HOMEOWNERS PROGRAM MANUAL 1.1 GEORGIA

Transcription

1 HOMEOWNERS PROGRAM MANUAL 1.1 GEORGIA New Business Effective 07/15/2018 Renewal Business Effective 09/15/2018 UNITED INSURANCE MANAGEMENT, LLC Managing General Agent NB Eff 07/15/2018 RB Eff 09/15/ Ed. 06/01/2018

2 GENERAL RULES Rule 100. Coverage Limits Rule 105. Binding Authority Rule 110. Cancellation or Reduction in Limits of Liability or Coverage Rule 115. Construction Definitions Rule 120. Minimum Premium Rule 125. Multiple Company Insurance Rule 130. Policy Term Rule 135. Premium Calculation Rule 140. Previous Cancellations / Non-Renewals Rule 145. Protection Class Information Rule 150. Renewal Rule 155. Insurable Interests Rule 160. Transfer or Assignment Rule 165. Waiver of Premium Rule 170. Occupancy Rule 175. Additional Fees and Credits Rule 180. Mandatory Endorsements LIMITS AND DEDUCTIBLES Rule 200. Coverage A Dwelling Rule 210. Coverage B Other Structures Rule 220. Coverage C Personal Property Rule 230. Coverage D Loss of Use Rule 240. Section II Limits Rule 250. Deductibles PAYMENT PLANS & PAYMENT TYPE DISCOUNTS Rule 300. Payment Plans Rule 310. Payment Type Discount DISCOUNTS & SURCHARGES Rule 400. Maximum Discount Rule 410. Age of Home Age and Marital Status of Named Insured Rule 430. Building Code Discount Rule 440. Companion Policy Discount Rule 450. Construction Permit Age Rule 420. Rule 460. Hip Roof Discount Rule 470. IBHS Discount Rule 480. Limited Water Damage Coverage Rule 490. Non-Structural Hail Loss Limitation Endorsement Rule 500. Number of Stories Rule 510. Roof Age Rule 520. Fire Protective Devices Discount Rule 530. Secured Community / Theft Discount Rule 540. Wind Opening Protection Rule 550. Windstorm or Hail Exclusion Rule 561. Limited Loss Settlement For Roof Surfacing Rule 565. Roof Material Rule 570. Number of Units ADDITIONAL COVERAGE OPTIONS Rule 600. Additional Amounts of Coverage A Rule 631. Home Systems Protection Rule 632. Service Line NB Eff 07/15/2018 RB Eff 09/15/ Ed. 06/01/2018

3 Rule 640. Functional Replacement Cost Loss Settlement Rule 650. Golf Cart Physical Damage & Liability Coverage Rule 660. Home Computer Coverage Rule 671. Identity Theft Expense & Resolution Services Coverage Rule 680. Inflation Guard Rule 690. Limited Fungi, Wet or Dry Rot or Bacteria Coverage Rule 700. Limited Water Back-Up and Sump Discharge or Overflow Coverage Rule 710. Ordinance or Law Coverage Rule 730. Other Members of a Named Insured s Household Rule 740. Other Structures Increased Limits Rule 750. Other Structures Rented to Others Residence Premises Rule 760. Outboard Motors & Watercraft Rule 770. Personal Injury Coverage Rule 780. Personal Property Increased Special Limits of Liability Rule 790. Personal Property Replacement Cost Loss Settlement Rule 800. Personal Property Scheduled Rule 810. Premier Endorsement Rule 820. Premier Plus Endorsement Rule 830. Premier Condominium Endorsement Rule 840. Refrigerated Personal Property Rule 850. Unit-Owners Rental to Others Rule 860. Residence Held In Trust Rule 870. Special Coverage Rule 880. Student Away from Home Rule 890. Loss Assessment Coverage Rule 910. Damage to Property of Others Increased Limits RATING TIER Rule 950. Rating Tier Determination Rule 960. Tier Factors PREMIUM COMPUTATION Rule Base Rates Rule Protection Class / Construction Factors Rule Key Factors HO 03 & HO HO HO TERRITORY Rule Territory Definitions and Rate Factors All Other Perils Territory Relativities Territory Definitions Distance to Coast ZIP Code Relativities HO 06 Distance to Coast ZIP Code Relativities Tornado/Hail ZIP Code Relativities RULE INDEX NB Eff 07/15/2018 RB Eff 09/15/ Ed. 06/01/2018

4 GENERAL RULES Rule 100. COVERAGE LIMITS Coverage HO 03 & HO 05 HO 04 HO 06 See Rule A Dwelling* $150,000 to $1,000,000 B Other Structures 2% and 10% of Coverage A. Additional limits available beyond 10% Policy includes 10% of Cov C for Building Additions & Alterations $5,000 Coverage A to $1,000,000 Coverage A and C combined 200 n/a n/a 210, 740 C Personal Property 0% to 75% of Coverage A $10,000 to $150,000* $10,000 to $500,000* 220 D Loss of Use 10%, 20% or 30% of Coverage A 30% of Coverage C 20%, 30%, 40%, 50% or 60% of Coverage C 230 E Personal Liability $100,000, $300,000 or $500, F Medical Payments To Others $1,000, $2,500 and $5, *Limits in excess of maximum value must be approved by underwriting prior to binding. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed

