HALWELL MUTUAL INSURANCE COMPANY PROPERTY RATE MANUAL

Transcription

1 HALWELL MUTUAL INSURANCE COMPANY PROPERTY RATE MANUAL 2014 Halwell Mutual Page 1

2 1. TABLE OF CONTENTS 1. TABLE OF CONTENTS 2 2. GENERAL RULES 3 3. DEFINITIONS 8 4. PRE-AUTHORIZED CHEQUING 9 5. DISCOUNTS & SURCHARGES PERSONAL LINES HOMEOWNERS PACKAGE PERSONAL LINES TENANTS & CONDO PERSONAL LINES SEASONAL HOMEOWNERS PACKAGE PERSONAL LINES MOBILE HOMES PERSONAL LINES TENANTED DWELLINGS PERSONAL LINES VACANT/SPECULATIVE PROPERTIES PERSONAL LINES FLOATERS PERSONAL LINES ENDORSEMENTS HOME BASED BUSINESS PACKAGE BUILDERS RISK (DWELLING) BROAD FORM ADDITIONAL COVERAGES COMPREHENSIVE PERSONAL LIABILITY EXTENSIONS OF COVERAGE APPLICABLE TO PERSONAL LIABILITY FARM DEFINITIONS FARMOWNER PACKAGES FARMOWNER SEASONAL HOMEOWNERS PACKAGE FARM RATING CLASSIFICATIONS HOBBY FARM PACKAGES COMPREHENSIVE FARM LIABILITY FARM FLOATERS RATE PAGES QUESTIONNAIRES & FORMS Halwell Mutual Page 2

3 2. GENERAL RULES Binding Authority Risks Not Written 1. Any risk with two or more property claims 2. Any risks located in the Greater Toronto Area (GTA) 3. Any risks where the electrical is Knob and Tube wiring 4. Any risks where the electrical is Aluminum wiring 5. Any risk where there is a DTE oil tank on the premises 6. Any risks where Galvanized Plumbing is used 7. Any risk in which an inside oil tank is older than 20 years, or an outside oil tank is older than 15 years 8. Any mobile home over 20 years 9. Any dwelling known to have asbestos Risks that must be referred to Company 1. Any risk that has had one claim in the past 5 years 2. Any risk where an oil tank is used as a heat source 3. Any risk with a flat roof 4. Any risk that involves a dwelling under renovation or construction 5. Any risk with more than two mortgagees 6. Any risk with a lapse or gap of insurance 7. Any risk that has no prior insurance 8. Any risk with outdoor wood furnaces 9. Any risk with a MicroFit installation 10. Any risk with an apartment over a commercial business 11. Any dwellings over $750, Any dwellings designated as a Heritage Home 13. Any Rental Seasonal Properties 14. Any log homes 2014 Halwell Mutual Page 3

4 Fire Protection Grades Protection Protection1 Protection 1A Protection 2 Protection 3 Metro Definition Within 305 meters of a hydrant (1,000 feet) Within 8 km by road of a fire station with Superior Tanker Shuttle Accreditation. Within 12 kilometers of a responding Fire Hall (7 miles) Beyond 12 kilometers of a responding Fire Hall (7 miles) Refer to Company Deductible Options Coverage Type Deductible Impact Tenants $500 Standard deductible Tenants $1,000 Decrease $500 deductible rate by 10% Tenants $2,500 Decrease $500 deductible rate by 20% Tenants $5,000 Decrease $500 deductible rate by 30% Homeowner/Farmowner $500 Standard deductible Homeowner/Farmowner $1,000 Decrease $500 deductible rate by 10% Homeowner/Farmowner $2,500 Decrease $500 deductible rate by 20% Homeowner/Farmowner $5,000 Decrease $500 deductible rate by 30% Hobby Farm $500 Standard deductible Hobby Farm $1,000 Decrease $500 deductible rate by 10% Hobby Farm $2,500 Decrease $500 deductible rate by 20% Hobby Farm $5,000 Decrease $500 deductible rate by 30% Farm Properties & Inspections Before coverage is bound for any Farm property, the following items are required: 1. A fully completed application; 2. Photographs of all buildings to be insured; 3. An inspection of the premises conducted by the Broker; and 4. A diagram showing distances between buildings and dimensions of the applicable buildings. Heating Warranty Premiums shown in this manual assume that insured location(s): a. Are centrally heated by a furnace or boiler connected to a hot water, steam or hot air system; all boilers or furnaces must be permanently installed on concrete floor; b. Oil heat subject to company guidelines. c. Is heated by a permanently installed, fixed electric heating system, approved by the electrical authority having jurisdiction. Auxiliary Heat Only those dwellings with a fireplace or wood stove used for the purpose of auxiliary heat will be eligible for coverage with Halwell Mutual Insurance Company. The unit must be properly installed in order for eligibility conditions to be met. A current (5 year) WETT Certificate and photos must be provided. Photos 2014 Halwell Mutual Page 4

