UTAH HOMEOWNERS PREFERRED PROGRAM MANUAL

Transcription

1 TABLE OF CONTENTS TABLE OF CONTENTS... 1 FORMS LIST... 3 PROGRAM DESCRIPTION... Error! Bookmark not defined. UNDERWRITING GUIDES...4 Eligible Risks... 4 Ineligible Risks... 4 Course of Construction... 5 Secondary Residence Requirements... 5 Inspections... 5 Insurance to Value... 5 Replacement Cost Estimator 5 Photos... 5 Reports... 5 GENERAL INFORMATION...6 Applications... 6 Billing Fee... 6 Binding... 6 Cancellation/Non-Renewal... 6 Construction/Occupancy Definitions... 7 Coverages and Forms Descriptions and Requirements... 8 Section I Coverages - Property Damage... 8 Required Coverages... 9 Eligibility... 9 Additional Interests or Additional Insureds - Use Form HO Condominium Unit-Owners Policy Form HO Farms 9 Mobile Homes, Trailer Homes or House Trailers Owners Policy Forms HO or HO with HO Permitted Incidental Business Occupancies Secondary Residence Premises Minimum Premium Non-Sufficient Fund Fee Policy Term Premium or Form Revision...10 Protection Class/Community Mitigation Classification Information Restriction of Individual Policies Animal Liability Exclusion Use Form DOG Roof Exclusion - Use Form ROOF Exclusion for Outbuildings - Homeowners - Use Form OUTBLDG CREDITS, DEDUCTIBLES & CHARGES Age of Dwelling Factors Alarm and Protective Device Credits Use Form HO Course of Construction Deductible Options Mature Homeowners Credit Multi - Policy Non-Smoker Discount Policy Fee

2 Secondary Residence Premises Surcharge Swimming Pool Surcharge...13 Tier Charges or Credits - Condition/Stability/Credit Management Trampoline Surcharge Wood Burning Stove Surcharge Mandatory Forms Additional Liability Exclusions Use Form PRE Exclusion Claims Arising Out of Lead Use Form GLE Limited Fungi, Wet or Dry Rot or Bacteria Coverage Use Forms HO 04 31, 32 or No Coverage for Home Day Care Use Form HO Policy Signatures Form Use Form IL Pollution Exclusion Use Form PRE Special Provisions Use Form HO Trampoline Exclusion Use Form UT HO ADDITIONAL COVERAGES Coverage C Increased Limit...16 Earthquake Coverage - Use Form HO Extended Replacement Cost (Specified Additional Coverage A) Use Form HO Inflation Guard Use Form HO Other Structures Increased Limits Use Form HO Special Personal Property Use Form HO Executive Enhancement Endorsement Use Form HOC0019UT Scheduled Personal Property Use Form HO Upgrade Package Forms HO 04 90, HO & HO Personal Property Replacement Cost Form HO Water Back Up and Sump Overflow Use Form HO Refrigerated Personal Property Form HO LIABILITY COVERAGES...19 Residence Premises Liability Increased Limits 1 or 2 Family Residence Additional Residence Occupied by Insured Extend Liability - no form necessary Additional Residence Rented to Others Use Form HO RATING RULES Homeowners Forms Condominium Form HO FORM HO BASE PREMIUM CHART Coverage C Premiums...20 Coverage A Premiums...20 FORM HO BASE PREMIUMS Protection Classes FORM HO BASE PREMIUMS Protection Classes 8B, 9 &

3 FORMS LIST Forms Date Title HO Special Form HO Condo Form HO Special Personal Property Coverage HO Special Provisions - Utah HO Premises Alarm or Fire Protection System HO Specified Additional Amount of Insurance HO Limited Fungi, Wet or Dry Rot, etc.- Forms except HO HO Limited Fungi, Wet or Dry Rot, etc.- Form HO HO Limited Fungi, Wet or Dry Rot, etc.- Form HO with HO HO Additional Insureds HO Inflation Guard HO Other Structures - Increased Limits HO Earthquake HO Scheduled Personal Property HO Personal Property Replacement Cost HO Water Back Up and Sump Overflow HO Home Day Care Coverage Limitation HO Refrigerated Property Coverage Forms Date Title DOG Animal Liability Exclusion IL Policy Signature Page GLE Exclusion Claims Arising Out of Lead HOC0019UT 0303 Executive Homeowners Coverage Form PDE Dwelling in the Course of Construction PRE Additional Liability Exclusions OUTBLDG Exclusion for Outbuildings - Homeowners PRE Pollution Exclusion ROOF Roof Exclusion UT HO Trampoline Exclusion 0704 Policy Declarations Page UU Property Underwriting Questionnaire 3