5 Rule 105. BINDING AUTHORITY A risk is not considered bound until a policy is issued in our rating system. UPC does not permit ACORD binders. Agent s binding authority for new business, or for increases in coverage on existing business is suspended immediately when the National Hurricane Center (NHC) of the National Weather Service has issued a Tropical Storm Watch, Tropical Storm Warning, Hurricane Watch, or Hurricane Warning for any coastal area of Georgia. Renewals will only be issued on an as expiring basis for coverage and perils; limits will only be increased to keep pace with established inflation factors. The Company will restore binding authority as soon as the NHC lifts the storm designation for all affected Georgia coastal areas. If any exceptional circumstances exist which warrant the Company giving consideration to acceptance of additional liability, the request must be submitted to the Company s Underwriting Department for approval. An example is when coverage is required in order to close on the purchase of a home in this situation, the agent must contact the Company for approval, and proof of the real estate closing must accompany the application along with the appropriate payment. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

6 Rule 110. CANCELLATION OR REDUCTION IN LIMITS OF LIABILITY OR COVERAGE Mandatory coverages may not be canceled unless the entire policy is canceled. If insurance is increased or reduced, the additional or return premium shall be computed on a pro-rata basis. Flat cancellations after the effective date will require proof of other insurance and must be made within 60 days of effective date. The insured may cancel the policy at any time for any reason. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

7 Rule 115. CONSTRUCTION DEFINITIONS Frame / Stucco on Frame exterior wall of wood or other combustible construction, including wood-iron clad, stucco on wood or plaster on combustible supports, and aluminum or plastic siding over frame. Masonry Veneer / HardiPlank exterior walls constructed of masonry materials brick or stone over frame. Masonry / Stucco on Masonry exterior walls constructed of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile, or similar materials, and floors and roof of combustible construction. Superior Construction - exterior walls, floors, and roof constructed of masonry or other noncombustible materials. Note: Mixed (Brick/Block and Frame) a combination of both brick/block and frame construction shall be classified as Frame when the exterior walls of frame construction (including gables) exceed 30% of total exterior wall area; otherwise classify as Brick/Block. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

8 Rule 120. MINIMUM PREMIUM Minimum premium shall be set for each policy according to the policy form used and whether wind coverages are excluded. For more information about windstorm or hail exclusions, please see Rule 550. Form With Wind Ex-Wind HO 03 and HO 05 $250 $200 HO 04 $125 $125 HO 06 $150 $125 NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

9 Rule 125. MULTIPLE COMPANY INSURANCE We will not provide coverage for a dwelling where the same coverage is provided by another insurance policy. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

10 Rule 130. POLICY TERM The standard policy term is one year and may be extended for successive policy periods by renewal. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

11 Rule 135. PREMIUM CALCULATION Premium is calculated separately for Hurricane, Tornado/Hail, and All Other Perils. Many policy variables and the rate classifications within each are used in developing the final premium. In general, the factor for each rate class is multiplied times the factor for the rate class of the preceding variable. Factors referencing Wind/Hail are to be applied to both the Hurricane and Tornado/Hail portions of the premium. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

12 Rule 140. PREVIOUS CANCELLATIONS / NON-RENEWALS Risks previously canceled or non-renewed by another insurer must be referred to company prior to binding. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

13 Rule 145. PROTECTION CLASS INFORMATION The Protection Class listings in the Public Protection Classification Manual apply. Homes must have paved road access to qualify. In a classified area where two or more classifications are shown (e.g. 6/9), the classification is determined as follows: to Fire Station Feet to Hydrant Class Less than 5 Less than 1,000 First PC Less than 5 More than 1,000 9 More than 5 10 Protected Subdivision Rule: A dwelling located in a qualifying restricted subdivision will receive the rating of the responding fire department if: The year built is three years or less. The subdivision is under development with recorded plat and paved roads where dwellings are built by licensed contractors subject to building restrictions as to type and square footage. The subdivision contains at least 10 houses. The subdivision is within 5 miles travel distance of a responding fire department. The home is located within 1,000 feet of fire hydrant, or responding fire department is equipped to transport water or pump water from swimming pools or other sources within 1,000 feet of the home. Homes with this rating will be subject to audit. If the Protection Class is not updated by Insurance Services Office (ISO) within three policy terms, the proper ISO rating will be applied. Applies to forms HO 03, HO 05, and HO 06. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