5 of the auxiliary heat are required with the application, as well as a completed Solid Fuel Heating Unit Questionnaire A $60.00 Auxiliary Heat (flat) Surcharge will be added for each unit, where there exists a wood, pellet, corn stove, or fireplace insert. This applies to the primary dwelling and all outbuildings as well. A $ Auxiliary Heat (flat) Surcharge will be added if the dwelling is a mobile home. NOTE Any dwelling where the Primary source of heat is a fireplace or wood stove must be referred to Halwell Mutual Insurance Company for approval prior to binding coverage. Wood fired add-on-units attached to supplement an existing furnace are not acceptable. Heating Guidelines New Business Binding Authority Broker may not bind company unless they have copies of the property owners documents that indicate the oil burning system has passed an inspection conducted by an oil burner technician within the past 12 months Broker must submit in addition to required application form We will not insure risks if, We will not insure where risks where Completed Oil Tank Supplemental Questionnaire Photos of tanks (all views) Photo of floor surrounding tank Copy of report & invoice from qualified Oil Burner Technician We do not receive a signed Oil Tank Questionnaire and photos a qualified fuel oil supplier, OBT or LP Officer has deemed an immediate hazard or have been identified in the OBT inspection report by a NO fuel is not delivered by a qualified fuel oil distributor old fuel has been transferred at time of new tank install the supply lines to the furnace pass through or under a concrete floor even if secondary containment is present Renewal Business OBT inspection is strongly recommended Completed current Oil Tank Questionnaire for Renewal Business Photos (if requested) Proof of annual maintenance check, upgrade/replacement We do not receive a signed Oil Tank Questionnaire for Renewal Business and photos a qualified fuel oil supplier, OBT or LP Officer has deemed an immediate hazard or have been identified in the OBT inspection report by a NO fuel is not delivered by a qualified fuel oil distributor old fuel has been transferred at time of new tank install the supply lines to the furnace pass through or under a concrete floor even if secondary containment is present 2014 Halwell Mutual Page 5

6 We will not insure risks with the supply lines are not the same age as the tank or are older than the tank any tank is set on a noncompliant base the insured refuses to comply with recommendations or inspection requirements proof of annual maintenance is not provided proof of comprehensive 10 year inspection of tank and heating equipment is not provided oil heat is no longer used and fill and vent lines have not been removed oil filter is not located inside the building tanks that were not been installed by a qualified OBT Current/prior oil spill incidents or losses underground tanks or oil tanks that are no longer in use tanks without proper certification marks (ULC/UL) tanks constructed from single wall 14 or 16 gauge steel new installations that do not meet January 2013 code amendments (see TSSA Regulations Update) secondary containment devices that do not meet code (must be able to hold 110% of tank capacity) inside tanks that are: 20+ years of age, or located somewhere other than the lowest level of dwelling outside tanks that are:15+ years or without proper protection the supply lines are not the same age as the tank or are older than the tank any tank is set on a noncompliant base the insured refuses to comply with recommendations or inspection requirements proof of annual maintenance is not provided proof of comprehensive 10 year inspection of tank and heating equipment is not provided oil heat is no longer used and fill and vent lines have not been removed oil filter is not located inside the building tanks that were not been installed by a qualified OBT prior oil spill incidents or losses underground tanks or oil tanks that are no longer in use tanks without proper certification marks (ULC/UL) tanks constructed from single wall 14 or 16 gauge steel new installations that do not meet January 2013 code amendments (see TSSA Regulations Update) secondary containment devices that do not meet code (must be able to hold 110% of tank capacity) inside tanks that are: 20+ years of age, or located somewhere other than the lowest level of dwelling outside tanks that are: 15+ years or without proper protection Reinstatement A $50 Reinstatement Charge will apply to any policy that has been cancelled and reinstated within 60 days Halwell Mutual Page 6

7 Release of Interest We will not process the cancellation of any policy without receiving signed releases from all interested parties (all Named Insured s). Premium Rounding All premiums are rounded to the nearest dollar. Farm Tax Exemption In order to qualify for the Farm Tax Credit, a completed Premium Exemption Certificate form must be received and approved by Halwell Mutual Insurance Company. The Form is required for all New Business requesting the credit and every three year thereafter. If an updated, signed form is not received, as required, the 8% RST will be added to the policy. See Questionnaire and Forms section of the manual Halwell Mutual Page 7

8 3. DEFINITIONS Additional Private Residence Includes all dwelling premises owned by the named insured whether the dwelling is occupied by the named insured or rented to others. This includes dwellings on Additional Farm Locations, as well as seasonal residences owned by the named insured. Mobile Home A large house trailer that is parked in one particular place and used as a permanent living accommodation. Modular Home Modular buildings and modular homes are sectional prefabricated buildings, or houses, that consist of multiple sections called modules Personal Watercraft A water-jet driven vessel with an enclosed hull (no cockpit) which is 13 feet (4km) in length (maximum). This vessel is designed to be used by one or more persons while straddling, sitting, standing or kneeling (Canada Shipping Act, Small Vessel Regulations). For example: seadoos, jet skis, wave runners, sea flashes, wet bikes, etc. Private Structure Coverage Structures or buildings separated from the dwelling by a clear space, on your premises but not insured under dwelling coverage. If they are connected to the dwelling by a fence, utility line or similar connection only, they are considered to be detached private structures. Student Away From Home Any student insured by this policy, who is temporarily living away from home for the purpose of attending a school, college or university. The student must be dependent on the Named Insured or his or her spouse for support and maintenance in order for coverage on this policy to extend to him/her. Vacant The occupant(s) has/have moved out with no intent to return, regardless of the presence of furnishings. A newly constructed dwelling is vacant after it is completed and before the occupant(s) move(s) in. Furthermore, the dwelling is also vacant when the occupant(s) move(s) out and before any new occupant(s) move(s) in Halwell Mutual Page 8

