HOMEOWNERS TABLE OF CONTENTS

Transcription

1 HOMEOWNERS MN MANUAL DIRECTORY ITEM TABLE OF CONTENTS NSHO PAGE Actual Cash Value Loss Settlement - Windstorm or Hail Losses to All Exterior Surfaces Actual Cash Value Loss Settlement - Windstorm or Hail Losses to Roofs... 9 Actual Cash Value Policies Additional Insured & 28 Babysitting Back Up of Sewers, Drains and Sump Systems Billing Procedures... 5 Business Activities Calculation of Premium... 5 Common Loss Deductible Companion Policy Discount Coverage A - Increased Limit - Form NS Coverages Property Coverage Section... 1 Liability Coverage Section... 1 Deductibles, Explanation of & 11 Earthquake Coverage Eligibility... 2 Enhancement Endorsements Expanded Replacement Cost Coverage - Coverage A... 9 Farm Liability Coverage Additional Insured & 19 Base and Additional Charges Damage to Property of Others Employer's Liability Horses & 27 Personal Injury Fire Protection Definitions... 4 Higher Limits On Certain Property - Business Property Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery, And Counterfeit Money Fire Department Service Charge Guns and Gun Accessories Money Motorized Vehicles Silverware, Goldware, Platinumware and Pewterware Unscheduled Jewelry, Watches and Furs Homeowners Policy Forms... 4 Homeowners Policy Program... 1 Horses & 28 Identity Theft Protection Inboard, In/Outboard Motor Boats, Sailboats and Personal Watercraft Liability Incidental Office Increased Limits or Additional Residence Premises Inland Marine Coverages Installed Equipment Breakdown Coverage Insurance Score Location of Risk Modifiers (LORM)... 4 Loss Assessment/Association Deductible - Described Location Minnesota New Business North Star Mutual Ins. Co. Renewals

2 HOMEOWNERS TABLE OF CONTENTS CONTINUED ITEM NSHO PAGE Mandatory Coverages... 2 Mature Homeowners Discount Metal Roof Discount Modified Replacement Cost - Residence and Related Private Structures... 9 New/Upgraded Home Component Discount Optional Coverages - Liability Optional Coverages - Property Ordinance or Law Outboard Motors Liability Personal Injury Personal Property - Increase or Decrease Policy Term... 4 Premium Charts, Explanation of... 4 Premium Discounts for Protective Devices Protected Subdivision Discount Rate Pages - Base Premium Charts Form NS-1, Form NS-2, Form NS-3 - TERR Form NS-4 - TERR. 1, 2, 3, and Form NS-6 - TERR. 1, 2, 3, and Rating Territories and Location of Risk Modifiers (LORM)... 4 Recreational Vehicles Liability Refrigerated Food Spoilage Related Private Structures Replacement Cost Loss Settlement Terms Personal Property Roof Surface Replacement Cost Factor Secondary Location Special Form - Coverage C - Personal Property Special Form - Unit-Owners - Form NS Standard Limits... 2 Theft Coverage - Residence Under Construction Townhouses Underground Service Line Coverage Underwriting Requirements Underwriting Rules for Recreational Vehicles and Watercraft Valued Customer Discount Wood Shingle Surcharge Woodburning/Solid Fuel Surcharge Minnesota New Business North Star Mutual Ins. Co. Renewals

3 HOMEOWNERS POLICY PROGRAM The Inflation Guard Provision is mandatory in the North Star Homeowners Program. PROPERTY COVERAGES will automatically be periodically updated based on changing dwelling construction cost factors. The residence must be insured to at least 90% of Replacement Cost, the application must be completed and a photograph of the residence attached. To be assured that the insured meets policy conditions, it is recommended that all residences be insured to 100% of Replacement Cost. If at the time of a loss the replacement cost of all related private structures is less than the limit shown for Coverage B, the amount in excess thereof in Coverage B shall be added to the limit for Coverage A. In the event there are no related private structures, the limit shown for Coverage B shall be added to the limit for Coverage A. The application of this provision does not increase the limit for Coverage C. COVERAGES The Homeowners policy provides property and liability coverages using the forms as follows: PROPERTY COVERAGE SECTION NS-1 - Basic Form. Residence may be written Replacement Cost or Actual Cash Value. Covers residence, private structures, personal property and additional living costs against loss by: Fire or Lightning Windstorm or Hail Explosion Riot or Civil Commotion Theft Vehicles or Aircraft Sudden & Accidental Damage from Smoke Vandalism or Malicious Mischief Glass Breakage Sinkhole Collapse Volcanic Eruption NS-2 - Broad Form. Residence written Replacement Cost. Covers residence, private structures, personal property and additional living costs against loss by: All the perils listed for NS-1, plus: Falling Objects Weight of ice, snow or sleet Collapse of a building or part of a building Sudden and accidental tearing apart, cracking, burning or bulging of a heat or air conditioning system or water heater Accidental discharge or overflow of liquids or steam Freezing of a plumbing, heating or air conditioning system or domestic appliance Sudden and accidental damage from artificially generated electrical currents NS-3 - Special Form. Residence written Replacement Cost. Covers residence, private structures and any resulting additional living costs against risks of direct physical loss unless the loss is excluded. Personal property and any resulting additional living costs are covered for the same perils as provided in NS-2. NS-4 - Contents Broad Form. For renters of a dwelling or apartment. Covers personal property, including the insured's interest in building improvements and betterments, and any resulting additional living costs, against loss by the same perils as provided in NS-2. NS-6 - Unit-Owners Broad Form. For the owner-occupants of a condominium or cooperative unit. Covers personal property, including the fixtures, alterations, additions, and appliances that are part of the condominium or cooperative unit, structures owned solely by the insured, other property that is the insured's insurance responsibility under an agreement with an association or corporation of property owners, and any resulting additional living costs, against loss by the same perils as provided in NS-2. ALL FORMS: LIABILITY COVERAGE SECTION 1. Personal Liability - Covers payment on behalf of the insured of all sums which he/she shall become legally obligated to pay as damages because of bodily injury or property damage caused by an occurrence arising out of his/her premises or personal activities. 2. Medical Payments - Covers medical expenses incurred by persons, other than the insured, who sustain bodily injury caused by an accident arising out of the insured s premises or personal activities. Minnesota New Business North Star Mutual Ins. Co. NSHO 1 Renewals