14 Rule 150. RENEWAL If the company elects to offer renewal, policy may be renewed by the policyholder by paying the renewal premium prior to the expiration of the current policy. Renewal policy will be issued based on the premiums, forms and endorsements in effect at time of renewal. A new declaration page as well as any revised policy forms will be sent to the insured. Copies of notices and declaration page will be sent to the mortgagee(s). Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

15 Rule 155. INSURABLE INTERESTS For eligible Additional Insureds, use form HO For Additional Interests, use form HO Other rules related to insurable interests: Other member of named insured household, please refer to Rule 730. Trusts, trustees and related ownership structures, please refer to Rule 860. Students away from home, please refer to Rule 880. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

16 Rule 160. TRANSFER OR ASSIGNMENT No transfers or assignments are permitted. Each insured and/or property will require submission of a new application. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

17 Rule 165. WAIVER OF PREMIUM When a policy is issued or endorsed after the inception date, additional or return premium of $5 or less is waived. However, we will return any unearned premium upon request. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

18 Rule 170. OCCUPANCY HO 03, HO 05 and HO 06 Dwellings unoccupied more than 9 months per year are not eligible. A home is occupied for a whole month if it is occupied for at least 16 days during that month. HO 03 and HO 05 do not support rental occupancy, and any such property rented more than 1 week or for more than $2,000 should be placed in our Dwelling Fire Program. However, Condominium Unit Owners which are rented to others can be supported, as outlined in Rule 850. Months Unoccupied AOP Factor Wind / Hail Factor Does not apply to HO 04. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

19 Rule 175. ADDITIONAL FEES AND CREDITS MGA FEE A fully-earned MGA fee of $25 is charged on each policy. Applies to all forms. NSF FEE There is a $25 service charge on NSF checks. Applies to all forms. INSTALLMENT FEE A $2 installment fee will be added to non-eft installment payments (not including down payments or initial payments). Applies to all forms. PAPERLESS POLICY CREDIT A $10 policy credit will apply when the customer elects to receive policy documents electronically. Applies to all forms. INSPECTION FEE An inspection fee of $25 is charged on HO 03 and HO 05 policies at new business and is fully earned. This fee is not considered part of the policy premium. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

20 Rule 180. MANDATORY ENDORSEMENTS The following mandatory endorsements are applied to all forms, unless otherwise indicated, below: Limited Home Day Care Coverage Advisory Notice (HO P 004) Notice advises that homeowners policy defines many home day care activities as a business, which results in important coverage limitations. Fraud Statement (IL N 001) U.S. Treasury Department s Office of Foreign Assets Control ( OFAC ) Advisory Notice to Policyholders (IL P 001) Policy Jacket (UPC 207 GA) Recreation or Service Vehicle Exclusion (UPC 601) Excludes coverage from activities related to the ownership, maintenance or use of any motor vehicle or other motorized land conveyance designed for recreational or service use off public roads or which is not subject to motor vehicle registration. Farm & Agricultural Activities Exclusion (UPC 602) Excludes coverage or payments for farming and agricultural activities, and for any loss related to any farm animals. Special Provisions Georgia (UPC 01 10) Georgia Policyholder Notice: What is an Insurance Score UPC 430 GA Notice provides information on what does and does not impact an insurance score as well as what the policyholder should do if there if they believe the report is incorrect. Consumer Disclosure Notice UPC 431 Notices provides information on the use of reports ordered as well as contact information for requesting additional information Loss Settlement Endorsement UPC 663 NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

21 LIMITS AND DEDUCTIBLES Rule 200. COVERAGE A DWELLING Coverage A is provided by all forms except HO 04, and these values are rounded to the nearest thousand before the application of Key Factors (see rule 1040) or any other rate factors or rules. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

22 Rule 210. COVERAGE B OTHER STRUCTURES Insured may select desired coverage limit for other structures located on the residence premises. Other structures may not be rented to others or used by non-related persons for residence purposes unless the Other Structures Rented to Others endorsement has been added to the policy (see Rule 750). Base rates include other structures coverage equal to 2% of Coverage A. The factor applies to Wind/Hail and All Other Perils premium. % of Coverage A All Perils Factor 2% % Applies to forms HO 03 and HO 05. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

23 Rule 220. COVERAGE C PERSONAL PROPERTY For forms HO 03 and HO 05, the insured may select desired coverage limit for personal property. Coverage C is available in increments of 5% (of Coverage A) up to a maximum personal property limit of 75% of Coverage A. Factor % of Coverage A All Other Perils Wind/Hail 0%* % % % % % % % % % % % % % % % For Forms HO 04 and HO 06, coverage amounts are selected in dollar values, rounded to the nearest thousand. Please see Key Factors (rule 1040) for HO 04 and HO 06 rating factors related to Coverage C. *Use Endorsement UPC 621 Personal Property Exclusion If Personal Property Exclusion Endorsement has been selected the following endorsement cannot be added to the policy: Home Computer Coverage (Rule 660) Special Coverage C (Rule 720) Personal Property Increased Special Limits of Liability (Rule 780) Personal Property Replacement Cost Loss Settlement (Rule 790) Personal Property Schedule (Rule 800) Premier Endorsement (Rule 810) Premier Plus Endorsement (Rule 820) Premier Condominium Endorsement (Rule 830) NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

