Underwriting Guidelines Homeowners California

Transcription

1 Underwriting Guidelines Homeowners California Edition Date 10/16/2014 General Procedures Policy Period CSE Homeowners policies are written for a term of 12 months. Renewals are continuous and based upon the premiums in effect at the time of renewal. The current editions of the applicable forms and endorsements shall be made a part of the policy. All rates listed in the manual are based on a 12-month policy term. Premium Collections New Business All new business applications must be accompanied by either: Full payment of the 12-month policy premium, or The initial premium payment if the policy is being issued under the installment payment plan (see Installment Payment Plan in this section) A policy writing fee of $15 will be charged on all new Safeguard policies. Exception If the payment is to be paid by an escrow or mortgage company, the new business application may be sent without payment. The escrow or mortgage company must remit the full 12-month policy premium upon policy issuance. Note: Be sure to indicate in the designated space on the application the name and address of the individual, and the escrow or mortgage company to be billed for the premium, as well as any special billing procedures. Late Payment If payment has not been received by the cancellation effective date, a cancellation notice will be sent to any additional insureds and loss payees or mortgagees indicating that the policy was canceled for non-payment. For CSE Safeguard policies, if payment is received after a Cancellation Notice is mailed, but before the Final Cancellation Notice is produced, a $15 late fee will apply. Format Date 10/23/2014 1

2 Renewals All renewals are billed to the appropriate party per the agent s instructions 45 days prior to the renewal date, and the premium payment is due by the renewal date. Short Payments The CSE Homeowners premium payment plan is a paid-to-date program. This means that when a partial payment is made and no further payments are received, the policy will be canceled as of the date that the coverage purchased by the initial payment ceases. A cancellation pending notice will be issued to all concerned parties 15 days prior to the time coverage ceases. A notice of cancellation will be issued on the date coverage ceases. There is no mid-term billing of any outstanding balance other than the second payment due from the insured paying under the installment plan. If paid-to-date coverage extends into the renewal billing cycle, any balance due will be carried forward and added to the premium due on renewal. If paid-to-date coverage ends before the renewal billing cycle begins, the policy will be canceled unless payment of the amount due is received. Installment Payment Plan CSE offers 2 payment plans for insureds who do not wish to pay the full 12-month premium at one time. The first installment plan enables the insured to pay in 4 installments. The second payment plan allows the insured to pay in 6 installments. Service Charge If the insured wishes to pay by an installment plan, a $6 service charge* will be assessed to each installment. Any time the first payment is less than the full term premium, we will use the installment plan selected by the insured, and the service charge will be added. * If the insured chooses to pay the installment plan through EFT, the service charge will be $2 for CSEICO and waived for CSE Safeguard. Payment Allocation For the 4 pay installment plan, the first installment consists of 25% of the full annual premium. The $6 service charge* will be added to the first installment and to each remaining installment. The remaining three installments are 25% of the full annual premium. Format Date 10/23/2014 2

3 Billing For the 6 pay installment plan, the first installment consists of 16.7% of the full annual premium. The $6 service charge* will be added to the first installment and to each remaining installment. The five remaining installments are 16.66% of the full annual premium. * The service charge is $2 for CSEICO and waived for CSE Safeguard if payment is made through EFT. For the 4 pay installment plan, we will automatically bill the insured for the second installment, which is due 70 days after the term effective date. The third and fourth installments, which will be due in 90 day intervals after the second installment and will be billed by us 30 days prior to the due date. For the 6 pay installment plan, we will automatically bill the insured for the second installment, which is due 40 days after the term effective date. The remaining installments, which will be due in 60 day intervals after the second installment, will be billed by us 15 days prior to the due date. Late Payment If payment has not been received by the cancellation effective date, a cancellation notice will be sent to any additional insureds, loss payees, or mortgagees indicating that the policy was canceled for non-payment. For CSE Safeguard policies, if payment is received after a Cancellation Notice is mailed, but before the Final Cancellation Notice is produced, a $15 late fee will apply. Returned Check Fee If a check to pay the policy is returned to CSE by the bank for Non-sufficient funds, account closed, etc., a fee of $15 will be assessed to the policy. This fee will be assessed to each returned check occurrence. Rounding of the Premium All premiums for coverage must be rounded to the nearest dollar. Preparing Applications Note: Failure to comply with the following guidelines may result in the suspension of the agent s binding authority. Legibility, Completeness, Timeliness Blank or unsigned applications must never be left with a prospective insured. CSE requires that all applications be: Format Date 10/23/2014 3

4 Effective Date Written legibly (preferably, typewritten or computer-generated) Completed in full (all questions answered) Submitted within 10 days of binding. Applications submitted more than 10 days after binding are subject to cancellation The policy effective date must be the same as or later than the date of the named insured s signature. Post-dated applications, to be effective within 60 days of the policy submission date, are permissible. Back-dated applications are prohibited. Backdating is defined as follows: posting an effective date prior to the time the coverage is applied for, without approval from an underwriter (Coverage is applied for when the named insured, for purposes of binding coverage, signs the application or submits money to the agent.) Insurance Binder Address CSE agents have authority to issue an insurance binder for a period of 30, 60, or 90 days from the effective date of the policy. Under no circumstances may a binder be issued for a period longer than 90 days. When the effective date of the policy and the date the application is signed by the insured are the same, the binder section must be completed indicating the time signed. For example, the policy effective date is January 01, 1998 and the insured signs the application on January 01, 1998 at 2:00PM. The time of 2:00PM should be indicated as the time bound. If the time is not modified from 12:01AM, then the coverage is considered to be backdated. If the effective date of the policy is in the future of the date signed, there is no need to complete the binder section of the application. The applicant must have a definite and permanent address which is clearly stated on the application in the designated area. If the mailing address differs from the property location or is a post office box, the agent must state the reason for the discrepancy, or, in the case of a post office box, indicate the distance from the property to the post office box. Use the remarks section of the application for this information. If the property has no numerical address, clearly specify the location with respect to well-known landmarks or nearby entities which pinpoint locale. Format Date 10/23/2014 4

5 Signature and Dates Cancellations Each application must be personally signed and dated by a named insured listed on the application as well as by the issuing agent or a licensed representative acting on behalf of the agent. If the named insured is a minor, the application and attachments must also be signed by a parent or guardian of the minor. The following forms must be signed and retained on file in the agent s office: Application New Business Coverage Offer Explanation Verification Residential Property Insurance Disclosure CSE reserves the right to cancel a new business application for Underwriting reasons at any time within the initial 60-day underwriting period. General underwriting cancellation reasons include, but are not limited to, the following: Policy does not meeting underwriting criteria Insured does not provide the required or requested underwriting information Material misrepresentation has been made by the insured CSE does not provide the coverage requested Non-weather or catastrophe related loss within the first 60 days of the policy period Policy premium is not submitted within required time period If we decline to process the application due to general underwriting unacceptability, we will mail a notice of cancellation to the named insured with a copy to the agent, as required by statute. Unearned premium, calculated pro rata, will be returned to the named insured under a separate cover. To request reconsideration of a policy canceled within the initial 60-day underwriting period, the agent must write to the underwriter stating the reasons why the policy should remain in force. If the underwriter agrees to rescind the cancellation, the agent should return the refund check to CSE along with the information requested by the underwriter. Under no circumstances may the agent return a refund check to the company without prior approval from the underwriting department. Format Date 10/23/2014 5

6 Mid-Term Company-Initiated We will cancel a policy mid-term for the following reasons: Non-payment of premium Conviction of a crime increasing hazard insured against Fraud or material misrepresentation has been made by the insured Grossly negligent act or omission increasing hazard insured against Physical changes in property making it uninsurable Or other grounds as stated in the California Insurance Code section 676 Insured-Initiated Non-Renewal The named insured may request the policy to be canceled at any time during the policy period. An ACORD cancellation form should be used to cancel the entire policy. The cancellation form must be signed and dated by the named insured or spouse, with the cancellation effective date indicated. Prohibited is retroactive cancellation where the effective date of cancellation is more than 30 days prior to the date of the named insured s signature on the cancellation form. The following cases are exceptions: Duplicate coverage exists with another policy issued by CSE or another insurance carrier, as evidenced by a declaration page from the new insurance carrier. The cancellation is pre-approved by the Underwriting Department The dwelling is sold at an earlier date and the insured provides proof of sale If insurance is canceled at the request of the insured, the earned premium shall be computed on a pro-rata basis. Reasons for non-renewal include, but are not limited to, the following; The agent no longer represents CSE Non-payment of premium occurs There is a substantial increase in the hazard insured against (see Ineligible Criteria in the underwriting guidelines for examples) Format Date 10/23/2014 6