4 STANDARD LIMITS Following are the standard limits under the Homeowners Policy: Coverage NS-1 NS-2 or NS-3 NS-4 NS-6 A. Residence - Minimum Amount $45,000 1 $60,000 (NS-2) 1 N/A 10% 4 of limit on $70,000 (NS-3) personal property B. Related Private Structures 10% of limit 10% of limit N/A N/A on residence on residence C. Personal Property 60% 2 of limit 60% 2 of limit $8,000 minimum $8,000 minimum D. Additional Living Costs Actual Loss Sustained in 12 Months for ALL FORMS L. Personal Liability $100,000 Each Occurrence for ALL FORMS 3 M. Medical Payments to Others $1,000 Each Person for ALL FORMS 3 1. $70,000 for residence occupied by 3 or 4 families % for residence occupied by 3 or 4 families. 3. Optional limits are available. See liability coverage section. 4. On NS-6, Coverage A covers the fixtures, alterations, and appliances that are part of the condominium or cooperative unit, structures owned solely by the insured, and other property that is the insured's insurance responsibility under an agreement with an association or corporation of property owners. ELIGIBILITY A Homeowners Policy Form NS-1, NS-2 & NS-3 may be issued: 1. to an owner-occupant of a dwelling which is used exclusively for private residential purposes and contains not more than 4 families and with not more than 2 boarders or roomers per family; or 2. to cover a dwelling in the course of construction provided the policy is issued only in the name of the intended owner-occupant of the dwelling and will be completed within approximately 6 months. Coverage must be written at 100% of expected completed value. A Homeowners Policy Form NS-4 may be issued to: 1. the tenant (non-owner) of a dwelling or an apartment situated in any building provided that: a. the dwelling, apartment or unit occupied by the tenant is used only for residential purposes; b. no more than 4 individuals are insured under 1 policy; and c. each individual is named as an insured on the declarations. (NOTE: Tenant Homeowner coverage is not available for students unless the student is older, married, employed or we have supporting coverage for the parents); or 2. the owner-occupant of a dwelling or of a building containing an apartment who is not otherwise eligible for a Homeowners policy. A Homeowners Policy Form NS-6 may be issued to an owner-occupant of a condominium or cooperative unit used only for residential purposes. MANDATORY COVERAGES It is mandatory that insurance be written for all coverages provided under both the Property Coverage and the Liability Coverage Sections of the Homeowners Policy. The Liability Coverage Section of the policy requires coverage for the following exposures and the additional premium developed from the Premium Charts must be charged when such exposures exist: 1. ALL additional residence premises where the Named Insured or spouse maintain a residence other than business or farm property; 2. ALL residence employees of the Named Insured or spouse not covered or not required to be covered by Worker s Compensation Insurance (charges required for residence employees in excess of 2); and 3. Incidental office, professional, private school or studio use by the insured on residential premises of the insured. Minnesota New Business North Star Mutual Ins. Co. NSHO 2 Renewals

