New Business 12/2017 Renewal Business 02/2018

Transcription

1 American Integrity Insurance Company of Florida New Business 12/2017 Renewal Business 02/2018 Voluntary Dwelling December 2017 Page 1

2 Table of Contents TABLE OF CONTENTS... 2 BINDING AUTHORITY... 6 HURRICANE - TROPICAL STORM SUSPENSION... 7 ELIGIBILITY UNDERWRITING(NEW BUSINESS)... 7 GENERAL... 7 INELIGIBLE RISKS... 8 GENERAL CHARACTERISTICS... 8 PROPERTY FEATURES... 9 PROPERTY CONDITION LIABILITY EXPOSURE(S) PROPERTY VALUE(S) OR MORE THAN ONE HOME ON THE PROPERTY APPLICANT CHARACTERISTICS AND LOSS HISTORY GENERAL RULES APPLICANT AGE OF HOME (NEW BUSINESS AND RENEWAL) GREATER THAN 20 YEARS CANCELLATION OR REDUCTIONS IN LIMITS OF LIABILITY OR COVERAGE INFLATION GUARD INSURANCE SCORE LAPSE IN COVERAGE/NO PRIOR INSURANCE LOSS HISTORY RATING PLAN MINIMUM AND WAIVER OF PREMIUM MULTIPLE COMPANY INSURANCE OCCUPANCY/USE OTHER INSURED LOCATION - NO COVERAGE SINGLE BUILDING DEFINITION POLICY TERM PRIOR CANCELLATIONS/NON-RENEWALS PROPERTIES DEEDED IN AN LLC (LIMITED LIABILITY CORPORATION, TRUST OR CORPORATION) RENEWAL PLAN ROOF (NEW AND RENEWAL BUSINESS) SECONDARY/SEASONAL RESIDENCES (NEW BUSINESS) SWIMMING POOLS (NEW AND RENEWAL BUSINESS) TOWN OR ROW HOUSE (NEW BUSINESS) Voluntary Dwelling December 2017 Page 2

3 TRAMPOLINES (NEW AND RENEWAL BUSINESS) TRANSFER OR ASSIGNMENT WHOLE DOLLAR PREMIUM RULE INSURANCE TO VALUE BINDING AUTHORITY LIMITS/PROGRAM DESCRIPTION CONSTRUCTION DEFINITIONS MANUAL PREMIUM REVISION MULTIPLE LOCATIONS PROPERTIES LOCATED ON MORE THAN 5 ACRES IN PC PROPERTIES WITH FARM ANIMALS OR HORSES (NOT ON A FARM) PROTECTED SUBDIVISION RULE PROTECTION CLASS COVERAGE OPTIONS ADDITIONAL INSURED(S) ADDITIONAL INTEREST(S) COVERAGE B - OTHER STRUCTURES DECREASED OR INCREASED LIMITS COVERAGE C PERSONAL PROPERTY COVERAGE L - PERSONAL LIABILITY AND COVERAGE M - MEDICAL PAYMENTS TO OTHERS PREMISES LIABILITY (NON-OWNER OCCUPIED DWELLING) AIIC DP PL IS REQUIRED WHEN DWELLING IS NOT OWNER OCCUPIED AT LEAST 9 MONTHS. THIS FORM LIMITS LIABILITY COVERAGE TO THE INSURED PREMISES ONLY DEDUCTIBLES HURRICANE DEDUCTIBLES FLOOD COVERAGE HOME CYBER PROTECTION COVERAGE HOME SYSTEMS PROTECTION AND SERVICE LINE COVERAGE IDENTITY RECOVERY COVERAGE LIMITED FUNGI, MOLD, WET OR DRY ROT, OR BACTERIA COVERAGE ENDORSEMENT LIMITED THEFT COVERAGE LIMITED WATER DAMAGE COVERAGE LOSS ASSESSMENT COVERAGE INCREASED LIMITS ORDINANCE OR LAW COVERAGE OWNER OCCUPANCY PERMITTED INCIDENTAL OCCUPANCIES PERSONAL PROPERTY REPLACEMENT COST (NOT AVAILABLE FOR POLICIES EXCLUDING CONTENTS) SINKHOLE LOSS COVERAGE- FLORIDA VACANCY ENDORSEMENT Voluntary Dwelling December 2017 Page 3

4 WATER DAMAGE EXCLUSION ENDORSEMENT WIND OR HAIL- SCREEN ENCLOSURES AND CARPORTS (NOT AVAILABLE FOR POLICIES EXCLUDING WIND COVERAGE) WINDSTORM EXTERIOR PAINT OR WATERPROOFING EXCLUSION WINDSTORM OR HAIL EXCLUSION- FLORIDA PREMIUM CALCULATIONS AMOUNT OF INSURANCE AGE OF DWELLING BUILDING CODE EFFECTIVENESS GRADING COMMUNITY GRADING INDIVIDUAL GRADING UNGRADED AND NONPARTICIPATING RISKS PROTECTION CLASS/CONSTRUCTION TOWN OR ROW HOUSE DISCOUNTS/SURCHARGES PREMIUM FACTORS - NON HURRICANE BASE RATE ACTUAL CASH VALUE (ACV) LOSS SETTLEMENT WINDSTORM OR HAIL LOSSES TO ROOF SURFACING BOOK TRANSFER DISCOUNT ELECTRONIC POLICY DISTRIBUTION HARDIEPLANK SIDING DISCOUNT INSURANCE SCORE LAPSE IN COVERAGE/ NO PRIOR INSURANCE SURCHARGE OPEN FOUNDATION SURCHARGE PROTECTIVE DEVICES DISCOUNT REQUIRED DOCUMENTATION SECURED COMMUNITY/BUILDING DISCOUNT SENIOR/RETIREE DISCOUNT WATER LOSS PREVENTION PREMIUM FACTORS - HURRICANE BASE RATE WINDSTORM LOSS MITIGATION FEATURES A. ELIGIBLITY B. VERIFICATION C. RESIDENTIAL CLASSIFICATION DEFINITIONS: ADDITIONAL FEES EMERGENCY MANAGEMENT PREPAREDNESS AND ASSISTANCE TRUST FUND SURCHARGE (EMPATF) MANAGING GENERAL AGENCY (MGA) FEE STATE MANDATED FEES AND SURCHARGES Voluntary Dwelling December 2017 Page 4

5 PAYMENT PLAN OPTIONS Territory Base Rates Territory Definitions Rate Calculation Worksheet See Appendix See Appendix See Appendix Voluntary Dwelling December 2017 Page 5

6 BINDING AUTHORITY Agents have the authority to bind coverage on any risk that is not identified as "ineligible" in the Ineligible Risks section of this underwriting guide. Agent's authority is for the limits stated and outlined in the various sections of this manual. Any exceptions must be referred to the American Integrity Insurance Company of Florida (herein after referenced as the Company or AI) for approval prior to binding. A dwelling replacement cost estimator must be completed. The amount of coverage carried on the dwelling shall be one hundred percent (100%) of the current replacement cost or Actual Cash Value (80%) at inception or renewal. AI expects the agent to have a good understanding of the risk factors and condition of the property. All new business submissions must use forms approved by the Company and must be signed by the insured. Applications must be fully complete and payment must be submitted to the Company within 5 business days of binding. Original signed applications and all other required documentation must be maintained in the agent's files. The only exceptions are 4 Point Inspections (for homes over 30 years of age), Wind Mitigation Inspections (for homes built 2001 or prior), and Water Loss Prevention Discount Certification form which must be submitted to the Company. The Company will perform periodic audits of the agent's files to ensure compliance with all rules and guidelines. Note: Section of the Florida Statutes provides that any misrepresentation of material fact, omission or incorrect statement on an application for coverage may prevent recovery under the policy. All risks are subject to an inspection to confirm replacement cost values, risk characteristics, wind mitigation features, condition of risk, and insurability and/or general eligibility for coverage. The applicant must provide the name and phone number of the person responsible for securing access to both the interior and exterior of the dwelling, including arranging for permission to enter a gated/guarded community. Any requests to increase/decrease coverage may need to be submitted to underwriting. Submissions may require information other than that shown on the application. Agents should obtain any information that helps support acceptance of the request being submitted, especially when the information calls for more explanation or when this manual indicates that additional information is required. Such cases include but are not limited to: Documentation of updates to roofing, heating, wiring, plumbing, etc. Determination of replacement cost or Actual Cash Value Evidence of Flood Insurance policy, if required Evidence of Wind Mitigation features, hip roof and/or Opening Protection For renewal business, the Company has the option to perform an annual inspection to verify correct insurance to value, confirm rating variables such as construction type, and determine if there have been changes in exposure or increased hazards. AIIC will pay the inspection fee on renewal inspections. Our inspections may include but are not limited to an interior, exterior, sinkhole, wind mitigation features or any combination of these inspections. Risks that do not pass a sinkhole inspection will be non-renewed. The insured may request a comparable policy with no sinkhole coverage (the policy will continue to include Catastrophic Ground Cover Collapse Coverage). Refer to the Sinkhole Loss Coverage section of the manual for complete details. Voluntary Dwelling December 2017 Page 6