9 4. PRE-AUTHORIZED CHEQUING The following are the requirements of Halwell Mutual Insurance with respect to policies on a preauthorized payment plan: 1. When an insured wishes to go on a pre-authorized payment plan, they have one month from the renewal date to have all the required information submitted to our office. 2. We request that when putting a policy on a pre-authorized payment plan you get a deposit payment of at least two months. If this is not possible, the total premium will be divided over the total number of payments. We must have a signed authorization form and a void cheque. 3. We ONLY offer withdrawal dates of the 7 th, 14 th, or the 21 st of the month. 4. We require a separate void cheque and authorization form for each policy to be paid by a preauthorized payment plan unless they are being submitted at the same time. Similarly, when requesting a change to banking information for Auto & Property, you must submit two forms as they go to different departments. 5. The policy must have a minimum annual premium of $300 before taxes in order to eligible for the preauthorized payment plan. An exception will only be made if there are multiple policies on PAC. 6. All policies on the payment plan are subject to a 3% service charge. All property files also have an 8% RST charge with the exception of Farm policies. We require a signed RST form for farm policies in order to be exempt from the RST charge. This form must be updated every three years. If we do not have an updated form, the 8% RST will be added to the policy. 7. We try to renew our PAC policies three months ahead of the renewal date. This is to allow you time to have anything changed and the policy reissued if necessary. The first withdrawal on a renewal is the month prior to the renewal date so our accounting month is closed two months ahead of time. Once a month has been closed, we can only do changes by endorsement. 8. In order to make a change to banking information, the amount of a withdrawal or to cancel a withdrawal, you must have the necessary information to Sharon Leitch at least 7 days prior to the withdrawal date. 9. We have a two day automatic representment for any payments that are returned NSF to our bank. It is approximately a four day turn around. It takes two days for it to come back to our bank and then they go back in two days later. The insured will be charged an NSF fee from their bank but will only be charged by us if it is returned after the second try. 10. If a payment is received back from the bank for any reason, there is a $25.00 NSF fee applied to the policy. On property policies, the NSF d payment will be added to the next month and the charge included Halwell Mutual Page 9

10 11. If we receive two payments returned for any reason on a property policy, the policy will be cancelled by registered mail. Please inform new clients of this when setting up a payment plan policy. Please note that auto regulations are different. 12. For accounting purposes, when a policy is cancelled from the payment plan the return premium for your account will be typed on the broker copy of the cancellation. The amount due to the insured or owing to Halwell will show on the insured copy. 13. If there is an amount due to Halwell on the cancellation of a policy, we will go into the insured s account the next month. If it is returned, the amount will be written off to bad debt and will have to be paid first if the insured wishes to come back to Halwell. 14. If an insured has been cancelled by Halwell from the payment plan and wishes to come back to our company, they must be in good standing and also pay a $50.00 reinstatement fee. 15. They can only be reinstated on agency bill and they will not be permitted on PAC for a 2 year period. 16. Please note that the insured cannot make payments to lower their monthly withdrawal amount. Our system does not allow for us to do this. If the insured wishes to pay off the withdrawals, this can be done. 17. There are a few things that are only significant to the auto policies on the payment plan. The same rules apply for the auto as mentioned above for the property except for the return of a payment from the bank Halwell Mutual Page 10

11 5. DISCOUNTS & SURCHARGES Discount Name Policy Eligibility Discount Percentage New Business Validation Renewal Business Validation Notes Fully Monitored Alarm Homeowner Farmowner Tenants Condominium Farmowners Incld Hobby Farms 10% Current Certificate from Alarm Company None A monitored alarm is one that is connected to a police station/ monitoring company. Claims Free Homeowner Farmowner Tenants Condominium Farmowners Incld Hobby Farms 10% Entire Risk must be claims free for the preceding three (3) years. None Newer Home Discount Homeowner Farmowner Condominium Farmowners Incld Hobby Farms 3% - 15% Mobile Homes must be 10 years old or less. 15% for dwellings aged 10 years and under, declining 3% each year to age 15. Mature Client Homeowner Farmowner Tenants Condominium Farmowners Incld Hobby Farms 5% 10% 15% Insured must be aged Insured must be aged Insured must be aged 50+ None Loyalty Homeowner Farmowner Tenants Condominium Farmowners Incld Hobby Farms 10% For Halwell customers who have been insured for three (3) or more years with a good claims history. Given at the discretion of Halwell Mutual Multi-Policy Homeowner Farmowner Farmowners Incld Hobby Farms 10% For Halwell customers who have their automobile insurance with Halwell. None Gen Now Discount Homeowner Farmowner Tenants Condominium Farmowners Incld Hobby Farms 5% 10% For Halwell customers who have parent(s) also currently insured with Halwell. 5% will be discounted on Tenants Packages. 10% will be discounted for those with Homeowner and Condo Packages Halwell Mutual Page 11

12 Discount Caps/Maximum The maximum total discount can amount to 50% Please Note: The Underwriting Department reserves the right to revoke discounts, impose a claims surcharge and/or higher policy deductibles on any business with unsatisfactory claims experience. It is the expectation of Halwell Mutual Insurance Company that every new Personal Lines business will be inspected by the applicable Broker. Some risks may be subject to a company inspection and/or reinspection to ensure compliance with loss prevention recommendations. Front and rear pictures of ALL insured buildings are required Halwell Mutual Page 12