7 There is an unacceptable loss history. > One or more non-weather or non- catastrophe related loss(es) in the first policy term that indicates insured negligence, deferred maintenance and/or insured has not taken steps to mitigate future losses. > One or more weather or catastrophe related loss(es) in the first policy term that indicates insured negligence, deferred maintenance and/or insured has not taken steps to mitigate future losses. > Two or more losses in the prior four (4) years as a result of insured negligence, deferred maintenance and/or insured has not taken steps to mitigate future losses. > Losses involving negligence by any insured. > Losses involving the lack of maintenance or care of the insured s personal property and/or premises or due to a moral/morale hazard (i.e. insured carelessness or indifference). We will notify the agent of our intent to non-renew. This notification will also include our reason(s) for the decision. Policy Rescission Policy rescission is an underwriting action that renders the entire contract between CSE and the applicant null and void as of the inception date. We rescind a policy when misrepresentation of material fact on the application is so critical that had the correct information been known at the time of the application we would not have bound the coverage. Reinstatement When a policy is cancelled for non-payment of premium, the policy will be reinstated without lapse in coverage if the full amount due is received by the effective date of cancellation. Payments received after the date of cancellation will be referred to the Underwriting Department for approval. We will decline to reinstate a policy if: There is a history of late payments described as: > 2 or more late payments in the last year, or > 4 or more late payments in the last 2 years There is a history of NSF (non-sufficient funds) check payments described as: > 2 or more NSF checks in the last year, or Format Date 10/23/2014 7

8 > 3 or more NSF checks in the last 2 years If the amount paid is less than the amount due when received There is an unacceptable loss history > One or more non-weather or non-catastrophe related loss(es) in the first policy term. > One or more weather or catastrophe related loss(es) in the first policy term if the loss involves a lack of maintenance or care of the insured s personal property and/or premises. > Two or more losses in the prior four (4) years. > Losses involving negligence by any insured. > Losses involving the lack of maintenance or care of the insured s personal property and/or premises. Policies currently set to non-renew If the Underwriting Department agrees to reinstate, such reinstatement will be processed without lapse in coverage. A reinstatement fee of $6 for CSEICO and $20 for CSE Safeguard will be assessed for each reinstatement transaction. If the Underwriting Department declines reinstatement, the unearned premium will be returned to the insured, and the cancellation will stand. If payment is received more than 30 days after the cancellation date, the payment will be returned to the insured. Transfer or Assignment The transfer or assignment of policies is generally prohibited. A transfer or assignment may be approved under the following circumstances: Under Form H004, transfer to another location within the same state or Under Forms H003 and H006, assignment from the Named Insured to a relative in the event of transfer to title to the dwelling, or death of the Named Insured. In all circumstances, the request must be submitted to Underwriting for prior approval. (See Non-Bound Submission Procedure in the Eligibility Criteria section of this manual.) Format Date 10/23/2014 8

9 Assessment Fee Eligibility Criteria The California Insurance Code requires insurance carriers doing business in California to indemnify the public against loss due to the insolvency of individual property or casualty carriers. Accordingly, the California Insurance Guarantee Association (CIGA) may assess each of its members a fee to help pay for any outstanding policyholder and claimant liability obligations left by an insolvent carrier. When CIGA assesses us this fee, we recoup the amount of the fee from our insureds in the form of an assessment fee factor applied to each policy as required by the state insurance code. Form Eligibility Special Form (H003) A CSE Insurance Company Homeowners policy may be issued using Form H003, provided the policy is issued: to the owner-occupant(s) of a 1- or 2-family dwelling which is used exclusively for private residential purposes (except permitted incidental business occupancies) and contains not more than 1 additional family, or, to the purchaser-occupant(s) who have entered into a long-term installment contract (contract of sale) for the purchase of the dwelling and who occupy the dwelling, but to whom title does not pass from the seller until all terms of the installment contract have been satisfied. The seller retains title until completion of the payments and in no way acts as a mortgagee. The seller s interest in the building and premises liability may be covered using Endorsement H041 Additional Insured. A CSE Safeguard Homeowners policy may be issued using Form H003 (only), provided the policy is issued: to the owner-occupants of a 1 family dwelling, primary, which is used exclusively for private residential purposes. CSE Safeguard Insurance Company Homeowners Insurance Program Program Rate Differential GTO Base GTS 1.20 Format Date 10/23/2014 9

10 GTO New Business Claims-free for the past 36 months. Renewals A policy s loss history will be evaluated by a CSE Underwriter after a loss has occurred. The policy will be moved to the GTS Program except in the following circumstances: The loss is a weather or catastrophe related loss, (unless the loss occurred because of more than slight negligence by the insured, the dwelling is in poor condition, or the insured failed to correct a poor physical condition) or, The policy has been insured with CSE for the following amount of time and the loss does not exceed the following dollar amount: Consecutive policy renewals Loss amounts $ with CSE Up to 1, Up to 2, Up to 3, Up to 4, Up to 5,000 Policies with 2 or more losses within the last 3 years, regardless of loss type or amount, are ineligible for the GTO Program. If not non-renewed, the policy will be placed in the GTS Program upon renewal. Contents Broad Form (H004) A CSE Insurance Company Homeowners policy may be issued using Form H004 provided the policy is issued to: the tenant(s) (non-owners) of a dwelling or an apartment situated in any building or, the owner-occupant of a dwelling, cooperative unit, or building containing an apartment who is not otherwise eligible for a Homeowners policy under the Special Form (H003) provided the residence premises occupied by the insured is used exclusively for private residential purposes (except permitted incidental business occupancies) and is not occupied by more than 1 additional family or more than 2 boarders or roomers. Format Date 10/23/

11 Condominium Unit-Owners Form (H006) A CSE Insurance Company Condominium Unit-Owners policy may be issued using Form H006 provided the policy is issued to the owner-occupants of a condominium unit or the owner of a tenant-occupied condominium unit which is used exclusively for private residential purposes (except permitted incidental business occupancies). In order for an H006 policy to be issued for a tenant-occupied condominium unit, the H033 Unit Owners Rental To Others coverage must be endorsed. Other Homeowners Form Eligibility Criteria for CSE Insurance Company When a 2-family dwelling is occupied by co- owners, each occupying distinct living quarters with separate entrances, a Homeowners policy providing dwelling coverage may be issued to only 1 of the co-owner occupants of the dwelling. The policy may be endorsed to cover the interest of the other coowners(s) of the dwelling and for premises liability. A separate Homeowners policy Form H004STO may be issued to the co-owner(s) occupying the other distinct living quarters in the dwelling. The CSE Insurance Company Homeowners policy (only) may be extended, without additional premium charge, to cover the interest of a non-occupant co-owner of the dwelling and to cover premises liability by attaching Endorsement H041- Additional Insured. Subject to all other sections of this rule, a CSE Insurance Company Homeowners policy only may be issued to cover a seasonal dwelling, and such dwelling shall be described as Seasonal Dwelling in the policy, provided the company has the supporting Homeowners policy (refer to the Underwriting Section of this manual). Incidental office, professional, private school, and studio occupancies are permitted on CSE Insurance Company policy only provided: 1. The premises is occupied principally for dwelling purposes; 2. There is no other business conducted on the premises; 3. There is no increase in the applicable fire rate for such occupancy; 4. There is no unusual hazard presented; 5. There is minimal or no foot traffic from customers of described business. Refer to Optional Coverage, Endorsement H042 Permitted Incidental Occupancies-Residence Premises, or Endorsement H043, Permitted Incidental Occupancies-Other Residences. This is not available on CSE Safeguard. Format Date 10/23/