7 HURRICANE TROPICAL STORM SUSPENSION Agents binding authority automatically terminates for new business and coverage increase/decrease when a "Hurricane or Tropical Storm Warning" has been issued by the National Weather Service (NWS) of the National Oceanic and Atmospheric Administration or the National Weather Bureau based on the following rules: Hurricanes: Binding is restricted when the Hurricane is within the following boundaries: 72 W longitude, 15 N latitude, 90 W longitude, 32 N latitude. Tropical Storms: Binding is only restricted in areas under a tropical storm warning or watch. The rest of the state remains open. A Hurricane means a storm system that has been declared to be a hurricane by the National Hurricane Center of the NWS. The NWS currently uses the Saffir/Simpson Hurricane scales to categorize hurricanes. This scale specifies that a hurricane is a storm that originates in the tropics and results in either a sustained wind speed of at least 74 miles per hour or a storm surge of at least 4 feet above normal. No new coverage shall be written within the first seventy-two (72) hours after a tropical storm or hurricane has left the aforementioned defined area unless the Company has removed the binding restrictions, the agent has inspected the property to verify that no loss has taken place, obtained a signed no loss statement from the applicant and noted on the application that said inspection was made. Renewals will only be issued on an "as expiring" basis for coverage and perils; limits will only be increased to keep pace with established inflation factors. ELIGIBILITY UNDERWRITING(NEW BUSINESS) The risk must meet all qualifications and rules before it can be bound. If there is a question regarding the qualifications, please discuss with your underwriter prior to submission. GENERAL Coverage may be issued on a dwelling containing not more than four units; or a town or row house structure. A dwelling with Coverage A under $125,000 requires color photos (front and back) of home and must be submitted to the Company prior to binding. The peril of windstorm or hail may be excluded if property is eligible for such coverage from Citizens Property Insurance Company (CPIC) or if the insured signs the AIIC XWHR Windstorm or Hail Exclusion Rejection Form. Homes located in a Special Flood Hazard (SFHA) Area (any combination of Zone A or V) must be covered by a Flood insurance policy with a matching Coverage A limit or a Coverage A limit of $250,000, whichever is less. Modular homes - We offer DP3 coverage for modular homes. A modular home is constructed of pre-made parts and unit modules at the factory and the entire home is brought to the site in sections which are lifted onto the foundation where they are permanently anchored. Unlike manufactured homes, modular homes must conform to the building codes for the locations where they are erected and will have a DCA (Department of Community Affairs) sticker or other identifier (usually affixed to the electrical panel). Home must be protected with smoke detectors in close proximity of kitchen and sleeping areas. Porches or decks more than 2 feet off the ground or with 3 or more steps leading to them must have properly installed handrails or safety railings. Voluntary Dwelling December 2017 Page 7

8 Dwellings with an open foundation with an appropriate surcharge. The Company reserves the right to request color photos of any risk. Tenant occupied dwellings must be managed by a property management company if the owner lives more than 100 miles away from the property. INELIGIBLE RISKS DO NOT SUBMIT properties where the following exists: GENERAL CHARACTERISTICS Business Exposure- Properties where business is conducted. Two salient elements to help identify a business include: (1) a profit motive and (2) continuity of the activity. This includes but is not limited to: all manufacturing, retail sales when customer traffic is common, bed & breakfast operations, nursing homes, adult care facilities, produce stands, u-pick-it operations, animal kennels, repair work, hair salons and home day care (3 or more children). Farms and Ranches Properties (dwellings) which are part of a "working farm," working ranch, orchard or grove. "Working farms" are defined as properties with any livestock (such as cows, horses, hogs, goats, etc.), properties on which row crops are grown (other than a domestic garden), or properties with income producing farming/ranching operations. Condemned Properties Properties which have been condemned due to condition, properties located in a condemned area or properties in an area scheduled to be condemned due to urban renewal or highway construction. Inaccessible Properties Properties not readily accessible year round to fire department equipment. Isolated properties including barrier islands not connected to the mainland by a road or where emergency vehicles are unable to access a property due to road in poor condition. A road in poor condition includes but is not limited to: ungraded or unstable dirt, potholes, deep sand or other obstructions preventing emergency access. Isolated properties are defined as those that are not visible from at least two dwellings or in sight of a public road Commercial Properties Mobile/Manufactured Homes, Trailer Home, or House trailer Dwellings located in a Citizens High Risk Area or within 1500 feet of tidal waters. Dwellings Constructed Over Water Do-It-Yourself Construction- Buildings or structures that are homemade or rebuilt, or any dwelling with extensive remodeling without permits or a certificate of occupancy. Non-Habitational Properties- Residential risks used primarily for non-habitational purposes or dwellings that were originally designed or constructed for other than habitational purposes. Fraternity or Sorority Houses Fraternity, Sorority or any similar housing arrangement. Vacant or Unoccupied Properties- "Vacant" is defined as a dwelling with no contents or occupants, it is empty. Unoccupied includes dwellings with contents if the dwelling is no longer a place of usual return. Dwellings vacant or unoccupied 30 days or more before purchase by the insured. Risk is acceptable if it was vacant or unoccupied solely due to remodeling or renovation. A vacant home may be eligible for the DP1 Vacant program. Exceptions may be made for Secondary/Seasonal homes. Risks located in a Protection Class 10 Refer to the Properties located on more than 5 Acres in a PC 9 or a PC 10 property of the section of the manual for additional details. Properties subject to brush or forest fire. Premium financing as a payment option Daily or weekly rentals Voluntary Dwelling December 2017 Page 8

9 PROPERTY FEATURES Dwellings of unconventional construction or materials including but not limited to Log or Dome homes, etc. Dwellings in the course of construction. Dwellings with asbestos, Exterior Insulation and Finish Systems (EIFS) (aka synthetic stucco ) siding, nonstandard or hazardous building materials (Chinese drywall). Dwellings with an open foundation (May be written on a DP-1). Roofing: A roof that is worn, with patched areas, multi-layered or has unrepaired damage 3-tab composition shingle roofs more than 15 years old; architectural composition shingle roofs more than 20 years old; validation of roof condition and life expectancy may be required at new business or prior to renewal. Tile or metal roofs more than 40 years old; validation of roof condition and life expectancy may be required at new business or prior to renewal. Asbestos shingle, tin/aluminum or wood shingle roofs. A flat or low pitch roof unless it is less than 20% of the total roof structure. Roofs that have a 2/12 pitch (9.46 degrees) or less (i.e. the roof rises 2 inches for every 12 horizontal inches) are considered flat or low pitch. (AI will not consider roofs of porches or carports that are attached only to the fascia or wall of the host structure over unenclosed space in the determination of roof structure.) Plumbing: Homes over 20 years must have plumbing including water heaters must be in good condition, properly maintained without evidence of leakage. Updates must be completed as necessary and all components of the system maintained. Dwellings with polybutylene plumbing or PEX plumbing Heating (Heating Ventilation and Air Conditioning): Homes over 20 years old HVAC systems must be in good condition, properly maintained, and sufficient for the size of the dwelling. For heating, complete replacement of the heating plant or heat exchanger is necessary. For cooling, replacement of the central air conditioning unit or a/c compressor essential. Dwellings heated by solid fuel heating devices, such as wood burning stoves or fireplace inserts. If these devices are present, they must be professionally installed and meet all code requirements. Dwellings heated by a device which is not controlled by a wall-mounted thermostat (e.g. portable space heater, portable gas heater, or any device utilizing an open flame). Electrical: Properties with any potential hazardous electrical conditions, knob & tube wiring, fuses or Aluminum branch wiring which has not been updated to conform to current local codes Properties equipped with electrical service less than 100 amps Federal-Pacific, Stab-Loc, Zinsco, Challenger, or Sylvania electric panels or breakers. Risks with additional circuits without increasing total system service. Voluntary Dwelling December 2017 Page 9

10 PROPERTY CONDITION Properties in a state of disrepair or properties with existing damage. Dwellings which are not properly maintained, this includes but is not limited to: Dwelling(s) or unattached structure in poor condition, In need of paint or repairs Clutter/debris Large limbs overhanging home Un-kept property, etc. LIABILITY EXPOSURE(S) Excessive or Unusual Liability Exposure including but not limited to: A pit bull, or Staffordshire Bull terrier, wolf, wolf hybrid or any mix of such dogs, owned by the insured or kept on the premises, are ineligible animals Any animal with aggressive tendencies, history of attack or trained as an attack animal owned by the insured or kept on the premises. This includes non-domesticated and/or exotic animals. Pools not completely fenced, walled or screened. The fence or wall must be of a material that provides a reasonable barrier to entry (e.g. chain link, wood, steel or aluminum), be at least 4 high, permanently installed, comply with local ordinances, and have a self-locking gate or door. The pool may not have a diving board, diving platform or slide. Above ground pools must have steps that can be locked in the up position. Trampolines in unfenced yards. The fence or wall must be of a material that provides a reasonable barrier to entry (e.g. chain link, wood, steel or aluminum), be at least 4 high, permanently installed, comply with local ordinances, and have a self-locking gate or door. Attractive nuisances including but not limited to: racing or activity courses, large play grounds, skate board or bicycle ramps. Disabled, unused, or untagged vehicles on the premises. Risks where the insured owns recreational vehicle(s) including but not limited to: ATV, (All Terrain Vehicles), Dune Buggy, Go Cart, or Dirt Bike. Risks are acceptable if insured provides proof of separate liability coverage with the same limit as provided on this policy. Evidence must be maintained in Agent s Office and is subject to audit at the request of the Company. PROPERTY VALUE(S) OR MORE THAN ONE HOME ON THE PROPERTY Coverage Limits Minimum/Maximum- Properties for which replacement cost (Coverage A ) or Actual Cash Value is either below or above the limits shown in the Binding Authority Limits section of the Dwelling Property Program Manual. Replacement Cost/MARKET Value Ratio Properties with Replacement Cost exceeding 1 1/2 times the MARKET value, excluding land values. Homes in foreclosure or repossessed within the past twelve months are subject to underwriting approval. Risks with more than one dwelling on the premises, whether a home or manufactured home, without separate parcel, deed or separate address. A single family residence occupied by more than one family. APPLICANT CHARACTERISTICS AND LOSS HISTORY Risks with any prior or current Sinkhole activity on the premises whether or not it results in a loss to the dwelling. If any prior sinkhole loss, coverage cannot be bound. Properties located Voluntary Dwelling December 2017 Page 10