24 Rule 230. COVERAGE D LOSS OF USE For HO 03 and HO 05, base rates include loss of use coverage equal to 30% of Coverage A. The following limits are available: % of Coverage A All Perils Factor 10% % % 1.00 For HO 04, base rates include loss of use coverage equal to 30% of Coverage C. No other limits are available. For HO 06, base rates include loss of use coverage equal to 50% of Coverage C. The following limits are available: % of Coverage C All Perils Factor 20% % % % % The factor applies to Wind/Hail and All Other Perils premium. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

25 Rule 240. SECTION II LIMITS COVERAGE E: Personal Liability Coverage Liability coverage may be added for the following premium, according to the number of families in the dwelling: Liability Limit $100,000 (minimum) Premium 1 Family 2 Families 3 Families 4 Families $15 $35 $55 $75 $300,000 $25 $50 $75 $100 $500,000 $35 $65 $95 $125 COVERAGE F: Medical Payments Coverage Medical Payments coverage may be added for the following premium, according to the number of families in the dwelling: Med Pay Limit $1,000 (minimum) Premium 1 Family 2 Families 3 Families 4 Families $5 $12 $18 $24 $2,500 $8 $14 $20 $26 $5,000 $10 $16 $22 $28 Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

26 Rule 250. DEDUCTIBLES The Wind/Hail deductible cannot be less than the All Other Perils deductible. Changes in deductibles may only be made at the time of the renewal. The minimum All Other Perils deductible and Wind/Hail deductibles are $1,000 for HO 03 and HO 05, and $500 for HO 04 and HO 06. HO 03 & HO 05 Deductibles Coverage A Deductible Factor AOP** $1,000 $2,500 1% 2% 3% 5% $51,000 $100, $101,000 - $150, $151,000 - $200, $201,000 - $250, $251,000 - $300, $301,000 - $500, $501,000 - $999, $1,000,000 - above Coverage A Deductible Factor Wind/Hail* $1,000 $2,500 1% 2% 3% 5% $51,000 $100, $101,000 - $150, $151,000 - $200, $201,000 - $250, $251,000 - $300, $301,000 - $500, $501,000 - $999, $1,000,000 - above HO 06 Deductibles Coverage C Deductible Factor AOP** $500 $1,000 $2,500 1% 2% 3% 5% $0 - $50, $51,000 $100, $101,000 - $150, $151,000 - $200, $201,000 - $250, $251,000 - $300, $301,000 - $500, $501,000 - $999, $1,000,000 - above NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

27 Coverage C Deductible Factor Wind/Hail* $500 $1,000 $2,500 1% 2% 3% 5% $0 - $50, $51,000 $100, $101,000 - $150, $151,000 - $200, $201,000 - $250, $251,000 - $300, $301,000 - $500, $501,000 - $999, $1,000,000 - above *Use Endorsement UPC Windstorm or Hail Percentage Deductible when a percentage deductible is selected for Wind/Hail. ** Use Endorsement UPC 637 All Other Perils Percentage Deductible when a percentage deductible is selected for All Other Perils HO 04 Deductibles Deductible All Other Perils Wind/Hail $ $1, $2, NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

28 PAYMENT PLANS & PAYMENT TYPE DISCOUNTS Rule 300. PAYMENT PLANS Applies to new and renewal business. Payment Type Down Payment % Installment % Installment Due EFT 25% 8.3% Every 30 days Any 55% 45% On 180 th day Any 31% 23% On 90 th, 180 th, 270 th day Any 100% NA NA Outside premium financing is unacceptable. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

29 Rule 310. PAYMENT TYPE DISCOUNT Applies to New and Renewal Business All Perils premium. Payment Plan Payment Type Paid in Full Installment EFT Check Credit Card Mortgage Billed A $10 credit is applied to the total policy premium when the EFT payment option is selected. This credit is only applicable if all payments are made via EFT. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

30 DISCOUNTS & SURCHARGES Rule 400. MAXIMUM DISCOUNT The maximum cumulative discount from the following variables will be capped at 60%: 1. Rule 410. Age of Home 2. Rule 420. Age and Marital Status of Named Insured 3. Rule 430. Building Code Discount 4. Rule 440. Companion Policy Discount 5. Rule 450. Construction Permit Age 6. Rule 460. Hip Roof Discount 7. Rule 470. IBHS Discount 8. Rule 510. Roof Age 9. Rule 520. Protective Device Discount 10. Rule 530. Secured Community / Theft Discount 11. Rule 540. Wind Opening Protection Discount 12. Rule 565. Roof Material 13. Rules 950 & 960. Tier Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

