The Owner and Mortgagee Policies (Forms T-1 and T-2 respectively) contain mandatory arbitration provisions. Either the insured or insurer can require arbitration if the Policy does not exceed $1,000,000. However, the insurer must notify its insured of its right to delete the arbitration provision. The Texas Residential Owner Policy (T-1R) does not contain a mandatory arbitration provision.
Deletion of Arbitration from Owner Policy
Section 14 of the Conditions and Stipulations of this Policy is hereby deleted.
Comment: This clause may be inserted in Schedule B.
See Underwriting Manual