DWELLING PROGRAM GENERAL INSTRUCTIONS...

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1 DWELLING PROGRAM GENERAL INSTRUCTIONS PERILS AFFORDED APPLICATION BINDING AUTHORITY TERM OF POLICY SINGLE BUILDING DEFINITION CONSTRUCTION DEFINITIONS PUBLIC FIRE PROTECTION DEDUCTIBLE OPTIONS SITUATIONS THAT DO NOT QUALIFY FOR OUR DWELLING POLICY PROGRAM RATING INFORMATION ANNUAL BASIC PREMIUMS PREMIUM TABLES COVERAGE AMOUNT ROUNDING MINIMUM PREMIUM WAIVER OF PREMIUM WHOLE DOLLAR PREMIUM ADDITIONAL COVERAGES INFLATION GUARD COVERAGE B - OTHER STRUCTURES COVERAGE C CONTENTS COVERAGE D - FAIR RENTAL VALUE IMPROVEMENTS, ALTERATIONS AND ADDITIONS LOSS ASSESSMENT PROPERTY COVERAGE FIRE DEPARTMENT SERVICE CHARGE AWNINGS, SIGNS, OUTDOOR RADIO AND TELEVISION EQUIPMENT PLANTS, SHRUBS, TREES ORDINANCE & LAW / DEMOLITION DWELLING FIRE, REPAIR COST PROGRAM - GM FIRE RATES JAN 2011 GERMANTOWN MUTUAL INSURANCE COMPANY UTAH 9.1

2 DWELLING PROGRAM GENERAL RULES GENERAL INSTRUCTIONS The Dwelling Policy Program is designed to insure the properties that are not eligible for homeowners coverage due to the type of occupancy. Our basic philosophy is essentially the same as for our Homeowners Program: well-maintained dwellings owned by responsible individuals. This program provides coverages using the forms and endorsements specified herein. Those rules, rates, forms, and endorsements not included in the manual, but filed by the Company, will apply. PERILS AFFORDED See ISO dwelling forms for specific coverages. APPLICATION In order to process your applications on a timely basis, it is essential that our agents submit fully completed applications. Photos are mandatory with all new applications. BINDING AUTHORITY For risks that meet underwriting criteria and show pride of ownership, agents should refer to their Agency Contract for binding limits. If you wish to bind a higher limit than in your Agency Contract, please contact Germantown Mutual. TERM OF POLICY The policy will be written for an ANNUAL term only. SINGLE BUILDING DEFINITION All buildings or sections of buildings which communicate through unprotected openings shall be considered as single buildings. Buildings which are separated by space shall be considered separate buildings. Buildings or sections of buildings that are separated by an 8 inch masonry party wall which pierces or rises to the underside of the roof and which pierces or extends to the inner-side of the exterior wall, shall be considered separate buildings. Communication 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. CONSTRUCTION DEFINITIONS 1. Frame Exterior wall of wood or other combustible construction, including wood-iron clad, stucco on wood or plaster on combustible supports. Aluminum or plastic siding over frame is considered frame construction. 2. Masonry Veneer Exterior walls of combustible construction veneered with brick or stone. 9.2 GERMANTOWN MUTUAL INSURANCE COMPANY - UTAH JAN 2011

3 3. 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. (Disregarding floors resting directly on the ground.) 4. Superior Construction A. Non-Combustible Exterior walls and floors and roof constructed of, and supported by metal, asbestos, gypsum, or other non-combustible materials. B. Masonry/Non-Combustible Exterior walls constructed of masonry materials (as described in Item 3 above) and floors and roof of metal or other non-combustible materials. C. Fire Resistive Exterior walls and floors and roof constructed of masonry or other fire resistive materials. NOTE: Mixed (Masonry/Frame) - A combination of both frame and masonry construction shall be classed and coded as frame when the exterior walls of frame construction (including gables) exceed 33 1/3% of the total exterior wall area; otherwise class and code as masonry. PUBLIC FIRE PROTECTION Except in areas otherwise classified, all dwellings within the corporate limits of a municipality shall take the fire protection classification of the municipality. All dwellings located outside of the corporate limits of a municipality shall be considered as unprotected unless the fire protection in the district in which the dwelling is located is specifically classified. DEDUCTIBLE OPTIONS All premiums and rates in this section are for the $ deductible amount unless otherwise indicated. Other deductibles may be developed by applying the percentages listed below to the $ deductible premiums: Buildings Deductible $250 $500 1, JAN 2011 GERMANTOWN MUTUAL INSURANCE COMPANY UTAH 9.3