31 Rule 410. AGE OF HOME Age is determined by subtracting the year in which construction of the residence was completed from the year in which the policy is effective. HO 03 & HO 05 HO 06 Home Wind / Hail Wind / Hail Age AOP Factor AOP Factor Factor Factor NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

32 Applies to forms HO 03, HO 05, and HO 06. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

33 Rule 420. AGE AND MARITAL STATUS OF NAMED INSURED A state or national government that recognizes the insured as married can be categorized as married only when both spouses reside in the household. All others must be categorized as single. Age of Insured Marital Status AOP Married Married Married Married Married Married Married Married Married Single Single Single Single Single Single Single Single Single Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

34 Rule 430. BUILDING CODE DISCOUNT A 15% discount applies to Wind/Hail premiums for homes built 2007 and newer when all of the protection requirements of the current Georgia Building Code or International Building Code are met in the construction of the home. Applies to forms HO 03, HO 05, and HO 06. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

35 Rule 440. COMPANION POLICY DISCOUNT Auto Preferred Auto UPC Flood Umbrella AOP Factor Wind / Hail Factor No No No No No No No Yes No No Yes No No No Yes Yes Yes No No No Yes No No Yes Yes No Yes No Yes No Yes Yes No Yes No No No Yes No Yes No Yes Yes No No Yes Yes Yes Evidence and supporting documentation for package policy discounts must be retained in agent s file. These documents will be subject to review during an audit. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

36 Rule 450. CONSTRUCTION PERMIT AGE The rates in this table will apply to the All Other Perils premium when a permit is provided by the local municipality for the renovation of a home and the value of the permit is equal to or above $1,000. These rates will not apply if there is no value listed on the permit. Permit Age (AOP Factor) Home Age Applies to forms HO 03, HO 05 and HO 06. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

37 Rule 460. HIP ROOF DISCOUNT A 15% discount applies to the Wind/Hail premium if the home is constructed with a hip roof covering the entire structure. A hip roof is one that slopes down to meet all walls (like a pyramid). This design has superior ability to withstand high winds and will result in a premium credit. However, other factors can negate the value of this design. The discount is not applicable if the roof has skylights or overhangs that exceed 18, or on HO-6 properties within structure greater than 3 stories. A hip roof has sloping ends and sloping sides down to the roof eaves line. A hip roof with decorative gables is eligible for this discount if the gables are no more than 10% of the entire roof structure. Roof shape determines the aerodynamic pressure loads experienced by the roof due to wind flow and wind direction. Gable and hip shapes and their combinations comprise more than 80% of the residential buildings. Roof Type Description Figure GABLE ROOF A roof sloping downward in two parts from a central ridge, so as to form a gable at each end. HIP ROOF A roof having sloping ends and sides meeting at an inclined projecting angle. Applies to forms HO 03, HO 05, and HO 06. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

38 Rule 470. IBHS DISCOUNT The following discounts apply to the Wind/Hail premium when the home is certified by the International Institute for Business & Home Safety (IBHS) as meeting the standard for one of the following Hurricane Resistance Designations. Bronze = 5% Silver = 10% Gold = 15% Evidence and supporting documentation for these discounts must be retained in agent s file. Supporting FORTIFIED home hurricane designation documentation of Bronze, Silver, or Gold will be subject to review during an audit. Applies to forms HO 03 and HO 05. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

39 Rule 480. LIMITED WATER DAMAGE COVERAGE Limited coverage for sudden and accidental discharge or overflow of water or steam from within a plumbing, heating, A/C, or automatic sprinkler system or from within a household appliance is available for a reduction in premium and may be used at the underwriter s discretion. The limit of liability for all covered property under this option is $10,000. The factor for this endorsement is and it applies to the All Other Perils premium. Use Endorsement UPC 620 Limited Water Damage Coverage Applies to forms HO 03, HO 05 and HO 06. Policies with UPC Limited Water Back-Up and Sump Discharge or Overflow Coverage are not eligible to purchase this endorsement. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

40 Rule 490. NON-STRUCTURAL HAIL LOSS LIMITATION ENDORSEMENT This endorsement is mandatory for properties with metal roofs and/or aluminum siding. In all other instances, it may be added at the option of the insured. The endorsement provides that when damage from hail consists only of dents to the exterior surface of a home or other structure, not causing structural damage, we will pay the lowest of the cost of repairing or replacing the damaged portion of the property; or 2% of the amount of insurance provided under Coverage A (Dwelling). The factor for this endorsement is and it applies to the Wind/Hail premium. Use Endorsement UPC 623 Non-Structural Hail Loss Limitation Applies to forms HO 03 and HO 05. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