4 UNDERWRITING GUIDES Eligible Risks 1. Owner-occupied residential dwellings 2. Owner-Occupied residential units 3. Dwelling or Unit must be insured s primary residence or, if the residence is secondary, we must also insure the primary residence 4. Year of Construction 1960 or newer. (Homes built prior to 1960 may be acceptable in standard.) 5. Primary source of heat must be electric, natural gas, propane or properly installed solar 6. Woodburning stoves allowed only as auxiliary source of heat Ineligible Risks 1. Dwellings or premises in poor physical condition. 2. Poor moral risks, poor credit history, judgments or more than two (2) mortgages. No bankruptcy within the past 3 years 3. Properties in foreclosure, bankruptcy or repossession 4. Risks with prior arson losses 5. One or more claims in the past 36 months 6. Vacant, seasonal dwellings, or dwellings advertised for sale at time of application 7. Mobile, Manufactured, or Modular Homes 8. Homes with flat roofs 9. Animals with high risk of liability claims Risks with vicious, dangerous or exotic animals. Risks with prior animal liability claims. Risks with prior dog bite claims. Risks with large dogs or multiple dogs Risks with Rottweilers, Chows, Pit Bull/Staffordshire Terriers, Doberman Pinchers, Akitas, Siberian Huskies, Sharpeis, Malamutes, Wolf-Hybrid and German Shepherds or other breeds known to be aggressive. Call for approval on all questionable breeds. 10. Any Commercial exposures or Corporate owned properties 11. Farm properties. 12. Farm animals or Livestock on premises (refer to underwriting) 13. More than two horses on premises 14. Cabins or Mountain locations (refer to standard program) 15. Primary source of heat is not electric or gas (e.g.: propane, coal, wood, kerosene) 16. Dwelling or appurtenant structures with existing damage unless specifically excluded. 17. Swimming pools with diving boards or slides. Above ground swimming pools unacceptable. 18. Risks of sub-standard construction. 19. Risks with poor housekeeping and maintenance conditions. 20. Homes with open foundations. 21. Homes not built by a licensed contractor. (Contractor must have minimum of $1M CGL policy for homes in the course of construction.) 22. Unusual liability exposure (e.g. unfenced pools, stairs with no handrails, etc.). 23. Dwellings on a slope of 35 degrees or more. 24. Dwellings built on piers or posts. 25. Dwelling which are architecturally unique (e.g. geodesic, earthen, log homes). 26. Dwellings with less than 1000 square feet of living area. NOTE: The final decision as to acceptability will remain with the company -Swimming Pools require prior approval from underwriting (a surcharge applies) -Properties valued above $500,000 require prior approval from underwriting. -Risks with trampolines must have a fenced yard (a surcharge applies). Special trampoline safety netting is strongly recommended. 4