11 in close proximity (0.5 miles) to confirmed or reported sinkholes will not be issued with Sinkhole Loss Coverage. Refer to the Sinkhole Loss Coverage section of the manual for complete details. Arson or Insurance Fraud At the time of application, applicants convicted of arson in the past 25 years, cancelled for insurance fraud in the past 15 years or material misrepresentation on an application for insurance in the past 7 years. Applicant(s) who have had a bankruptcy, repossession or foreclosure within the past 5 years. Applicants who have sustained more than one (1) loss of any type, other than a weather related event, within the last 36 months are ineligible. Loss history will be verified with a CLUE report ordered at the time of binding. For applicants who have sustained a fire or liability loss in the last 5 years, coverage cannot be bound. Refer to underwriting for further review. Property claims that are a result of an act of God will not be used as a cause for cancellation or non-renewal unless the insured has failed to make the necessary repairs. GENERAL RULES The Dwelling Policy Program provides property and liability coverage, using forms and endorsements specified in this manual. The manual contains the rules and classifications governing the writing of the Dwelling Program policy. The rules, rates, forms and endorsements of American Integrity Insurance Company for each coverage shall govern in all cases not specifically provided for in this manual. APPLICANT Must hold title to home with a maximum of two mortgages. Homes with individuals or non-financial institutions as mortgagees are not eligible. Individuals who do not live in the insured dwelling, but have a financial interest in it, may be listed as an Additional Insured(s). Credit history may be evaluated for all applicants as it relates to insurance eligibility. (Refer to the Insurance Score section for additional details.) Must be an owner or landlord of a dwelling. AGE OF HOME (NEW BUSINESS AND RENEWAL) A home of any age is eligible for the Dwelling Property program; the home must be maintained in good condition regardless of age. A dwelling 30 years of age or less may be eligible without additional requirements unless information is disclosed at the time of application which would make the risk ineligible. When a dwelling becomes 31 years of age during the policy term, it may be subject to the underwriting requirements outlined in the following section at next renewal Voluntary Dwelling December 2017 Page 11

12 GREATER THAN 20 YEARS Homes over 20 years old must have the following updates/renovations: o Plumbing including Water Heaters must be in good condition, properly maintained without evidence of leakage. Plumbing (supply/drain lines have been updated with acceptable materials for all of the sinks, commodes and washer/dryer connections, including the hot water heater), and meets the requirements cited in the PROPERTY FEATURES, Plumbing section of this manual. o Electrical (electrical main and sub panels), Home meets the requirements cited in the PROPERTY FEATURES, Electrical section of this manual. o HVAC (both heat and A/C units) systems must be in good condition, properly maintained, and sufficient and o Roof (including primary and secondary roof systems) must be properly maintained and in good condition with no evidence of curling, lifting, buckling, patches or broken tiles, shingles or metal points. Only replacing portions of shingles does not qualify. Meets the requirements cited in the PROPERTY FEATURES, Roofing section of this manual. A dwelling greater than 30 years of age will require an acceptable 4-point inspection or proof of updates to the electrical, HVAC (heating, ventilation, and air conditioning), and plumbing within the past 20 years and roofs replaced within the past 15 to 40 years, dependent upon type of roof covering (refer to the PROPERTY FEATURES Roofing section of this manual). Documentation must be uploaded to the policy within 30 days of inception. If the 4-point or proof of updates is determined to be unacceptable the policy may be subject to underwriting action. New business risks that are greater than 30 years of age will be written with the Water Damage Exclusion. The Water Damage Exclusion endorsement can be removed on homes greater than 30 years old with underwriting approval. A 4- point inspection by a licensed contractor should be uploaded to the policy for underwriting review. The Actual Cash Value loss settlement may be waived for dwellings that have been substantially renovated and/or updated. Evidence of acceptable condition and proof of updates in the past 20 years is required. A 4-point inspection (AIIC INSP 4 Point Inspection Form) with accompanying color photos, receipts or work orders which include photos showing the updates are accepted as evidence of eligibility. Inspections must be performed by a licensed/qualified inspector or inspection company and the license number and contact number must appear on the report. American Integrity provides a link to an approved vendor for the on-line ordering of a 4-point inspection for our policyholders. However, AI accepts any 4-point inspection form by a licensed contractor if all the required information is indicated. Documentation must be submitted within 30 days of inception for continuation of coverage and must be completed within the last 5 years. CANCELLATION OR REDUCTIONS IN LIMITS OF LIABILITY OR COVERAGE Mandatory coverages may not be cancelled unless the entire policy is cancelled. If insurance is increased or reduced, the additional or return premium shall be computed on a pro-rata basis, subject to the minimum premium rule. The insured may cancel the policy at any time for any reason. We will refund any unearned premium pro rata subject to the waiver of premium rule. Note: Hurricane deductible options may only be amended at renewal of the policy. A policy may not be cancelled and rewritten to circumvent this rule. Voluntary Dwelling December 2017 Page 12

13 INFLATION GUARD An inflation guard factor is automatically applied to DP Dwelling Property Special Form at each renewal for a home less than 31 years of age. The inflation factor is determined by an industry approved replacement cost estimator index to maintain insurance to an approximate replacement cost of the home. INSURANCE SCORE The credit of all Named Insureds may be reviewed in compliance with section F.S. and Florida Rule 69O with the consent of the applicant or insured. Credit is evaluated along with prior claims history, condition of property and other risk factors. Credit history is ordered and an Insurance Score is determined only on the Named Insureds for new business policies, with Named Insured authorization. Credit history is not mandatory. The agent must obtain permission from the applicant(s) prior to requesting the credit report. If the Insurance Score is below 650 or is a No Hit/No Score, a property inspection report will be ordered. More than one non-weather related claim or poor condition of the property will make the risk ineligible. When an Insurance Score cannot be generated due to either a No Hit or lack of data the applicant or policyholder will not be adversely affected. For an insured or applicant whether adversely affected by their credit history or not, credit will be reviewed once every two (2) years or at the request of the insured. The discount level will be updated or removed, based on the most recent credit score returned. Insurance Score discounts are available for individual named insured; Corporations, Partnerships, LLCs and Trust are not eligible (based on an independent grade derived from the applicants credit record, as shown below): Refer to Discounts/Surcharges section of this manual for details on the discount levels. LAPSE IN COVERAGE/NO PRIOR INSURANCE Risks with a lapse in coverage that exceeds 45 days from the date of the lapsed/cancelled policy or have had no prior insurance, must obtain Underwriting approval prior to binding. A Statement of No Loss - AIIC SNL must accompany any request. If approved, the risk will be subject to a 10% surcharge which will be applied for one (1) year from the date of issuance of the policy. The surcharge does not apply to first time home buyers or renewals. Refer to the Credits/Surcharges section of the manual for the surcharge rules. Any lapse in coverage greater than 90 days will not be accepted in this program and may be eligible for the DP1 program. Force placed insurance is not considered acceptable proof of prior insurance. Voluntary Dwelling December 2017 Page 13

14 LOSS HISTORY RATING PLAN Introduction The Loss History Rating Plan recognizes the loss history of an insured or applicant, for both property and liability coverage, in determining the appropriate premium. This plan will only recognize those losses occurring within the past 36 months (ending 3 months prior to the current renewal effective date). American Integrity will reward those policyholders that do not experience claims activity as a result of prudent maintenance and good housekeeping. To this end American Integrity will discount or surcharge policy premiums based on loss history with AI. Consecutive Years with American Integrity The years with American Integrity are determined by the number of consecutive years (ending with the current renewal date) the insured(s) has had an American Integrity policy covering their primary dwelling. Number of Paid Claims The number of claims is determined by the number of qualified paid claims the insured(s) has had in the last 3 years (ending 3 months prior to the current renewal effective date). A qualified claim is considered to be any non-catastrophe or non-weather related claim which results in a paid loss during this 3 year period. Losses which only have payments under Medical Payments to Others coverage and losses which occurred prior to the insured s current tenure with AI are NOT considered qualified claims. Claims resulting from family violence as defined by Florida Statute will not be considered a qualified claim to the victim of that violence. American Integrity will discount or surcharge policy premiums based on the applicants loss history with the company. The premium will be adjusted according to the following table: Number of Paid Claims Consecutive Years with American Integrity Apply factor to (F-D, F- C, EC-D, EC-C): LOSS SETTLEMENT Losses under Coverage A & B are covered at replacement cost subject to certain conditions unless Endorsement AIIC DP ACV is attached changing settlement to ACV. This endorsement will apply on homes older than 30 years of age. The Actual Cash Value loss settlement may be waived for dwellings that have been substantially renovated and/or updated. Evidence of acceptable condition and proof of updates in the past 20 years is required. A 4-point inspection (AIIC INSP 4 Point Inspection Form) with accompanying color photos, receipts or work orders which include photos showing the updates are accepted as evidence of eligibility. Losses under Coverage C, personal property will be covered at actual cash value at the time of loss, which means there will be a deduction for depreciation. Voluntary Dwelling December 2017 Page 14

15 MINIMUM AND WAIVER OF PREMIUM Coverage may be purchased in any combination; however, all policies are subject to a minimum premium of $150 exclusive of MGA, EMPATF, FIGA, FHCF and Citizens Assessments. When a policy is first issued or endorsed after the inception date, additional or return premium of less than $5 is waived. However, the company shall grant any return premium due if requested by the insured. MULTIPLE COMPANY INSURANCE We will not provide coverage for a dwelling that is also covered by another insurance policy offering the same or similar coverage. OCCUPANCY/USE Residence may be: Seasonal occupied dwellings (occupied by owner more than 4 and less than 9 months) may be rented to others for periods not less than 1 month. Rental properties must be rented on annual leases with a minimum 1 year term. Rental properties rented on a monthly basis may be considered by the Company and are subject to underwriting approval. Used for private residential purposes only with the exception of certain incidental occupancies and/or up to 2 roomers or boarders are permitted. Properties with home day care exposure of 3 individuals or less are not eligible for this program unless evidence of: 1. A current copy of a Certificate of Insurance from the insurer providing Commercial General Liability coverage at limits equal to or greater than the Personal Liability is provided at the time of application to the Company. Coverage cannot be bound and must be referred to underwriting for further review. 2. A current copy of the Florida Department of Children and Families "Family Child Care Home Certificate of License," or a copy of a current Child Care License for the covered premises issued by the county of jurisdiction is provided to the Company prior to issuance or renewal of each policy period. A single family dwelling, duplex, three or four family unit dwelling is eligible. OTHER INSURED LOCATION NO COVERAGE This program does not permit liability coverage for other residences owned by the insured regardless of occupancy. Both property and liability coverage for secondary residences rented to others or used on a Secondary/Seasonal basis may be provided by issuing a separate Homeowner or Dwelling policy. SINGLE BUILDING DEFINITION All buildings or sections of buildings that communicate through unprotected openings shall be considered as a single building. Buildings that are separated by space shall be considered as separate buildings. Buildings or sections of buildings, which are separated by: o A 6-inch reinforced concrete or 8-inch masonry party wall that pierces or rises to the underside of the roof and pierces or extends to the inner side of the exterior wall shall be considered a separate building. Accessibility between buildings with independent walls or through masonry party walls described above shall be protected by at least a Class A Fire Door installed in a masonry wall section. Voluntary Dwelling December 2017 Page 15