12 A Homeowners policy shall not be issued covering any property to which farm forms or rates apply under the rules filed by or on behalf of the company. In no event shall a policy be issued to cover any property situated on premises used for farming purposes, unless farming conducted thereon is only incidental to the occupancy of the premises by the insured as a dwelling, and farming is not the occupation of the insured. Also, the occupants of the dwelling and other structures thereto may not be engaged in the operation of the farm, and said dwellings are in addition to a complete set of farm buildings on the farm and are not exposed within 200 to any farm building. Minimum Limit of Liability Company Form Section Coverage Limit $ CSEICO H003 I A 120,000 Metro 1 80,000 Non-Metro 2 H004 I C 25,000 H006 I C 25,000 3 All II E 100,000 All II F 1,000 CSE Safeguard H003 I A 85,000 All II E 100,000 All II F 1,000 1 Metro includes the following counties: Alameda, Riverside, San Mateo, Contra Costa, Sacramento, Santa Barbara, Los Angeles, San Bernardino, Santa Clara, Marin, San Diego, Solano, Orange, San Francisco, Ventura 2 Non-Metro includes all other counties not listed under one Metro above. 3 For H006 policies with the H033 Unit Owners Rental To Others endorsement, the minimum Coverage C is $10,000 if CSE insures the owner s primary residence. Agent Binding Authority Section I Form Protection Class Coverage Authority $ H003 1 to 7 A 800,000* H004 1 to 7 C 250,000 H006 1 to 7 C 250,000 * 1. CSE can consider risks up to $1,500,000 on a non-binding basis. 2. Le Club and President s Council agents have Coverage A binding authority of $1,000,000 for dwellings in protection class 1 to 7. They can submit risks up to $2,000,000 on a nonbinding basis (CSE can write a limited number of these per year). Format Date 10/23/

13 Section II (All Forms) Coverage Authority $ Personal Liability 500,000 per occurrence Medical Payment to Others 5,000 per person Scheduled Personal Property Floater (See Inland Marine Manual) Ineligible Risks (CSEICO or CSE Safeguard) Risks not meeting CSE s minimum insurable values. See Minimum Coverage Limits in this section of the manual. Risks of sub-standard construction Risks with poor housekeeping and maintenance conditions HO3 risks with an ISO FireLine Wildfire Hazard Assessment of high or extreme. HO4 and HO6 risks with an ISO FireLine Wildfire Hazard Assessment of extreme (high can be submitted non-bound). HO3, HO4 and HO6 risks with an ISO FireLine Wildfire Hazard Assessment of moderate that have wood shake roofs. Risks within a 1 mile radius of an active wildfire. Risks located on more than 5 acres of land. Risks currently in pre-foreclosure or foreclosure. Risks purchased through distressed financial sales (i.e. pre-foreclosure, foreclosure, REO, short-sale, auction, etc). These risks may be bound if the agent has either first inspected the property and taken interior/exterior photos showing the dwelling is in good to better condition or the insured has a current 3 rd party, professionally completed, interior/exterior inspection (can include real estate inspections done in conjunction with the home sale). Vacant or unoccupied property Risks with corporation listed as named insured Homes with open foundation Homes not built by a licensed contractor Homes with a wood burning stove or other space heater as the primary heat source Dwellings rented to others without a carbon monoxide device Format Date 10/23/

14 Buildings converted to a dwelling occupancy from a non-residential occupancy Dogs with a prior bite history (CSEICO) Guard dogs and dog breeds with a known propensity for viciousness, such as Chows, Akitas, Doberman-Pinschers, Pit-Bulls (a.k.a. American Staffordshire Terrier), Working American Bulldogs, Presa Canarios, Rottweilers and Mastiffs (all types), or any mixed breeds containing the above dog types. (CSE Safeguard) Although risks with Doberman Pinschers, Rottweilers, Pit- Bulls (a.k.a. American Staffordshire Terrier), Akitas, and Chows are not ineligible, there is no coverage under the policy for liability losses caused by these animals. Working American Bulldogs, Presa Canarios, Mastiffs (all types) or any mixed breeds containing these dog types are ineligible. Non-domesticated animals which have a known propensity for viciousness or the ability to cause severe bodily injury. The following list is intended to be used as a guide and is not an exhaustive list: > Large cats (lions, tigers, Lynx, etc.) > Wolf-hybrid dog breeds > Bears > Snakes (Boa Constrictors, Pythons, Rattlesnakes, Coral snakes, etc.) The CSE Safeguard policy excludes coverage for liability arising from the ownership of illegal animals or reptiles. Unusual liability exposure (e.g. unfenced swimming pool, swimming pools with slides, stairs with no handrail, trampolines, dwellings with lead based paint, etc.) Certain risks may be submitted on a non-bound basis Dwellings on a slope of 35 degrees or more Dwellings built on piers or posts Dwellings located in Protection Classes 8 through 10 (see Suburban Rating Rule for exceptions) Mobilehomes Manufactured homes that are not on a permanent foundation and do not have wood frame construction. Risks where the amount of insurance requested is less than 100% of the full replacement cost of the dwelling, or personal property if H004 or H006. Format Date 10/23/

15 Applicants that have had any of the following in the past three years: > Any liability loss that is the insured s responsibility or indicates insured negligence. > Any theft/vandalism loss where steps have not been taken to mitigate future losses or due to a moral/morale hazard (i.e. insured carelessness or indifference). > Any water loss that indicates insured negligence, deferred maintenance and/or insured has not taken steps to mitigate future losses. > Any loss over $5,000 as a result of insured negligence, deferred maintenance and/or insured has not taken steps to mitigate future losses. > Two (2) or more losses as a result of insured negligence, deferred maintenance and/or insured has not taken steps to mitigate future losses. Risks canceled or non-renewed by CSE or any other company for reasons listed in CSE s Ineligible Criteria. Dwellings whose architectural style is highly ornate (e.g. Victorian or Edwardian style) Dwellings located on fill or bay mud (S4) soft soil (see the Dwelling Soil Type section of this manual). Dwellings built prior to 1960 with an MMI* of eight (8.0) or greater which do not meet CSE s retrofitting criteria. Not required for H004 or H006 policy forms. (see the Dwelling Retrofitting Requirements section of this manual for retrofitting requirements) * The Modified Mercalli Intensity (MMI) scale is one of the most commonly used earthquake measurement scales in the U.S. It measures the severity of ground effects and structural and interior damage during an earthquake. Dwellings with MMI s of 8.0 or greater experience significant damage. Dwellings with windows covered by non-releasable security bars in living areas. Risks where prior damage exists Risks under course of construction or renovation Risks purchased for real estate speculation Dwellings which are architecturally unique (e.g., geodesic, log homes, earth homes) Format Date 10/23/

16 Absentee landlords (property owners who reside over 100 miles from the owned residence) Dwellings must be a minimum of 800 square feet of living area Dwellings over 30 years old that have not had plumbing, heating, and electrical updates within the last 30 years. If the home s electrical system is on circuit breakers and plumbing system is made of copper; no updates will be required for these two items. Galvanized plumbing unless it is 40 years of age or less and the policy deductible amount is at least $1,000. Homes with an electrical system that contains any knob and tube, aluminum wiring, or any fuses, regardless of the year updated. No Wood Shake, Tar and Gravel, or Flat roofs, unless they have been replaced within the last 20 years and show no visible signs of wear or deterioration. No Composition/Asphalt Shingle roofs unless they have been replaced within the last 30 years and show no visible signs of wear or deterioration. Seasonal or secondary dwellings, unless the owner s primary residence is insured with CSE > Not available for CSE Safeguard Homeowners Coastal risks which are either directly exposed to the Pacific Ocean or within 1,000 feet of the normal high tide levels of the Pacific Ocean, an island or keys or water front property directly exposed to large open bays or harbors on these bodies of water Any home with 2 or more roomers or boarders Any home with roomers or boarders who change frequently (stay less than 6 months) Individuals with the following occupations: > Reporters, authors, editors, or publishers of newspapers and/or magazines > Broadcasters, television and/or radio personalities > Professional actors, athletes, entertainers, or celebrities > Individuals who have been elected to their occupations or full-time positions > Candidates for an elected office Format Date 10/23/

17 New business risks in the following San Bernardino mountain area zip codes: 92305, 92314, 92315, 92317, 92321, 92322, 92325, 92326, 92333, 92339, 92341, 92352, 92378, 92382, 92385, and This is due to our concentration of risk and the potential for significant firestorm activity. Non-Bound Risks (submit for approval) $1,000,000 liability limit Dwellings exceeding binding authority limits HO4 or HO6 risks with an ISO FireLine Wildfire Hazard Assessment of high. Non-Bound Submission Procedure An agent may not bind an applicant who does not qualify for coverage under the underwriting guidelines of this manual. Underwriting will review a non-bound application submitted by an agent if the following conditions are met: 1. Agent does not accept premium; 2. Agent indicates Non-Bound on the application; 3. Applicant and agent do not sign and date the application; 4. Application does not show effective dates but is otherwise completed in full; Agent includes with the application a detailed description of the circumstances surrounding the non-bound submission and includes in that description comments regarding the applicant. If Underwriting approves the application for binding Underwriting will return the original application to the agent requesting the premium and an effective date. To assure prompt handling, the agent should forward the application, premium, and Underwriting memo of acceptance through the normal new business submittal process. We will not provide coverage prior to the date that we actually receive the premium. Policy Attachments H003 Policy All H003 risks should be inspected by the agent prior to binding coverage. CSE orders inspections on all homeowners new business. The following items need to be included with each application submitted to CSE: 1. Marshall & Swift Replacement Cost Estimator (current edition) Format Date 10/23/