5 UNDERWRITING REQUIREMENTS 1. A completed Homeowners application must be submitted along with at least two recent photos of the property (front and rear). Photos of all structures on the premises should be submitted for review. Use the MSB/RCT Software program and attach the RCT printout. 2. For 1 and 2 Family Dwellings, with the exception of seasonal risks, the minimum limits available for NS-1 shall be $45,000, $60,000 for NS-2 and $70,000 for NS-3. Minimum limit for a 1 or 2 family seasonal is $25,000 with supporting coverage. 3. For 3 and 4 Family Dwellings, with the exception of seasonal risks, the minimum limits available for NS-1, NS- 2 & NS-3 shall be $70,000. Minimum limit for 3 or 4 family seasonal is $25,000 with supporting coverage. 4. Coverage must be written from 90% to 100% of the REPLACEMENT COST of the dwelling. The only exceptions to this would be by using NS-1 on an Actual Cash Value basis or, for dwellings where the amount of insurance is less than 90% of the replacement cost of the dwelling, by using the endorsement HO 4856 found on page NSHO-9. Unlike a policy written on Actual Cash Value where losses are depreciated, this endorsement offers replacement cost on partial losses. 5. Maximum limits available for dwelling are $900,000 if Protected, $750,000 if Partially Protected, and $700,000 if Unprotected. Maximum limit available for dwellings that qualify for the Protected Subdivision Discount is $750, Farm Liability is required when: a. there are more than 40 acres; b. the insured has farming operations; or c. there are horses or other livestock. 7. Following is a list of WOODBURNING/SOLID FUEL EQUIPMENT RULES: a. Homemade woodburning and solid fuel units and barrel stoves are not acceptable. b. Woodburning or solid fuel equipment that shares a common flue with other heating appliances are not acceptable. All woodburning or solid fuel equipment must have its own separate flue, including add-on furnaces. c. Woodburning or solid fuel equipment that has not been professionally installed will be unacceptable. Exceptions to this will require a photo of the equipment and full details must be given to our underwriters if special consideration is to be given. d. Woodburning or solid fuel units with heat reclaiming devices connected to the stovepipe are not acceptable. e. Woodburning or solid fuel units in attached garages are not acceptable. f. Whenever a Homeowners application is submitted for property having woodburning or solid fuel equipment, the CF-624 Solid Fuel Questionnaire must be completed and attached to the application. g. All stoves and chimneys must be UL approved. 8. Following is a list of Homeowners risks not to be bound and generally will not be written: a. Property which is in generally below average physical condition. b. Risks cancelled or nonrenewed by other carriers. c. Risks which have sustained 2 OR MORE losses during the past 3 year period. d. Homes which do not meet the following update requirements: 1. Electrical amp. 2. Plumbing - updated in last 40 years. 3. Heating - replaced in the last 30 years. 4. Roof - reshingled in the last 20 years (Roof surfaces that are 15 years old or older may not be insured for replacement cost coverage.) e. Risks with older wood roofs, clay tile roofs or risks with asbestos slate roofs or siding. f. Dwelling risks which were not originally designed for dwelling purposes. (e.g., a mercantile building converted to a dwelling.) g. TRAILER HOMES, MOBILE HOMES, DOUBLE WIDE MOBILE HOMES, CONVERTED MOBILE HOMES OR HOUSE TRAILERS whether permanently located with attached leans or not. (Mobile Homes may be written on our Mobile Homeowners Program or on a Dwelling Fire Policy.) h. Risks where insureds have a history of financial instability within the last 5 years. i. Hobby farms or any risk formerly occupied as FARM PROPERTY on which any former farm buildings still exist. j. Homes with more than 2 related private structures or with a related private structure larger than 1,600 square feet. k. Dwellings without a central heating system (other than all-electric homes). l. Unusual risks including basement homes, log homes, earth homes, dome homes, and homes with flat roofs. Minnesota New Business North Star Mutual Ins. Co. NSHO 3 Renewals

6 UNDERWRITING REQUIREMENTS (Continued) m. Risks with wild animals or pets that show aggressive or vicious tendencies. n. Risks with Dobermans, Rottweilers, Presa Canarios (also known as Canary Island Cattledog), Pit Bulls, including but not limited to, American Pit Bull Terriers, American Staffordshire Terriers, or Staffordshire Bull Terriers, Chows, or dogs with aggressive tendencies should not be submitted. 0. Do not submit risks with trampolines or swimming pools, unless prior approval has been received from a North Star underwriter. p. Wall Furnaces that are unvented. (They create problems due to fumes they generate.) 9. Seasonal dwellings will be considered, however, we should be writing the primary dwelling if possible or the dwelling needs to be a year round home and occupied at least 6 months of the year. POLICY TERM Policies are written on a 1 year basis. The policy will be automatically renewed each year with an updated declarations page. The policy will be subject to the premiums, rules and forms in effect at the time of renewal. Policyholders will initially receive copies of all policy forms. Upon renewal they will receive only an updated declarations and forms that are new or revised. Policyholders may receive all policy forms upon request a statement notifying the insured of this will be on each annual declarations. PREMIUM CHARTS All premium charts are set up on an annual premium basis. RATING TERRITORIES AND LOCATION OF RISK MODIFIERS (LORM) TERR DESCRIPTION LORM NS-1, NS-2, NS-3 NS-4 & NS-6 TERR. 1 Remainder of State TERR. 2 Counties of Anoka, Carver, Dakota, Hennepin (excluding City of Minneapolis), Ramsey (excluding City of St. Paul), Scott, Sherburne, Washington & Wright TERR. 3 Counties of Aitkin, Beltrami, Carlton, Cass, Clearwater, Cook, Crow Wing, Itasca, Koochiching, Lake, Lake of the Woods, Mahnomen TERR. 4 Cities of Duluth, Hermantown and Proctor TERR. 5 St. Louis County (excluding cities of Duluth, Hermantown and Proctor) TERR. 6 Cities of Minneapolis & St. Paul FIRE PROTECTION DEFINITIONS The following 3 fire protection definitions will apply: 1. Protected: Residence is located within 1,000 feet of a fire hydrant and within 5 road miles of a responding fire department. 2. Partially Protected: Residence is located over 1,000 feet from a fire hydrant, but is within 5 road miles of a responding fire department. 3. Unprotected: All others. Dwellings normally rated as partially protected may be eligible for a Protected Subdivision Discount - see requirements on page NSHO-14. Minnesota New Business North Star Mutual Ins. Co. NSHO 4 Renewals