4 SITUATIONS THAT DO NOT QUALIFY FOR OUR DWELLING POLICY PROGRAM 1. Woodburning stoves within non-owner occupied dwellings. 2. Vacant or unoccupied dwellings. 3. Foreclosure properties. 4. Farm properties or dwellings located on the premises with other farm buildings. 5. Dwellings under construction which are being built for speculation or seasonals being built by the insured. 6. Log Home or similar type construction. 7. Metal or rolled roofing. 8. Buildings containing a commercial occupancy. 9. Owner occupied dwellings. 10. Swimming pools/trampolines. 11. Horses. 12. Business Names, Corporations or LLC s. 13. Out of state landlords. 14. Student housing. RATING INFORMATION ANNUAL BASIC PREMIUMS All premiums and rates shown in this manual are on an annual basis and, unless otherwise indicated, rates are for each $1, of insurance. The premium tables display premiums for: 1. Coverage A Dwelling: 1-2 or 3-4 families, non-owner occupied; 2. The perils of Fire, Extended Coverage (EC), Vandalism and Malicious Mischief (V&MM), and the Broad and Special Forms. NOTE: Broad & Special Premiums include the Fire, Extended Coverage, and Vandalism & Malicious Mischief premium. PREMIUM TABLES Premiums are displayed for amounts of insurance ranging from $1, to $100, The premium displayed for $1, is to be used for an initial amount of insurance less than $1,000.00, unless otherwise indicated. The premium for amounts of insurance in excess of $100, is determined by multiplying the rate shown for Each Additional $1, at the bottom of the premium table by the excess amount. The premium for other amounts of insurance not displayed in the premium table is obtained by INTERPOLATION. 9.4 GERMANTOWN MUTUAL INSURANCE COMPANY - UTAH JAN 2011

5 COVERAGE AMOUNT ROUNDING All policy amounts are to be recorded to the nearest $ (i.e., $8, and less is rounded to $8,000.00; and $8, is rounded to $8,500.00). MINIMUM PREMIUM The minimum premium for all dwelling policies is $ WAIVER OF PREMIUM When a policy is endorsed subsequent to the inception date, any additional or return premium of $2.00 or less will be waived, except that a return premium of less than $2.00 shall be returned to the insured upon request. WHOLE DOLLAR PREMIUM All premiums shown on the policy and endorsements shall be rounded to the nearest whole dollar. A premium of fifty cents ($0.50) or more shall be rounded to the next higher whole dollar. In the event of cancellation by the Company, the return premium may be carried to the next higher whole dollar. ADDITIONAL COVERAGES INFLATION GUARD Dwelling policies may be endorsed to provide automatic adjustments in the amount of insurance applicable to building items. Through the use of Endorsement DP 04 11, the policy amount on renewal will be automatically adjusted based on the changes in housing costs for the prior year. COVERAGE B - OTHER STRUCTURES To Rate Coverage B Other Structures: Multiply the limit of insurance by a rate of $5.00 per $1,000. Apply the appropriate peril factor, protection class factor, and deductible factor. Fire, EC & VMM - $1.00 Class $1.00 BF - $1.04 Class $1.50 SF - $1.08 NOTE: A limit of 10% of Coverage A is automatically included as an additional amount of insurance when written on a Form 2 or 3. JAN 2011 GERMANTOWN MUTUAL INSURANCE COMPANY UTAH 9.5