18 H004 Policy 2. Supplemental wood stove questionnaire and photo of wood stove (if applicable) 3. Dog Questionnaire (if applicable) 4. Dwelling Seismic Retrofitting Form (when applicable; see Dwelling Retrofitting Requirements section of this manual) 5. For the Home Warranty Discount please see: Endorsements section of this manual. (Not available for CSE Safeguard.) All H004 personal property risks should be inspected by the agent prior to binding coverage. The following item needs to be included with each application submitted to CSE: H006 Policy Dog Questionnaire (if applicable) All H006 property risks including personal property should be inspected by the agent prior to binding coverage. The following item needs to be included with each application submitted to CSE: Dog Questionnaire (if applicable) Underwriting Guidelines Introduction The Homeowners Policy program provides property and liability coverages using the forms and endorsements specified in this manual, which contains the rules, classifications, and premiums which govern the writing of Homeowners policies. The rules, rates, forms, and endorsements filed by or on behalf of the company for each coverage shall apply in all cases not specifically provided herein. Forms Offered Special Form (H003) (CSEICO & CSE Safeguard) Contents Broad Form (H004) (CSEICO only) Condominium Unit-Owners Form (H006) (CSEICO only) For eligibility guidelines refer to the Eligibility Criteria section of this manual. For coverage definitions, conditions, and exclusions refer to the specific contract for each policy form. (This manual does not contain contract language.) Format Date 10/23/

19 Special Form (H003) Section I Property Damage Coverage A Dwelling Coverage B Other Structures Coverage C Personal Property Coverage D Loss of Use Section II Liability Coverage E Personal Liability Coverage F Medical Payments to Others Contents Broad Form (H004) Section I Property Damage Coverage C Personal Property Coverage D Loss of Use Section II Liability Coverage E Personal Liability Coverage F Medical Payments to Others Condominium Unit-Owners Form (H006) Deductibles Section I Property Damage Coverage A Dwelling Coverage C Personal Property Coverage D Loss of Use Section II Liability Coverage E Personal Liability Coverage F Medical Payments to Others Basic Deductible, All Forms The CSE Insurance Company Homeowners policy rates are based on a $100 deductible. Note: The $100 deductible is not available for new business. The minimum deductible is $250. The CSE Safeguard Company Homeowners policy rates are based on a $500 deductible. Optional Deductible, All Forms CSE offers the following optional deductibles: $250 (CSEICO only), $500, $1000, $2500, and $5000 Format Date 10/23/

20 Construction Construction Classifications Frame Masonry Masonry Veneer Mixed Construction A dwelling with exterior walls of combustible construction, including walls with metal, stucco, or metal lath and plaster, on combustible supports A dwelling with exterior walls of brick, concrete, concrete block, adobe, tile, other masonry materials or noncombustible materials, on non-combustible supports A dwelling with walls of combustible construction veneered with masonry materials. Dwellings of masonry veneer construction and their contents and apartment contents are eligible for masonry premiums A dwelling is to be classified as masonry where the wall areas of masonry construction exceed 33 1/3% of the total exterior wall area. Construction Eligibility A dwelling is eligible if it meets the following qualifications: Brush Exposure Has minimum of 800 sq. ft. of living area Built by a licensed contractor Permanently attached to a continuous foundation Has basic construction of frame, brick, concrete, or concrete block Has roof of wood shingle, shake shingle, composition shingle, rock, tile, slate or composition roll (flat roof only) Has siding of wood, composition, stucco, brick veneer, vinyl, asbestos, steel, or aluminum Any property with a Wildfire Hazard Assessment of high or extreme per the ISO FireLine Report is ineligible for an HO3 policy.* The potential exposure for firestorm is significant for this type of risk. * HO4 and HO6 policies with an ISO FireLine Wildfire Hazard Assessment of high may be submitted non-bound. Extreme is ineligible. Suburban Rating Rule (CSEICO policies only) Use for all risks rated from the personal lines manual. The location of the property must be inside the city limits or the described area furnishing the fire protection to qualify for the class listed for the city or area. Format Date 10/23/

21 Use the indicated class for properties inside the city limits or the described area furnishing fire protection. Suburban Rating Rule: Dwellings not part of a complex and not located in areas listed will fall under Protection Class 6, provided all the following requirements are met: 1. The dwelling is located within 5 miles travel distance from a full time, paid fire department that will respond. A State Department of Forestry fire station is not considered a recognized fire department unless it has contracted to provide residential protection for the area in which the dwelling is located. 2. The dwelling is located within 1,000 of a public fire hydrant with 2 1/2" hose outlets connected to a 4" or larger main. 3. The dwelling is not located in a severe brush or forest conflagration area. The dwelling will be as classified under Protection Class 8 if either one of 1. or 2. above together with 3. are met. The dwelling will be classified under Protection Class 9 if 1. and 2. above are not met, but 3. is satisfied. For towns or Areas not listed which are located in a brush or forest conflagration area, use Protection Class 10. Dwelling Retrofitting Requirements Retrofitting Criteria Buildings constructed prior to 1960 and with an MMI* of 8.0 or greater must meet the following criteria. (Note: H004 and H006 policy forms are exempt from retrofitting requirements): Structure must be anchored or bolted to the foundation. This rule applies to single- and multi-story homes. Bolts or anchors must be placed at 4' to 6' intervals and at a depth of 4" inches to 5". Single-story and multi-story homes with crawl spaces or basements must have sheathing of cripple walls for additional bracing. Sheathing consists of plywood bracing installed between the sill plate and the plate attached to the studs. Outside brick fireplaces must be reinforced, and braced to the structure and roof to minimize separation and falling. Water heaters must be secured to the wall to minimize the risk of fire and water damage as a result of a broken gas line caused by a falling water heater. Format Date 10/23/

22 * The Modified Mercalli Intensity (MMI) scale is one of the most commonly used earthquake measurement scales in the U.S. It measures the severity of ground effects and structural and interior damage during an earthquake. Dwellings with MMI s of 8.0 or greater experience significant damage. This requirement will be waived with proof that a seismic gas shut-off valve has been installed. Required Documentation for Retrofitting The following will be accepted as evidence of dwelling retrofitting: Dwelling Soil Type Local building inspector signature on building permit Inspection report from licensed structural engineer Completed CSE Dwelling Retrofitting Form signed by the issuing agent or a Licensed contractor, inspector, or engineer. (NOTE: CSE s Dwelling Retrofitting Form is available to print from the Print On Demand Forms section of this underwriting manual). Photos of water heater strapping, chimney bracing, shearwalling, and bolting of dwelling to foundation. Photos must clearly indicate each of the four retrofitting requirements.** This requirement will be waived with a photo or receipt verifying installation of a seismic gas shut-off valve. The ground soil a dwelling is constructed upon may vary from a rigid, bedrock-type soil to a highly-porous, mud-like soil. The soil a dwelling is constructed upon may profoundly influence the damage done to a dwelling during an earthquake. A soft, loose (less dense) soil will shake more intensely than hard rock at the same distance from the same earthquake. This intense shaking amplifies the damage done to dwellings as the result of earthquakes. CSE is concerned about this risk factor as it directly impacts the potential for serious dwelling damage and increases the likelihood for fire-following losses after a moderate to large earthquake. The United States Geological Survey (USGS) defines four primary ground soil types based on the organic makeup of the soil. The four soil types (listed from most solid/dense to least solid/dense) are as follows: Bedrock (S1) soil Shallow Alluvium (S2) soil Deep Alluvium (S3) soil Fill/Baymud (S4) soft soil *(Ineligible for CSE) Format Date 10/23/

