IMPORTANT NOTICE ABOUT YOUR NEW HOMEOWNERS POLICY

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Owen Gilmore
6 years ago
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1 IMPORTANT NOTICE ABOUT YOUR NEW HOMEOWNERS POLICY Here is your new homeowners insurance policy that replaces your current one. The coverage of this new policy will become effective on the renewal date of your policy with our Company. In an effort to provide our policyholders with the protection most homeowners seek at an affordable price, we periodically make changes to your policy. Some of the changes are made to reflect emerging court interpretations about coverage, to reduce coverage, or to conform to state law. Other changes, such as many of the ones made in this new version, are intended to clarify coverage. We have listed the most important changes from your current policy below. Please read this summary and the policy and contact us with any questions, as it is very important that you are familiar with the coverages you have. While the new policy contains some coverage reductions, we believe it remains an outstanding value, and we look forward to continuing to serve your home insurance needs for many years to come. 1. Page 1 Definitions: The definition of actual cash value in Item 1(b) has been revised to clarify that the cost to repair, rebuild or replace does not include the increased costs to comply with the enforcement of any building codes, ordinance or law regarding the manner in which your home must be repaired or rebuilt. Note that there is separate coverage available for such costs, called Building Code Upgrade Coverage. 2. Page 3 Special Limits of Liability: Special Limit of Liability 6, related to firearms, has been expanded to include firearm accessories or related equipment in the firearms limit. 3. Page 6 Perils Insured Against Coverage A & B: New coverage exclusions have been added to Exception #7. The new items are 7(h), relating to acts or decisions, including the failure to act or decide, of any person, group, organization or governmental entity, and 7(i), relating to faulty, inadequate or defective planning, zoning, development, surveying, siting, design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction, materials or maintenance of part or all of any property. Pursuant to these exclusions, there is no coverage for a loss resulting from the performance of defective work on your home. 4. Page 7 Perils Insured Against - Coverage A & B: Exclusion 7 provides an ensuing loss provision relating to water damage resulting from any of the perils listed in exclusion 7. It has been revised to clarify the types of water losses that would be covered under the ensuing loss provision. 5. Page 7 Perils Insured Against Coverage A & B: Exclusion 8 has been revised to clarify the types of water losses that are excluded from coverage. 6. Page 7 Perils Insured Against Coverage C: The introduction has been changed to clarify that the covered perils are subject to the exclusions listed in Section I Exclusions. Paragraph 12 has been revised to clarify that water losses from a sudden and accidental discharge, eruption, overflow or release of water from any portion of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or household appliance are covered, but a gradual or slow release of water is not covered, and to clarify that there is no coverage for deterioration, rust, mold or wet or dry rot.

2 7. Page 8 Perils Insured Against Coverage C: Paragraph 13 has been revised to clarify the types of losses from the sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, an air conditioning or fire protective sprinkler system, or an appliance for heating water that are covered versus those that are not covered, and to clarify that there is no coverage for deterioration, rust, mold or wet or dry rot. 8. Page 8 Section I Exclusions: Exclusion 3(b) has been revised to clarify that water, sewage or waterborne material which backs up through sewers, drains or sumps, or which overflows or is discharged from a sump, sump pump or related equipment, sewers or drains is excluded. Note that limited Water Back-Up and Sump Discharge or Overflow coverage for such losses is available for purchase. 9. Page 9 Section I Exclusions: Exclusion 9 has been expanded to include lead in the list of pollutants. 10. Page 9 Section I Exclusions: Exclusion 10 has been revised to limit the scope of this exclusion to loss resulting from the acts listed in 10a. and 10b. Exclusion 10(b)(3) has been expanded to include materials used in renovation or remodeling to the exclusion. 11. Page 10 - Conditions: The new introductory sentence of Condition 3, Loss Settlement, clarifies that the terms repair or replace and replacement cost do not include the increased costs incurred to comply with the enforcement of any building code, ordinance or law. Note that separate coverage for such costs is available by purchasing the Building Code Upgrade Coverage endorsement. 12. Page 11 Conditions: Condition 3, Loss Settlement, Item 3(b)(6) has been added and states that payment of loss on an actual cash value basis will not include payment of a contractor s overhead and profit unless and until such overhead and profit is actually incurred by you. 13. Page 28 Extended Replacement Cost Endorsement With No Building Code Upgrade: The new introductory sentence clarifies that the terms repair or replace and replacement cost do not include the increased costs incurred to comply with the enforcement of any building code, ordinance or law. Note that separate coverage for such costs is available by purchasing the Building Code Upgrade Coverage endorsement. The endorsement conditions have been revised to include your obligation to provide us with accurate information about your home. Item 5(d) has been revised to conform to statute, and states that we will extend the 12-month period to make a replacement cost claim for an additional six months with good cause. Item 5(e) has been added and states that payment of loss on an actual cash value basis will not include payment of a contractor s overhead and profit unless and until such overhead and profit is actually incurred by you. In addition to the above changes, which affect all policyholders, we have added new optional special deductibles and optional coverage limitations that apply only if you are notified in your renewal package that they have been added to your policy and the endorsement number is shown on your declarations page. The new optional special deductibles are on pages 19 21, and the new optional coverage limitations are on pages 22 24, of your new policy booklet. We have also added two new optional coverages for your review and consideration. These new optional coverages are on pages of your new policy booklet. The enclosed brochure describes these and other optional coverages that are available for purchase if you need additional protection. We are available to answer any questions you may have about your policy and coverages. Please feel free to contact our Customer Service Department at (800) and we will be happy to assist you.