5 Course of Construction 1. Available for Form HO only 2. To be occupied by the named insured 3. Photos must be submitted upon completion 4. Dwelling must be rated using the address where being constructed (not insured s current address) Secondary Residence Requirements 1. Must be located within protection classes Primary dwelling must be insured with the CSE Insurance Group 3. Must be owned by named insured, no multiple owners 4. Must be used exclusively by insured, no rental or time share 5. No Discounts are available and a surcharge applies 6. Liability must be extended to the secondary from another policy Form HO This policy is available for the owner occupied home used exclusively as a private residence, which is less than 40 years old, and may not be more than two separate family units. Minimum $100,000 Coverage A to a maximum of $1,000,000. HO with HO 0015 Homeowner This policy is available for the owner occupied home used exclusively as a private residence, which is 30 years old or less, and may not be more than two separate family units. Minimum $100,000 Coverage A to a maximum of $1,000,000. HO Unit Owner This policy is available for the owner occupied townhouse, condominium, or co-operative units. Coverage A included limit is $5,000. This may be increased to a maximum of $200,000. The Coverage C minimum is $15,000 subject to a maximum limit of $250,000. Inspections The company reserves the right to order an inspection of any insured premises. This inspection may be interior or exterior. If requested, the inspection must be allowed or a policy cancellation will be processed. Insurance to Value Dwelling Must be insured at 100% of actual cash value, if written on ACV settlement, or 100% of Replacement Cost if written on Replacement Cost settlement. No co-insurance applies. Replacement Cost Estimator A replacement cost estimator is required to be submitted with the application on each risk. Photos United Underwriters will obtain photos of dwellings located in protection classes 1-6. Photographs of dwellings located in protection classes 7-8 are required by the agent. Photos of ALL woodstoves must be submitted on all homes with this exposure. New photographs will be required every seven (7) years for renewal policies. Reports Credit Bureau reports, credit scores and other financial or claims reports such as CLUE or UNCLE s may be obtained to verify and document underwriting requirements and rating accuracy. 5

6 GENERAL INFORMATION The Homeowners Program provides property and liability coverages. The rules, rates, forms and endorsements filed by or on behalf of the Company for each coverage shall govern in all cases not specifically provided for in this manual. Applications Each application must be fully completed, dated, and signed by both the agent and insured. It is imperative that the application includes all the information requested and needed to properly underwrite the risk submitted. All required sign-offs must be competed. Include complete addresses, names and verifications when necessary. The identity and address of all owners and entities with an insurable interest in the property must be included. Billing Fee There will be a fully-earned billing fee of $5 when applicable. Binding Risks will be bound as of the date of the producer s request if the application is postmarked to the company within 72 hours of the bound date. Cancellation/Non-Renewal Flat cancellation is not permitted once a policy is in force, except in the case of proven identical duplicate coverage. A binder is considered a policy. Cancellation at the request of the insured must be accompanied by the insured s latest declarations page or a signed Acord Cancellation Request/Policy Release and giving the reason for cancellation. There will be a flat $25 fee assessed instead of a short rate penalty. Cancellations for underwriting reasons are pro-rata. Cancellation at agency request is not allowed. Any cancellation or non-renewal will be in compliance with applicable Sections of Utah Insurance Laws. 6

7 Construction/Occupancy Definitions Brick Exterior walls of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block/stone, masonry veneer of brick or stone over frame (classified as brick if 50% or more brick from foundation to roof line.) Frame Exterior walls of wood or other combustible construction, including iron-clad, metallic siding, stucco on wood, or plaster on combustible supports. Pre-Fab or The entire house is built in a factory, shipped to consumers premises in Modular sections, and assembled on the site, in accordance with local building codes Site Built Home Condominium Secondary Dwelling Course of Construction Mobile Manufactured Seasonal Dwelling and laws. It is installed on a permanent foundation. Single building separated by space. Twin Homes or duplexes may qualify. Units must meet conditions of: a) No common utilities b) Each unit has a minimum of 900 square feet c) Units have a common wall constructed of fire resistant material with no opening/doorways between units d) Each unit has two entrances (i.e. front & back) e) Units are constructed with no part above (on top) of another unit. Building or project which is divided into individual owned units. Owner retains an undivided interest as a tenant in common facilities/areas utilized by all condominium residents. Occupied intermittently or for short periods of time such as weekends or holidays. Unoccupied home under construction Any home built on a steel chassis, moved to a site on wheels and set on pier and are anchored to the ground by steel straps or put on cinder blocks. Wheels may be removed and skirting put around the bottom of the dwelling. Popularly known as mobile home, built on a chassis (a metal frame) to conform to a regulatory code established by HUD. Most rest on piers and are anchored by steel straps. (Not eligible in UU programs) Unoccupied for three or more consecutive months during a one-year period. (i.e. cabin) 7

