FARM DWELLING/RENTAL PROGRAM

Transcription

1 FARM DWELLING/RENTAL PROGRAM RULES/UNDERWRITING GUIDELINES Page Standard Amounts of Coverage FDW - 1 Perils Insured Against FDW - 1 Eligible List FDW - 2 Consideration List - Submit Non-Bound FDW - 2 Prohibited List - Do Not Submit FDW - 2 Description of Coverage FDW - 3 Optional Coverages FDW - 4 DESCRIPTION OF RULES & RATES OF FARM DWELLING PROGRAMS Farm Miscellaneous Rates FDW 4RA Farm Rate Formulas FDW - 4RB Farm Class A Rental Dwelling Rules FDW - 5 Farm Class A Rental Dwelling Rates FDW - 5R Farm Class A-50 Rental Dwelling Rules FDW - 6 Farm Class A -50 Rental Dwelling Rates FDW - 6R Farm Class B Rental Dwelling Rules FDW - 7 Farm Class B Rental Dwelling Rates FDW - 7R Farm Class C Rental Dwelling Rules FDW - 8 Farm Class C Rental Dwelling Rates FDW - 8 FDW-0

2 FARM DWELLING/RENTAL RULES FARM DWELLING POLICY STANDARD AMOUNTS OF COVERAGE - SECTION I Section I - Property Coverages Coverage A - Dwelling Coverage C - Personal Property (Actual Cash Value) Coverage D Loss of Use Amount of Insurance Amount of Insurance 10% of Coverage A PERILS INSURED AGAINST Basic Perils and Broad Form Perils covers property described in Coverages A, C and D caused by a peril listed below, unless loss is excluded in Section 1 - Exclusions. Group 1 - Basic Perils. Fire or Lightning. Removal. Windstorm or Hail. Explosion. Riot and Civil Commotion. Aircraft. Vehicles. Vandalism & Malicious Mischief. Smoke Group 2 - Broad Form Perils. Theft. Sudden Accidental Tearing Apart of Heating Systems. Freezing of a Plumbing, Heating or Air Conditioning System. Falling Objects. Weight of Ice, Snow or Sleet. Collapse. Breakage of Glass. Sudden and Accidental Damage from Artificially Generated Electrical Current. Accidental Discharge or Overflow of Water or Steam Group 3 - Other Perils Other Perils covers property described in Coverage A against other risks of physical loss, with certain exceptions. FDW-1

3 ELIGIBLE LIST FARM DWELLING/RENTAL UNDERWRITING GUIDELINES Farm Dwelling/Rental Policies - The Insured may be:. Owner/Landlord of a one to three family farm dwelling rented to others.. Owner/Occupant of a seasonal farm dwelling.. Dwellings not eligible for coverage under farm owner occupied program. CONSIDERATION LIST - Submit Non-Bound The following risks may not be bound by the Agent. Submit to Company for Underwriting approval:. Premises with questionable unsafe characteristics.. Premises with visible trash and debris that can be removed or cleaned.. Vacant dwellings with future occupancy contemplated.. Unfenced or inadequately fenced swimming pools.. Open pits or stone quarries on the insured location.. Custom Farming (with or without spraying) which exceeds $15,000 receipts annually.. Poultry operations.. Animal confinement operations.. Farms in excess of 2500 acres.. Three losses in five years.. Homes and/or outbuildings being remodeled or repaired or with unrepaired damage.. Homes without continuous masonry foundation.. Exposed Styrene or Urethane foam insulation.. Vacant Dwellings.. Home Day Care Operations with four or more children.. More than four rental units for any one insured. PROHIBITED LIST - Do Not Submit The following risks are PROHIBITED:. Commercial risks.. Rental dwellings containing more than three family units.. Insureds with known vicious animals.. Homes heated primarily by woodburning appliance.. Homes without interior plumbing.. Breeding, raising and selling of dogs on the premises.. Turkey operations.. Property under bankruptcy proceedings.. Low utility or unneeded structures.. Farm rented to others for recreational purposes and events open to public.. Commercial Feedlots.. Insureds with known frequency (more than three losses in five years).. Woodburning devices in buildings containing animals.. Horse stables and training operations.. Insured that has a bankruptcy or under bankruptcy proceedings.. Log Homes.. Insured that has been convicted of a felony FDW-2

4 DESCRIPTION OF COVERAGE Coverage A - Dwelling Covers the dwelling on the described location, used principally for dwelling purposes, and attached structures. Coverage C - Personal Property Covers personal property usual to the occupancy of a dwelling owned by the Insured or family members residing with the Insured. Landlord s Furnishings, we will pay up to $1, for your appliances, antennas and other household furnishings, in an apartment or dwelling on the insured location regularly held for rental to others by an insured for loss caused by Group 1 or Group 2 Perils. Landlord s Furnishings is provided act Actual Cash Value only. Coverage D Loss of Rents Covers the fair rental value if a loss to property described in coverages A or C by a peril insured against under the policy makes that part of the described location unfit for normal use. We will pay for the shortest time required to repair or replace that part of the residence rented, not to exceed 1/12 th of the amount of liability under Coverage D, for any one month. FDW-3