3 Optional Coverages More Protection is Available The following list includes a few of the optional coverages that you may be able to purchase either as endorsements or add-ons to your Homeowners policy, or as a separate policy. If you have any questions, or would like to purchase any optional coverages, please call us at (800) Available Optional Coverages Increased Special Limit of Liability on Jewelry, Watches and Furs Scheduled Personal Property Building Code Upgrade Water Back-Up and Sump Discharge or Overflow Other Members of Your Household (new!) Assisted Living Care Coverage (new!) Description * Increases the coverage for unscheduled jewelry, watches and furs to $1,500 per item and $5,000 total for all items. Provides increased limits for higher-value items you wish to separately insure, such as jewelry, fine arts, cameras and more. Provides an additional amount of insurance to help cover the cost to comply with changes in building codes since your home was built, if the home is damaged by a covered peril. Provides up to $5,000 to help cover damage in your home from backed up sewers or drains or broken sump pumps. Protects the property of an adult who lives in the home but is not otherwise an insured (in other words, someone who lives with you but is not an owner of the property or your relative or spouse). Provides limited personal property and liability coverage to your relative who is residing in an assisted living care facility. Separate Policies You May Purchase Description * Earthquake Insurance Flood Insurance Provides limited coverage for your dwelling, personal property and additional living expenses in the event of an earthquake. Subject to a 15% deductible. Flood insurance is available through the National Flood Insurance Program (NFIP). Limits may differ from those on your Homeowners policy. *Refer to your policy for complete descriptions and applicable terms, conditions and exclusions. Call us - We re here to help! When you have questions about your Homeowners insurance policy, please feel free to call us at (800) Our Licensed Customer Service Representatives are happy to: Answer questions about your policy coverages and limits Add optional coverages to your policy Provide quotes for earthquake and flood policies Give you tips for reducing your premium Sign you up for our Easy Pay Plan (if you pay your premium directly) And more! WESTERN MUTUAL INSURANCE GROUP WESTERN MUTUAL INSURANCE COMPANY RESIDENCE MUTUAL INSURANCE COMPANY ARIZONA HOME INSURANCE COMPANY Or manage your policy online. At you can: Make payments Chat with a representative View premiums for optional coverages Add optional coverages to your policy Request quotes for earthquake and flood policies Sign up for our Easy Pay Plan And more! Protecting California Homeowners for Over 70 Years (800) Trade/service marks are the property of Western Mutual Insurance Company. Issuance of policies is at the sole discretion of, and is subject to all underwriting requirements of Western Mutual Insurance Group.

4 Western Mutual Insurance Group Western Mutual Insurance Company Residence Mutual Insurance Company Arizona Home Insurance Company Important Privacy Notice Dear Homeowner: The Western Mutual Insurance Group shares your concerns about the privacy of your nonpublic personal information. Because we value you as a customer and have your best interest in mind, we do not sell our customer information to anyone. The following privacy policy explains the type of information about you and your home that we collect; how and when we use and disclose that information; and how we protect that information from unauthorized use. This policy applies to both our current and former customers. Information We May Collect and Maintain While you are a policyholder, we collect a variety of information about you. Most of this data is collected directly from you or your agent, and may also be verified or supplemented by other sources. The information we collect includes: o On applications submitted by you or your agent, we may collect information such as your name, address, telephone number, property age and size, and prior claim history o From your transactions with us, we collect data regarding your payment and claim history o From public record sources, we may collect and/or verify information regarding your home, such as property age and size o From consumer reporting agencies, we may collect data regarding your prior claim history or your credit history (please note that we do not share your credit information with anyone) Information Use and Disclosure We use this information to underwrite your insurance and to meet your ongoing customer service and claims handling needs. We may disclose this information to non-affiliated third parties. These companies must also maintain the privacy of your personal data. For example, we may disclose your information to:

5 Western Mutual Insurance Group places a high priority on keeping your information secure. We maintain physical, electronic, and procedural safeguards designed to hold your data in the strictest confidence. Our employees are bound by a Confidentiality Policy, which limits access to customer data to those employees who need it to perform their job functions. Your right to Review and Correct Information Western Mutual Insurance Group Western Mutual Insurance Company Residence Mutual Insurance Company Arizona Home Insurance Company o Third party service providers and experts, such as independent claims adjusters handling your claim o Insurance institutions to detect or prevent fraud (please note that the information we obtain from an insurance support organization may be retained by that company and disclosed to other persons) o Insurance regulators or law enforcement entities as required by law o Actuarial firms that conduct studies that do not identify individuals o Other companies as permitted by law How We Protect Your Information Important Privacy Notice - Continued We do not sell your information to any third parties for marketing purposes. However, you have the right to access the nonpublic personal information we maintain about you in our records. We may charge a reasonable fee to collect and send the data to you. If you wish to review your personal Information, please provide a written request to: Western Mutual Insurance Group attn: Privacy Officer P.O. Box Irvine, CA Your request should include your name address, policy number, and a description of the data you wish to review. We will respond within 30 days of receipt of your written request. Should you find any errors, you may send us a written request for correction. We will act on your request within 30 days of receipt. 03/11

Dwelling Insurance Buyer's Guide

NEW JERSEY MANUFACTURERS INSURANCE COMPANY Dwelling Insurance Buyer's Guide This booklet contains only general information and is not a legal document. Save this booklet. YOUR DWELLING BUYER S GUIDE QUICK