23 Wood Burning Stoves The following rules govern the binding of risks that contain wood burning stoves or other secondary heat sources. Mandatory attachments: photo of risk, photo of wood burning stove, and completed wood burning stove supplement. The wood burning stove must be installed by a contractor or other professional and must be approved by the fire department or building inspector. The wood burning stove must not be the only heat source in the home. The primary heat source should be central heating. The wood burning stove must be safety checked and cleaned annually. The home must be located in Protection Class 7 or lower. Swimming Pools (CSE Safeguard only) Risks with swimming pools on the premises will receive a $65 charge. For the purpose of this surcharge, a pool is defined as an above-ground or inground recreational receptacle utilized to hold water which is over 6 feet in diameter/or across in any direction, with the exception of: Deflatable Pools or Kiddie Pool type, or categorized as a Jacuzzi or Spa. Special Form (H003) Definition CSE Insurance Company Only 1- or 2-Family Residence May be written only for the owner-occupant of a 1- or 2-family residence, which means that not more than 1 additional family may occupy the building. An owner-occupant of a townhouse or row house is also eligible regardless of the number of units in the building. Townhouses and Row Houses Ownership consists of a separate interest in an individual dwelling unit, together with the land on which the unit is situated. A townhouse unit may be a single structure or 1 unit of a multi-unit structure. Note: Townhouse contents only may be written under the Condominium Owners Package, provided the dwelling building is covered under the association s property Format Date 10/23/

24 insurance. Townhouse dwelling (single structure or 1 unit of a multi-unit structure) may qualify for the Special Form. Note: CSE SAFEGUARD may be written for a 1-Family, owner occupied, primary residence only. Mandatory Coverages It is mandatory that insurance be written for all coverages provided under both Sections I and II of the Homeowners policy. Section II of the Homeowners policy requires coverage for the following exposures and an additional premium must be charged when such exposures exist (these additional coverages are not available in CSE Safeguard): All additional premises where the named insured or spouse maintains a residence other than business or farm properties Permitted incidental office, professional, private school, or studio occupancies used by the insured on residential premises of the Named Insured Section II of the Homeowners policy for Secondary Dwellings may be deleted. A premium credit will be given. However, the company must provide coverage for the primary Homeowners policy and extend coverage from the primary to the secondary. Limited Wildfire Smoke, Soot, Ash or Debris Coverage Attach F.34130A to all policies (CSE Safeguard only) Attach F.34205A to all policies (CSEICO only) Optional Coverages Refer to the Endorsement Section of this manual for optional coverages pertaining to the Special Form H003 policy form. Replacement Cost Replacement Cost Statement CSE requires that all dwellings be insured at 100% of replacement cost, for the purpose of providing adequate protection against a total loss of property. We require the current Marshall & Swift replacement cost estimator calculation to establish accurate replacement cost coverage. In accordance with California insurance code, CSE requires that agents provide insureds with a copy of the replacement cost estimate used when quoting their dwelling. The insured s copy of the estimate (entitled Homeowner Notice ) can be Format Date 10/23/

25 located/printed in the Report Options section of the Reports/Calculate tab, under the Report Type drop-down box. Marshall & Swift RCT Express Introduction The Marshall & Swift program is designed to extend the estimating capability of the more traditional square foot method so that users may quickly and easily determine up-to-date replacement cost values for a wide range of homes, including those which are: Mainstream and upscale More lavish in their appointments and additional features Of high quality Inflation Factors CSE includes inflation factors in the calculation for each policy renewal period to adjust the replacement value of homes for varying costs in the construction industry. Homegard Endorsement (F.30850B) (CSEICO only) The Homegard endorsement will be included on all H003 policies. The following eligibility criteria must be met in order to provide the Homegard rating on an H003 policy: Dwellings must: 1. be the insured s primary residence (seasonal and secondary dwellings do not qualify) 2. have a minimum Coverage A amount of $100, have a minimum of 1,200 square feet of living area 4. have been constructed since (Homes built prior to 1960 may be considered for the Homegard rating if the dwelling has been completely rebuilt from the studs up since Please submit non-bound). Proof of reconstruction is required. Proof may include a copy of: a) the general contractors agreement, b)a copy of the final certificate of completion or a final inspection signed by the building inspector, c)an inspection by a third party (ex. inspection company, real estate inspection (not appraisal). 5. be insured to 100% of replacement cost (photos of front and back of home and replacement cost estimator are required for consideration) Format Date 10/23/

26 6. have a smoke alarm, fire extinguisher, and deadbolt locks 7. no roomers or boarders 8. no farming or ranching exposure 9. no undue exposures such as brush or landslide And risks must have: 1. New Business: no losses during the last 3 years 2. Renewals: A policy s loss history will be evaluated by a CSE Underwriter after a loss has occurred. CSE will remove the F.30850B rating except in the following circumstances: the loss is a weather or catastrophe- related loss, (unless the loss occurred because of more than slight negligence by the insured, the dwelling is in poor condition, or the insured failed to correct a poor physical condition) or, the policy has been insured with CSE for the following amount of time and the loss does not exceed the following dollar amount: Consecutive policy renewals with CSE Loss amounts $ up to 1, up to 2, up to 3, up to 4, up to 5,000 Policies with 2 or more losses within the last 3 years, regardless of loss type or amount, are ineligible for the Homegard rating. If not non-renewed, the policy will have the Homegard rating removed upon renewal. Removal of the Homegard rating does not preclude CSE from non-renewing risks based upon guidelines in the General Procedures, Non-renewal section of these guidelines. Replacement Cost Contents Endorsement (H500) (Forms H004 and H006 only) (CSEICO only) In addition to our eligibility guidelines, any applicant requesting replacement cost on unscheduled personal property (Endorsement H0-500) must meet the following requirements: Format Date 10/23/

27 Policy Discounts Coverage must be maintained at 100% replacement cost of personal property contents. Any request to reduce Contents Coverage limits must be accompanied by an updated inventory of personal property completed by the named insured. Multi-Policy Discount The multi-policy discount is provided when there is an in-force supporting automobile policy written in the name of the insured listed on the homeowners policy. The multi-policy discount is credited to the homeowner policy. The multi-policy discount is: Company Discount CSEICO 10% CSE 12% Safeguard without supporting umbrella CSE 13% Safeguard with supporting umbrella Persistency Discount (CSEICO only) A 3% Persistency Credit for those insured with CSEICO for 4-9 years, and a 5% credit for those insured with CSEICO for 10 or more years. Persistency is calculated as the difference between the term effective date and original effective date. The discount has no provisions for those insured with another carrier prior to insuring with CSE, and the credit follows the insured, not the dwelling. Years insured Discount 0-3 0% 4-9 3% % Loyalty Discount (Safeguard only) Loyalty is calculated as the difference between the term effective date and original effective date. The discount has no provisions for those insured with another carrier prior to insuring with CSE, and the credit follows the insured, not the dwelling. Continuous Renewals Discount Format Date 10/23/

28 Continuous Discount Renewals 0 0% 1 3% 2 4% 3+ 5% Newer Home Premium Credit and Older Home Surcharge (Form H003 only) The following credits are given for homes constructed within the past seven years. Apply the proper credit to the $100 deductible base premium for CSEICO and $500 deductible base premium for CSE Safeguard. % Credit Construction Year CSE CSEICO Safeguard Current year Current year minus Current year minus Current year minus Current year minus Current year minus Current year minus Current year minus Current year minus Current year minus Current year minus Current year minus Current year minus Current year minus Current year minus Current year minus Current year minus 16 to Current year minus 21 to Current year minus 26 to Current year minus 31 to Current year minus 36 to Current year minus 41 to Current year minus 46 to Current year minus 51 to Current year minus 61 to Current year minus 71 to Current year minus 81 to Current year minus 91 to Current year minus Tile Roof Discount/Wood Shake Roof Surcharge (Safeguard only) Homes with tile roofs will receive a 7% discount, while homes with wood shake roofs will receive a 5% surcharge. Format Date 10/23/

29 Civil Servant Professional Occupation Discount (Safeguard Only) Occupation Factor Civil Servant 0.90 Civil Servant Firefighters 0.90 Civil Servant Law Enforcement Professionals* 0.90 Civil Servant Educators who are engaged in the teaching, training and management of students at all 0.90 levels of schooling. Insureds who have retired from the above occupations also qualify for this discount. *Law Enforcement Officers consist of police officers, sheriffs, FBI agents, Secret Service agents, officers of the Department of Homeland Security, prison guard and Border Patrol Enforcement personnel and other comparable positions whose duties are primarily the prevention, investigation, apprehension or detention of individuals suspected or convicted of offenses against the criminal laws, including an employee engaged in this activity who is transferred to a supervisory or administrative position; or serving as a probation or pretrial services officer. H216STO Premises Alarm or Fire Protection System See Endorsements/Homeowners Endorsements (All Forms) H525ST0 Neighborhood Crime Watch (Forms H003ST0 and H006ST0 Only) (CSEICO only) For a premium credit, the residence premises must be located within the boundaries of a neighborhood crime watch area and the insured must be an active, participating member of that neighborhood crime watch area. The premium credit shall be $15. H590ST0 Senior Discount (CSEICO only) For a premium credit, one of the named insureds must be at least 60 years old and the residence premises must be the insured s principal residence. The premium credit shall be 5% of the basic $100* deductible premium. * The $100 deductible is not available for new business. F.30850B HOMEGARD (CSEICO only) See Special Form (H0O3)/Homegard Endorsement (F.30850B) F.30970A (6/99) Home Warranty Endorsement (CSEICO only) See Endorsements/Homeowners Endorsements/Property Endorsements (H372 to End.) Format Date 10/23/