5 OPTIONAL COVERAGE ANTENNAS, OUTDOOR RADIO AND TELEVISION EQUIPMENT Coverage C Personal Property/Landlord s Furnishings, we will pay up to $1, for your appliances, antennas and other household furnishings, in an apartment or dwelling on the insured location regularly held for rental to others by an insured for loss caused by Group 1 or Group 2 Perils. Use the Tenant Personal Property rate if this limit is not adequate for landlord furnishings &/or antennas, etc. LOSS OF RENTS - INCREASED LIMITS The policy automatically provides coverage equal to 10% of Coverage A. This may be increased. SUMP PUMP FAILURE OR WATER BACKUP OF SEWERS OR DRAINS (FMIC ) Sump Pump failure or water backup of sewers or drains provides coverage for direct loss to the property described caused by water which backs up through sewers or drains, or water which enters into and overflows from within a sump pump or sump pump well. This coverage does not apply: a. If the loss is caused by the negligence of any Insured. b. If the loss occurs or is in progress: (1) Five days after the effective date of this coverage, if added at the inception date or renewal date of this policy. Coverage is available in increments of $1000. A flat $250 deductible per occurrence will apply. This coverage is not available for dwellings that have had problems with this type of damage in the past unless action has been taken to eliminate the problem. FARM BUILDINGS, FARM BLANKET & FARM SCHEDULED EQUIPMENT Refer to the Farm Property section of this manual for rules and rates. MINE SUBSIDENCE & EARTHQUAKE Refer to the sections in this manual for rates and underwriting guidelines. FARM PREMISES LIABILITY Refer to the Farm Liability section of this manual for rates and rules. FDW-4

6 Forreston Mutual Insurance Co. FARM DWELLING/RENTAL MISC. RATES Effective 5/2015 Policy Fee $40 Minimum Premium Per Policy $50 Additional Living Expense/Loss of Rents $.30 per $100 of insurance Sump Pump Failure/Backup of Sewers or Drains $20.00 per $1000 coverage with flat $250 deductible Fire Department Service Charge - Additional $1.00 per $100 of insurance Builders Risk 70% of Class B Rental Rate Earthquake See Earthquake section of this manual Mine Subsidence See Mine Subsidence section of this manual Boat Docks Class C Outbuilding Rate A replacement cost estimator is to be completed on all dwellings. For rating purposes, a maximum of 50% depreciation will be taken and any dwelling insured for less than that amount will result in a surcharge of $ FDW-4RA

7 Forreston Mutual Insurance Co. FARM DWELLING/RENTAL RATES Effective 5/2015 Use these farm rates to calculate premiums for coverage amounts not shown on the premium pages. THESE ARE BASE RATES FOR $500 DEDUCTIBLE. OTHER DEDUCTIBLES ARE SUBJECT TO DEDUCTIBLE FACTOR SHOWN BELOW. Base Rate Per $100 Coverage Policy Type Coverage Amount Fire Wind Min Wind Prem Farm Rental Dwellings Only Class A $ 50,000 To 64, $ 65, Class A-50 Repair $ 50,000 To 64, $ 65, Class B $ 35,000 To 44, $ 45, Class C $ 10, POLICY FEE $40.00 Deductible Factors Ded. Factor Calculate the premium for $500 $ deductible using the rates above, then $ multiply by the appropriate factor to $ calculate the premium for other $ deductibles. $ 1, $ 2, $ 3, $ 5, Territory Factors Terr. Factor See Page 13 in the General Section for a list of Territories by County FDW-4RB

8 DESCRIPTION OF FARM DWELLING/RENTAL PROGRAMS/ELIGIBILITY CLASS A FARM DWELLING/RENTAL Perils Available Basic Perils Broad Form Perils Other Perils Loss Settlement Types Available Actual Cash Value 80% Replacement Cost Standard Amounts Min. Amount of Ins. Max. Binding Authority of Coverage $50,000 $200,000 ALE - 10% of Cov. A Eligibility Requirements: a. Dwelling and detached structures of good construction and excellent repair. Premises clean; free from weeds and trash. Continuous masonry or concrete foundation under all exterior walls, (porches excepted). b. Residence must have an approved roof, furnace, wiring and plumbing all 35 years of age or less, or updated within the last 35 years. Must meet local building codes and building contractor inspection. Wood burning appliance must be UL approved. c. One to three family permanent residence. d. When insured for replacement cost the dwelling must be insured for 80% of the replacement value. When insured for actual cash value (ACV) the dwelling must be insured for a minimum of the ACV which can not be less than 60% of the replacement cost. Inflation factor will apply. Other Perils not available on ACV policy. e. 100-amp electrical service, updated within the last 35 years. f. Complete interior plumbing, being a permanent pipe system supplied by water from a continuous reliable source. g. Cost estimator and photographs (front & rear) submitted with application. h. Readily accessible to a fire truck. FDW-5