13 6. PERSONAL LINES HOMEOWNERS PACKAGE Ineligible Risks Existence of any of the following characteristics makes the risk ineligible for insurability with Halwell Mutual Insurance Company. Do not bind coverage for any property: which has physically deteriorated due to neglect or poor maintenance; involving known questionable moral hazards on the part of the owner and/or tenant; with Outbuildings that are obsolete, not structurally sound or used for mercantile or manufacturing purposes; held for speculation or urban renewal; that is vacant or unoccupied with a history of claims; this includes property owners; and/or With a building insulated with exposed plastic insulation. Eligibility Considerations To qualify for Homeowner coverage with Halwell Mutual Insurance Company, the risk being insured must be insured to a minimum of 80% of the estimated replacement value, as determined by an approved valuation mechanism; be owner occupied by the Named Insured as described on the Declarations Page; Have a new or upgraded Heating System; Have a new or upgraded Hydro system, approved by local authorities; Have a properly maintained roof; and Not contain more than one (1) apartment. To qualify for Comprehensive Homeowner coverage with Halwell Mutual Insurance Company, the risk being insured must: be insured to 100% of the value of the calculated rebuilding cost evaluator Provide a new completed rebuilding cost evaluator at application, and every five years after have a minimum of 100 amp electrical service have copper or plastic plumbing Additionally, in order to qualify for Homeowner coverage with Halwell Mutual Insurance Company, There cannot be more ONE (1) claim in the preceding three years; There can be no Water related losses in the preceding five years. ***Modular homes are eligible for Homeowner coverage, provided all the eligibility conditions are met*** 2014 Halwell Mutual Page 13

14 Basic Homeowners Coverage Coverage Type Dwelling Private Structures Personal Property Additional Living Expenses Personal Liability Coverage (standard) Named Perils: Building & Personal Property Amount described on the Declarations Page 10% of Dwelling Coverage 60% of Dwelling Coverage Including Replacement Cost Endorsement 20% of Dwelling Coverage Personal Liability Coverage $1,000,000 Voluntary Medical Payments $2000 Voluntary Property Payments $ Each occurrence Notes Dwelling value must be insured for a minimum of $100,000 New rebuilding cost evaluator is required for new business, and every five years for renewals Broad Form Homeowners Coverage Coverage Type Dwelling Private Structures Personal Property Additional Living Expenses Freezer Food Rider $1,000 Personal Liability Coverage (standard) Notes All Risk: Dwelling Named Perils: Personal Property Amount described on the Declarations Page 10% of Dwelling Coverage 70% of Dwelling Coverage Including Replacement Cost Endorsement 20% of Dwelling Coverage Personal Liability Coverage $1,000,000 Voluntary Medical Payments $2000 Voluntary Property Payments $ Each occurrence Any building insured for less than $100,000 will not be eligible for Broad Form coverage. Dwelling must be well maintained and in good physical condition. No more than 2 roomers or boarders 2014 Halwell Mutual Page 14

15 Comprehensive Plus Homeowners Coverage Coverage Type Dwelling Private Structures Personal Property Additional Living Expenses Freezer Food Rider $1,000 Personal Liability Coverage (standard) Notes All Risk: Dwelling and Personal Property Amount described on the Declarations Page 10% of Dwelling Coverage 70% of Dwelling Coverage 20% of Dwelling Coverage Personal Liability Coverage $1,000,000 Voluntary Medical Payments $2000 Voluntary Property Payments $ Each occurrence Any building insured for less than $100,000 will not be eligible for coverage. Dwelling must be well maintained and in good physical condition. Subject to a $500 Deductible with no buy-back option Dwellings built prior to 1950 must be approved by Company. Dwelling roof must be less than 20 years old Any dwelling with more than one apartment will not qualify Risks with roomers or boarders will not be eligible for coverage Package eligibility will be reviewed if there is more than one claim in 5 years Halwell Mutual Page 15

16 Students Away from Home While Attending School When a Student, as defined by this policy, resides at an address other than that listed on the Declaration s Page, for the purpose of attending full time Post-Secondary studies, Halwell Mutual should be advised as soon as possible. The Basic Homeowner s Policy provides automatic coverage for $5,000 for the Personal belongings of Students Away at School. Liability coverage to the student s residence is extended from the Primary residence up to the limits specified on the Declaration s Page. The Broad Form and Comprehensive Homeowners Policy provide automatic coverage for $10,000 for the Personal belongings of Students Away at School. Liability coverage to the student s residence is extended from the Primary residence up to the limits specified on the Declaration s Page. If additional coverage is required for the Personal belongings of students, it must be scheduled at the following rate: $5.00/per $1000 coverage. Family Members Residing in a Nursing Home When a family member resides at an address other than that listed on the Declaration s Page, for the purpose of residing in a nursing home facility, Halwell Mutual should be advised as soon as possible. Family members will be extended $2,500 for personal property coverage and liability coverage Halwell Mutual Page 16

17 7. PERSONAL LINES TENANTS & CONDO Eligibility Considerations To qualify for Tenant or Condominium coverage with Halwell Mutual Insurance Company the following conditions apply: New Business will be issued with a minimum $500 deductible; Minimum Coverage Required: Coverage Type Coverage Basis Min. Coverage Required Tenant Package Named Perils $20, Tenant Package Comprehensive $30, Condominium Unit Named Perils $30, Condominium Unit Comprehensive $30, Tenant Packages Personal Property Additional Living Expenses Personal Liability Coverage (standard) Amount of Coverage purchased and shown on the Declaration s Page Includes Replacement Cost Endorsement 20% Personal Property Limit Personal Liability Coverage $1,000,000 Voluntary Medical Payments $2000 Voluntary Property Payments $ Each occurrence Notes Insured s who rent a mobile home will be subject to a 75% surcharge on their tenant s package premium Halwell Mutual Page 17