41 Rule 500. NUMBER OF STORIES This measures the number of stories above the property s foundation. This does not include the basement (including a walkout basement) level, if any, of a dwelling. Number of Stories AOP Factor Wind/Hail Factor > Bi-Level Tri-Level Applies to HO 03 and HO 05, and applies to HO 06 dwellings where other condominium units are not present on stories above or below the insured unit. Does not apply to HO 04. Floors Above Unit HO 06 Only If the residence is located in a multi-unit building where other condominium units are present on stories above or below the insured unit, then the following factor is used instead of the number of stories factor. Floors Above Unit AOP Factor Wind/Hail Factor NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

42 Rule 510. ROOF AGE A discount from the following table applies to All Perils premiums based on the age of the roof. Age of Roof Age of Home Supporting documentation must be submitted to Underwriting if the defaulted roof age is disputed. Applies to forms HO 03 and HO 05, and to HO 06 properties within structures less than 4 stories. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

43 Rule 520. FIRE PROTECTIVE DEVICES DISCOUNT Fire Alarm Central- A centrally controlled fire detector with an alarm and auto-response call attached that will call 911 and/ or the fire department. Direct A fire detector alarm that will directly be routed to a 911 call center or fire department Local- A locally controlled fire detector with an audible alarm that alerts the homeowners and neighbors but does not have any auto-response. Someone would need to call 911 or the fire department. Sprinkler Full - Automatic Sprinklers in all Areas including Attics, Bathrooms, Closets, Attached Structures. Partial - Automatic Sprinklers in all Areas excluding Attics, Bathrooms, Closets, Attached Structures. Fire Alarm Sprinkler AOP Factor Central Full Central Partial Central None Direct Full Direct Partial Direct None Local Full Local Partial Local None No Full No Partial No None Use Endorsement HO Premises Alarm or Fire Protection System *Evidence and supporting documentation for protective device discounts must be retained in agent s file. These documents will be subject to review during an audit. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

44 Rule 530. SECURED COMMUNITY / THEFT DISCOUNT Secured Community Theft Alarm AOP Factor No Central No Local No None Secured Central Secured Local Secured None Secured- a community that you must manually enter a code or swipe a card to enter the premises. Central - A centrally controlled burglar detector has an alarm and auto-response call function that calls 911 and/or the police department. Local - A locally controlled burglar detector has an audible alarm that alerts the homeowners and neighbors but does not have any auto-response. A call to the 911 or the police department would be completed manually. Evidence and supporting documentation for all secured community / theft discounts must be retained in agent s file. These documents will be subject to review during an audit. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

45 Rule 540. WIND OPENING PROTECTION A 15% discount applies to the Wind/Hail premium if a residence is equipped with opening protection installed by a licensed contractor with the proper permits, or that has been certified by a qualified professional as meeting the following requirements: All exterior openings including windows, doors, skylights, and vents are protected (roof ridge vents and soffit vents do not need to be protected) and meet the minimum requirements of the International Residential Building code, or Impact resistant glass on all windows meeting the minimum requirements of the International Residential Building Code. Evidence and supporting documentation for all wind opening discounts must be retained in agent s file. These documents will be subject to review during an audit. Applies to forms HO 03, HO 05, and HO 06. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

46 Rule 550. WINDSTORM OR HAIL EXCLUSION A. Introduction The peril of Windstorm or Hail may be excluded for all coverages when the property is located in a designated catastrophe area and is eligible for coverage through the Georgia Underwriting Association. Policies written excluding wind must maintain a separate wind policy. Use UPC Windstorm or Hail Exclusion Endorsement. B. Premium When the peril of Windstorm or Hail is excluded from under Section I of the policy the Wind/Hail premium is not developed and no related charges are applied to the policy. However, Rule 120. Minimum Premium does apply. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

47 Rule 561. LIMITED LOSS SETTLEMENT FOR ROOF SURFACING This endorsement modifies the Section I Loss Settlement Condition in the policy form with respect to a covered loss for roof surfacing caused by the peril of windstorm or hail. Therefore, the loss settlement conditions that pertain to "repair or replacement cost without deduction for depreciation" are changed. This is a mandatory endorsement only for homes that have a: Composite shingle roof 15 or more years old Architectural composite shingle roof 20 or more years old Metal or tile roof that is 25 or more years old The factor for this endorsement is and it applies to the Tornado/Hail and Hurricane premiums. Documentation may be submitted to Underwriting to remove this endorsement when the roof is completely replaced. Use Endorsement UPC Limited Loss Settlement For Windstorm Or Hail Losses To Roof Surfacing Applies to forms HO 03 and HO 05. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