6 COVERAGE C CONTENTS When our Company insures the insured s rental dwelling coverage for contents may be written as part of the same policy. Rate as follows: Contents coverage may be obtained at a rate of $2.50 per $1,000 of insurance. Multiply the figure by the appropriate peril factor, protection class factor and deductible factor. Fire, EC & VMM - $1.00 Class $1.00 BF - $1.04 Class $1.50 SF - $1.08 COVERAGE D - FAIR RENTAL VALUE/COVERAGE E ADDITIONAL LIVING EXPENSE To Rate Coverage D Rental Value: Multiply the limit of insurance by a rate of $2.50 per $1,000. Apply the appropriate peril factor, protection class factor, and deductible factor. Fire, EC & VMM - $1.00 Class $1.00 BF - $1.04 Class $1.50 SF - $1.08 NOTE: A limit of 20% of Coverage A is automatically included as an additional amount of insurance when written on a Form 2 or 3. IMPROVEMENTS, ALTERATIONS AND ADDITIONS (Endorsement DP 04 31) Select the appropriate one family frame dwelling Coverage A premium from the rate pages. Multiply this premium by the deductible factor. LOSS ASSESSMENT - PROPERTY COVERAGE (Endorsement DP 04 63) Select the appropriate one family frame dwelling Coverage A premium from the rate pages. Multiply this premium by the deductible factor. FIRE DEPARTMENT SERVICE CHARGE This coverage may be obtained at a rate of $20 per $1,000 of insurance. Multiply the figure by the appropriate peril factor, protection class factor and deductible factor. Fire, EC & VMM - $1.00 Class $1.00 BF - $1.04 Class $1.50 SF - $ GERMANTOWN MUTUAL INSURANCE COMPANY - UTAH JAN 2011

7 AWNINGS, SIGNS, OUTDOOR RADIO AND TELEVISION EQUIPMENT (Endorsement DP 04 19) Windstorm or Hail coverage may be obtained at a rate of $50 per $1,000 of insurance. Multiply the figure by the appropriate peril factor, protection class and deductible factor. Fire, EC & VMM = $1.00 Class $1.00 BF = $1.04 Class $1.50 SF = $1.08 PLANTS, SHRUBS, TREES (Endorsement DP Form DP-1) (Endorsement DP Form DP-2 or 3) Form DP-1: Coverage which is not afforded in this form may be obtained in accordance with the provisions listed below. Form DP-2 or 3: Up to 5% of the Coverage A limit of liability may be applied for loss to plants, shrubs and trees. Windstorm or hail coverage is not included. Coverage may be obtained at the rates noted below: Limits Premium $1,000 $15 $2,000 $30 $3,000 $45 $4,000 $60 $5,000 $75 ORDINANCE & LAW / DEMOLITION (Endorsement DP 04 71) Broad Form and Special Form policies may be endorsed to provide coverage for Ordinance & Law due to the operations of building laws for dwelling policies covering non-owner occupied dwellings. The premium is determined as follows: 1. The building must be insured for 80% of the replacement cost of the dwelling. 2. Ordinance & &Law coverage will now include demolition coverage. 3. Form DP and DP include 10% of the Coverage A limit for Ordinance & Law Coverage. To increase the percent of coverage above 10%, multiply the Coverage A premium by the following applicable factor: Increase % Rate Factor 15%.10 40%.20 65%.30 90%.40 JAN 2011 GERMANTOWN MUTUAL INSURANCE COMPANY UTAH 9.7

8 DWELLING FIRE REPAIR COST PROGRAM - GM-24 (10/89) This program is designed to insure those older, well-maintained homes where the current market value is lower than the replacement cost. 1. Characteristics of the Program A. Any future building structure losses will be adjusted up to the policy limit without deduction for depreciation. The damaged property will be repaired with commonly-used building materials. If the company and insured cannot agree on the type of materials to be used, settlement will be on an actual cash value basis with deduction for depreciation. B. The amount of insurance for the Dwelling is written at 100% of the current market value as agreed upon by the agent and insured. C. The amount of coverage will be adjusted annually by a factor reflecting the change in the cost of building materials from the prior year. 2. Steps for Using the Program A. The agent and applicant should reach agreement on the full market value of the home. B. Indicate in the Agent s Comments section on the backside of application that the Repair Cost Endorsement, GM-24, is to be used. List full market value in the Dwelling section of application. C. Should you wish to change a current policy to the Repair Cost program at renewal, request in your renewal instructions, Change to Repair Cost Program - Dwelling - Amount = $. 3. Guidelines for Use of the Program A. Well kept homes over 35 years of age are eligible. B. The premium charge is 10% of the current dwelling rates for Coverage A. C. Forms DP-2 and DP-3 may be used. D. The dwelling s market value must be equal to or greater than 50% of the replacement cost value of the risk. 9.8 GERMANTOWN MUTUAL INSURANCE COMPANY - UTAH JAN 2011