Primary Residence: Difference between revisions

Revision as of 15:59, 21 November 2024

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Primary Residence Summary

Definition

A primary residence is a building in which the policyholder or their spouse resides for:
- More than 50% of the 365 days following the policy's effective date.
- 50% or less of the year if it is the policyholder's only residence and is not leased or used as rental property.

Special Circumstances for Primary Residence Qualification

Military Deployment:
- Active-duty personnel deployed for 50% or more of the policy year still qualify.
Disaster Displacement:
- Individuals displaced due to a federally declared disaster or another loss event on the property maintain primary residence status.
Extended Absences:
- Routine business travel, hospitalizations, or vacations of 50% or more of the policy year do not disqualify the property.

Documentation Requirements

If the mailing address matches the property address:
- No additional documentation is required.
If the addresses differ:
- Supporting documentation is required, such as:
  - Homestead Tax Credit form.
  - Vehicle registration.
  - Proof of insurance for a vehicle.
  - Documents showing school enrollment for children.
  - A signed and dated primary residence verification statement.

Primary Residence and Trusts

If the policyholder is a trust, and the beneficiary resides in the home as a primary residence:
- The beneficiary must provide primary residence documentation.
- The insurer must verify that the beneficiary is named in the trust.

Impact on HFIAA Surcharge

Primary Residence:
- Policyholders classified as having a primary residence are charged a reduced HFIAA surcharge of $25 per policy term.
Non-Primary Residence:
- Non-primary residences incur a significantly higher HFIAA surcharge of $250 per policy term.

Properly classifying a property as a primary residence minimizes costs for policyholders and ensures compliance with NFIP requirements.

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+=== Primary Residence Summary ===
+==== Definition ====
+* A '''primary residence''' is a building in which the policyholder or their spouse resides for:
+** '''More than 50%''' of the 365 days following the policy's effective date.
+** '''50% or less''' of the year if it is the policyholder's only residence and is not leased or used as rental property.
+==== Special Circumstances for Primary Residence Qualification ====
+# '''Military Deployment''':
+#* Active-duty personnel deployed for 50% or more of the policy year still qualify.
+# '''Disaster Displacement''':
+#* Individuals displaced due to a federally declared disaster or another loss event on the property maintain primary residence status.
+# '''Extended Absences''':
+#* Routine business travel, hospitalizations, or vacations of 50% or more of the policy year do not disqualify the property.
+==== Documentation Requirements ====
+* If the mailing address matches the property address:
+** No additional documentation is required.
+* If the addresses differ:
+** Supporting documentation is required, such as:
+*** Homestead Tax Credit form.
+*** Vehicle registration.
+*** Proof of insurance for a vehicle.
+*** Documents showing school enrollment for children.
+*** A signed and dated primary residence verification statement.
+==== Primary Residence and Trusts ====
+* If the policyholder is a trust, and the beneficiary resides in the home as a primary residence:
+** The beneficiary must provide primary residence documentation.
+** The insurer must verify that the beneficiary is named in the trust.
+==== Impact on HFIAA Surcharge ====
+* '''Primary Residence''':
+** Policyholders classified as having a primary residence are charged a reduced HFIAA surcharge of '''$25''' per policy term.
+* '''Non-Primary Residence''':
+** Non-primary residences incur a significantly higher HFIAA surcharge of '''$250''' per policy term.
+Properly classifying a property as a primary residence minimizes costs for policyholders and ensures compliance with NFIP requirements.