30 Endorsements Index of Endorsements Policy and Endorsements Booklets F.31000B Policy/Endorsements booklet (CSE Safeguard CA) F.30420G (05/03) Endorsements booklet (CSEICO only) F.30440C Policy booklet (H006 - CSEICO only) F.30455D Policy booklet (H004 - CSEICO only) F.30480E Policy booklet (H003 CSEICO only) Homeowners Endorsements H032ST0 Unit Owners, Special Coverage (Form H006ST0 Only) (CSEICO only) H033ST0 Unit Owners Rental to Other (Form H006ST0 Only) (CSEICO only) H035ST0 Loss Assessment Coverage (CSEICO only) H040ST0 Structures Rented to Others, Residence Premises (CSEICO only) H041ST0 Additional Insured, Residence Premises (CSEICO only) H042ST0 Permitted Incidental Occupancies, Residence Premises (CSEICO only) H043ST0 Permitted Incidental Business Occupancy, Other Residence (CSEICO only) H048ST0 Other Structures, Increased Limits (CSEICO only) H050ST0 Increased Limit on Personal Property in Other Residence (CSEICO only) H051ST0 Building Additions and Alterations, Increased Limits (Form H004ST0 Only) (CSEICO only) H052ST0 Continuous Renewal Plan (CSEICO only) H053ST0 Credit Card, Fund Transfer Card, Forgery, and Counterfeit Money Coverage (CSEICO only) H061ST0 Scheduled Personal Property, Additional Coverage (CSEICO only) H065ST0 Increased Special Limits of Liability (CSEICO only) H070ST0 Additional Residence Rented to Others (CSEICO only) H071ST0 Business Pursuits (CSEICO only) H072ST0 Incidental Farming Personal Liability (Form H003ST0 Only) (CSEICO only) H074ST0 3- or 4-Family Dwelling Premises Liability (Form H004ST0 Only) (CSEICO only) H075ST0 Watercraft Liability (CSEICO only) H080ST0 Residence Rental Theft (Form H003ST0 Only) (CSEICO only) H082ST0 Personal Injury (Forms H004 and H006 Only) (CSEICO only) H090 Workers Compensation and Employers Liability Insurance (CSEICO only- Mandatory) H164ST0 Snowmobile (CSEICO only) H216ST0 Premises Alarm or Fire Protection System H300ST0 Special Provisions (all forms) (CSEICO only) H308ST0 Landlord s Furnishings (Form H003ST0 Only) (CSEICO only) H312ST0 Increased Limits on Business Property (CSEICO only) H313ST0 Incidental Motorized Land Conveyances (CSEICO only) H314ST0 Special Computer Coverage (CSEICO only) Format Date 10/23/

31 H372ST0 Mortgagee Clause (CSEICO only) H438ST0 Lender s Loss Payable Clause (CSEICO only) H500ST0 Replacement Cost on Contents (Forms H004 and H006 only) (CSEICO only) H525ST0 Neighborhood Crime Watch (Forms H003ST0 and H006ST0 Only) (CSEICO only) H590ST0 Senior Discount (CSEICO only) H660CA0 Cal-Vet (Forms H004ST0 and H006ST0 Only) (CSEICO only) F.30645A Ordinance or Law, Homeowners (CSEICO only) F.30650A H003ST0 and H006ST0 Ordinance or Law, Basic Limit (CSEICO only) F.30655A H003ST0 and H006ST0 Ordinance or Law, Increased Amount of Coverage (CSEICO only) F.30850B HOMEGARD (CSEICO only) F.30915A Sections I and II Exclusions for Computer-Related Damage or Injury (CSEICO only) F.30960C CSE Safeguard Plus Endorsement F.30970A(6/99) Home Warranty Endorsement (CSEICO only) F.31025B Homeowner Deluxe Endorsement F.31550A Pathogenic Organisms Exclusion Endorsement F.32280A Contact Information Notice F.32465A Identity Recovery Coverage (CSEICO only) F.32470A Identity Recovery Coverage (CSE Safeguard only) F Equipment Breakdown Enhancement (Form H003)(CSEICO only) F Equipment Breakdown Enhancement (Form H004)(CSEICO only) F Equipment Breakdown Enhancement (Form H006)(CSEICO only) F Equipment Breakdown Enhancement (CSE Safeguard only) F.33980A Additional Interests Residence Premises F.34130A Limited Wildfire Smoke, Soot, Ash or Debris Coverage (CSE Safeguard only-mandatory) F.34205A Limited Wildfire Smoke, Soot, Ash or Debris Coverage (CSEICO only- Mandatory) G.30980A CSE Safeguard Personal Property Endorsement G.4490A Thank you for insuring your home with CSE (Stuffer) Initial Residence Coverage E, Increased Limits Initial Residence Coverage F, Increased Limits Increased Limits Additional Residence Occupied by Insured (1- or 2-Family) Coverage E Increased Limits Additional Residence Occupied by Insured (1- or 2-Family) Coverage F Format Date 10/23/

32 Miscellaneous Endorsement H300CA0-Special Provisions, California (CSEICO policy only) Rating Protection Classes 9 and 10 For existing CSE business located in Protection Class 9 or 10. Convert the basic premium for a risk in Protection Class 9 or 10 by multiplying the $100 deductible premium by the appropriate factor below. Conversion Factor Protection H004 or Class H003 H Coverage C Personal Property, Increased Limits (CSEICO only) The basic limit of liability for Coverage C may be increased to a maximum of 100% of Coverage A. The additional premium for each additional $1,000 of insurance shall be $2.00. Explain the reason for the increase in the remarks section of the application. Coverage D Loss of Use, Increased Limits (CSEICO only) The additional premium for each additional $1,000 of insurance shall be $1.00. Explain the reason for the increase in the remarks section of the application. Equipment Breakdown Enhancement Charge $27 to add Equipment Breakdown Enhancement coverage. Homeowners Endorsements (All Forms) Note: Please refer to the Index of Endorsements section of this manual for endorsement titles which relate to endorsement numbers. Property Endorsements (H032 to H070) H032 (CSEICO only) H032ST0 Unit Owners, Special Coverage (Form H006ST0 Only) When the policy is extended beyond the automatic 10% of Coverage C (provided by the policy) to insure for risk of direct physical loss to property, the additional premium shall be $2 for the Basic Limit of Liability (10% of Coverage C) plus, for the Increased Limit of Liability, $1 plus the cost of $1,000 of insurance above the Format Date 10/23/

33 Basic Limit of Liability for each additional $1,000 as shown on the rate pages for Form H006ST0. Agent s Coverage A binding authority is $300,000 (includes the automatic 10% of Coverage C). H033 (CSEICO only) H033ST0 Unit Owners Rental to Other (Form H006ST0 Only) The additional premium shall be 25% of the basic premium (including any credit for higher optional deductibles). H035 (CSEICO only) H035ST0 Loss Assessment Coverage. For an additional premium, the Special Limit of Liability of $1,000 for Loss Assessment Coverage provided in Sections I and II Additional Coverages may be increased as follows: Premium $ Amount of Coverage $ H003 or H006 All other forms with H032ST0 5,000* , Each additional 5,000 (up to 50,000) 2 1 * CSEICO H03 policies automatically have $5,000 coverage extended to them through the Homegard Endorsement. H040 (CSEICO only) H040ST0 Structures Rented to Others, Residence Premises For an additional premium, coverage is provided for structures on the residence premises rented or held for rental to any person not a tenant of the dwelling for use as a private residence. Liability coverage is also provided. The additional premium shall be $3 for each $1,000 of insurance plus the premium for Coverage E Personal Liability and Coverage F Medical Payments to Others for H070ST0 Additional Residence, Rented to Others. H041 (CSEICO only) H041ST0 Additional Insured - Residence Premises This endorsement extends the policy to include any person or organization who has an interest in the named insured s property with respect to Coverages A, B, E, and F. There is no additional premium for this endorsement. Format Date 10/23/