18 Halwell Mature Tenants Packages A special Comprehensive Tenant s package is available to provide coverage for Mature Citizens residing in Protection 1 residences built specifically for the purpose of housing senior citizens. We require the name of the facility, and the age and construction type of the facility, as well as the number of units the facility accommodates. Personal Property/Contents $10,000 Additional Living Expenses $2,000 Personal Liability Coverage $1,000,000 Voluntary Medical Payments $2000 Voluntary Property Payments $ Each occurrence Notes Discounts may not be applied to this package premium Package Premium $1,000,000 Liability $500 deductible $110/annual premium $40/property coverage $70/liability coverage $1000 deductible $100/annual premium $30/property coverage $70/liability coverage $2,000,000 Liability Additional $27 (Not subject to minimum policy premium) These are official Halwell Mutual Mature Tenant s rates. For any variances, refer to the standard Tenant s Package rates applicable to the amount of insurance required Halwell Mutual Page 18

19 Condominium Packages Personal Property Additional Living Expenses Personal Liability Coverage (standard) Improvements & Betterments Condominium Contingency Endorsement Amount of Coverage purchased and shown on the Declaration s Page Includes Replacement Cost Endorsement 20% Personal Property Limit Personal Liability Coverage $1,000,000 Voluntary Medical Payments $2000 Voluntary Property Payments $ Each occurrence 100% of Contents Rate to increase coverage $3.50 per $ % of Contents Rate to increase coverage $5.00 per $20, Halwell Mutual Page 19

20 8. PERSONAL LINES SEASONAL HOMEOWNERS PACKAGE To qualify for a Seasonal Residence Homeowners package coverage, a dwelling must meet the following criteria. A Seasonal Residence Homeowners Dwelling must be: - Owned and occupied by the insured - Valued at and insured for not less than $50,000 - Insured to 80% of the estimated replacement value - NOT rented to others - NOT unoccupied for more than 60 consecutive days - Heated primarily by electricity or by a central heating system - Roads must be open year round - Auxiliary heating systems will be surcharged Seasonal Homeowners Package Coverage Type Dwelling Private Structures Personal Property Additional Living Expenses Named Perils: Dwelling Amount described on the Declarations Page 10% of Dwelling Coverage 50% of Dwelling Coverage Including Replacement Cost Endorsement 20% of Dwelling Coverage Recent photographs of the property (Front and back) must accompany any application Personal Property shall read in the amount to 50% of the dwelling coverage with replacement cost included. Seasonal Homeowners packages are on a Named Perils wording. Weekend homes occupied by Insured year round will qualify for Seasonal Homeowner rates Halwell Mutual Page 20

21 9. PERSONAL LINES MOBILE HOMES Mobile homes occupied as a principal residence that are well maintained, permanently attached to a concrete foundation and permanently connected to electrical, water and sewage systems may be written as a Mobile Homeowners. Mobile homes older than 20 years will not be written as new business. We will not insure mobile homes that are purchased with the intent to use as rental units to others. Mobile homes previously insured that are now with a new owner will be subject to a 25% surcharge if the unit is over 10 years old Halwell Mutual Page 21

22 10. PERSONAL LINES TENANTED DWELLINGS We will not insure tenanted properties unless we also insure the principal property risk upon its renewal. We will not insure mobile homes that are purchased with the intent to use as rental units to others. Eligibility Requirements Dwellings must: not be occupied by students not have more than three dwellings or units, if so it must be insured on a commercial basis be insured on a commercial basis if it is a stand-alone tenanted dwelling Be within 100km of the insured s primary residence. No absentee landlord situations have a minimum 100amp electrical service be copper or plastic plumbing have primary central heating have a roof less than 20 years old Confirmation that the tenants have current tenants insurance is required. A new completed rebuilding cost evaluator is required for new business, and every five years for renewals. A rented dwelling questionnaire is required. Rental Income $500 Deductible Protection 1 $ 2.20 / $ 1000 Protection 2 $ 2.50 / $ 1000 Protection 3 $ 3.00 / $ 1000 Protection 4 $ 3.00 / $ 1000 STANDARD TENANTED DWELLINGS Rates are for permanently occupied dwellings rented to single families, on a limited named perils basis. Premiums for building, private structures and personal property must be calculated separately. Use dwelling rates for private structures. Must be insured to a minimum of 80% of value of as calculated by a rebuilding cost estimator. The rebuilding clause applies for all Protection 2 and 3 risks. Standard Tenanted Dwellings must be: in good condition updated to current standards occupied as a single family residence 2014 Halwell Mutual Page 22

23 SELECT TENANTED DWELLINGS Select Tenanted Dwelling rates are on a limited named perils basis, and include the Optional Loss Settlement Clause. Premiums for building, private structures and personal property must be calculated separately. Must be insured 100% to value as calculated by a rebuilding cost evaluator. A new rebuilding cost evaluator is required on new business, and every five years for renewals. The rebuilding clause applies for all Protection 2 and 3 risks. Select Tenanted Dwellings must be: less than 30 years old or completely updated single family dwellings in good physical condition Rental Income 75% of the Building Rate BROAD FORM TENANTED DWELLINGS Broad Form Tenanted Dwellings are required to be insured to 100% of value as determined by a rebuilding cost evaluator. A new rebuilding cost evaluator is required on application, and every five years on renewals. Broad Form Tenanted Dwellings must be: less than 30 years old or completely updated to current standards single family dwellings in good physical condition Rental Income 75% of the Building Rate TENANTED CONDOMINIUM Minimum premium is $125 excluding liability and/ or rental income. The amount of personal property is to be specified (rate $ 3.50 / $1000) Includes standard $10,000 improvements and betterments (rate $ 3.50 / $1000) unless a different amount is specified. Includes standard $20,000 condominium unit owner s additional protection insurance coverage (rate $ 5.00 / $20,000) unless a different amount is specified There are no discounts available for Tenanted Condominiums Halwell Mutual Page 23