7 HOMEOWNERS POLICY FORMS The General Policy Terms, a perils section and liability coverage section are issued with every policy. When assembled, the policy must be made up of the following parts: Policy Jacket Declarations General Policy Terms, A Perils Section and Liability Coverage Section... NS-1, NS-2, NS-3, NS-4, or NS-6 Minnesota Amendatory Endorsement... NS-81H Other forms and/or endorsements may be attached depending on optional coverages purchased. BILLING PROCEDURES See the Billing Information section of this Agent's Manual. CALCULATION OF PREMIUM Step 1 - Determine the Base Premium based on Form, Territory, Protection Class, and the amount of Coverage A or Coverage C, as applicable. Step 2 - Apply applicable Location of Risk Modifier from page NSHO-4 to the rate determined in Step 1. Step 3 - For forms NS-1, NS-2 and NS-3 apply Masonry Construction Discount, if applicable, to premium determined in Step 2. Step 4 - If applicable, adjust the premium determined in Step 3 to reflect lower medical payment limit and/or liability limit. Step 5 - When Modified Replacement Cost is desired, apply the appropriate factor to the premium determined in Step 4. Step 6 - When Expanded Replacement Cost is desired, apply the appropriate factor to the premium determined in Step 5. Step 7 - If Coverage B limit is written for less than 10% of Coverage A, then subtract the premium for the lower limit. Step 8 - Apply Roof Surface Replacement Cost Factor, if applicable, to the premium determined in Step 7. Step 9 - When Metal Roof Discount is desired, apply the appropriate factor to the premium determined in Step 8. Step 10 - If writing Actual Cash Value Loss Settlement - Windstorm or Hail Losses to Roofs, Actual Cash Value Loss Settlement - Windstorm or Hail Losses to All Exterior Surfaces, a form NS-1 with Actual Cash Value loss settlement, a form NS-4 with a commercial occupancy in the building, or a form NS-6 with a commercial occupancy in the building, apply the appropriate factor to the premium determined in Step 9. Step 11 - If rating a seasonal or secondary residence issued in conjunction with the primary residence, add the liability charge for an Additional Residence Premises Occupied by Insured and subtract the duplicate liability discount. Step 12 - For forms NS-1, NS-2 and NS-3 to increase or decrease Coverage C, add or subtract the appropriate amount to the premium determined in Step 11. Step 13 - Modify the amount determined in Step 12 to reflect the selection of a deductible option. (The Base Deductible for forms NS-1, NS-2 and NS-3 is $1,000. The Base Deductible for forms NS-4 and NS-6 is $500.) Step 14 - Modify the amount determined in Step 13 for all percentage discounts or charges. Discounts or charges should be multiplied consecutively in the following order: Protected Subdivision Discount, New/Upgraded Home Discount, Protective Device Discount, Mature Homeowners Discount, Companion Policy Discount, Wood Roof Surcharge, Townhouses. Discounts or charges should not be added together. Step 15 - When Replacement Value on personal property is purchased, the premium is determined by applying the appropriate percentage charge to the premium determined in Step 14. Step 16 - If a form NS-6 and increasing Coverage A, add the appropriate amount (modified to reflect the selection of a deductible option) to the premium determined in Step 15. Step 17 - Add the additional premium for all other mandatory or optional Property Coverages and all other mandatory or optional Liability Coverages. Step 18 - Apply the applicable Valued Customer Discount factor to the total policy premium. Step 19 - Apply the applicable Insurance Score factor to the total policy premium. Minnesota New Business North Star Mutual Ins. Co. NSHO 5 Renewals

8 RATE PAGES STANDARD HOMEOWNERS BASE PREMIUMS (Refer to page NSHO-4 for Location of Risk Modifiers for each territory) $1,000 FLAT DEDUCTIBLE APPLICABLE (ALL PERILS) FRAME PREMIUM INCLUDES $100,000 LIABILITY AND $1,000 MEDICAL PAYMENTS PROTECTED PARTIALLY PROTECTED UNPROTECTED COV. A ** ** ** AMOUNT NS-1 NS-2 NS-3 NS-1 NS-2 NS-3 NS-1 NS-2 NS-3 40, * 610 * 640 * 676 * 711 * 763 * 806 * 848 * 50, * 620 * * 722 * * 862 * 60, * * * 70, , , , , , , , , ,047 1, , ,041 1,098 1, , ,015 1,090 1,150 1, , ,008 1,060 1,138 1,202 1, , ,051 1,106 1,187 1,254 1, , ,036 1,094 1,151 1,236 1,305 1, , ,027 1,076 1,137 1,196 1,284 1,357 1, , ,018 1,072 1,124 1,186 1,249 1,341 1,415 1, ,000 1,004 1,060 1,116 1,170 1,235 1,300 1,396 1,473 1, ,000 1,045 1,103 1,161 1,217 1,285 1,353 1,453 1,533 1, ,000 1,085 1,145 1,205 1,264 1,334 1,404 1,508 1,592 1, ,000 1,126 1,188 1,251 1,312 1,384 1,457 1,565 1,651 1, ,000 1,166 1,231 1,296 1,358 1,434 1,510 1,621 1,711 1, ,000 1,213 1,281 1,348 1,413 1,492 1,570 1,686 1,781 1, ,000 1,257 1,327 1,397 1,464 1,546 1,628 1,747 1,845 1, ,000 1,303 1,376 1,448 1,518 1,603 1,687 1,811 1,913 2, ,000 1,346 1,420 1,495 1,568 1,654 1,742 1,871 1,974 2, ,000 1,391 1,468 1,545 1,621 1,710 1,800 1,933 2,041 2, ,000 1,445 1,526 1,606 1,683 1,778 1,871 2,009 2,121 2, ,000 1,502 1,586 1,669 1,750 1,848 1,944 2,088 2,205 2, ,000 1,559 1,645 1,732 1,816 1,916 2,018 2,167 2,287 2, ,000 1,614 1,703 1,793 1,880 1,984 2,089 2,243 2,367 2, ,000 1,670 1,762 1,855 1,946 2,053 2,161 2,321 2,449 2, ,000 1,725 1,821 1,917 2,010 2,121 2,233 2,398 2,531 2, ,000 1,781 1,880 1,979 2,075 2,190 2,306 2,476 2,613 2, ,000 1,838 1,940 2,042 2,141 2,260 2,379 2,555 2,697 2, ,000 1,894 1,999 2,104 2,207 2,329 2,451 2,633 2,779 2, ,000 1,949 2,058 2,166 2,271 2,398 2,523 2,709 2,861 3, ,000 2,005 2,117 2,228 2,336 2,466 2,596 2,787 2,943 3, ,000 2,061 2,176 2,290 2,401 2,535 2,668 2,865 3,025 3, ,000 2,118 2,235 2,353 2,467 2,604 2,741 2,944 3,107 3, ,000 2,174 2,294 2,415 2,533 2,673 2,813 3,022 3,189 3, ,000 2,230 2,354 2,478 2,598 2,742 2,887 3,100 3,272 3, ,000 2,286 2,413 2,540 2,663 2,811 2,959 3,178 3,354 3, ,000 2,342 2,472 2,602 2,728 2,880 3,031 3,255 3,436 3, ,000 2,399 2,532 2,665 2,795 2,950 3,105 3,335 3,519 3, ,000 2,454 2,591 2,727 2,859 3,019 3,177 3,411 3,601 3, ,000 2,510 2,650 2,789 2,924 3,087 3,249 3,489 3,684 3,877 EACH ADD'L 5,000 ADD: * For Secondary Residence Only **NS-1 without Replacement Cost - Increase premium by 35%. For Masonry Contruction, decrease base policy premium by 10%. North Star Mutual Ins. Co. NSHO 6 Renewals

