,” so agents should expect to submit full applications through the Founders agent portal, including prior loss information. - Underwriting contact and support is centralized through the main underwriting/billing number and email, with instructions on the contact page for routing underwriting questions and reinstatement requests. - Founders emphasizes its relationship orientation with producers, noting that the company places significant weight on the producer relationship as an underwriting factor, particularly because it does not rely on credit scoring. Agencies should maintain strong documentation quality and risk selection in order to preserve favorable treatment and access. Operational takeaways for home lines: - Use HO-3-style homeowners for up to 2‑family, generally newer (≤100 years) dwellings where full replacement‑cost coverage is appropriate. - Use HO-6 where the unit owner needs building items, contents, and liability for condos/townhomes; stay within the indicated coverage limit ranges and loss thresholds. - Use HO-8 for older or nonstandard dwellings (any age, up to 3 families, ACV basis) and where space heaters or fuses are present, or where replacement cost is not realistic or acceptable. - Expect every new home submission to go through underwriting review; pre‑screen for loss history and family count to avoid submissions that clearly exceed published thresholds. - Credit score will not block eligibility, but other traditional property underwriting factors, loss history, and the agency’s track record with Founders will be key to approval and pricing.

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