24 11. PERSONAL LINES VACANT/SPECULATIVE PROPERTIES All risks falling under this category must be referred to Head Office prior to binding. Deductible $1,000 minimum Rebuilding Clause applies to all vacant or speculative properties. Rates per $1,000 of coverage Metropolitan Areas (Toronto/Hamilton) Not Written Remainder of Southern Ontario Within 1,000 feet of Hydrant- Dwelling $7.50 Within 1,000 feet of Hydrant-Outbuildings $15.00 Within 12 Kms of a Firehall- Dwelling $10.00 Within 12 Kms of a Firehall- Outbuildings $20.00 Unprotected Vacant/Unoccupied Dwelling $1,000 Deductible No Vandalism coverage Not acceptable as new business Will not be renewed Vacancy questionnaire and photos required prior,to binding Boarding Houses Personal Property in Storage Confirmation required that stored in proper,storage facility Address of facility must be provided AVC No replacement cost $500 Deductible Minimum and retained premium $ Moving out of Province (while in transit) $100 minimum Not Written $15.00 per month Not Written Includes burglary; not theft $12.50 per $1,000 $6.60 per $1, Halwell Mutual Page 24

25 12. PERSONAL LINES FLOATERS Scheduled Articles Scheduled Articles provides All Risk coverage for articles that have been scheduled individually and insured 100% to value (this includes the applicable sales tax). Articles valued in excess of $1,000 require an appraisal. Jewellery appraisals over one year old will not be accepted at new business and we strongly recommend updated appraisals on existing personal articles every three (3) years. No deductible applies except where indicated. Personal Articles Description Deductible Option Annual Rates Annual rates per $100 of insurance Bicycle Floater No Deductible $2.00 $300 Deductible $1.50 Cameras & Photographic Personal Use Only $1.60 Equipment In Excess of $15,000 refer to Head Office Canine Floater $300 Deductible $2.75 Maximum $2,500 limit Contact Lenses (Hard or Soft) Subject to $30.00 min. premium $11.00 Electronic Equipment Including Office Equipment EM Personal Use No Deductible $0.85 $300 Deductible $0.60 Business Use No Deductible $1.10 $300 Deductible $0.80 Laptops Locked vehicle warranty $300 Deductible $3.50 Fine Arts Excluding Breakage $0.50 Including Breakage $1.00 Food Freezer Rider Limited to contents only $1,000 limit Flat Charge $10.00 Furs $0.65 Hearing Aids Subject to $30.00 min. premium $1.75 Jewellery Excess of $25,000 refer to Head Office On Comprehensive policies $1.25 On all other policies $1.50 Musical Instruments (Personal Use) Excess of $15,000 refer to Head $1.60 Office Portable Telephone No Deducible $3.00 $500 Deductible $2.25 Saddles, Harness & Track Pleasure Only $1.20 $500 Deductible $0.90 Satellite Dish Basic $1.50 Comp/Broad $0.50 Signs No Deductible $3.00 Silverware Excess of $15,000 refer to Head $1.10 Stamp & Coin Collections (Limit $500 per item) Office Excess of $15,000 refer to Head Office $ Halwell Mutual Page 25

26 Personal Articles Description Deductible Option Annual Rates Annual rates per $100 of insurance Tools (Personal Use) No Deductible $1.10 $500 Deductible $0.65 Tools (Business Use) No Deductible $3.50 $500 Deductible $2.75 Two-Way Radios No Deductible $2.00 $500 Deductible $1.50 Wedding Present Floater Policy period can commence any $1.50 reasonable time before the wedding and extend up to 90 days after Sports Equipment Camping $1.50 Firearms, Bows & Arrows $1.00 Fishing $2.00 Golf $2.25 Skiing $2.50 Boat & Motor Schedules New Business subject to minimum $500 Deductible $ Outboard Motor & Hull We do not insure boats over 26 in length and/or boats valued over $35,000 Named Perils (ACV) $300 Deductible $1.40 $500 Deductible $1.25 $1,000 Deductible $1.05 All Risk (ACV) $300 Deductible $2.10 $500 Deductible $1.90 $1,000 Deductible $1.70 All Risk (Valued) $300 Deductible $2.60 $500 Deductible $2.30 $1,000 Deductible $2.00 Boats and motors over 5 years old are not eligible for All Risk (Valued) coverage. Boats valued over $10,000 require a minimum $500 Deductible. Jet Skis $500 Deductible $4.70 Minimum $500 Deductible $1,000 Deductible $4.25 Sewer, Septic Tank, Drain or Sump Pump Back up Coverage Scheduled Articles This coverage is included in the following policy packages at a cost of $40 for protection against Buildings & Personal Property: Comprehensive Homeowner; Comprehensive Farmowner; and Comprehensive Tenant. This coverage is included in the following policy packages for protection against Buildings (only): Broad form Homeowner; and Broad form Farmowner. To purchase coverage for Standard Homeowners, Tenants and non-package Dwellings: $50 Flat Charge This coverage will only be available in non-problematic areas Halwell Mutual Page 26

