When it comes to zoning we all can get a little confused. There are some verbiage that is a little confusing and it feels like none of us understand, for example, the common generalizations are R1 for a single-family home, R2 for two-dwelling units, and R3 for apartment complexes. In addition, some communities also designate another number to indicate certain square footage for that particular zone. For instance, R1-3 signifies a single-family dwelling with a lot size of less than 3 acres. I like to think of myself as someone that is studious and learning constantly. If I'm not learning I'm not growing especially about things that are important NOW. I don't want to look back more than I already have and say I didn't try my best. So I'm going to break down zoning laws here as best I can but also provide documents from others as well to give true laws for us to understand. Since there are all kinds of zoning, I am going to break down three that are basic and give examples of their usage. 

A subdivision is a parcel of land subdivided into smaller areas. It's purpose is to take a large tract of land and divide into smaller ones to make it easier to develop and build separate homes and lots on that particular parcel of land. This increases growth overall and maximizes space. It can also make selling these homes faster since, most home buyers like to be around other homebuyers which provides more movement and trade in a particular area, it boosts that economy. That parcel of land becomes fully developed into smaller parcels of land. 

Down zoning is the process by which an area of land is rezoned to a usage that is less dense and less developed than its previous usage. This is typically done to limit sprawl and overgrowth of cities, and to help concentrate areas of development into smaller sections to prevent over zoning a community.

Down zoning may occur when an area that is built up with large apartment buildings is cleared, and the area is rebuilt with single-family homes or smaller multi-family units. Another example of down zoning is the rebuilding of a large area of shopping malls to single-building shops and restaurants, or a large industrial area rebuilt as retail shops. 

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Contract zoning is a zoning technique for land use reclassification with a private party, based upon conditions not imposed on others in the same classification. A particular area which is zoned for one type of development is rezoned to another classification based on an agreement between the government and that party who will be using the land.

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If an area is zoned for residential use, but a business wants its land use to be commercially zoned, it would be considered contract zoning if the government rezoned that particular area as commercial, based on an agreement by the business to restrict their use to avoid some type of operation that the government deemed to be objectionable to the public, such as emissions from a factory. Another instance of contract zoning is the restrictive agreement that in exchange for the land being given a commercially zoned classification, the business agrees not to build a large parking lot. 
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When considering purchasing a mother-in-law apartment there are several things to consider. Not only are you incurring a home purchase, you are also taking on renters that could potentially cause problems to your home and treat your house poorly and not take care of your investment. You are giving them a chance and opportunity to stay in your home but if they don't take care of that place then this could be a liability not an asset. However, there are a lot of individuals that will take care of your home and do a good job with up keep and care of the home. With that being said, if you are considering a mother-in-law with an FHA here are a few things that you should be aware of when getting the loan on this type of unit, since this is considered a ADU. 

Accessory Unit / Accessory Dwelling Unit
The accessory unit is defined as a habitable living unit added to, created within, or detached from a single-family dwelling that provides the basic requirements for living, sleeping, eating, cooking, and sanitation.
Accessory Dwelling Units (ADUs) are commonly understood to be a separate additional living unit, including separate kitchen, sleeping, and bathroom facilities, attached or detached from the primary residential unit, on a single-family lot. ADUs are usually subordinate in size, location, and appearance to the primary unit and may or may not have separate means of ingress or egress.

Attached units, contained within a single-family home, known variously as "mother-in-law apartments," are the most common type of accessory dwelling unit. Accessory units usually involve the renovation of a garage, basement, or small addition to a single-family home.

FHA Criteria
“Accessory dwelling unit" means a subordinate dwelling unit may or may not be incorporated within, or detached from a single-family structure. Accessory units may not be subdivided or otherwise segregated in ownership from the primary residence structure.
Some accessory units may predate the adoption of local zoning ordinance and may therefore be classified as legal nonconforming units.

Utility Service Requirements
An accessory apartment must be connected to the utilities (except telephone, television and cable) of the dwelling unit and may not have separate services.

Maximum of 180 future effective bound. 

Dwelling must be owner-occupied within 30 days of New Business effective date. Residential occupancy by the named insured is required. 

Applicants signature is required on all Mono-Line applications. 

Comply with Agency Standards  regarding the ordering of credit reports.

Allstate Vehicle and Property Insurance Company Homeowner Rewrites - Applicants eligible for a renewal policy in the Allstate Vehicle and Property Insurance Company cannot be written as new business in the Allstate Vehicle and Property Insurance Company.

LOSS HISTORY:

Claim Types 

• Group D: Fire - fire, explosion, smoke (excluding lighting);
• Group E: Theft - theft(on and off premises), mysterious disappearance (on and off premises), burglary, credit card fidelity, theft from an unattended vehicle. Liability - any type of liability (excluding medical payments). Vandalism - vandalism and malicious mischief, riot and civil commotion.
• Group F: All Other Claims - excluding the following types of claims: medical payments, worker's compensation, mine subsidence, earthquake, Allstate Schedule Personal Property, and those claim types listed in Group D, E, and G. 
• Group G: Water - water, freeze, and water backup.