16 POLICY TERM A policy may be written for a period of 12 months and may be extended for successive policy periods by renewal based upon the forms, premiums and endorsements in effect for the Company at the time of renewal. PRIOR CANCELLATIONS/NON RENEWALS Risks previously cancelled for non-payment or underwriting reasons other than reduction of hurricane exposure, should be referred to the Company and are subject to underwriting approval. If the applicant has been cancelled for non-payment by AI, the policy may not be reinstated or rewritten without underwriting approval. If approved, the insured may be asked to provide the AIIC SNL - Statement of No Loss and a partial or full payment of the premium. PROPERTIES DEEDED IN AN LLC (LIMITED LIABILITY CORPORATION, TRUST OR CORPORATION) The risk may be eligible for the Dwelling Property program if the LLC, Trust or Corporation requires Named Insured status. In these circumstances, liability can be endorsed and is limited to the residence premises. RENEWAL PLAN If the company elects to offer a renewal, the policy may be renewed by the policyholder by paying the renewal premium prior to the expiration of the current policy. A renewal policy will be issued based on the premiums, forms and endorsements in effect at time of renewal. A new declarations page will be issued. A payment schedule will be mailed with each renewal offer, 60 days prior to the expiration date of the policy term, if the policyholder is the payee. If the account is escrow billed, then a billing statement will be mailed to the policyholder and the mortgage holder. The insured is responsible for ensuring the payment is received prior to the expiration of the policy term. The following risks are not eligible for offers of renewal coverage: Properties failing to be maintained in safe and serviceable condition or where repairs have not been completed or when the insured has failed to mitigate risk hazards. Properties no longer meeting minimum or maximum coverage limit requirements or failing to maintain proper insurance to value. Properties not meeting or continuing not to meet eligibility standards applicable to new business. Property claims that are a result of an act of God will not be used as a cause for cancellation or non-renewal unless the insured has failed to take action reasonably necessary to prevent recurrence of damage to the insured property. Risks determined by the Company to be unacceptable for renewal coverage due to: 1. Exposure management considerations, company financial performance, prospective business plans or objectives; 2. The availability and pricing of reinsurance; 3. Factors relating to the risk that would have adversely affected the Company s overall risk assessment if those factors had existed or been known at the time of initial underwriting. The Company, in its discretion, may offer renewal coverage to a risk not otherwise eligible for renewal pursuant to this rule based upon characteristics of the risk or an overall risk assessment, or the Company may determine pursuant to an overall risk assessment that it will not offer a renewal policy to a risk otherwise meeting eligibility criteria. Voluntary Dwelling December 2017 Page 16

17 ROOF (NEW AND RENEWAL BUSINESS) A roof must be in good condition and not be worn, with patched areas, multi-layered or unrepaired damage. A patched roof is evident when several sections of a roof have been repaired/replaced with either the same/similar shingles or have been tarred, etc. Asphalt/Composition shingle roofs must have been replaced within 20 years. Prior to renewal, AI may request policyholders with homes over 20 years old to provide validation (color photos and/or other evidence) of roof life expectancy. Homes with roofs less than 3 years life expectancy will be non-renewed the following year. If the entire roof has been replaced the policy will be noted with the date of the roof replacement. Tile or metal roofs more than 40 years old. Prior to renewal, AI may request policyholders with roofs over 40 years old to provide validation (color photos and/or other evidence) of roof life expectancy. Homes with roofs less than 3 years life expectancy will be non-renewed the following year. If entire roof has been replaced the policy will be noted with the date of roof replacement. Asbestos shingle, tin/aluminum, or wood shingle roofs are not eligible. A dwelling with a flat roof greater than 20% of the total roof surface may only be written with the AIIC DP WDX WATER DAMAGE EXCLUSION attached. SECONDARY/SEASONAL RESIDENCES (NEW BUSINESS) A dwelling unoccupied by the owner for more than 3 months annually is considered a Secondary/Seasonal residence. Secondary/Seasonal residences are not eligible for coverage in this program unless the residence is owner occupied for a minimum of 4 months per policy year, AND: residence is located within a limited access community or building (requires security guard or passkey gates), OR residence has a functioning fire and burglar alarm system. SWIMMING POOLS (NEW AND RENEWAL BUSINESS) A swimming pool must have a fence or wall of a material that provides a reasonable barrier to entry (e.g. chain link, wood, steel or aluminum), be at least 4 high, permanently installed, comply with local ordinances, and have a self-locking gate or door. Child gates/fences that are not permanently installed with a locking gate are unacceptable. Above ground pools must have steps that can be locked in the up position. No diving boards or slides are permitted. TOWN OR ROW HOUSE (NEW BUSINESS) A policy may be issued for a Town or Row house if it can be determined that it does not exceed the maximum allowed number of units. The following should be considered in the determination: Each unit must be separated by parapet* walls or adequate masonry firewalls. There may be a maximum of 8 units per building if a firewall is between each unit. For example, a 2 family dwelling attached to a 1 family dwelling is considered 3 individual family units within a Fire Division if both dwellings are not separated by a firewall. Four attached 2 family dwellings are considered 8 family units within a Fire Division if they are not separated by firewalls (and thus ineligible). Coverage A is available when a dwelling contains 4 or less family units within a Fire Division and/or Coverage C in a dwelling with 1 or more individual family units within a Fire Division. See Single Building Definition *A parapet or firewall that pierces the roof and extends above the roof line at least 15 or higher shall be considered a separate dwelling. Voluntary Dwelling December 2017 Page 17

18 TRAMPOLINES (NEW AND RENEWAL BUSINESS) A trampoline must have a fence or wall of a material that provides a reasonable barrier to entry (e.g. chain link, wood, steel or aluminum), be at least 4 high, permanently installed, comply with local ordinances, and have a self-locking gate or door. AIIC DP 09 TL - TRAMPOLINE LIABILITY EXCLUSION is attached to the policy. TRANSFER OR ASSIGNMENT No transfers or assignments are permitted. Each insured and/or property will require submission of a new application and will be subject to the underwriting requirements at the time of application. WHOLE DOLLAR PREMIUM RULE When calculating premium, premiums are not rounded during the calculation process. Total premium for Fire, Extended Coverage, Hurricane and each Additional Coverage are rounded to the nearest whole dollar. A premium of fifty cents ($.50) or more shall be rounded to the next higher whole dollar. In the event of cancellation by AI, the return premium may be carried to the next higher whole dollar. INSURANCE TO VALUE Risks must be insured for 100% of replacement cost as determined by an acceptable cost estimator done at the time of application, endorsement or renewal of policy (a cost estimator must be maintained in the Agent s Office and is subject to audit at the request of the Company). A home older than 30 years of age must be insured at 100% of Actual Cash Value which can be obtained by adjusting the cost estimator for depreciation. Actual cash value means the amount which would cost to repair or replace covered property with material of like kind and quality, less allowance for physical deterioration and depreciation, including obsolesce. Voluntary Dwelling December 2017 Page 18

19 BINDING AUTHORITY LIMITS/PROGRAM DESCRIPTION Coverage A may be issued on a dwelling: Containing not more than four units; Town or row house structure (i.e. a tri/quadplex); Coverage B on other structures At the same location as a dwelling under Coverage A; and Not used for business purposes Coverage C on personal property in A dwelling insured under Coverage A. Any dwelling unit used as a private quarters of the insured Coverage D may be provided for the loss of fair rental value of a building insured under Coverage A. Coverage E may be provided for the additional living expenses incurred to maintain the insured s household. Coverage Limits Coverage A- Dwelling $125,000* to $1,000,000 Coverage B- Other Structures 1% up to Maximum of 70% of Coverage A Coverage C- Personal Property $0 to $250,000 Coverage D- Fair Rental Value (Tenant) OR 10% of Coverage A Coverage E- Additional Living Expense (Owner Occupied) 10% of Coverage A $100,000, $300,000, and $500,000 are Coverage L-Personal Liability** available Coverage M-Medical Payments to Others** $1,000, and $5,000 are available The following coverage limits are available for the DP Dwelling Property 3 Special Form: *Dwellings with replacement cost below $125,000 or above $1,000,000 must be referred to underwriting with a completed replacement cost estimator and color photos. **Personal Liability and Medical Payments to Others are optional under the DP3 Special Form. Voluntary Dwelling December 2017 Page 19

20 CONSTRUCTION DEFINITIONS Frame - exterior wall of wood or other combustible construction, including wood-iron clad, stucco on wood or plaster on combustible supports, and aluminum or plastic siding over frame. o HardiePlank Siding Frame homes with HardiePlank Siding will be classified as Frame. *HardiePlank and HardiePanel are brand names for fiber cement siding manufactured by James Hardie Building Products. The fiber cement siding is made from Portland cement mixed with ground sand, cellulose fiber, and other additives. Fiber cement siding can resemble stucco, wood clapboards, or cedar shingles, depending on how the panels are textured. Fiber cement siding is more durable than wood or stucco, and is also fire resistant. Although more expensive than vinyl, fiber cement siding is considerably less expensive than wood. Fiber cement siding has become popular because it requires little maintenance and can have a natural, wood-like appearance. Masonry Veneer all exterior walls of frame construction veneered with brick, masonry or stone. Masonry Veneer can be rated as masonry only if all of the walls are veneered as indicated. Masonry - exterior walls constructed of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile, or similar materials, and floors and roof of combustible construction. Superior Construction Non-Combustible - exterior walls, floors and roof constructed of, and supported by, metal, gypsum, or other non-combustible materials. Masonry Non-Combustible - exterior walls constructed of masonry materials (as described above) and floors and roof of metal or other non-combustible materials Fire- Resistive - exterior walls, floors and roof constructed of masonry or other fire resistive materials. Mixed (Masonry/Frame) - a combination of both frame and masonry construction shall be classified as Frame when the exterior walls of frame construction (including gables) exceed 33% of total exterior wall area; otherwise classify as Masonry. MANUAL PREMIUM REVISION A manual premium revision shall be made in accordance with the following procedures: 1. The effective date of such revision shall be announced. 2. The revision shall apply to any policy or endorsement in the manner outlined in the announcement of the revision. 3. Unless otherwise specified at the time of the announcement of the premium revision, the revision shall not effect: a. in-force policy forms, endorsements or premiums, until the policy is renewed; or b. in the case of the Premium Payment Plan, in-force policy premiums, until the anniversary following the effective date of the revision. MULTIPLE LOCATIONS This program does not permit coverage for multiple locations on the same policy. Voluntary Dwelling December 2017 Page 20