9 RATE PAGES STANDARD HOMEOWNERS BASE PREMIUMS (Refer to page NSHO-4 for Location of Risk Modifiers for each territory) NS-4 - CONTENTS BROAD FORM (For Tenant(s) (Non-owner) of a Dwelling or Apartment) $500 FLAT DEDUCTIBLE APPLICABLE (ALL PERILS) PREMIUM INCLUDES $100,000 LIABILITY AND $1,000 MEDICAL PAYMENTS The rates shown below apply to contents in a rental unit that are located in a dwelling/condo or any size apartment building. If there is a commercial exposure in the same building as the rental unit, apply the modification factor of 1.35 times the premium shown below. If 2-4 unrelated parties occupy the same location, an additional charge for each of $26.00 applies. Coverage C Partially Amount Protected Protected Unprotected 8, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Each Add'l 1,000 Add: North Star Mutual Ins. Co. NSHO 7 Renewals

10 RATE PAGES STANDARD HOMEOWNERS BASE PREMIUMS (Refer to page NSHO-4 for Location of Risk Modifiers for each territory) NS-6 - CONTENTS BROAD FORM (For Owner Occupied Condominiums or Cooperative Units) $500 FLAT DEDUCTIBLE APPLICABLE (ALL PERILS) PREMIUM INCLUDES $100,000 LIABILITY AND $1,000 MEDICAL PAYMENTS The rates shown below apply to contents in an owner occupied condominium or cooperative unit. If there is a commercial exposure in the same building, apply the modification factor of 1.35 times the premium shown below. Coverage C Partially Amount Protected Protected Unprotected 8, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Each Add'l 1,000 Add: North Star Mutual Ins. Co. NSHO 8 Renewals

11 EXPANDED REPLACEMENT COST COVERAGE - COVERAGE A - CF-1792 (Policy Form NS-3) The policy replacement cost terms that apply to Coverage A may be endorsed to increase the amount of insurance that would apply to the dwelling. When this endorsement is added, the policy is amended to provide full replacement cost insurance for the Coverage A - Dwelling up to 125% of the amount of insurance shown on the Declarations if the insured elects to repair or replace the dwelling. To qualify for Expanded Replacement Cost Coverage, the following Eligibility Rules/Underwriting Guidelines must be met: 1. The dwelling must be insured for 100% of Replacement Cost as determined by the Marshall & Swift/Boeckh (RCT) Program. A current updated MS/B computation printout must accompany the request for Increased Replacement Cost Coverage. 2. The dwelling must be in excellent condition both inside and out. 3. At least two photographs of the dwelling taken from a distance and angle that shows the property's overall condition accurately must accompany the request for this coverage. 4. There cannot be a substantial difference between the market value and replacement cost. 5. Ornate or Victorian homes are not eligible. Also, homes of unique construction or built from materials that cannot be duplicated because of their unique, antique or artistic characteristics are not eligible. Examples include but are not limited to irreplaceable stained glass windows, murals painted by well-known artists, antique or one of a kind lighting or other fixtures, elaborate moldings or carvings on mantels, balustrades, log homes, etc. 6. The insured must notify the Company of a new building valued at $5,000 or more, or any additions, remodeling or other physical changes which increase the replacement cost of the dwelling by $5,000 or more and pay the additional premium due within 90 days of the start of the project. If the insured fails to notify us, and the cost to replace all or a part of the damaged dwelling exceeds the Coverage A limit of insurance, the value or cost of the unreported addition or alteration will not be covered. To develop the premium for this option, multiply the base premium by a factor of MODIFIED REPLACEMENT COST - RESIDENCE AND RELATED PRIVATE STRUCTURES - HO 4856 The standard Homeowners policy provides loss settlement on a replacement cost basis for the dwelling and North Star requires coverage to be written at 90% of full replacement cost. If the dwelling is in good condition, meets all underwriting requirements, but has a lower market value, this percentage amount may be modified to 50%, 60%, 70% or 80% of replacement value without affecting the loss settlement provisions. If this option is selected, the Coverage A limit representing 50%, 60%, 70% or 80% of replacement value is to be shown in the policy declarations. Develop the premium for the coverage as follows: 1. Determine the 100% replacement value of the dwelling. 2. Obtain the premium for the limit determined in 1. above using the replacement cost Base Premium Chart. 3. Apply the appropriate factor shown below to the premium developed in 2. above. % of Replacement Value Factor 50%.80 60%.83 70%.86 80%.89 ACTUAL CASH VALUE LOSS SETTLEMENT - WINDSTORM OR HAIL LOSSES TO ROOFS - CF-1545 (Policy Forms NS-1, NS-2 and NS-3) The policy provides settlement for building losses on a repair or replacement cost basis, subject to certain conditions. The policy may be endorsed to provide loss settlement exclusively on an Actual Cash Value basis for roofs when damage is caused by the peril of Windstorm or Hail. To develop the premium for this option, multiply the base premium by a factor of.95. Minnesota New Business North Star Mutual Ins. Co. NSHO 9 Renewals