27 Recreational Trailer Floater Halwell Mutual must insure the Primary Property policy to write this business and a fully completed application must be completed before coverage can be bound for Recreational Trailers. This Floater provided coverage for recreational trailers and tent trailers up to a maximum length of 35 feet (10.66 meters). The recreational trailer application can be found in the manual. Named Perils ACV Basis, 80% Coinsurance $500 Deductible $0.75/$100 of insurance $1,000 Deductible $0.68/$100 of insurance Vandalism Coverage $50 flat charge Burglary Included Theft Covered only if entire trailer is stolen Contents A separate amount is required for contents of the trailer of the 10% optional limit is not enough All Risk Replacement Cost is only available on trailers 10 years or newer No Depreciation from original cost this is not a new of Old form Additional Living Expenses pays up to $50 each consecutive day, up to a maximum of $300 in total $500 Deductible $1.15/$100 of insurance $1,000 Deductible $1.04/$100 of insurance Vandalism Coverage Included Burglary Included Theft Contents NOTE: Rates can also be used for personal property in licensed trailers. Covered only if entire trailer is stolen A separate amount is required for contents of the trailer of the 10% optional limit is not enough 2014 Halwell Mutual Page 27

28 13. PERSONAL LINES ENDORSEMENTS By-Law and Code Compliance Coverage Endorsement Purpose This endorsement allows policy coverage to extend to include the increased costs (up to the policy limit) that may be incurred when the insured building is rebuilt or repaired to a standard that meets current by-laws, ordinance and regulations. It applies only when the building is built on the same or an adjacent site. Underwriting Guidelines 1. This endorsement is a favour. Underwriters should not hesitate to say no if any single piece of information is not made available to them. 2. The underwriting file should contain a building valuation that the underwriter is confident of. That building valuation should indicate whether or not the value represents the cost to bring the structure up to code. 3. Underwriters could choose to sublimit this coverage. In that case the Declaration Page will show a specified limit for this coverage document The company may choose to apply a standard premium for their standard limit 4. If this endorsement is requested on structures built, in whole or in part, before 1965 the underwriter should be sure that all the information needed is available before agreeing to add this endorsement. 5. If this endorsement is requested the salesperson should be able to advise the underwriter which bylaw the structure may be subject to. 6. If the by-law would result in demolition cost the underwriter should expect to have the insured (via their salesperson) present an estimate of the amount. The underwriter may wish to check with their claims department to determine if this number is reasonable. 7. Before agreeing to add this endorsement the underwriter should be advised (through a loss prevention report) how far off current code this structure is. 8. Remember if you consider the septic system to be part of the plumbing system or permanently installed outdoor equipment part of the loss amount may be to install a new septic bed and tank. A loading of 5% of the building rate to apply Halwell Mutual Page 28

29 Burglary and Robbery Coverage If the Declaration Page shows that Burglary and Robbery Coverage applies at the location specified, the following perils and limitations apply: 1. BURGLARY: This peril means the taking of personal property from the premises following illegal and forcible entry or exit, leaving visible marks at the point of forced entry or exit. We will pay up to $500 of the amount of insurance on your personal property for damage to the building caused by burglary. This peril does not include loss or damage: (a) To household pets; (b) Occurring while the building is under construction or vacant even if permission for construction or vacancy has been given by us; (c) Caused by any tenant, employee or member of the tenant's household if the part of the dwelling containing the property insured normally occupied by you is rented to others. 2. ROBBERY: This peril means the taking of personal property following the use of violence or threat of violence to any person. This peril does not include loss or damage: (a) To household pets; (b) Occurring while the building is under construction or vacant even if permission for construction or vacancy has been given by us; caused by any tenant, employee or member of the tenant's household if the part of the dwelling containing the property insured normally occupied by you is rented to others. Additional Condition The Special Limits Applicable to some Personal Property section of the policy to which this coverage is attached apply to loss or damage insured under this coverage endorsement. ALL THE STATUTORY AND ADDITIONAL CONDITIONS OF THE POLICY TO WHICH THIS DOCUMENT IS ATTACHED APPLY Halwell Mutual Page 29

30 Claims Forgiveness Endorsement This endorsement may be added to continuously insured locations that are: At least 3 years claims free; and Are currently receiving the Claim Free Discount The endorsement will preserve your client s Claim Free Discount by waiving the effect that your first paid claim (on excess of any claims expenses) as a result of an insured peril within the underlying form to which this endorsement is applied, provided: 1. The claim did not involve any criminal activity, fraud or policy violations by an insured party or applicant; 2. The claims has not disqualified the policy for renewal For an annual premium of $35 per location, a client can avoid the usual loss of his/her Claims Free Discount and associated premium increase, following a loss. The endorsement is removed once it is used, and can be re-added when the insured once again meets the qualifications for the Claim Free Discount 2014 Halwell Mutual Page 30

31 Earthquake Endorsement If the Declaration Page shows that Coverage GG Earthquake applies this insurance is extended to include loss or damage caused directly by the peril of earthquake subject to the following conditions: Earthquake Defined For the purpose of this coverage, earthquake includes snow slide, ice slide, landslide or other earth movements occurring concurrently with and directly resulting from an earthquake shock. More than one earthquake shock occurring within any consecutive one hundred and sixty-eight hours during the term of this policy will be deemed a single earthquake within the meaning in this coverage. Each loss caused by earthquake will be considered a single claim under this coverage. However, we will not pay for any loss or damage caused by an earthquake shock occurring before this endorsement becomes effective nor for any loss or damage caused by any earthquake shock occurring after the expiration of this policy. Deductible We will pay for the amount by which the loss or damage caused by earthquake in any one occurrence exceeds the amount specified on the Declaration Page. If a percentage is specified, the amount of the deductible shall be that percentage of the actual cash value (or for those items subject to a replacement cost endorsement, the replacement cost) of the insured property or interest. Loss or Damage Not Insured We do not insure loss or damage caused directly or indirectly by fire, explosion, smoke, leakage from fire protective equipment, theft, vandalism and malicious acts, flood of any nature, waves, high water, waterborne objects or ice, whether or not caused by or attributable to earthquake. Extensions of Coverage We will pay for loss or damage to the property insured, caused by wind, hail, rain or snow entering a building through an opening in the roof or walls resulting directly from an earthquake. Pro Rate Clause We will only pay for that proportion of a loss payable under this coverage which the amount insured under this coverage bears to the total amount of insurance covering the peril of fire on the same property. If the policy covers two or more items this provision will apply to each item separately. All other terms and conditions of the policy to which this coverage applies remain unchanged. ALL THE STATUTORY AND ADDITIONAL CONDITIONS OF THE POLICY APPLY TO THIS COVERAGE 2014 Halwell Mutual Page 31