8 Coverages and Forms Descriptions and Requirements Forms HO Special Form HO with HO Special Form with Special Personal Property HO Unit-Owners Form Coverages Section I Property Damage Coverage A - Dwelling Coverage B Other Structures Coverage C Personal Property Coverage D Loss of Use Section II - Liability Coverage E Personal Liability Coverage F Medical Payments to Others Section I Coverages - Property Damage The following is a general description of the coverages provided by the individual Homeowners Policy forms. The policy shall be consulted for exact contract conditions. HO HO Fire or Lightning Yes Yes Windstorm or Hail, Explosion, Riot Yes Yes or Civil commotion, Aircraft, Vehicles or Smoke Vandalism or malicious mischief Yes Yes Theft Yes Yes Volcanic eruption Yes Yes Falling objects, Weight of ice, snow or sleet, Accidental discharge of Yes Yes water or steam, Sudden and accidental tearing apart of a heating system or appliance, Freezing, Sudden accidental damage from electrical current Additional risks with certain exceptions (Special Coverage) Replacement Cost For Coverages A and B For Coverage C** Yes * Cov. A & B Yes No * Additional risks may be added for Coverage C by purchase of HO 0015 (Form HO only) ** Replacement cost for contents coverage may be purchased using the Upgrade Coverage or the Executive Coverage. No Yes No 8

9 Required Coverages The minimum coverages required under the Homeowners Policy are as follows: It is mandatory that insurance be written for all coverages provided under both Section I (Property Coverage) and II (Liability) of the Homeowners Policy. If the following exposures exist, they must be declared and the proper additional premium paid: (1) All additional residence premises where the Named Insured or spouse maintain a residence other than business or farm properties; (2) Permitted incidental occupancies by the insured or on the residential premises of the insured. Section I - Property Damage Coverage HO HO A Dwelling Minimum Limit Refer to Underwriting Guidelines $5,000 B - Other Structures 10% of A N/A C - Personal Property 50% of A Refer to Underwriting Guidelines D - Loss of Use 20% of A 20% of C - Section II Liability - All Forms Coverage E - Personal Liability Coverage F - Medical Payments to Others $100,000 Each Occurrence $1,000 Each Person The limit of liability for Coverages E or F of Section II may be increased. The limit of liability for Coverage A on Form HO may be increased. The limit of liability for Coverage C on Form HO may be increased. Under Coverage B, an additional amount of insurance may be written on specific other structures. Coverage D may not be increased. Eligibility Additional Interests or Additional Insureds - Use Form HO Additional Insured Endorsement HO may be attached: 1. To cover the seller s interest in the building and premises liability in the case of a purchaser/occupant; or 2. To cover the owner s interest in the building and premises liability in the case of a life estate agreement; or 3. To cover the interest of additional owners. There is no premium charge for this endorsement. This coverage is limited to the building and premises liability. Condominium Unit-Owners Policy Form HO A condo policy may be issued to the owner-occupant of a Townhouse or Condominium or Cooperative Unit which is used exclusively for residential purposes. Farms A Homeowners Policy shall not be issued covering any property to which farm forms or rates apply. 9

10 Eligibility (continued) Mobile Homes, Trailer Homes or House Trailers A Homeowners Policy shall not be issued to cover any mobile home, trailer home, or house trailer whether or not set on blocks, foundations or otherwise made stationary. Owners Policy Forms HO or HO with HO May be issued: 1. To an owner-occupant of a dwelling which is used exclusively for private residential purposes, other than incidental business occupancies; or 2. To cover while in course of construction only the interest of the intended owneroccupant in the dwelling provided the completed dwelling will be used exclusively for residential purposes. 3. To one of the co-owners of a dwelling provided at least one co-owner occupies the dwelling. 4. To the purchaser-occupants who reside in the dwelling, have entered into a long term installment contract purchasing the dwelling and to whom the title will not pass until all the terms of the contract have been met. The seller retains the title until completion of the payments and the seller does not in any way act as a mortgagee. Permitted Incidental Business Occupancies Incidental occupancies are not permitted in the preferred program. Secondary Residence Premises A policy may be written to cover a secondary location meeting the requirements of the eligibility rule, subject to the rates and rules of this manual and for an additional fee. Minimum Premium A minimum premium of $225 is applicable for HO A minimum premium of $125 is applicable for HO Non-Sufficient Fund Fee Any check sent back to United Underwriters due to insufficient funds will be charged twenty-dollars ($20.00). Policy Term The Homeowners Policy may be written for a one-year term. Premiums are for an annual term. Premium or Form Revision A policy may not be endorsed or canceled and rewritten for the sole purpose of taking advantage of a change in premium resulting from a Premium Revision. 10