12 ACTUAL CASH VALUE LOSS SETTLEMENT - WINDSTORM OR HAIL LOSSES TO ALL EXTERIOR SURFACES - CF-1738 (Policy Forms NS-1, NS-2 and NS-3) The policy provides settlement for building losses on a repair or replacement cost basis, subject to certain conditions. The policy may be endorsed to provide loss settlement exclusively on an Actual Cash Value basis for roofs, exterior walls and other exterior surfaces when damage is caused by the peril of Windstorm or Hail. To develop the premium for this option, multiply the base premium by a factor of.90. ACTUAL CASH VALUE POLICIES On older homes where Replacement Cost cannot be met, it is recommended that NS-1 (Basic Form) be written on an Actual Cash Value basis. NS-1 may be written with or without Replacement Cost Coverage. Refer to Premium Charts for additional premiums. SECONDARY LOCATION A secondary location owned and occupied by the insured and located in the same state as the primary location may be insured by attaching NS Minimum limit for Coverage A is $25,000. The same form and deductible must be used for both the primary and secondary locations. Use the Base Policy Premium Charts for computing the base secondary location premium. To this must be added the liability charge for an ADDITIONAL RESIDENCE PREMISES OCCUPIED. When issued in conjunction with the primary location deduct $26.00 for duplicate Personal Liability coverage. PERSONAL PROPERTY - INCREASE OR DECREASE INCREASE - DECREASE - DEDUCTIBLES The limit for Coverage C under NS-1, NS-2 or NS-3 may be increased at an annual rate of $2 per $1,000 of increase. An applicant may specify the dollar amount of coverage applying to Coverage C Personal Property for NS-1, NS-2 and NS-3. We do not recommend that Coverage C be reduced because of the need for adequate coverage. (Most total and many partial losses reveal that an insured is underinsured for personal property). However, if Coverage C is reduced, apply a credit of $1 per $1,000 of decrease subject to a $20 maximum credit. NOTE: When Replacement Value (CF-55) or Incidental Office (NS- 3542) is written, Coverage C cannot be reduced to less than 60% of Coverage A. The policy deductible may be changed by applying the appropriate Modification Factor to: 1. Premium from Base Premium Charts; and 2. Premium for the Related Private Structures optional endorsements and for amended limits for Coverage C (NS- 1, NS-2, NS-3 only). Deductible Factor NS-1, NS-2, NS-3 NS-4, NS-6 $100 Flat $100 AOP / $500 Wind/Hail $100 AOP - $1,000 Wind/Hail $250 Flat $250 AOP / $500 Wind/Hail $250 AOP / $1,000 Wind/Hail $500 Flat (Base) $500 AOP / $1,000 Wind/Hail $500 AOP / $2,000 Wind/Hail $1,000 Flat 1.00 (Base) 0.90 $1,000 AOP / $2,000 Wind/Hail $1,500 Flat $2,000 Flat $2,500 Flat $5,000 Flat $10,000 Flat North Star Mutual Ins. Co. NSHO 10 Renewals

13 COMMON LOSS DEDUCTIBLE CF-2162 In the event that a covered loss occurs as a result of one occurrence to property covered under more than one policy insured with North Star Mutual, only the highest applicable deductible will apply, regardless of the number of covered property items damaged or destroyed. The applicable North Star Mutual policies to which this provision applies are: 1. Homeowners; 2. Personal Automobile; 3. Commercial Automobile (applies only to vehicles indicated on the Commercial Automobile declarations as Farm Use ); 4. Combination Package Policy (North Star Mutual covered perils only); 5. Combination Dwelling Owners (North Star Mutual covered perils only); 6. Mobile-Homeowners; and 7. Inland Marine. This provision will not apply: 1. to property rented to others for a fee when that property is insured on a separate policy than the insured s owner-occupied property; 2. if the total loss is less than the highest deductible; or 3. if it is in the insured s benefit that separate deductibles be applied. North Star Mutual Ins. Co. NSHO 11 Renewals

14 INSURANCE SCORE A rating factor from the table below will be applied to the total policy premium based on the insurance score of a named insured. The insurance score, from LexisNexis, is developed from credit related information including types of accounts, balance, dates opened, and account activity, plus public records items such as judgments and liens and inquiries initiated by the insured. Insurance Score Rating Factor Insurance Score Rating Factor Below (No Hits) (No Score) Neutral Application of the Insurance Score 1. The insurance score will be applied to all new business and to existing policies at renewal. 2. A statement to indicate an insurance score has been used will be shown on the policy Declaration when an insurance score is used. 3. The insurance score used, including No Hits and No Score, will apply for a minimum of 12 months except in cases where corrections have been made for errors in the insured s credit history file with the national credit bureaus. A higher score obtained in this process will be applied back to the beginning of the current policy term. 4. The insurance score will be ordered every 3 years, unless an insured requests it at the time of a renewal. However, we do not need to obtain the updated insurance score more frequently than once in a 12-month period. 5. A No Hits or No Score will continue to apply to a policy except in cases where an insurance score is obtained from a national credit bureau. If an insurance score is returned, it will apply. 6. In order to comply with statute, a Neutral score from LexisNexis indicates that the insured s credit report has been influenced negatively by an extenuating life circumstance such as catastrophic injury or illness, temporary loss of employment or the death of an immediate family member. 7. On or after May 15, 2015, if the insurance score drops at the 3-year review, the amount of increase to the insurance score factor is limited to 0.04 per policy period. Minnesota New Business North Star Mutual Ins. Co. NSHO 12 Renewals