34 H042 (CSEICO only) H042ST0 Permitted Incidental Occupancies, Residence Premises For an additional premium, coverage is extended under Section I Coverage C, Property Coverages for the equipment, supplies, and furnishing usual and occupancy incidental to the business conducted by the insured on the residence premises in the dwelling or in a separate structure on the premises. Liability coverage is also provided. If the business is located in another structure, Coverage B does not apply to that structure. When the building is insured under the Homeowners Special Form and the building has been physically altered for the occupancy, the limit of liability for Coverage C Personal Property must be increased to not less than 60% of the Coverage A Dwelling limit of liability. Provide the Company (1) the nature of the business conducted (2) the amount of space dedicated to the business (3) the frequency of client visits to the premises (4) the estimated quantity of inventory on premises (5) confirmation of the presence of any exterior sign. Additional Coverage E Premium Limit $ Premium $ 100, , , , , ,000, Additional Coverage F Premium Limit $ Premium $ 2, , , , H043 (CSEICO only) H043ST0 Permitted Incidental Business Occupancy, Other Residence Additional Coverage E Premium Limit $ Premium $ 100, , , , , ,000, Additional Coverage F Premium Limit $ Premium $ 2, ,000 6 Format Date 10/23/

35 Additional Coverage F Premium Limit $ Premium $ 4, , H048 (CSEICO only) H048ST0 Other Structures, Increased Limits The additional premium per $1,000 of insurance shall be $2.00. H050 (CSEICO only) H050ST0 Increased Limit on Personal Property in Other Residence For an additional premium the basic limit of liability that applies to personal property usually situated at an insured s residence, other than the residence premises, 10% of Coverage C Personal Property, may be increased. The additional premium shall be $7 per $1,000 of additional insurance. H051 (CSEICO only) H051ST0 Building Additions and Alterations, Increased Limits (Form H004ST0 Only) For an additional premium, the limit of liability for Building Additions and Alterations, 10% of Coverage C Personal Property, may be increased. The premium for each $1,000 of additional insurance shall be the rate per $1,000 shown on the Homeowners Contents rate pages for the protection class in which the premises is rated. H052 (CSEICO only) H052ST0 Continuous Renewal Plan This endorsement provides continuous coverage until the policy is cancelled in writing by the Company or the insured fails to pay the premium. H053 (CSEICO only) H053ST0 Credit Card, Fund Transfer Card, Forgery, and Counterfeit Money Coverage The limit of liability of $1,000 may be increased. Format Date 10/23/

36 Additional Premium Limit $ Premium $ 2, , , ,000 5 H061 (CSEICO only) H061ST0 Personal Property, Additional Coverage Refer to the Inland Marine Manual for premium on Scheduled Personal Property. H065 (CSEICO only) H065ST0 Increased Special Limits of Liability Jewelry, Watches, and Furs (Forms H004 and H006 only) The special limit of $1,000 for theft of jewelry, watches, and furs for any policy other than HOMEGARD may be increased to a maximum of $10,000 but not exceeding $2,500 for any one article. The additional premium per $1,000 of coverage shall be $15 for Territories 9 13, 16 21, and 97, and $9 for the remainder of the state. Money and Securities (Forms H004 and H006 only)the special limit of liability of $200 on money may be increased to a maximum of $1,000. The additional premium shall be $6 per each $100 of additional insurance. The special limit of liability of $1,000 on securities may be increased to a maximum of $5,000. The additional premium shall be $4 per $100 of additional insurance. Silverware, Goldware, and Pewterware (Forms H004 and H006 only) The special limit of liability of $2,500 for loss by theft of silverware, goldware, and pewterware may be increased to a maximum of $10,000 in increments of $500. The additional premium shall be $2 for each $500 of increased insurance. Firearms The special limit of liability for loss by theft of firearms may be increased to a maximum of $6,000 in increments of $100. The additional premium shall be $3 for each $100 of increased insurance. Format Date 10/23/

37 H070 (CSEICO only) H070ST0 Additional Residence Rented to Others *This endorsement will no longer be added on new business, mid-term, or at renewal.* The maximum number of additional residences that can be named in this endorsement is four. Additional Coverage E Premium per Additional Residence Limit $ Premium $ 1-unit 2-unit 3 or 4-unit 100, , , , , ,000, Additional Coverage F Premium per Additional Residence Limit $ Premium $ 1-unit 2-unit 3 or 4-unit 2, , , , Property Endorsements (H071 to H372) H071 (CSEICO only) H071ST0 Business Pursuits For an additional premium, under Coverage E Personal Liability and Coverage F Medical Payments to Others, coverage may be extended for liability of an insured arising out of business activities, other than those related to a business which the insured is a sole owner or partner. Apply a separate charge for each person insured. To determine the amount of the charge, first classify the insured person according to the list of classifications below, then find the corresponding additional premium in the table immediately following the list of classifications. Refer to the Company occupations not otherwise classified. Premium Code A Classification description Clerical office employee whose duties are confined to keeping books or records or conducting correspondence, or who is engaged wholly in office work where such books or records are kept or where such correspondence is conducted, having no other duty of any nature in or about the employer s premises. This classification applies only to a person employed exclusively in a separate building, or on a separate floor of the same building, or in a department on such floor separate from any other workplace of the employer Format Date 10/23/

38 Premium Code B C D E F Classification description by a structural partition and within which no work is performed other than clerical office duties. Salesperson, collector, or messenger including installation, demonstration, or servicing operations. Athletic, laboratory, manual training, physical training, and swimming instruction teacher, excluding liability for corporal punishment of pupils. Teacher not otherwise classified, excluding liability for corporal punishment of pupils. Liability for corporal punishment of pupils for teacher listed under Classification C above. Liability for corporal punishment of pupils for teacher listed under Classification D above. Additional Coverage E Premium Limit $ Premium $ A B C D E F 100, , , , , ,000, Additional Coverage F Premium Limit $ Premium $ A B C D E F 2, , , , H072 (CSEICO only) H072ST0 Incidental Farming Personal Liability (Form H003ST0 Only) For an additional premium, under Coverage E Personal Liability and Coverage F Medical Payments to Others, coverage may be extended to provide liability of the insured arising out of incidental farming operations that are conducted on the residence premises. But coverage may not be extended under this endorsement to any farm whose principal purpose is to supply commodities for manufacturing or processing by the insured for sale to others, such as to a creamery or dairy (but not to a dairy farm), any farm that operates a freezing or dehydrating plant, and any poultry factory. The word processing does not apply to the slaughtering and dressing of livestock or to such operations as bunching vegetables or crating berries. Nor may coverage be extended under this endorsement to (1) any farm whose principal purpose is to raise and use racehorses (2)any incorporated farm (3) any farm that produces more than $2,000 in annual receipts (4) any farm with five or Format Date 10/23/

39 more animals (including horses), or (5) any farm located on more than five acres of land. Additional Coverage E Premium Limit $ Premium $ 100, , , , , ,000, Additional Coverage F Premium Limit $ Premium $ 2, , , ,000 4 H074 (CSEICO only) H074ST0 Three- or Four-Family Dwelling Premises Liability (Form H004ST0 Only) For an additional premium under Coverage E Personal Liability and Coverage F Medical Payments to Others, that part of the premises shown in the declarations, other than the residence premises, is included in the definition of insured location. Additional Coverage E Premium Limit $ Premium $ 100, , , , , ,000, Additional Coverage F Premium Limit $ Premium $ 2, , , ,000 4 H075 (CSEICO only) H075ST0 Watercraft Liability For an additional premium, coverage E Personal Liability and Coverage F Medical Payments to Others, apply to bodily injury and property damage arising out of ownership, maintenance, use, and loading and unloading of a watercraft. Coverage Format Date 10/23/

40 must be written to the expiration of the policy. No credit is allowed for limited navigational periods. The premium applicable in the state in which the insured s initial residence premises is located shall apply, except that if the insured owns another premises where he or she maintains a residence and operates his or her boat principally from such other premises, the premium applicable in the state where the latter premises are located shall apply provided the Company is licensed in the state. Coverage on outboard motors of 25 horsepower or less and sailboats of 25 feet or less with or without auxiliary power is automatically provided in the Homeowners Policy. Provide the Company with each operator s driver s license number and the boat s make, model, length, horsepower, and motor type (inboard, outboard, jet, inboard/outboard). To determine the charge, first identify the premium code in the Premium Codes table below. (For a single watercraft with two or more motors that are regularly used together, use the combined horsepower of the motors. Refer to the Company any motorboat 15' or under with HP.) Then find the amount of additional premium that corresponds to the premium code in the appropriate Additional Premium table. Premium Code Type Horsepower Length in feet A Motorboat Up to 50 Up to 15 B Motorboat Up to C Motorboat Up to 15 D Motorboat E Motorboat Up to 15 F Motorboat G Motorboat H Sailboat With or without auxiliary power Additional Coverage E Premium Limit $ Premium $ A B C D E F G H 100, , , , , ,000, Additional Coverage F Premium Limit $ Premium $ A B C D E F G H 2, , , , Format Date 10/23/