48 Rule 565. ROOF MATERIAL A discount from the following table applies to Tornado/Hail, Hurricane, and All Other Perils premiums based on the type of roof covering material. Roofing Material Group All Other Perils Tornado/Hail Hurricane Metal Tile Concrete/Slate Architectural Shingle Shingle Tar & Gravel Wood Other Unknown Roof Material Group Definitions Metal Roof covering made of a metallic material other than aluminum (ex. Steel) Tile Barrel/Concrete/Flat tiles or similar covering types Concrete/Slate Poured concrete, slate or similar roof covering types Architectural Shingles A shingle roof composed of a heavy fiberglass mat base and ceramiccoated mineral granules that are embedded in refined and water resistant asphalt Shingle All non-architectural shingle roof coverings (ex. 3-tab shingle, composite shingle, tar shingle) Tar & Gravel built up roofing or similar covering types Wood Wood Shake/Shingle or similar roof covering types Other Any roofing material that does not meet the other group definitions Unknown This classification is to be used only for existing customers where the roof material type was not captured during the binding process. Applies to forms HO 03, HO 05, and to HO 06 properties within structures less than 4 stories. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

49 Rule 570. NUMBER OF UNITS Apply the appropriate factor from the table below: Units AOP Factor Wind/Hail Factor Applies to forms HO 03 and HO 05. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

50 ADDITIONAL COVERAGE OPTIONS Rule 600. ADDITIONAL AMOUNTS OF COVERAGE A This endorsement is intended to cover additional costs of construction that are incurred due to increases in the cost of construction that occur during the policy period. Increased construction cost is normally the result of increased demand relative to supply of labor and materials that can occur subsequent to a catastrophic loss that impacts a substantial number of properties in a region. Additional coverage options provided by this endorsement are 25% of Coverage A and 50% of Coverage A. Coverage must be written for 100% of replacement cost. This endorsement does not cover increased construction costs attributable to laws or ordinances governing construction. Additional Amount Options AOP Wind/Hail Factor Factor 25% % Use Endorsement HO Specified Additional Amount of Insurance for Coverage A Dwelling Applies to forms HO 03 and HO 05. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

51 Rule 631. HOME SYSTEMS PROTECTION The Home Systems Protection Endorsement provides coverage for mechanical or equipment breakdown and electronic circuitry impairment when perils for such equipment or electronic circuitry would have been excluded under the Homeowners policy. Limit Premium $50,000 $49 For forms HO 03 and HO 05, use Endorsement HO HSP Home Systems Protection For form HO 06, use Endorsement HO6 HSP Home Systems Protection Does not apply to HO 04 NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

52 Rule 632. SERVICE LINE The Service Line Coverage endorsement provides coverage for failure of underground piping and wiring, including permanent connections, valves or attached devices that provide communications, compressed air, drainage, electrical power, heating, waste disposal, or water to the residence premises. This coverage is subject to a $500 deductible. Limit Premium $10,000 $34 Use Endorsement HO SLC Service Line Coverage Applies to forms HO 03 and HO 05 NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

53 Rule 640. FUNCTIONAL REPLACEMENT COST LOSS SETTLEMENT It is mandatory for homes older than 50 years old, that the loss settlement provisions be changed to Functional Replacement Cost. This means losses would be paid at the amount which it would cost to repair or replace the damaged building with less costly common construction materials and methods which are functionally equivalent to obsolete, antique or custom construction materials and methods used in the original construction of the building. Homes with Functional Replacement Cost loss settlement are not eligible for Additional Amount of Insurance for Coverage A Dwelling (rule 600) or the Premier Plus Endorsement (rule 820). Use Endorsement HO Modified Functional Replacement Cost Loss Settlement - Georgia Applies to forms HO 03 and HO 05. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

54 Rule 650. GOLF CART PHYSICAL DAMAGE & LIABILITY COVERAGE Extends Section I and II coverages to losses arising from the ownership and operation of a golf cart. Coverage does not apply when golf cart is: used to carry persons for a charge, used for business purposes, rented to others, being used outside the boundaries of a retirement community or limited access community unless being used for golfing purposes or traveling to or from a golf course. Option 1: For an additional premium of $75, Endorsement UPC 616 includes special limits of liability as follows: Coverage C Personal Property: $ 5,000 Coverage E Personal Liability: $ 50,000/100,000/50,000 Coverage F Medical Payment to Others: $ 5,000 Option 2: For an additional premium of $100, Endorsement UPC 617 includes special limits of liability as follows: Coverage C Personal Property: $ 5,000 Coverage E Personal Liability: $100,000/300,000/100,000 Coverage F Medical Payment to Others: $ 5,000 The limits of liability shown above replace the limits of liability shown on the declarations page for any and all covered losses resulting from the operation of your golf cart. 1 Golf Cart 2 Golf Carts Option 1 $75 $120 Option 2 $100 $160 Applies to forms HO 03, HO 05, and HO 06. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

