West Virginia Homeowners Insurance

West Virginia follows national homeowners insurance standards with state-specific requirements addressing the Mountain State's unique risks, including mine subsidence and flood exposure.

Standard Policy Forms

HO-3 Special Form (Most Common)

The HO-3 is the most popular homeowners policy in West Virginia:

Other Homeowners Forms

Dwelling Policies

For properties that don't qualify for homeowners forms:

West Virginia-Specific Requirements

Mine Subsidence Coverage

What is Mine Subsidence?

Mine subsidence is the movement of ground surface due to collapse of underground mine workings. West Virginia's extensive coal mining history creates significant subsidence risk.

West Virginia Mine Subsidence Requirement:

Exam Tip: West Virginia requires insurers to OFFER mine subsidence coverage to homeowners, but policyholders are not required to purchase it. This is a commonly tested point.

Claims Handling Requirements

West Virginia has specific claims handling standards:

Prompt Payment Standards

Coverage Exclusions

Standard Exclusions

West Virginia homeowners policies typically exclude:

Flood Insurance

Standard homeowners policies do NOT cover flood damage:

Flood Definition: Flood means a general and temporary condition of partial or complete inundation of normally dry land from:

• Overflow of inland or tidal waters
• Unusual and rapid accumulation of surface waters
• Mudflow

Earth Movement

Policy Conditions

Duties After Loss

Policyholder must:

1. Give Prompt Notice - Notify insurer as soon as possible
2. Protect Property - Make reasonable repairs to prevent further damage
3. Cooperate - Assist with investigation
4. Provide Documentation - Inventories, receipts, proof of loss
5. Submit to Examination - Under oath if requested
6. Not Abandon Property - Cannot abandon to insurer

Insurer's Rights

Appraisal Process

When insured and insurer disagree on value:

1. Demand - Either party demands appraisal in writing
2. Appraisers - Each party selects competent appraiser
3. Umpire - Appraisers select neutral umpire
4. Evaluation - Appraisers evaluate loss separately
5. Agreement - Written agreement by two of three is binding

Cancellation and Non-Renewal

West Virginia Requirements

Valid Reasons for Cancellation (After 60 Days)

Policyholder Rights

Upon cancellation or non-renewal:

• Written notice required
• Reason must be stated
• Refund of unearned premium
• Right to request explanation
• May file complaint with OIC

Replacement Cost vs. Actual Cash Value

Replacement Cost Coverage

Actual Cash Value

Coinsurance

Formula: $\text{Payment} = \frac{\text{Insurance Carried}}{\text{Insurance Required}} \times \text{Loss} - \text{Deductible}$

Example:

• Home value: $300,000
• 80% coinsurance: $240,000 required
• Actually carried: $200,000
• Loss: $50,000
• Payment: ($200,000/$240,000) × $50,000 = $41,667

Exam Tip: West Virginia requires insurers to acknowledge claims within 15 days and begin investigation within 15 days. Know these timeframes for the exam.