11 Protection Class/Community Mitigation Classification Information Classification of Public Fire Protection (PPC) 1. The protection class indicated applies in a municipality or classified area where a single class of fire protection is available throughout (e.g. 8, 7, 6, etc.) 2. In a classification where two or more classifications are shown (split classifications - e.g. 6/9 or 6/8B) the classification is determined as follows: Distance to Fire Station Class a. 5 road miles or less with hydrant distance within 1000 feet * b. 5 road miles or less with hydrant distance beyond 1000 feet 9 or 8B c. Properties not listed in a or b 10 * First Protection Class (e.g., 6/9 use Class 6) 3. In a split classification where no hydrants are installed (e.g. 9/10) or hydrant distance does not apply due to an alternative water supply (e.g. 7/10): Distance to Fire Station Class a. 5 road miles or less * b. Properties not listed in a. above and all others 10 * First Protection Class (e.g., 7/10 use Class 7) 4. Subscription fire departments are indicated by a footnote. Class 10 applies to individual properties that do not subscribe to the listed subscription fire department. When other than Class 10 is applied attach copy of fire department contract. Restriction of Individual Policies If a Homeowners Policy would not be issued because of unusual exposures, the Named Insured may request a restriction of the policy provided no reduction in the premium is allowed. Animal Liability Exclusion Use Form DOG-00 Allows specific animals to be described and excluded. Requires signature of insured. Roof Exclusion Use Form ROOF-00 Allows roofs to be excluded when we would not otherwise accept the risk. Exclusion for Outbuildings Homeowners Use Form OUTBLDG-00 Allows Outbuildings to be excluded when we would not otherwise accept the risk. 11

12 CREDITS, DEDUCTIBLES & CHARGES Age of Dwelling Factors - Form HO For the purposes of this rule, a dwelling is considered new if it has been completed and occupied within the last year. Subtract the year of construction (date completed and first occupied) from the effective date of coverage to determine age of dwelling. Age of Dwelling Credit or Charge Less than 1 Year -25% 1 Year -22% 2 Years -20% 3 Years -16% 4 Years -12% 5 Years -10% 6 Years - 8% 7 Years - 6% 8 Years - 4% 9 Years - 2% 10 Years None Alarm and Protective Device Credits Use Form HO The following credit may be applied for an approved and properly maintained alarm system provided proof of installation has been submitted to the company. Alarm Fire and Burglar Alarm Reporting to the Fire Department and the Police Department or to a Central Station Credit 5% Course of Construction Dwellings in the course of construction may be insured if the named insured is to be the occupant. A 50% credit may be applied. Deductible Options Deductible Amount HO HO $250 Base Base , , The above deductible factors apply to all property endorsements and coverage. 12

13 Mature Homeowners Credit If the insured is age 55 or older and retired, a 10% credit may be applied. Multi - Policy When the Named Insured has an in force Auto policy with the CSE Insurance Group, a 5% Discount applies to the Homeowners Policy including Form HO Non-Smoker Discount If all occupants of the home or condominium unit are non-smokers, a 10% credit may be applied. Policy Fee A $10 policy fee is applicable to all new policies. Fees are fully earned at policy issuance. Secondary Residence Premises Surcharge If the insured owner-occupied dwelling is not the primary residence, apply a 25% surcharge. Swimming Pool Surcharge If the there is a swimming pool on the insured residence, apply a surcharge of $50. Pools with diving boards and/or slides are not acceptable in any program. Above ground swimming pools more than 36 deep also unacceptable. Civil Service Employee Discount: A 10% policy discount will be applied if the named insured is a public employee. Employer and Occupation must be listed on application and copy of employee i.d. submitted with application, to qualify for discount. Tier Charges or Credits - Condition/Stability/Credit Management Tier Tier Criteria Protection classes 1-5, Dwelling Construction 1978 or newer. Amount of Insurance $150,000 or higher. No swimming pools. No Trampolines. Choice Point Attract Auto Credit Score Protection classes 1-6, Dwelling Construction 1978 or newer. Amount of Insurance $150,000 or higher. No swimming pools. No Trampolines. Choice Point Attract Auto Credit Score Protection classes 1-7, Dwelling Construction 1970 or newer or updates within the past 10 years. Amount of Insurance $125,000 or higher. Choice Point Attract Auto Credit Score Protection classes 1-8, Dwelling Construction 1960 or newer. Amount of Insurance $125,000 or higher. Choice Point Attract Auto Credit Score Protection classes 1-8, Dwelling Construction 1960 or newer. Amount of Insurance $100,000 or higher. Choice Point Attract Auto Credit Score Below 600 Refer to Standard Program Charge or Credit - 15% - 7% Base +7% +15% 13