21 PROPERTIES LOCATED ON MORE THAN 5 ACRES IN PC 9 A dwelling located in a Protection Class (PC) 9 on more than 5 acres is subject to review to determine eligibility. The following information will be required to be submitted to the Company to be able to review the risk: Name of the responding fire department and response time Is the station voluntary or manned 24 hours? Water source? Distance to the hydrant or water source, if there is one The number and carrying capacity of the pumper and tanker trucks PROPERTIES WITH FARM ANIMALS OR HORSES (NOT ON A FARM) A risk with farm animals or up to 5 horses can be considered subject to underwriting approval. An acre per animal is desired or a risk with a small number of animals typically found on a farm. Further underwriting may be required to determine it is not a commercial exposure or a farm. PROTECTED SUBDIVISION RULE A dwelling located in a qualifying subdivision (new community/development), which is currently a Protection Class 9 community, may receive the rating of the lower Protection Class from the responding fire department if all of the following are met: The subdivision is under development with recorded plat and paved roads where dwellings are built by licensed contractors subject to building restrictions as to type and square footage. The subdivision contains at least 10 houses. The subdivision is within 5 miles travel distance of a responding fire department. The home is located within: o 1,000 feet of a standard fire hydrant, or o responding fire department is equipped to transport an adequate water supply for fighting fire or responding fire department is equipped to pump water from swimming pools or other sources within 1,000 feet of the home. Note: The lower protection class will be available for 5 years from when the home was constructed. PROTECTION CLASS The Protection Class listings in the Public Protection Classification Manual apply. Use Protection Class (PC) 10 for unclassified areas; this is not eligible for binding. In a classified area where two or more classifications are shown (e.g. 6/9), the classification is determined as follows: Distance to Fire Station Class 5 road miles or less with hydrant (or other credible water supply) within 1,000 feet, use the first protection class (e.g. 6/9 would use Class 6) 6 5 road miles or less with hydrant (or other credible water supply) beyond 1,000 feet, use the second protection class (e.g. 6/9 would use Class 9) 9 Over 5 road miles 10 Voluntary Dwelling December 2017 Page 21

22 COVERAGE OPTIONS ADDITIONAL INSURED(S) In addition to the Named Insured listed in the Declarations, additional persons or organizations may be listed which are an insured of the residence premises. If the policy is cancelled or non- renewed, the parties named will be notified in writing. Refer to Endorsement- AIIC DP INSD AND AIIC DP INSL WHEN LIABILITY IS SELECTED ADDITIONAL INTEREST(S) In addition to the Mortgagee(s) shown in the Declarations or elsewhere on the policy, additional persons or organizations may be listed which have an interest in the residence premises. If the policy is cancelled or non-renewed, the parties named will be notified in writing. This endorsement is available for the LLC or Trust which requires notification when the policy is cancelled or nonrenewed. Refer to Endorsement HO ADDITIONAL INTERESTS (RESIDENCE PREMISES) COVERAGE B OTHER STRUCTURES DECREASED OR INCREASED LIMITS Applicant(s) may select a desired coverage limit for other structures located on the residence premises. Other structures may not be used for business purposes except permitted incidental occupancy or rented for use as a private garage, rented to others, or used by non-related persons for residence purposes. Coverage equal to 2% of coverage A is included in the basic policy. The following additional coverage options are available (apply to F-D, EC-D, H-D): % of Coverage A Factor 1% % % % % 1.14 If additional Coverage B is required beyond the maximum available (20% of the Coverage A) specific Other Structures may be added to this policy. Note that specific coverage on Other Structures cannot be added unless the underlying 20% coverage has been selected. The cumulative Coverage B amount cannot exceed 70% of Coverage A. The total limit of Coverage B Other Structures will be displayed on the Declarations page. Additional Premium: F-D, EC-D - $0.67 per $1,000, H-D - $2.67 per $1,000 Refer to Endorsement- AIIC DP CB COVERAGE B OTHER STRUCTURES Voluntary Dwelling December 2017 Page 22

23 COVERAGE C PERSONAL PROPERTY Personal Property is not included unless selected. Limits may be purchased in $1,000 increments to a maximum of 70% of the Coverage A. A selection of less than $5000 of Coverage C is ineligible for Personal Property Replacement Cost as well as burglar alarm credit. When Coverage C is not selected, the following rules do not apply and endorsements are not available: HOME CYBER PROTECTION COVERAGE AIIC DP HCP PERSONAL PROPERTY REPLACEMENT COST- AIIC DP RCC FLOOD COVERAGE B CONTENTS AIIC DP PFL COVERAGE L PERSONAL LIABILITY AND COVERAGE M MEDICAL PAYMENTS TO OTHERS Liability and Medical Payments coverage may be added to a Dwelling policy that covers a 1-4 family dwelling. (PERSONAL LIABILITY AIIC DP DPL) Coverage Number of Families Limit ,000/1, ,000/5, ,000/5, PREMISES LIABILITY (NON-OWNER OCCUPIED DWELLING) AIIC DP PL is required when dwelling is not owner occupied at least 9 months. This form limits liability coverage to the insured premises only. Liability coverage for home day care operations is not available in this program. DEDUCTIBLES All policies are subject to a deductible that is applied to a Section I - Property loss. The two deductibles are an All Other Perils Deductible and a Hurricane Deductible. When Hurricane coverage is included in the policy, the base deductibles are: $500 All Other Perils deductible $500 Hurricane deductible is not available when: o Coverage A Dwelling greater than $250,000 When a loss occurs from a peril other than Hurricane, the All Other Perils deductible will be applied to the reported occurrence. If a reported loss is due to a Hurricane then the deductible will be applied as outlined in the following section. Refer to Endorsement- AIIC DP DO DEDUCTIBLE NOTIFICATION OPTIONS Optional deductibles are also available and are outlined below. For all other perils except hurricane (apply to F-D, F-C, EC-D, EC-C) Amount Factor $ , , , Voluntary Dwelling December 2017 Page 23

24 HURRICANE DEDUCTIBLES (Not available for policies excluding wind) A hurricane deductible subjects the policy to a deductible amount that applies to any Section I- Property loss due to damage from the perils of Hurricane. During a hurricane, the deductible will be applied beginning at the time a hurricane watch or warning is issued for any part of Florida by the National Hurricane Center of the National Weather Service (NWS) and will end 72 hours following the termination of the last hurricane watch or hurricane warning issued by the NWS. A hurricane deductible shall apply on an annual basis to all covered hurricane losses that occur during a calendar year, regardless of the policy term. If there was a hurricane loss for prior hurricane(s) during a calendar year, the deductible applying to a subsequent hurricane loss is the greater of the remaining amount of the hurricane deductible or the amount of the deductible that applies to perils other than a hurricane. Refer to Endorsement AIIC DP HD CALENDAR YEAR HURRICANE DEDUCTIBLE WITH SUPPLEMENTAL RECORD KEEPING REQUIREMENT For losses due to Hurricane (apply to H-D and H-C) Deductible Coverage Limit $500 2% Cov A 5% Cov A 10% Cov A <$60, $60, , $100, , >$200, Deductible Option Restrictions Note 1: Hurricane and All Other Peril deductibles may only be changed at time of renewal. A policy may not be cancelled and rewritten to circumvent this rule. The hurricane deductible must be greater than or equal to the all other peril deductible. Note 2: Upon renewal if Coverage A- Dwelling limit increases to $250,001 or greater, the hurricane deductible will be increased to 2% of the Coverage A Dwelling limit. Voluntary Dwelling December 2017 Page 24

25 FLOOD COVERAGE The peril of flood is excluded in the base policy. For an additional premium, the policy may be endorsed to provide coverage for flood. Coverage is provided according to the terms and conditions of the Flood Coverage Endorsement AIIC DP PFL. This endorsement is not available for any policyholder who is separately provided flood insurance through the National Flood Insurance Program or other insurance carrier. This endorsement does not increase the limit of liability for Coverage A. Flood Coverage has a separate deductible with the following options: $500, $1,000, $2,500, $5000, $7,500 and $10,000. Limits of Coverage A - Building: $100,000 to $5,000,000 Limits of Coverage B - Contents: $8,000 to $1,000,000 Ineligible risk locations include but is not limited to homes located on barrier islands, homes within 2,500 feet of the Gulf coastline, 1,000 feet from the Atlantic coastline or in a flood zone V, and homes with prior flood losses. Additional Premium: Amount of Coverage A/$100 X Rate per $100 in table below X Deductible Factor X Elevation Credit Amount of Coverage B/$100 X Rate per $100 in table below X Deductible Factor X Elevation Credit Flood Rate Schedule - Rates per $100 Building (A) Contents (B) Pre-FIRM B,C,X Flood Zones - Non-Preferred $0.37 $0.62 Post-FIRM B,C,X Flood Zones - Non-Preferred $0.37 $0.62 Pre-FIRM A Zones (All) & D Zones $0.68 $1.12 Post-FIRM D Zones $0.50 $0.54 Post FIRM AE, A1-A30 Zones (All except unnumbered A Zones, AO 0 Elevation Difference $0.45 $ Elevation Difference $0.21 $ Elevation Difference $0.13 $0.16 AO & AH Zones without Elevation Certificate AO & AH $0.40 $0.30 AO & AH Zones with Elevation Certificate $0.11 $0.16 AE, A1-A30 - No Elevation Certificate Available $1.00 $1.50 Unnumbered A Zone - Elevation difference 0 to +1 $0.42 $0.33 Unnumbered A Zone - Elevation difference +2 or more $0.14 $0.16 Post FIRM Unnumbered A Zone - No Elevation Certificate Available $2.03 $1.22 Preferred Rates: With Basement $.1314 $.1314 Without Basement $.1183 $.1183 Elevated Risks may receive a 25% credit (.75 factor) Deductible Options and Factors: $500 $1,000 $2,500 $5,000 $7,500 $10, Refer to Endorsement: AIIC DP PFL FLOOD COVERAGE Voluntary Dwelling December 2017 Page 25