Prior Losses For Customers with supporting Auto (line 10 or 19)

• Maximum of 2 losses in the past 5 years, however, there can be no more than 1 Type of D, E, or G loss

 
No Supporting Auto Policy

• Maximum of 1 loss in the past 5 years

Loss History Reference:

• Losses including both catastrophic and non catastrophic losses for all threshold amounts will be considered for qualification. This includes claims closed without payment.
• Losses that occurred at the residence premises to be insured, but from the previous owner will not be considered. 
• Inquiries are not considered in the evaluation of Prior Loss History. ​​
  "Inquiry" means a request for information regarding the terms, conditions, and coverages afforded under a homeowner insurance contract, where no loss has been sustained and in which no request for investigation has been made. Prior to removing or changing the loss on the application, documentation from the prior carrier needs to be maintained in the agency office. 

Prior Insurance

•  Applicants must have prior insurance for the past 12 months when the need existed with no more than a 30-day lapse. Customers who have owned residential property whether or not a mortgagee existed are defined as having a need for prior insurance. Additionally, if the dwelling listed on the application has been owned by the named insured, 12 months of prior insurance is required on that dwelling.
• Applicants who have had forced-placed insurance are not eligible. Forced-placed insurance refers to insurance taken out by a bank or mortgage holder on the property to protect the bank/mortgage holder's financial interest in the property.
• Applicants who have had an Allstate policy terminated for underwriting reasons in the past 3 years are ineligible. Exception: All reasons for termination have been rectified or mitigated. i.e. Correction of condition concern. 
• The immediate preceding Prior Insurance Declaration needs to be acquired and retained in the agent's office for a minimum of 12 months where a need existed

Fire Protection

•  Town Classes 1-10 are eligible
• The property must be located within 10 miles of the primary responding fire protection. 

Ineligible Dwellings

• Renewal and New Business Risks with an unacceptable condition is ineligible. Click on the Inspection Major and Minor Grid to view list of unacceptable conditions. 
• Homes that are in foreclosure, abandoned or condemned. 
• Vacant dwellings are unacceptable unless owner-occupied within 30 days of the coverage effective date. 
• Dwellings not occupied or intended to be occupied by the insured as a primary or secondary/ seasonal residence exists unless the customer is moving into a new home. 
• A dwelling in the course of construction is ineligible for the House & Home Policy without the course of construction endorsement. The course of construction endorsement (Builders Risk) is valid a maximum of 12 months. 
• Mobile and manufactured homes whether deeded or titled. 
• Commercial, agricultural, storage/utility or barns converted into residential structures. 
• Dwellings with pre-existing damage to dwelling or outbuildings that has not been repaired. 
• Dwellings with attractive nuisances including but not limited: unfenced pools, un-netted.  Trampolines, skateboard or bike ramps, open pits or wells. 
• Dwellings with more than 6 livestock animals, (racing or show animals are not allowed) at the residence premises. Livestock include cattle, horses, donkeys, mules, goats, sheep and swine. 
• Relocating dwellings
• Dwellings not accessible year-round or are not located on all-weather accessible roads 
• Dwellings with underground storage tanks unless installed in the past 5 years or have a certified inspection within the past 5 years.
• Risk in which the Applicant, or any other occupant of the dwelling owns or keeps on the premises:
• Any dog which has a previous bite history or displays vicious or dangerous tendencies
• Any wild, exotic, non-domesticated, dangerous or vicious animals
• Dwellings with illegal trade business, or activity being conducted





• Other Dwelling Requirement


• 1-4 Family Dwellings are eligible
• All 2-4 Family Dwellings require the Extended Premises Endorsement (including Builder's Risk)
• Wood burning stoves must be installed by a licensed contractor or must have been inspected by local buildings officials 
• Construction or remodeling must be completed by a licensed contractor. 
• Dwellings listed on the State or National Registry of Historic Homes, or the National Register of Historic Places may be written only if the replacement cost is estimated using the vintage reconstruction method in RCT. 
•  Minimum Deductible Is $1000
• Down Payment Requirements
• One month Premium
• No down payment is required with:
• Support. Confirm what is programmed in the system Mortgage payment. 
• 20 days future effective
• Outbuilding Exclusion
• Unacceptable outbuildings can only be excluded by using the Building Structure Exclusion Form (AVP 180) when the following conditions are met:
• the condition issues of the Outbuilding do not present the immediate liability risk
• there are no additional condition concerns with the home (Major or Minor)
• the fully completed Building Structure Exclusion Form(AVP 180) must be signed by the named insured. 