32 Exterior Glass Coverage Form Insuring Agreements The Insurer agrees, in consideration of the payment of the premium and of the statements contained in the Declarations, subject to all the terms and conditions of this policy: 1. Indemnity for Damage: To indemnify the Insured for all damage to the glass, lettering, ornamentation, tape or foil described in the Schedule attached hereto caused by accidental breakage of such glass which occurs during the policy period. 2. Exclusions: The Insurer shall not be liable for loss or damage: a. caused by fire in the Insured s premises or elsewhere; b. caused by war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection or military power; c. during construction of, alteration or addition to the premises described in the Declaration other than ordinary repair or maintenance; d. while the premises containing such glass is, to the knowledge of the Insured, vacant or unoccupied for more than thirty consecutive days or being a manufacturing premises ceases to be operated and continues out of operation for more than thirty consecutive days e. Or increased costs of repair due to the operation of any law regulating the zoning, demolition, repair or construction of buildings. 3. Limit of Indemnity The Insurer s liability is limited to the actual cost of replacement including installation charges, of such glass, lettering, ornamentation, tape and foil at the time of the breakage, not exceeding the Limit of Insurance (if any). 4. Deductible The Insurer is liable for the amount by which the loss or damage caused by the accidental breakage exceeds the amount of the deductible specified on the Declaration Page in any one occurrence. If one occurrence could lead to the application of more than one deductible only the largest deductible will apply. ALL OTHER TERMS AND CONDITIONS OF THIS POLICY REMAIN UNCHANGED Halwell Mutual Page 32

33 Functional Rebuilding Cost Endorsement If the Declaration Page shows that the Functional Rebuilding Cost Endorsement applies, the Basis of Claim Payment for the Dwelling Building is amended as follows: If this is an insured loss, we will pay for loss or damage if you repair or replace the damaged or destroyed Dwelling Building on the same location with current and common building materials using current building techniques within a reasonable amount of time after the damage. You may choose as the basis of loss settlement either (A) or (B) below; otherwise settlement will be as in (B). (A) the cost of repairs or replacement (whichever is less) without deduction for depreciation for the Dwelling Building provided: 1. The amount of insurance shown on the Declaration Page for the Dwelling Building represents 100% of the cost to rebuild the insured dwelling on the same site with current and common materials and methods which are functionally equivalent to custom, antique or obsolete materials and methods used when the Dwelling Building was first constructed; 2. You agree to accept each annual adjustment in the amount of insurance as recommended by us and pay the additional premium; and 3. You notify us within 30 days of the start of any additions or other physical changes to the building(s), which may increase the rebuilding cost of the structure by 5% or more, and pay any resulting additional premium. (B) The Actual Cash Value of the damage at the date of the occurrence. Actual Cash Value will take into account such things as the cost of replacement/rebuilding less any depreciation. In determining depreciation we will consider the condition immediately before the damage, type of construction material and techniques and their normal life expectancy. In all other respects, the policy provisions and limits of liability remain unchanged. This coverage is void if you fail to comply with its provisions. SEE ALSO GENERAL EXCLUSIONS, DEFINITIONS, PROVISIONS, AND STATUTORY CONDITIONS OF THIS POLICY Halwell Mutual Page 33

34 Guaranteed Replacement Cost Endorsement Guaranteed Replacement Cost is only available on Comprehensive plus Homeowners packages and subject to the following conditions. The Dwelling must Be insured 100% to value as calculated by a rebuilding cost estimator program or worksheet approved by Halwell Mutual; Be constructed of standard construction features; and Have a minimum of 100-amp service. Townhouses built since 1975 will qualify for this endorsement Guaranteed Rebuilding Cost Ineligibility Risks with any of the following characteristics are ineligible for the Guaranteed Replacement Cost Endorsement. Any Dwelling: Constructed of materials such as solid stone, logs, straw, or any other unique building materials; Which is very unique in anyway; With an Indoor swimming pool; and/or Built prior to Which is protection 3 Guaranteed Rebuilding Cost Endorsement Additional Considerations When underwriting a risk to determine eligibility for this coverage please ensure Debris Removal Cost is included in the rebuilding cost, as determined by a completed Home Evaluation worksheet. Any Dwelling valued in excess of $750,000 (Replacement Cost) must be presented to Underwriting for approval prior to binding. Two photographs of the risk are required at the time the application is submitted for consideration to the Company. Upon approval and coverage allowance the dwelling must be inspected by the Broker as soon as possible. The Insured must accept an annual inflation adjustment in coverage and notify the Company within thirty (30) days of commencing any additions or physical changes which may increase the replacement cost by $5,000 or more, as determined by a Home Evaluation worksheet. Dwellings must be (promptly) rebuilt on the same site as was originally insured Halwell Mutual Page 34