26 HOME CYBER PROTECTION COVERAGE The Home Cyber Protection Coverage will pay up to $25,000 during a policy period. This limit shall apply to the total of all losses, damages or expenses arising from cyber attacks, cyber extortion events, or fraud events occurring during the policy period. Any costs incurred from professional assistance due to cyber extortion shall not count towards your coverage limit. If one cyber occurrence exceeds $25,000 in more than one policy year, it will be subject to the Home Cyber Protection Annual Aggregate Limit of the first policy period. A $500 deductible applies. Refer to Endorsement: AIIC DP HCP HOME CYBER PROTECTION Annual Premium: $30.00 HOME SYSTEMS PROTECTION AND SERVICE LINE COVERAGE Home Systems Protection provides coverage for the repair or replacement of physically damaged covered home systems and equipment due to both mechanical and electrical breakdown. Coverage Limit: $50,000 Deductible $500 Service Line coverage pays to repair the covered underground pipes and wiring as well as damage to outdoor property caused by repairs. Coverage Limit: $10,000 Deductible: $500 These coverages combined provide the homeowner with home systems breakdown and underground service line protection. Refer to Endorsement AIIC DP3 HSPSL - HOME SYSTEMS PROTECTION & SERVICE LINE COVERAGE. Additional Premium: $45.00 IDENTITY RECOVERY COVERAGE The policy may be endorsed to provide expense reimbursement and support service to insureds who are victims of identity theft. The endorsement provides coverage for various out-of pocket expenses due to a covered identity theft. Identity Recovery Coverage pays up to $15,000 (Deductible: $0) as the annual aggregate limit for various out-of pocket expenses. Such expenses include: o Various legal fees (civil and criminal) o Phone, postage, shipping fees o Credit bureau reports o Lost wages o Child/Elder care o Mental Health Counseling. Support services: Insureds are given access to a toll-free Help Line manned by experienced identity theft counselors who can answer questions and provide useful information and resource to identify theft victims. Restoration: Includes a dedicated licensed case manager using a limited power of attorney for verified claimants will provide research and assistance with writing letters, making phone calls on behalf of insured, and record keeping. Refer to Endorsement: AIIC DP3 IR - IDENTITY RECOVERY COVERAGE Annual Premium: $25.00 Voluntary Dwelling December 2017 Page 26

27 LIMITED FUNGI, MOLD, WET OR DRY ROT, OR BACTERIA COVERAGE ENDORSEMENT The basic policy includes $10,000 each covered loss/$10,000 aggregate property damage coverage which can be increased by updating AIIC DP LFC LIMITED FUNGI, MOLD, WET OR DRY ROT, OR BACTERIA COVERAGE ENDORSEMENT Additional premium: Amount Premium $25,000 each covered loss/$50,000 Policy aggregate $60.00 $50,000 each covered loss/$50,000 Policy aggregate $90.00 If the applicant or insured elects the option of $50,000 increased limits, a moisture/mold inspection of the home must be completed prior to adding the coverage. The inspection fee is paid by the insured and does not guarantee a favorable underwriting decision. If the request is made at the time of issuance, the inspection must be submitted within 30 days. Once Underwriting approval has been provided the coverage will only be applied at inception or renewal of the policy term. Risks that do not pass the inspection will not be allowed to add any increased limits. LIMITED THEFT COVERAGE A Dwelling Property policy which includes Coverage C Personal Property may be endorsed to cover theft of personal property. Theft Coverage covers losses resulting from the theft of personal property from the insured premises. Losses are subject to the All Other Perils deductible. Refer to Endorsement: DP LIMITED THEFT COVERAGE Premium for theft coverage is calculated by multiplying the Base Premium for Extended Coverage - Contents (EC-C) adjusted for amount of insurance, All Other Perils deductible, and applicable nonhurricane premium factors by the factor below: Territory Factor 143, 144, 145, 180, 181, 182, 350, 360, , 370, 380, 381, 420, , 320, All others 2.0 Note: A credit will be applied to the theft premium for risks with eligible burglar alarms. Refer to the Discount/Surcharge Section of the Dwelling Program Manual for additional details. LIMITED WATER DAMAGE COVERAGE A dwelling greater than 30 years of age at policy inception must be written with the AIIC DP WDX - WATER DAMAGE EXCLUSION. For an additional premium, the policy may be endorsed to provide coverage for sudden and accidental discharge or overflow of water or steam from within a plumbing, heating, A/C, automatic sprinkler system or from within a household appliance. The limit of liability for all covered property under this option is $10,000. This endorsement is only available with underwriting approval. Refer to the Greater Than 20 Years section of the manual for the 4-point Inspection requirements. AIIC LWD LIMITED WATER DAMAGE COVERAGE is only available on a dwelling greater than 30 years of age with the Water Damage Exclusion. Apply NHR factor: 1.08 Voluntary Dwelling December 2017 Page 27

28 LOSS ASSESSMENT COVERAGE INCREASED LIMITS Provides increased coverage for assessments relating to the residence premises. Higher optional limits may only be purchased at policy inception or upon renewal (mid-term increases are not available). Refer to Endorsement-AIIC DP LA Loss Assessment Coverage Increased Limits Additional premium: Limit Premium $ 2,000 $6 $ 5,000 $15 $ 10,000 $25 ORDINANCE OR LAW COVERAGE All Florida communities have laws or building codes that affect the reconstruction of damaged buildings. Ordinance or Law Coverage is an additional coverage that applies to the increased construction cost resulting from enforcement of building codes in repairing or replacing your Dwelling (Coverage A) after a covered loss. The additional coverage provided by this endorsement is limited to 25% of the Coverage A policy limit. No coverage is included in the base policy and this is the only option available with the DP program. Refer to Endorsement- AIIC DP OL ORDINANCE OR LAW COVERAGE Additional premium: 5% of F-D and H-D adjusted for Protection Class/Construction Type and Amount of Insurance and Age (Year Built*) of Dwelling. * For the Hurricane portion of the calculation, a year built factor of 0.50 is applied for year built 2002 and newer. Voluntary Dwelling December 2017 Page 28

29 OWNER OCCUPANCY Secondary/Seasonal A dwelling unoccupied by the owner for more than 3 months annually is considered a Secondary/Seasonal residence. Secondary/Seasonal residences are not eligible for coverage in this program unless the residence is owner occupied for a minimum of 4 months per policy year, AND: residence is located within a limited access community or building (requires security guard or passkey gates), OR residence has a functioning central station fire and burglar alarm system. When the dwelling is owner occupied for at least 4 months each year (and not rented to others when not owner occupied): Apply to Fire Dwelling Base Rate 0.80 Apply to Fire Personal Property Base Rate 0.90 Apply to EC Dwelling Base Rate 0.90 Apply to EC Personal Property Base Rate 0.90 Non-seasonal (Primary) If dwelling is owner occupied nine months or more each year: Apply to Fire Dwelling Base Rate 0.80 Apply to Fire Personal Property Base Rate 0.90 Apply to EC Dwelling Base Rate 0.75 Apply to EC Personal Property Base Rate 0.75 (Owner occupancy credits are not available on properties rented to others) Voluntary Dwelling December 2017 Page 29

30 PERMITTED INCIDENTAL OCCUPANCIES 1. Section I Coverage for a permitted incidental occupancy is limited under Section I and excluded under Section II. The policy may be endorsed to provide coverage for a permitted incidental occupancy in the dwelling or in another structure on the residence premises. The incidental occupancy must be operated by the insured who is the owner and a resident of the premises and there are no more than two persons at work in the incidental occupancy. If the Permitted Incidental occupancy is located in the dwelling, no additional charge is made and Coverage C is limited to $2500 of business personal property. 2. Permitted Incidental Occupancies Offices, Schools, or Studios meaning offices for business or professional purposes, and private schools or studios for music, dance, photography and other instruction purposes. Refer to Endorsement DP PERMITTED INCIDENTAL OCCUPANCIES Section II Coverage (only available on owner occupied dwellings) The policy may be endorsed to provide Coverage L Personal Liability and Coverage M Medical Payments to Others for the increased exposure arising from a permitted incidental occupancy on the residence premises only. Rate by selecting the appropriate premium from the table below. Coverage Number of Families Limit ,000/1, ,000/5, ,000/5, Section II- Coverage L Personal Liability and Coverage M Medical Payments to Others is only offered if DP Permitted Incidental Occupancies has been selected. Refer to Endorsement DL Permitted Incidental Occupancies. PERSONAL PROPERTY REPLACEMENT COST (NOT AVAILABLE FOR POLICIES EXCLUDING CONTENTS) When the optional Personal Property Replacement Cost is attached to the policy it provides for settlement of losses for Coverage C- Personal Property on a replacement cost basis. Refer to Endorsement- AIIC DP RCC PERSONAL PROPERTY REPLACEMENT COST Additional premium: 10% of F-C, EC-C, and H-C adjusted for Protection Class/Construction Type, Amount of Insurance, and Age (Year Built*) of Dwelling. * For the Hurricane portion of the calculation, a year built factor of 0.50 is applied for year built 2002 and newer. SHORT TERM RENTAL PROPERTIES If a dwelling is rented to others on a short-term basis (monthly), an additional premium of $50 will be added to the policy premium. Dwellings rented on a short-term basis are subject to underwriting approval. Voluntary Dwelling December 2017 Page 30