14 Trampoline Surcharge If the there is a trampoline on the insured residence, apply a surcharge of $50. Wood Burning Stove Surcharge Wood or coal burning stove questionnaire must be completed, signed, and must include two (2) photos -- one of the stove and one of vent system on outside of dwelling, when a wood or coal stove exposure exists. The questionnaire and photos must be submitted with the application. The questionnaire must be completed and signed by a licensed contractor or member of the local fire department, when the wood stove is not factory installed or commercially installed by a licensed contractor or appliance distributor. There is a surcharge of $25 per Exposure. 14

15 Mandatory Forms Refer to forms for detailed description of coverage. In case of any differences, the form will prevail. Additional Liability Exclusions Use Form PRE Form excludes assault and sexual molestation, etc. Exclusion Claims Arising Out of Lead Use Form GLE-8023 Excludes liability for claim arising out of direct or indirect exposure to lead or lead products. Limited Fungi, Wet or Dry Rot or Bacteria Coverage Use Forms HO 04 31, 32 or 33 Form HO is used with Form HO without HO attached Form HO is used with Form HO with HO Form HO is used with all other forms. The following limited amounts of insurance are automatically provided: Section I Fungi, Wet or Dry Rot or Bacteria - $10,000 for loss to covered real or personal property. Section II Fungi, Wet or Dry Rot or Bacteria - $50,000 for damages because of bodily injury or property damage involving the inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any fungi, wet or dry rot or bacteria. No Coverage for Home Day Care Use Form HO An ISO form which limits Section I Coverage and excludes Section II coverage for Home Day Care Operations. Policy Signatures Form Use Form IL 7021 Adds appropriate Company Officers Signatures to the policy. Pollution Exclusion Use Form PRE-1215 Pollution exclusion including damages from a hostile fire which involves pollutants. Special Provisions Use Form HO An ISO form which revises the basic policy to comply with state specific requirements. Provides 10% of Coverage A for Ordinance and Law Coverage, redefines definition of collapse, glass replacement is changed to safety glazing material, clarifies meaning of earth movement and other provisions and adds Utah specific cancellation and nonrenewal criteria. Trampoline Exclusion Use Form UT HO 23 Excludes liability for loss due to use of trampoline unless trampoline surcharge assessed 15

16 ADDITIONAL COVERAGES Coverage C Increased Limit Form HO only The limit of liability for Coverage C may be increased at a rate of $0.21 per $100 of increase. This applies only to ACV coverage. Earthquake Coverage - Use Form HO When Earthquake coverage is provided, it shall apply to all Section I Coverages for the same limits as provided in the policy. The deductible is 5% of the limit of liability for either Coverage A subject to a minimum deductible of $250. The rate per $100 is as follows: Form Frame Other Applied to HO $ Coverage A Limit If Exterior veneer is covered on a veneer home, charge the other rates. If it is excluded, use the frame rates. Extended Replacement Cost (Specified Additional Coverage A) Use Form HO Form HO Only The endorsement waives the policy limit on Coverage A - Dwelling in the event a covered property loss exceeds that amount. It provides for a maximum loss payment of 125% of the coverage limit for Coverage A - Dwelling. The policy limit must be equal to 100% of replacement cost. A Residential Cost estimator must be completed and submitted with application and/or endorsement. There is a $5 premium charge. Inflation Guard Use Form HO The policy may be endorsed to provide for automatic increases of 5% in the Section I Coverages. At the option of the insured, this may be added to any form. The additional premium is $5. Other Structures Increased Limits Use Form HO Form HO only An additional limit of liability may be provided for specific structures located on the residence premises. The rate is $0.94 per $100. Special Personal Property Use Form HO Available for Form HO only Expands the perils for personal property from named perils to risks of physical loss unless excluded basis. There is a 15% additional premium. 16