If the Outbuilding presents a liability hazard, the entire risk is unacceptable. Examples of a liability hazard include:
-Collapsing
-Broken glass
-Leaning
-Major Roof Issues (holes, collapsing, sagging ect)
-Missing door or door falling off
- Any other condition which clearly presents an extreme likelihood of a significant liability loss under a home insurance policy. 

       The Exclusion Form must be provided to the RMBC, when requested, and faxed to the SWDC within 10 days of policy issuance. 

DWELLING LIMITS 

• Maximum allowable Coverage A can be up to 200% of the estimated replacement cost
• Inspection roof grade 1 and 2 are acceptable
• Dwellings with roof grade 2 are not eligible to carry the Roof Surfaces Extended Coverage Endorsement 
• Homeowners Policy must be written to at least 100% of the estimated replacement cost as developed through the Residential Component Technology, or Property Services inspection. The replacement cost or Coverage A amount cannot exceed the current Market Value by 250%, otherwise the Select Value Endorsement must be utilized. 
• Select Value Endorsement is intended to be written for no more than the current market value and no less than $30,000. Dwelling cannot be insured for more than the market value. 
• A dwelling in the course of construction is ineligible. 
• Select Value policies with an amount of insurance under $250,000 cannot purchase water back-up limits great than $10,000
• BSREL and Coverage BC (Codes) are ineligible

+++ Market Value is the price a willible buyer would pay a willing seller for a property in its present condition with neither buyer nor seller under pressure to act. Generally, the purchase price will equal the market value if purchased in the last 3 months. Agency and customer should utilize appraisals or other online resources to assist in the development of market value. 

- Dwelling values (Cov A or estimated replacement cost) equal to or greater than $750,000 or square footage equal to or greater than 4,600 - refer to the High Value Home requirements below. 

Insurable Interest/Occupancy

-Policy must be in the name of an individual or individual and spouse/domestic partner. 
- Commercial exposures and non-incidental business on the property are ineligible. 
- The following home-based business are acceptable if written with ABI-BOP commercial support (either concurrent or existing):

- Photography studio
-Interior Design
-Architect
-Account/bookkeeper
-Real estate sales
-Appliance/machine/computer repair
-Music Instruction
-Tutoring
-Any home-based business for which an Active Business Owners Policy exists

-Corporations and partnerships for which an active Allstate Business Owners Policy exists

-Corporations and partnerships are unacceptable. 
-Estates are unacceptable; however, Living Trusts may have an insurable interest as indicated below. 

- Living Trusts are acceptable, but only when endorsed as an Additional Insured when all of the following conditions are met:

- The additional Insured Endorsement - AP4461 - is utilized;

-The Trust mist have legal title to the residence;

The Grantor must regularly occupy the residence premises or the Grantor occasionally occupy the dwelling and the risk is rated as a secondary /seasonal dwelling;

A copy of the Trust documentation is retained in the agent's office;

The following information must be supplied when completing the AP4461 - Additional Insured Trust Endorsement 

Exact name of the Trust
Exact name and address of the Trustee

Land Contracts are acceptable in the name of the person purchasing the dwelling. Other Requirements include:

the agency collects and maintains a copy of the land contract Dwelling is the named insured's primary resience
The seller must be listed as a mortgagee so they are alerted to any cancellation or termination. 

For existing business a name change may be endorsed only in the following scenarios:
A legal spouse is being added to the policy
A legal name change for the same individual has taken place
A change in ownership must result in a new business application For existing business, only the mailing address change may be endorsed onto the policy not the physical location. If the legal owner is no longer occupying the dwelling the RMBC must be notified. 

 

SR 22 Insurance is sometimes called, a certificate of insurance or a financial responsibility filing, Required by most DMV's for high risk policies. A DMV may require an insured sign up for SR22 insurance when there is a conviction of an accident or other related traffic offense on a drivers record like a DUI or driving without a license. An SR22 may be required for 3 years for driving with no insurance or driving with a license suspension and up to 5 years for a DUI. If an SR22 insurance is expired or cancelled the insurance company is required to fill out an SR26 form which certifies to the courts cancellation of the policy. Some state allow you to submit an SR22 in lieu of a cash deposit, Arizona for example. In stead of paying a $40,000 cash deposit you can be given an SR22 which comes with higher premiums due to the higher risk. 

Allstate's standards although at times are difficult, very rewarding for those who qualify. With the best car title's you are able to qualify for top notch insurance you are able to get better deductibles and accident forgiveness which provides true insurance for you and your vehicles. If you have a salvage title however I would recommend going with another carrier for your insurance, brokers are a great way to go when looking for this, this also applies if you haven't had insurance for more than one year. You need to look for another carrier with Allstate. This can be difficult as well due the number of immigrant people that are looking for cheap insurance, in all cases Allstate is required to deny these individuals due to lack of prior insurance. When you have been in the country a long time and have shown that you are a responsible driver on the road however, Allstate is truly the way to go due the attention to each individual by their agents and the care that we take into our claims process.