31 SINKHOLE LOSS COVERAGE FLORIDA The base policy covers Catastrophic Ground Cover Collapse as defined by Florida Statute The premium is included in the base premium and it cannot be excluded. Sinkhole Loss Coverage is excluded in the base policy, but may be purchased for an additional premium. A 10% Sinkhole Deductible (10% of Coverage A, subject to a minimum $500 deductible) will apply to all policies that include Sinkhole Loss Coverage and will apply a 10% discount to the premium. For all territories, new policies may be bound only with the Catastrophic Ground Cover Collapse. If the policyholder elects the option for Sinkhole Loss Coverage, an approved structural inspection of the home must be completed prior to adding the coverage. An approved inspection service is one that has been designated by us as competent to perform the evaluation, and whose report format meets our informational requirements. The insured will contract directly with the approved inspection service, and pay an arranged fee, which will be half of the amount we have negotiated with the inspection service. We will pay the other half and both parties will receive a copy of the inspection. The fee will not be refundable no matter the underwriting decision reached. The inspection will document existing damage, evaluate the structural integrity of the dwelling (such as cracking, shifting or settlement of the house, doors that will not close properly, etc.) for any visible depressions or voids in the ground and verify that there is no current or proximate sinkhole activity that has not been disclosed. For risks that do not pass inspection, the insured may request a policy without Sinkhole Loss Coverage (the policy will continue to include Catastrophic Ground Cover Collapse Coverage). Besides new business, the only other time Sinkhole Loss Coverage may be added is at renewal. A sinkhole inspection must be performed prior to adding Sinkhole Loss Coverage as outlined above. Optional Sinkhole Loss Coverage will be approved for the dwellings that do not display characteristics of existing damage or proximity to sinkhole activity. Risks that do not pass the sinkhole inspection will not be allowed to add the Sinkhole Loss Coverage. A completed AIIC SKSR - SINKHOLE LOSS COVERAGE SELECTION/REJECTION FORM must be submitted on all requests for a comparable policy without Sinkhole Loss Coverage. The insured must select the statement I want to REJECT Sinkhole Loss Coverage. Refer to Endorsement AIIC DP SK SINKHOLE LOSS COVERAGE FLORIDA Voluntary Dwelling December 2017 Page 31

32 Territory Surcharge Territory Surcharge % % % % % % % % % % % % % % % % % % % % % % % % % % % % % All Other 3.2% % Additional Premium: (EC Base X Amt. Of Ins. Factor X Territory Surcharge in the chart above x 0.90) VACANCY ENDORSEMENT Vacant dwellings are ineligible for this program. However, if the dwelling insured under this program becomes vacant during the policy period, a vacancy endorsement may be added with underwriting approval. Refer to Endorsement- AIIC DP VAC VACANCY ENDORSEMENT Premium: 25% of Extended Coverage premium (fully earned) WATER DAMAGE EXCLUSION ENDORSEMENT The peril of Water Damage may be excluded from the policy resulting in a lower premium. In addition to what is automatically excluded in the policy, this endorsement will exclude discharge or overflow of water or steam from within a plumbing, heating, A/C, automatic sprinkler system or from within a household appliance; as well as water penetrating through the roof or exterior walls or windows whether or not driven by wind unless water penetration is a direct result of damage caused by wind or hail. When water damage is excluded, apply the following factor: Apply to F-D, F-C, EC-D, EC-C:.90 Refer to Endorsement- AIIC DP WDX WATER DAMAGE EXCLUSION ENDORSEMENT Voluntary Dwelling December 2017 Page 32

33 WIND OR HAIL SCREEN ENCLOSURES AND CARPORTS (NOT AVAILABLE FOR POLICIES EXCLUDING WIND COVERAGE) Coverage for a loss caused by wind or hail to aluminum framing for screen enclosures, pool cages, and car ports permanently attached to the dwelling may be purchased for an additional premium. Coverage limits are available from $10,000 to $50,000. The available limits of liability and factors are listed below: Additional premium: Limit Coastal Counties Inland Counties $10,000 $100 $50 Per each $1,000 $10 $5 The premium from the above table is then multiplied by the following hurricane deductible factors to obtain the final additional premium: Deductible $500 2% 5% 10% Factor Refer to Endorsement- AIIC DP CPS WIND OR HAIL - SCREEN ENCLOSURES AND CARPORTS WINDSTORM EXTERIOR PAINT OR WATERPROOFING EXCLUSION A Dwelling located in any of the following counties can only be written with the AIIC DP WPX Windstorm Exterior Paint or Waterproofing Exclusion. This endorsement excludes damage from windstorm or hail to all paint or waterproofing material applied to the exterior of any dwelling or structure: Bay Flagler Miami-Dade Santa Rosa Brevard Franklin Monroe St. Johns Broward Gulf Nassau St. Lucie Citrus Hernando Okaloosa Taylor Dixie Indian River Palm Beach Volusia Duval Jefferson Pasco Wakulla Escambia Martin Pinellas Walton Refer to Endorsement: AIIC DP WPX - Windstorm Exterior Paint or Waterproofing Exclusion Seacoast Florida Voluntary Dwelling December 2017 Page 33

34 WINDSTORM OR HAIL EXCLUSION FLORIDA The peril of Windstorm or Hail may also be excluded for all coverages, including Coverage D Fair Rental Value or Coverage E - Additional Living Expenses, anywhere in the state upon written request of the insured(s) named on the policy and written authorization from any mortgage holder or lien holder with an interest in the insured location, per Florida Statutes. If Windstorm or Hail coverage is excluded and the insured property is not eligible for wind-only coverage from CPIC, the insured must use form AIIC XWHR WINDSTORM OR HAIL EXCLUSION-REJECTION FORM and personally write and provide to the Company in his or her own handwriting, signing his or her name (and signed by any other named insured on the policy) the following statement (the statement must also be dated): I do not want the insurance on my home/mobile home to pay for damage from windstorms or hurricanes. I will pay those costs. My insurance will not. A written statement from any mortgage holder or lien holder must also be sent to the Company approving of the policyholder electing to exclude windstorm or hurricane coverage from the policy. All necessary documents must be received and approved by the Company prior to the attachment of the exclusion to the policy. The Exclusion will apply to all subsequent renewals until removed. This exclusion may only be added or removed effective at policy inception or renewal. Further, we will require this endorsement in some territories based on capacity. When wind and hail are excluded, apply the following premium factors: EC-D, EC-C:.95 H-D, H-C:.00 Refer to Endorsement- AIIC DP WHX WINDSTORM OR HAIL EXCLUSION Voluntary Dwelling December 2017 Page 34

35 PREMIUM CALCULATIONS This section provides explanation of how premiums are determined and what adjustments are applied to price each risk. Fire premiums are calculated by multiplying Fire-Dwelling (F-D) and Fire-Contents (F-C) Base Rates by the appropriate factors. Fire base rates are $99 for dwelling and $30 for contents in all territories. Extended Coverage Base Rates are provided for the peril of Hurricane, and all other Extended Coverage perils. The Extended Coverage (non-hurricane) Base Rates for Dwelling (EC-D) and Contents (EC-C) as well as Hurricane Base Rates for Dwelling (H-D) and Contents (H-C) are multiplied by the appropriate factors to calculate Extended Coverage Premiums. Throughout the rating section of this manual, the Fire and Extended Coverage Base Rates are abbreviated as follows: Dwelling Contents Fire F-D F-C Extended Coverage (non-hurricane) EC-D EC-C Hurricane H-D H-C Rules and rates applicable to coverage options are presented throughout the Dwelling Property Manual. Additional premiums are presented as a dollar amount, or a percentage of the unadjusted base rates. Rates and eligibility rules for optional coverages follow premium adjustments. AMOUNT OF INSURANCE DWELLING CONTENTS F-C, EC-C, H-C F-D, EC-D, H-D Cov A Factor Cov C Factor 20, , , , , , , , , , , , For dwelling amounts from $70,000 to $160,000, increase factor by 0.1 for each $10, The factor for dwelling coverage amounts greater than $160,000 is determined by dividing the desired coverage amount by $160,000 and multiplying it by 2. i. For example, the factor for $200,000 dwelling coverage is 2.5 (($200,000 / $160,000) * 2). 3. The factor for contents coverage amounts greater than $25,000 is determined by dividing the desired coverage amount by $25,000. For example, the factor for $50,000 contents coverage is 2.0 ($50,000/$25,000). Voluntary Dwelling December 2017 Page 35

36 AGE OF DWELLING Age is determined by subtracting the year in which construction of the residence was completed from the year in which the policy is effective. AGE NHR Year Built HUR F-D&C EC-D&C Year Built Fac and newer* and Older *All homes built in 2002 or later receive a minimum additional 68% FBC 2001 new home credit (.32 factor) on the hurricane premium. New homes built in wind speed design zones greater than 110 mph receive a higher discount. TOTAL RENOVATIONS If acceptable documentation demonstrates that a residence has been a total renovation*, the year in which the renovation began may be used as the date of construction. A total renovation will require a new certificate of occupancy) is defined as a home with updates to include new electrical wiring at the panel and in all walls, new plumbing (above the slab) and in all walls, heating and A/C to include the duct work, roof and window systems, and must be verified by a certified inspector based on an on-site inspection. *Complete documentation should be submitted to underwriting prior to binding. Voluntary Dwelling December 2017 Page 36

37 BUILDING CODE EFFECTIVENESS GRADING The Building Code Effectiveness Grading Schedule develops a grade of 1 to 10 for a community based on the adequacy of its building code and the effectiveness of its enforcement of that code. Policies may be eligible for special rating adjustments subject to the criteria in this section. In some communities, two Building Code Effectiveness Grades may be assigned. One grade will apply to 1 and 2 family dwellings and the other to multiple unit dwellings. The Public Protection Classification Manual will indicate the application of each grade. The Building Code Effectiveness Grades for a community, and their effective dates, are provided in the Public Protection Classification Manual published by ISO Commercial Risk Services, Inc. COMMUNITY GRADING The Building Code Effectiveness Grade applies to any building that has an original certificate of occupancy dated in the year of the effective date of the community grading, or later. If a community is re-graded subsequent to its initial grading, the factor for the revised grade applies to buildings that have an original certificate of occupancy dated the year of the effective date of the revised grading, or later. Where certificates of occupancy are not issued, reasonable evidence of year of construction will be accepted. If, due to an addition or alteration, the original building is changed to comply with the latest building code, the factor for the community applicable at the time the reconstruction is completed will apply. INDIVIDUAL GRADING Where buildings have been built in full conformance with the natural hazard mitigation elements of one of the nationally recognized building codes even though the community grade is greater than 1, or the community is not participating in the program, exception rating procedures may apply. Any building may be classified as Grade 1 for Windstorm or Hail upon certification by a registered or licensed design professional based on an on-site inspection that such building is in compliance with one of the three nationally recognized building codes with respect to mitigation of the windstorm and/or hail hazard. This classification is effective only from the date of the certification. Voluntary Dwelling December 2017 Page 37