17 Executive Enhancement Endorsement Use Form HOC0019UT Form HO Only All endorsements included in the Upgrade Package (see next page) are included automatically with this endorsement along with additional coverages outlined below. A brief description of the HOC0019UT coverage follows. Refer to the forms for exact coverage. Coverage C - Personal Property is increased to 70% of Coverage A Replacement Cost on Personal Property Extended Home Replacement Cost with Specified Additional Limit of 25% $10,000 Credit Card/Fund Transfer coverage $1,000 unregistered Recreational Vehicle for use off public roads Lock-Replacement Coverage $500 Refrigerated Products Coverage Debris Removal Coverage for Loss Sustained $5,000 Loss Assessment Coverage Ordinance or Law Coverage 10% additional coverage increased to 25% $10,000 Water Backup of Sewer or Drains No Vacancy Exclusion for Glass Breakage and V&MM $10,000 Coverage for Personal Property regularly kept away from premises $2,500 Damage To Property Of Others Personal Injury Liability Incidental Business Liability if annual proceeds $5,000 or less Increased Special Limits on Personal Property: Limit Type of Property $ 1,000 Money, bank notes, gold, silver, coins, etc. $ 5,000 Securities, accounts, deeds, tickets and stamps, etc. $ 2,000 Watercraft, including their trailers, furnishings or equipment and outboard motors $ 2,000 Other types of trailers $ 5,000 Theft or misplacing of jewelry, watches, furs and precious and semi-precious stones $ 5,000 Theft or misplacing of guns $10,000 Theft or misplacing of goldware, silverware, silver-plated ware, pewterware, etc. $10,000 Business property while on the residence premises $ 1,000 Business property away from the residence premises The premium for this coverage is a charge of 20%. 17

18 Scheduled Personal Property Use Form HO When coverage is desired for Scheduled Personal Property a minimum premium of $15 is applicable. The additional premium for each $100 of insurance shall be as follows: Scheduled Property Rate per $100 Cameras and Projection Equipment * $1.60 Coin Collections - Rare and Current Coins 1.60 Computers 1.60 Fine Arts (breakage excluded) 0.53 Furs (personal) 0.45 Golfer s Equipment 1.60 Guns 1.60 Jewelry 1.20 Musical Instruments * 0.53 Silverware 0.53 Stamps (postage stamp collections) 1.60 *Non-professional only. A professional is a person who uses the insured instrument(s) or camera(s) for any remuneration. Upgrade Package (Deluxe Form) Forms HO 04 90, HO & HO Not available when the Executive Enhancement Coverage is chosen The following three coverages are included in the upgrade package. They are not available separately. Personal Property Replacement Cost Form HO This form changes the Coverage C Personal Property Loss Settlement from Actual Cash Value to Replacement Cost. Use of this form increases the Coverage C limit to 70% of Coverage A. Replacement cost also applies to items scheduled in this policy. Water Back Up and Sump Overflow Use Form HO This endorsement covers loss caused by water that backs up through sewers and drains, or water that overflows from within a sump. A $250 Deductible applies to this coverage. The maximum paid under this endorsement is $5,000. Refrigerated Personal Property Form HO This form provides $500 of coverage for covered property stored in the freezers or refrigerators on the residence premises for loss caused by power service interruption or mechanical failure. The amount of $100 per occurrence will be deducted from each loss. For Form HO 00 03, increase the base premium by 15%. For Form HO increase the base premium (A & C) by 25%. 18

