Section 5.9915 - Inspections(a) The underwriting rules must determine the inspection criteria for risks to be written by FAIR Plan. FAIR Plan may issue a policy of residential property insurance or property owners' association insurance on certain types of risks without an inspection in accordance with the underwriting rules.(b) An inspection must be made only of property requiring an inspection to determine eligibility for FAIR Plan coverage in accordance with the underwriting rules. The inspection must be free of charge to the applicant. An inspection request may be made by the owner, their representative, or an agent.(c) All inspection reports must be in writing and must contain the information necessary to determine eligibility for coverage under FAIR Plan's underwriting rules. After the inspection report has been completed, a copy of the completed inspection report and any photograph indicating the pertinent features of the building construction, maintenance, and occupancy must be sent within 10 days to FAIR Plan.(d) The inspection report must contain information describing:(2) information necessary for underwriting and rating;(4) physical deficiencies.(e) If an interior inspection is necessary to determine eligibility of property described in an application submitted to FAIR Plan, the inspector must contact the applicant and arrange for the applicant to be present during the inspection. The inspector may not recommend correction of physical deficiencies or advise the applicant on whether FAIR Plan will provide coverage.(f) FAIR Plan must, as soon as practical but not to exceed 30 days after receipt of the inspection report, advise the applicant and agent of the following. (1) If the inspector finds that the property meets the underwriting rules, FAIR Plan must notify the applicant in writing and issue a policy or binder.(2) FAIR Plan must indicate to the applicant any condition charges that have been applied by FAIR Plan in accordance with § 5.9917(h) of this subchapter (relating to Application, Binder, Policy Issuance, Renewal, and Cancellation).(3) If the property is not insurable based on the underwriting rules, FAIR Plan must notify the applicant in writing why the property is not insurable.(g) If, at any time, the applicant makes improvements in the property or its condition that the applicant believes are sufficient to make the property insurable, an inspector must reinspect the property upon request. The applicant is eligible for one reinspection any time within 60 days after the initial inspection. If, upon reinspection, the property meets FAIR Plan's underwriting rules, FAIR Plan must notify the applicant in writing and issue a policy or binder.(h) If an inspection report shows that a property has unrepaired damages or is in violation of any building, housing, air pollution, sanitation, health, fire, or safety code, ordinance, or rule, or if an applicant otherwise has received written notice of any violation of a code, ordinance, or rule, the applicant must submit to FAIR Plan a detailed plan that indicates the manner and estimated period of time in which the violation will be corrected or the damage repaired. FAIR Plan may not provide coverage unless the necessary corrections are completed to the satisfaction of FAIR Plan.(i) FAIR Plan may, for cause upon information or well-founded belief, without notice to the insured at any time during the policy term, inspect an insured property to determine whether the property meets the underwriting rules. FAIR Plan need not afford an insured the opportunity to be present during a reinspection nor furnish the insured with a copy of a reinspection report, unless requested. Reinspections may also occur:(1) upon change in type of occupancy; or(2) on a reasonable periodic schedule.(j) FAIR Plan may cancel or refuse to renew a policy on the basis of the reinspection report, according to the policy terms and this plan of operation.28 Tex. Admin. Code § 5.9915
The provisions of this §5.9915 adopted to be effective May 28, 2003, 28 TexReg 4153; Amended by Texas Register, Volume 49, Number 41, October 11, 2024, TexReg 8387, eff. 10/15/2024