15 ORDINANCE OR LAW The policy provides coverage for the increased cost which results from the enforcement of a code, ordinance, or law which regulates the use, construction, repair, demolition, or removal of property following a covered loss. If the covered loss plus the increased cost is more than the applicable limit, an extra 10% of the applicable limit (Coverage A limit under NS-1, NS-2, NS-3 and NS-6; Tenants Improvements limit under NS-4) is available to cover the increased cost. This 10% limit may be increased as follows: *NS-1, NS-2 & Increase Total Percentage NS-3 Factor **NS-4 Factor **NS-6 Factor 15% 25% 1.08 NA NA 40% 50% 1.21 NA % 75% 1.35 NA % 100% Each Additional 25% Increment *NS-1, NS-2 and NS-3 factors are applied to Coverage A rating. **NS-4 and NS-6 factors are applied to Coverage C rating since the Tenants Improvements limit under NS-4 and the Coverage A limit under NS-6 are both figured as 10% of the Coverage C limit. ROOF SURFACE REPLACEMENT COST FACTOR As roof surfaces age they become more susceptible to damage by windstorm and hail. To maintain replacement cost coverage, a charge will be made on dwellings with asphalt shingles 16 years old and older. The charge also applies to increased limits of Coverage B (HO 3048). For steel or asphalt roofs under 5 years old, a credit will be applied. The roof surface age is determined by the difference between the current calendar year and the year the roof surface was installed. For example, calendar year is 2012 and the roof surface was installed in 1995, the roof surface age would be 17 years. When a dwelling has multiple roof surface ages the oldest roof surface age will be used to determine the level of charge. This factor is not applicable when Actual Cash Value Loss Settlement Windstorm or Hail Losses to Roofs (CF- 1545), Actual Cash Value Loss Settlement Windstorm or Hail Losses to All Exterior Surfaces (CF-1738), or Cosmetic Damage Exclusion (CF-2051) applies. Roof Surface Age Asphalt Steel New Year Years Years Years Years to 15 Years Years Years Years Years Years and Older METAL ROOF DISCOUNT (Cosmetic Damage Exclusion applies) Dwellings Dwellings are eligible for a 10% discount when the dwelling has a metal roof surface. The discount also applies to increased limits of Coverage B (HO 3048). This discount is optional and when taken, form CF-2051 Cosmetic Damage Exclusion is added to the dwelling and related private structures insured under Coverage B (HO 3048). Related Private Structures NS-248, NS-3540 A metal roof discount is available on a Related Private Structure, specifically insured using Form NS-248 or NS-3540 if it has a metal roof surface. This discount is optional and when taken, form CF-2051 Cosmetic Damage Exclusion is added to the insured structure. Rating information for each form is shown in the Related Private Structures section of this manual. Minnesota New Business North Star Mutual Ins. Co. NSHO 13 Renewals

16 NEW/UPGRADED HOME COMPONENT DISCOUNT (Policy Forms NS-1, NS-2 and NS-3) 1. Dwellings are eligible for a premium discount as shown in the table below if. a. the original electrical system is less than 14 years old; or b. the electrical system has been fully replaced within the last 13 years. All of the old electrical wiring must be removed and replaced by new wiring. Must have new receptacles, new circuit boxes and conduit in exposed areas. The work must be certified by the installer as fully replaced. The electrical system must be inspected and approved by local civil authority for state and local building code compliance. Dwellings which have been partially rewired are not eligible. 2. The discount shall apply only to the base policy premium (must adjust for the following if applicable: revised limits of Coverage C, lower limits of liability and medical payments, and the selection of a deductible). It shall not apply to optional coverages or higher limits of property or liability coverages. Premium Discount Table Year of Original Electrical System or Year Electrical System Totally Replaced Discount Current Calendar Year... 28% 1 Year Preceding Current Calendar Year... 26% 2 Years Preceding Current Calendar Year... 24% 3 Years Preceding Current Calendar Year... 22% 4 Years Preceding Current Calendar Year... 20% 5 Years Preceding Current Calendar Year... 18% 6 Years Preceding Current Calendar Year... 16% 7 Years Preceding Current Calendar Year... 14% 8 Years Preceding Current Calendar Year... 12% 9 Years Preceding Current Calendar Year... 10% 10 Years Preceding Current Calendar Year... 8% 11 Years Preceding Current Calendar Year... 6% 12 Years Preceding Current Calendar Year... 4% 13 Years Preceding Current Calendar Year... 2% PREMIUM DISCOUNTS FOR PROTECTIVE DEVICES - HO 6516 The following premium discounts will be allowed for the installation of a burglar alarm, fire alarm or automatic sprinkler system in the dwelling. Systems must be UL approved and maintained in good working condition. 1. Central Station Burglary and/or Fire Alarm System - a discount of 10%. 2. Alarm System that alerts the Fire Department or Police Department - a discount of 3%. 3. Burglary and/or Fire Local Alarm System - a discount of 2%. (For the purposes of this rule, a Fire Local Alarm System shall include smoke, heat or gas detectors.) This discount is not available when items 1. or 2. apply. 4. Automatic Sprinkler System with sprinklers in all areas including bathrooms, attics and attached structures - a discount of 3%. 5. Automatic Sprinkler System with sprinklers not in all areas - a discount of 2%. These discounts apply to the base policy premium (must adjust for the following if applicable: revised limits of Coverage C, lower limits of liability and medical payments, and the selection of a deductible). It shall not apply to optional coverages or higher limits of property or liability coverages. Maximum discount allowed is 13%. PROTECTED SUBDIVISION DISCOUNT Dwellings normally rated as partially protected are eligible for a Protected Subdivision Discount if the following conditions are met: 1. The dwelling is located within a platted subdivision consisting of five or more homes; 2. The dwelling is within clear view of other occupied dwellings; 3. The subdivision, or a portion thereof, is located within 5 road miles of a responding fire department; 4. The responding fire department has the ability to transport at least 2,500 gallons of water in a single trip; 5. The dwelling is the primary or principal residence of the named insured; 6. The dwelling is located on a good access road; and 7. The dwelling is not located in a severe brush or forested area. Apply a 10% discount to the partially protected Homeowners Policy base premium rates. North Star Mutual Ins. Co. NSHO 14 Renewals