9 Forreston Mutual Insurance Co. Farm Dwelling/Rental Class A Effective 5/2015 Fire + Wind Premium Amount of $1,000 $2000 $3000 Coverage DED DED DED FDW-5R

10 DESCRIPTION OF FARM DWELLING/RENTAL PROGRAMS/ELIGIBILITY CLASS A-50 REPAIR FARM DWELLING/RENTAL Perils Available Basic Perils Broad Form Perils Loss Settlement Types Available Loss Settlement Clause 3 Special Repair/Replacement Cost With Commonly Used Building Material Standard Amounts Min. Amount of Ins. Max. Binding Authority of Coverage $50,000 $200,000 ALE - 10% of Cov. A Eligibility Requirements: a. Dwelling and detached structures of good construction and excellent repair. Premises clean; free from weeds and trash. Continuous masonry or concrete foundation under all exterior walls, (porches excepted). b. Residence must have an approved roof, furnace, wiring and plumbing all 35 years of age or less, or updated within the last 35 years. Must meet local building codes and building contractor inspection. Wood burning appliance must be UL approved. c. One to three family permanent residence. d. Must be insured for at least 50% of replacement cost. Inflation factor will apply. e. 100-amp electrical service, updated within the last 35 years. f. Complete interior plumbing, being a permanent pipe system supplied by water from a continuous reliable source. g. Cost estimator and photographs (front & rear) submitted with application. h. Readily accessible to a fire truck. FDW-6

11 Forreston Mutual Insurance Co. Farm Dwelling/Rental A-50 Repair Effective 5/2015 Fire + Wind Premium Amount of $1,000 $2000 $3000 Coverage DED DED DED FDW-6R

12 DESCRIPTION OF FARM DWELLING/RENTAL PROGRAMS/ELIGIBILITY CLASS B FARM DWELLING/RENTAL Perils Available Loss Settlement Types Available Basic Perils Actual Cash Value Broad Form Perils 80% Replacement Cost Other Perils (45,000 Min. Cov.) Standard Amounts Min. Amount of Ins. Max. Binding Authority of Coverage $35,000 $200,000 ALE - 10% of Cov. A Eligibility Requirements: a. Dwelling and detached structures of good construction and in good repair. Premises clean; free from weeds and trash. Continuous masonry or concrete foundation under all exterior walls, (porches excepted). b. Residence must have an approved roof, furnace, wiring and plumbing. Must meet local building codes and building contractor inspection. Wood burning appliance must be UL approved. c. One to three family permanent residence. d. When insured for replacement cost the dwelling must be insured for 80% of the replacement value. When insured for actual cash value (ACV) the dwelling must be insured for a minimum of the ACV, which if less than 50% of the replacement cost a $35.00 surcharge will apply. Inflation factor will apply. Other Perils not available on ACV policy. e. 100-amp electrical service, updated within the last 40 years. f. Complete interior plumbing, being a permanent pipe system supplied by water from a continuous reliable source. g. Cost estimator and photographs (front & rear) submitted with application. h. Readily accessible to a fire truck. FDW-7

13 Forreston Mutual Insurance Co. Farm Dwelling/Rental B Effective 5/2015 Fire + Wind Premium Amount of $1,000 $2000 $3000 Coverage DED DED DED FDW-7R

14 DESCRIPTION OF FARM DWELLING/RENTAL PROGRAMS/ELIGIBILITY CLASS C FARM DWELLING/RENTAL Perils Available Basic Perils Broad Form Perils Loss Settlement Types Available Actual Cash Value Standard Amounts Min. Amount of Ins. Max. Binding Authority of Coverage $20,000 $200,000 ALE - 10% of Cov. A $10,000 Seasonal Eligibility Requirements: a. Dwelling fully utilized and in a good state of repair. Premises clean; free from weeds and trash. Continuous masonry or concrete foundation under all exterior walls, (porches excepted). b. Residence must have an approved roof, heating system, electrical wiring of at least 60 amp service and plumbing. Wood burning appliances must be UL approved. c. One to three family permanent residence. d. Insured for at least minimum of actual cash value. If insured for less than 50% of replacement cost, a $35.00 surcharge will apply. Inflation factor will apply. e. Complete interior plumbing, being a permanent pipe system supplied by water from a continuous reliable source. f. Cost estimator and photographs (front & rear) submitted with application. g. Readily accessible to a fire truck. SEASONAL DWELLING All seasonal dwellings must be classed as Rental dwellings. If coverage is needed for contents, use the Tenant Personal Property rate, coverage on Personal Property will be ACV. A seasonal dwelling will not be written unless the company insures the primary residence. Submit all Seasonal Dwellings Non-Bound. FDW-8

15 Forreston Mutual Insurance Co. Farm Dwelling/Rental C Effective 5/2015 Fire + Wind Premium Amount of $1,000 $2000 $3000 Coverage* DED DED DED * Minimum for seasonal dwelling is $10,000. Rental dwelling minimum is $20,000. FDW-8R