55 Rule 660. HOME COMPUTER COVERAGE Provides coverage for computers and related equipment against additional risks of physical loss subject to certain exclusions. This coverage is available to a maximum limit of $20,000. Additional premium: $6 for each $1,000 Use Endorsement HO Special Computer Coverage Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

56 Rule 671. IDENTITY THEFT EXPENSE & RESOLUTION SERVICES COVERAGE Identity Theft Expense and Resolution Services Coverage is available to provide first party coverage for expenses incurred by an insured as a direct result of any identity theft occurrence first discovered or learned of during the policy period. This endorsement provides up to $25,000 coverage for: A. Costs for notarizing affidavits or similar documents attesting to fraud; B. Costs for certified mail to law enforcement agencies, credit agencies, financial institutions, etc.; C. Lost income, up to a maximum of $1,000 per week/$5,000 total, resulting from time taken off work to complete fraud affidavits, meet with law enforcement agencies, credit agencies, and/or legal counsel; D. Loan application fees for re-applying for loans when the original application is rejected because the lender received incorrect credit information; E. Attorney fees incurred to defend lawsuits brought against the insured by merchants, financial institutions or their collection agencies; remove any criminal or civil judgments wrongly entered against an insured; and challenge the accuracy or completeness of any information in a consumer credit report; F. Charges incurred for long distance telephone calls to merchants, law enforcement agencies, financial institutions or similar credit grantors, or credit agencies to report or discuss an actual identity fraud. G. Costs for daycare and eldercare incurred by an insured solely as a direct result of identity theft H. Identity theft support services, including: assistance filing a police report, assistance recovering lost documents; assistance replacing compromised documents (e.g., driver s license, social security card, etc.). I. Resolution services include up to 12 months of credit monitoring Premium per policy: $24 No deductible applies to this coverage. Use Endorsement UPC 614 Identity Theft Expense and Resolution Services Coverage. Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

57 Rule 680. INFLATION GUARD The policy may be endorsed to provide annual increases of the Section I Limits of Liability. Amount of Annual Increase AOP Factor Wind/Hail Factor 2% % % % Use Endorsement HO Inflation Guard Applies to forms HO 03 and HO 05. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

58 Rule 690. LIMITED FUNGI, WET OR DRY ROT OR BACTERIA COVERAGE Section I Per Loss Aggregate Section II Additional Premium Basic/Default $10,000 $20,000 $50,000 $0 Option 1 $25,000 $50,000 $50,000 $60 Option 2 $50,000 $50,000 $50,000 $90 HO3 and HO5 Use Endorsement HO Limited Fungi, Wet or Dry Rot or Bacteria Coverage HO4 and HO6 Use Endorsement HO Limited Fungi, Wet or Dry Rot or Bacteria Coverage NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

59 Rule 700. LIMITED WATER BACK-UP AND SUMP DISCHARGE OR OVERFLOW COVERAGE This policy may be endorsed to provide coverage for loss resulting from water which backs up through sewers or drains or which overflows from the pump. A minimum $1,000 deductible, or the AOP deductible applies to this coverage, whichever is greater. The endorsement may be added for the following limits: Basement Limit Premium None $5,000 $20 None $10,000 $30 None $25,000 $40 Unfinished $5,000 $30 Unfinished $10,000 $45 Unfinished $25,000 $60 Partially Finished $5,000 $40 Partially Finished $10,000 $60 Partially Finished $25,000 $80 Finished $5,000 $50 Finished $10,000 $75 Finished $25,000 $100 Policies with UPC 620 Limited Water Damage Coverage are not eligible to purchase this endorsement. Use Endorsement UPC Limited Water Back-Up and Sump Discharge or Overflow Coverage Applies to all forms. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018

60 Rule 710. ORDINANCE OR LAW COVERAGE Provides coverage for increases in cost of reconstruction, repair, or demolition of property that results from local laws or ordinances regulating such. Base rates include 10% of Coverage A. Coverage may be increased to 25% or 50%. A. Basic Limit The policy automatically provides up to 10% of the Coverage A limit of liability (or for Form HO 04, the Building Additions and Alterations limit) to pay for the increased costs necessary to comply with the enforcement of an ordinance or law. B. Increased Amount Of Coverage 1. Description The policy may be endorsed to increase the basic Ordinance or Law Coverage amount, as noted in Paragraph 2. to accommodate the increased costs known or estimated by the insured for materials and labor to repair or replace the damaged property and to demolish the undamaged portion of damaged property and clear the site of resulting debris according to the ordinance or law. 2. Premium Determination To develop the Premium, multiply the All Other Perils and Wind/Hail Premiums by the appropriate factor selected from the following table: Percentage Of Coverage A Increase In Amount Total Amount Factors 15% 25% % 50% Use Endorsement HO Ordinance or Law Increased Amount of Coverage Applies to forms HO 03, HO 05, and HO 06. NB Eff 06/18/2018 RB Eff 08/18/2018 HO Ed. 02/15/2018