17 VALUED CUSTOMER DISCOUNT A discount, for customers of continuous Homeowners policies written with North Star Mutual for 3 or more consecutive years, will be applied starting with the 4 th policy period. The discount, as shown in the table below, will be applied to the total policy premium for each policy at each yearly policy anniversary. The maximum discount is 12%, as shown below. Number of Policy Periods Number of Policy Periods With North Star Mutual Factor With North Star Mutual Factor 1 st, 2 nd & 3 rd policy periods th policy period th policy period th policy period th policy period th policy period th policy period th policy period th policy period th policy period th policy period th policy period th policy period th policy period th policy period th policy period th policy period th - 25 th policy period 0.88 Over 25 policy periods 0.88 MATURE HOMEOWNERS DISCOUNT (Policy Forms NS-1, NS-2 and NS-3) Policies are eligible for a 5% discount if 1 of the insureds is at least 50 years old. This discount would apply to the Base Premium. COMPANION POLICY DISCOUNT (Policy Forms NS-1, NS-2 and NS-3) Policies are eligible for a 10% discount if the insured's Personal Auto Insurance is insured through North Star. This discount would apply to the Base Premium. WOOD SHINGLE SURCHARGE (Policy Forms NS-1, NS-2 and NS-3) All Homeowners policies with risks that have wood shingles will be surcharged 20%. This surcharge would apply to the Base Premium. TOWNHOUSES (Policy Forms NS-1, NS-2 and NS-3) (If Townhouse is owned by an Association, it s important that the contract agreement includes floor joists, wall board, etc.) Townhouses are defined as a type of dwelling unit normally having 2, but sometimes 3, stories and usually connected to a similar structure by a common wall. There can be no other families living above or below the unit that is being insured. To figure the premium, determine the total number of individual family units within a Fire Division and refer to chart below. For example, a 2 family dwelling attached to a 1 family dwelling are considered 3 individual family units within a Fire Division if both dwellings are not separated by an approved fire wall. Family Units in Fire Division Premium Calculation 1-2 Units no increase 3-4 Units increase base premium 10% 5 Or More Units increase base premium 25% North Star Mutual Ins. Co. NSHO 15 Renewals

18 REPLACEMENT COST LOSS SETTLEMENT TERMS PERSONAL PROPERTY - CF-55 This endorsement is available for those insured s who wish to have the following covered property on a replacement value basis: 1. Coverage C - Personal Property; 2. Domestic appliances; 3. Carpeting; 4. Awnings; 5. Outdoor antennas; and 6. Outdoor equipment. Personal Property can be changed from Actual Cash Value to Replacement Value insurance at the following additional premiums: NS-1, NS-2 & NS-3: NS-4 and NS-6: 10% of the Base Policy Premium. On 3 or 4 family dwellings Coverage C automatically increases to 40% of Coverage A at no additional charge. NOTE: Coverage C cannot be reduced to less than 60% of Coverage A for 1 and 2 family dwellings or 40% for 3 and 4 family dwellings. Minimum Premium: $20 per year. 30% of the Base Policy Premium. Minimum Premium: $20 per year. When a seasonal dwelling is written under the same policy as the primary dwelling and personal property is written on replacement value, this coverage must apply to the contents of both dwellings. A separate charge for replacement value on the contents must be made for each dwelling. WOODBURNING/SOLID FUEL SURCHARGE (Policy Forms NS-1, NS-2, NS-3, NS-4 and NS-6) All Homeowners policies with risks that have woodburning equipment (except dwellings with a masonry fireplace with either a brick/masonry chimney or a metal chimney purchased after 1986 that withstands up to 2100 degree temperatures) or solid fuel burning equipment (corn, wood pellets, etc.) will be surcharged per year: Primary Dwelling 1. Protected and Partially Protected risks $ Unprotected risks $65.00 Seasonal Dwelling 1. Protected and Partially Protected risks $ Unprotected risks $25.00 A masonry fireplace with insert is a fireplace that was originally built as a masonry fireplace and later had an insert installed - this will take the surcharge. North Star Mutual Ins. Co. NSHO 16 Renewals