19 LIABILITY COVERAGES The basic limit of liability for Coverage E - Personal Liability is $100,000. The Coverage F - Medical Payments To Others basic limit is $1,000 per person and $25,000 per occurrence. These limits may be increased as shown below. If the policy provides any additional liability coverages, these must match the coverage amount for the residence premises, unless otherwise noted. Residence Premises Liability Increased Limits 1 or 2 Family Residence Limit of Liability Covg E $100,000 $300,000 $500,000 Premium Base Medical Payments Limits Covg F $1,000 $3,000 $5,000 Premium Base Additional Residence Occupied by Insured Extend Liability - no form necessary If the insured maintains a one or two family dwelling in addition to the principal residence, coverage may be extended from the primary policy. Use to extend liability from the primary policy to a Secondary location. Limit of Liability Covg E $100,000 $300,000 $500,000 1 or 2 Families The above charges apply regardless of the Medical Payments Limit. Additional Residence Rented to Others Use Form HO If the Insured owns not more than two (one or two family) dwellings) rented to others, coverage for Liability and Medical Payments may be extended from the primary residence policy. Limit of Liability Covg E $100,000 $300,000 $500,000 1 or 2 Families The above charges apply regardless of the Medical Payments Limit. 19

20 RATING RULES A special 10% cap will apply for all existing policyholders which will be rolled into this new program. All CSE Safeguard renewals will be renewed and re-rated in the new program with their renewal premium not to exceed 110% of the prior term premium. At each subsequent renewal, the premium will be increased by an amount not to exceed 10% until the policy premium reaches the filed rate level. Homeowners Forms The basic premiums for Form HO are shown on the following Homeowners Base Premium Charts. For Form HO with HO apply a factor of 1.15 to the Form HO premium after the deductible charge or credit is applied. Condominium Form HO Coverage C Use the premiums on the HO Base Premium Chart shown below for the selected Coverage C amount of insurance. Coverage A The policy includes $5,000 of Coverage A. Higher limits may be provided. See below FORM HO BASE PREMIUM CHART Coverage C Premiums Amount Number of Units of Ins $25,000 $107 $140 30, , , , , Each Add'l $1,000 $2.63 $3.15 Coverage A Premiums Higher limits for Form HO Coverage A may be provided at a rate of $1.00 per $1,000 of increase. 20

21 FORM HO BASE PREMIUMS Protection Classes 1-8 Protection Classes Protection Classes Amount & 8 Amount & 8 of Ins. Brick Frame Brick Frame of Ins. Brick Frame Brick Frame $50,000 $173 $192 $192 $211 $210,000 $548 $609 $609 $670 55, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Each Add'l 200, $1,000 $2.16 $2.29 $2.29 $ ,

22 FORM HO BASE PREMIUMS Protection Classes 8B, 9 & 10 (currently not available in Preferred ) Protection Classes Protection Classes Amount 8B & 9 10 Amount 8B & 9 10 of Ins. Brick Frame Brick Frame of Ins. Brick Frame Brick Frame $50,000 $248 $288 $317 $323 $210,000 $785 $915 $1,005 $1,025 55, , ,025 1,045 60, , ,046 1,066 65, , ,064 1,085 70, , ,083 1,104 75, , ,001 1,101 1,122 80, , ,017 1,120 1,141 85, , ,034 1,138 1,160 90, , ,052 1,157 1,179 95, , ,069 1,175 1, , , ,086 1,194 1, , , ,103 1,213 1, , , ,119 1,232 1, , , ,136 1,250 1, , , ,153 1,268 1, , ,000 1,006 1,170 1,286 1, , ,000 1,021 1,185 1,305 1, , ,000 1,033 1,201 1,321 1, , ,000 1,046 1,217 1,338 1, , ,000 1,049 1,220 1,343 1, , ,000 1,053 1,223 1,346 1, , ,000 1,055 1,226 1,349 1, , ,000 1,058 1,230 1,353 1, , ,000 1,059 1,233 1,355 1, , ,000 1,063 1,236 1,359 1, , ,000 1,065 1,239 1,363 1, , ,000 1,069 1,241 1,366 1, , ,000 1,071 1,245 1,369 1, , ,000 1,074 1,248 1,374 1, , , Each Add'l 205, ,004 $1,000 $3.35 $3.43 $3.94 $