38 UNGRADED AND NONPARTICIPATING RISKS Buildings that do not meet the criteria above for community or individual grading should be coded as "Ungraded". Do not classify as 10. Grade Factor H-D H-C Ungraded PROTECTION CLASS/CONSTRUCTION Apply to Fire Base Rates for Dwelling and Contents (F-D, F-C): Protection Class Frame Masonry Superior B Apply to Hurricane Base Rate Rates for Dwelling and Contents (H-D, H-C): Construction Factor Frame 1.00 Masonry.80 Superior.75 Voluntary Dwelling December 2017 Page 38

39 TOWN OR ROW HOUSE Obtain the number of units within a Fire Division to determine the rate for the Risk. When the number of units within the fire walls is greater than 4 then the risk is not eligible for the program (refer to Town/Row house section of the manual). Number of Units Apply to: Fire Dwelling Base Rate N/A N/A N/A Fire Personal Property Base Rate DISCOUNTS/SURCHARGES PREMIUM FACTORS NON HURRICANE BASE RATE The product of applicable premium factors in this section is applied to the base rates specified for each factor. ACTUAL CASH VALUE (ACV) LOSS SETTLEMENT WINDSTORM OR HAIL LOSSES TO ROOF SURFACING This policy provides settlement for building losses in a repair or replacement cost basis, subject to certain conditions. The policy may be endorsed on an optional basis to provide loss settlement exclusively on an Actual Cash Value (ACV) basis for damage to roof surfacing caused by the perils of Windstorm or Hail. Apply factor to (EC-D and H-D):.95 Refer to Endorsement- AIIC DP BOOK TRANSFER DISCOUNT A discount may be applied to the premium if any insured has had prior insurance and comes to the Company as part of a book transfer; the discount is only available on the initial year of the transfer. Apply factor to (F-D, F- C, EC-D, and EC-C):.95 ELECTRONIC POLICY DISTRIBUTION A discount will be applied when the electronic policy option is selected. Apply factor to (F-D, F- C, EC-D, and EC-C):.99 HARDIEPLANK SIDING DISCOUNT A HardiePlank* siding discount is available to a home of frame construction that has this siding material on all exterior sides. *HardiePlank and HardiPanel are brand names for fiber cement siding manufactured by James Hardie Building Products. The fiber cement siding is made from Portland cement mixed with ground sand, cellulose fiber, and other additives. Fiber cement siding can resemble stucco, wood clapboards, or cedar shingles, depending on how the panels are textured. Fiber cement siding is more durable than wood or stucco, and is also fire resistant. Although more expensive than vinyl, fiber cement siding is considerably less expensive than wood. Fiber cement siding has become popular because it requires little maintenance and can have a natural, wood-like appearance. Apply factor to (F-D, F- C, EC-D, and EC-C):.95 Voluntary Dwelling December 2017 Page 39

40 INSURANCE SCORE Insurance Score discounts are available based on an independent grade derived from the applicants credit record, as shown below. Levels 1 and 2 will be applicable only for New Business effective on or after 12/20/2017. Discount Level Score Factor No Discount < Level and "No Hit/No Score" 0.90 Level Level Level or greater 0.65 Apply relevant factor from table above. Apply factor to(f-d, F- C, EC-D, and EC-C) LAPSE IN COVERAGE/ NO PRIOR INSURANCE SURCHARGE Risks with a lapse in coverage that exceed 45 days from the effective date of the last active policy or no prior insurance coverage will have a 10% surcharge applied. At the discretion of the Company, a Statement of No loss and payment will be required. Any lapse in coverage or lack of evidence of prior insurance greater than 90 days will not be accepted and may be eligible for the DP1 Program only. The 10% surcharge will be applied for one (1) year from date of issuance. The surcharge does not apply to first time home buyers or renewals. Force placed insurance is not considered acceptable proof of prior insurance. Apply factor to (F-D, F- C, EC-D, and EC-C): 1.10 OPEN FOUNDATION SURCHARGE A surcharge will be applied to the premium when the dwelling has an open foundation (unless completely enclosed by masonry skirting). Apply factor to (F-D, F- C, EC-D, and EC-C): 1.05 PROTECTIVE DEVICES DISCOUNT Approved and properly maintained installations of burglar alarms, fire alarms, and automatic sprinklers in the dwelling may be recognized for a reduced premium. All devices must be professionally installed (not do it yourself ), and a copy of the installation certificate submitted with the application should be retained in the agent's file and is subject to periodic audits to ensure compliance with all rules and guidelines. (Apply to F-D and F-C) FACTOR Fire alarm reporting to fire or central station and/or 0.90 Complete home sprinkler system* *A credit factor applies to all functioning automatic sprinkler systems professionally installed in accordance with nationally accepted fire sprinkler design standards. The automatic sprinklers must be in all areas except attics, bathrooms, closets and attached structure areas which may be protected by fire detectors in lieu of sprinklers. Voluntary Dwelling December 2017 Page 40

41 REQUIRED DOCUMENTATION For fire alarms, a legible copy of the certificate of installation that includes a monitoring agreement or a current legible copy (not more than one (1) year old) of the monitoring subscription agreement is required to be kept at the agent s office. For fire sprinkler systems, a copy of the certificate of installation from a sprinkler contractor licensed per Florida Statute is required. The sprinkler contractor must hold either a Class I, II or IV license and must certify that the installation substantially complies with National Fire Protection Association (NFPA) sprinkler standard 13, 13D or 13R. A credit will be applied to the theft premium for risks with eligible burglar alarms: Complete local burglar alarm (Covers all exterior doors & windows), or 0.85 Complete burglar alarm reporting to police or central station 0.70 Note: Burglar alarm credits are not available when coverage C is less than $5,000. Refer to Endorsement- AIIC DP PPD PREMISES PROTECTIVE DEVICES SECURED COMMUNITY/BUILDING DISCOUNT Secondary/Seasonal residences are not eligible for this discount. (Apply to EC-D and EC-C) Limit access no more than three (3) entries into the sub-division or the community is protected by 24-hour security patrol hour-manned gates protect all entrances to community Or passkey gates protect all entrances to the community SENIOR/RETIREE DISCOUNT The discount is available to owner occupied dwellings only. An applicant(s) may be eligible for a 5% discount if they have: Attained the age of 60 or Attained the age of 55 and are retired Apply factor to (F-D, F- C, EC-D, and EC-C): 0.95 WATER LOSS PREVENTION A 5% discount will be provided for dwellings that have had the plumbing certified to have been checked for soundness and to be free of any visible defects. All appliances connected thereto and the attachments between the plumbing system and the appliances must be checked for soundness and lack of defects This certification requires a licensed plumber to complete the AIIC WLP - WATER LOSS PREVENTION DISCOUNT CERTIFICATION form. This discount applies automatically to all newly constructed homes completed in the same calendar year as the initial effective date of the policy. For new construction, the requirement for the Water Loss Prevention Discount Certification form is waived. This discount expires after three (3) consecutive policy terms unless a new Water Loss Prevention Discount Certification form certifying the soundness of the plumbing system is provided to AI. Cannot be applied when Proof of Updates - All Systems discount is present on the policy. Apply factor to (EC-D, and EC-C): 0.95 Voluntary Dwelling December 2017 Page 41

42 PREMIUM FACTORS HURRICANE BASE RATE WINDSTORM LOSS MITIGATION FEATURES A. ELIGIBLITY For policies that cover the peril of Windstorm or Hail, a premium credit (up to a maximum of 90%, inclusive of any BCEG discount) may be available if one or more of the following loss mitigation features or construction techniques exists: a. Roof Covering; b. Roof Deck Attachment; c. Roof to Wall Connection / Attachment; d. Opening Protection; e. Roof Shape / Geometry; or f. Secondary Water Resistance The credit recognition and description of the loss mitigation features listed above are described in the Loss Mitigation Credits Table. Note: For townhouse or rowhouse, use 1 4 unit tables regardless of number of units in the building. B. VERIFICATION The Company will require proof that substantiates the existence of wind loss mitigation features. This proof will be in the form of verification by a registered or licensed design professional certified building inspector or licensed General Contractor. A Florida Building Code Mitigation Verification Affidavit is available for use in satisfying this requirement. The insured is responsible for the expense associated with substantiating the existence of the mitigation features. No verification documentation beyond shutter documentation, appropriate pictures and permit documents are required for dwellings constructed on or after January 1, Dwellings with a construction permit dated prior to January 1, 2002 must submit a Uniform Mitigation Verification Inspection Form, OIR-B (Rev. 01/12 or 02/10 only). We do not accept the 07/07 version of this OIR form. For homes that qualify for the hip roof credit only, a Wind Loss Mitigation Form will not be required. In lieu of a Wind Loss Mitigation form, color photographs substantiating the existence of the hip roof wind loss mitigation feature may be acceptable. C. RESIDENTIAL CLASSIFICATION DEFINITIONS: New Construction - Risks constructed subject to the 2001 version of the FBC. Existing Construction - Risks constructed prior to January 1, High Velocity Hurricane Zone (HVHZ) Miami-Dade and Broward Counties. Terrain Terrain C - Miami-Dade, Broward and Monroe Counties; all barrier islands and all risks within 1,500' of the coastline. Terrain B - All areas not included in Terrain C. FBC Wind Speed - Design wind speed (3 second gusts) for the site location as determined by the wind speed map in figure 1609A of the FBC. FBC Wind Design Speed - Wind speed (3 second gusts) for which the structure is designed to withstand according to the FBC Basic (minimum) Wind Design Speeds (SDS) are established for each FBC Wind Speed Zone. When the WDS of the structure (1-4 unit building built on or after January 1, 2002) exceeds the basic speed design, certification is required for premium credit. Use a Florida Building Code Mitigation Verification Affidavit. Voluntary Dwelling December 2017 Page 42

43 Roof Cover - The covering applied to the roof deck for weather resistance, fire classification or appearance. The most common roof covering materials in Florida are composition shingles and tiles. A key factor in roof covering performance is the method of attachment of the roof covering to the roof deck. The Florida Building Code 2001 (Section 1504) has material requirements and attachment specifications that are superior to common roof covering building practices in the past. For composition shingles, these requirements include self-seal strips and compliance with ASTM D-3161 (Modified for 110 mph). This requirement is commonly referred to as the "110 mph" rated shingle. Voluntary Dwelling December 2017 Page 43