41 H080 (CSEICO only) H080ST0 Residence Rental Theft (Form H003ST0 Only) The additional premium shall be $15. H082 (CSEICO only) H082ST0 Personal Injury (Forms H004 and H006 only) For an additional premium under Coverage E Personal Liability, the definition of Bodily Injury is amended to include personal injury, meaning injury arising out of false arrest, libel, slander, or invasion of privacy. Additional Premium Limit $ Premium $ 100, , , , , This endorsement may only be added effective the new business date or on a renewal date. It may not be added mid-term. When added on a renewal date the request must be submitted to the company non-bound. H090 (CSEICO only) H090CA0 Workers Compensation and Employers Liability Insurance (Mandatory) Who Is Covered Persons covered include casual and household employees who worked a minimum of 52 hours and earned at least $100 from the same employer, either owner or occupant of a residential dwelling, in the 90 days before the injury. This twin threshold requirement will, in most instances, effectively eliminate coverage for the incidental babysitter who previously became eligible for Workers Compensation benefits on January 1, A casual employee is an employee who is not necessarily incidental to the ownership, maintenance, or use of the residence, for example, someone hired to catalog a stamp collection or someone hired to overhaul the engine of a boat owned by the insured. The January 1, 1977, legislation defined casual work as work of at least 10 days duration and for which the cost of labor was at least $500. When this situation existed it was necessary to provide separate Workers Compensation coverage. But under the amended legislation the test for casual employment is the same as for residential employment: at least 52 hours worked and at least $100 earned in the immediate preceding quarter. Format Date 10/23/

42 Note: Tenants of rented residential premises have the same obligations and exposures as do owners. Who Is Not Covered Workers Compensation does not cover an independent contractor, a person employed by the person s parent, spouse, or child; and any specifically excluded individual. For more information see Definitions below. Penalties If a householder-employer fails to provide Workers Compensation coverage, the injured employee has a right of action against the employer. The right of action varies according to the type of employment. Full-time domestics employed more than 52 hours per week by one employer, part-time gardeners employed more than 44 hours per month by one employer, and casual workers employed for more than 10 days and earning more than $100 are entitled to recover Workers Compensation benefits plus penalties. Right of Rejection The law prohibits rejection of Workers Compensation coverage. Rate by Classification The rate is $131 for each private residence employee or inservant who performs private residence household work at least 20 hours per week and whose principal duties take place inside the residence. The rate is $105 for each private residence employee or outservant who performs private residence household work at least 10 hours per week and whose principal duties take place outside the residence. The rate is $5 per policy for any occasional private residence employee whose duties are incidental to the ownership, maintenance, or use of the residence, inside or outside. This charge applies in addition to any separate charge for a full-time employees. It is included in the rates shown on the rate pages. Business Pursuits Workers Compensation coverage is not provided for any person employed in the course of the trade, business, profession, or occupation of the insured. For example, an insured who employs a person to paint, garden, or perform other chores at an apartment building owned by the insured is engaging in business pursuits. The insured must arrange separate Workers Compensation coverage for that employee. Format Date 10/23/

43 Definitions Independent contractor Someone controlled by the householder as to what work to do but not as to how to do the work. If the householder controls how to do the work, the worker may be an employee. Excluded individual (1) Any person who exchanges a service for aid from a religious or charitable organization; (2) any unpaid deputy sheriff, constable, or clerk; (3) any convict who labors on state highways for the State Highway Commission; (4) any person who performs a voluntary service for a non-profit recreational camp; (5) any person who performs a voluntary ski patrol service; (6) any person, other than an employee, who participates in any sport or athletics for no compensation other than the use of uniform and equipment, transportation, meals, lodging, or any other incidental expense. H164 (CSEICO only) H164ST0 Snowmobile For an additional premium Coverage E Personal Liability and Coverage F Medical Payments to Others apply to bodily injury or property damage arising out of the ownership, maintenance, use, or the entrustment by an insured of a snowmobile to any person who uses the snowmobile off an insured location. Additional Coverage E Premium Limit $ Premium $ 100, , , , , ,000, Additional Coverage F Premium Limit $ Premium $ 2, , , ,000 4 H216 H216ST0 Premises Alarm or Fire Protection System The following credits apply to the basic policy premium derived from the rate pages. In order to receive the appropriate credit for a central station alarm system, an alarm certificate must be provided. Format Date 10/23/

44 CSEICO Protective Device Premium Credit Device Credit % Central station burglary alarm system 10 Central station fire alarm system 10 Burglary alarm system that alerts the police department 7 Fire alarm system that alerts the fire department 7 Local burglary or fire alarm system (smoke detector) 5 Local burglary alarm N/A Complete sprinkler system 0 The maximum allowed credit is 15% for CSEICO policies. CSE Safeguard Protective Device Premium Credit Category Type Credit % Fire protectio n device Security device Notes Local smoke or fire alarm, dead bolts, and fire extinguisher 0 Fire alarm report to fire department 5 Fire alarm report to central station 9 Incomplete sprinkler system 0 Complete sprinkler system 9 Complete local burglar alarm 2 Burglar alarm report to police department 5 Burglar alarm report to central station 9 Gated and guarded community 3 The protective devices have been grouped into two categories, fire protection device and security device. The highest discount in each category takes precedence in that category. Discounts can only be combined by different categories and not in the same category. H300 (CSEICO only) H300 Special Provisions (All Forms) Form H300 is required on all Homeowners Policies. H308 (CSEICO only) H308ST0 Landlord s Furnishings (H003ST0 Only) For an additional premium, coverage is provided for a major appliance used to preserve or cook food, wash or dry dishes or clothes, or for wall-to wall carpeting owned by the insured and located in another apartment rented or held for rental to others situated on the residence premises. The additional premium shall be $15 per policy plus an additional premium per unit. Landlord s Furnishings Coverage Additional Premium per Unit Limit $ Premium $ 1, , , , , Format Date 10/23/

45 H312 (CSEICO only) H312ST0 Increased Limits on Business Property The $2,500 limit of liability for business property on the residence premises may be increased to $10,000 in increments of $2,500. The premium for each $2,500 is $25. The limit of liability in excess of $2,500 does not apply to business property in storage or held as a sample or for sale or delivery after sale or to business property pertaining to a business actually conducted on the residence premises. (Refer to endorsement H042ST0 Permitted Incidental Occupancies, Residence Premises). When the on-premises limit is increased, the off-premises limit of $250 is automatically increased at no additional premium charge to an amount that is 10% of the total on-premises limit of liability. H313 (CSEICO only) H313ST0 Incidental Motorized Land Conveyances For an additional premium, Coverage E Personal Liability and Coverage F Medical Payments to Others apply to bodily injury or property damage arising out of the ownership, maintenance, use, loading or unloading of a motorized land conveyance, or the entrustment by an insured of the motorized land conveyance to any person. Provide the Company with each operator s driver s license number and date of birth. Additional Coverage E Premium Limit $ Premium $ 100, , , , , ,000, Additional Coverage F Premium Limit $ Premium $ 2, , , ,000 4 Format Date 10/23/

46 H314 (CSEICO only) H314ST0 Special Computer Coverage For an additional premium, the insured s computer equipment will be covered against risks of direct physical loss except as excluded in the endorsement. The additional premium shall be $15. H372 (CSEICO only) H372 Mortgagee Clause This endorsement extends payment of a loss under this policy to the mortgagee who is named as payee(s) in the Declarations of this policy. Property Endorsements (H438 to F.31550A) H438 (CSEICO only) H438 Lender s Loss Payable Clause This endorsement is attached to all Dwelling Fire Policies where a lender (such as bank, savings and loan, credit union, or private mortgage company) is providing financing. The endorsement makes the mortgagee s interest the first party in a claim settlement. In practice, small claims that do not totally destroy the dwelling are handled between the insured and the Company. For total losses, the mortgagee s interest is part of the claims settlement. H500 (Forms H004 and H006 only) (CSEICO only) H500ST0 Replacement Cost on Contents For an additional premium, Coverage C Personal Property is extended to include the full cost of repair or replacement without deduction for depreciation. The minimum limit of liability for Coverage C Personal Property is $25,000.* * For H006 policies with the H033 Unit Owners Rental To Others endorsement, the minimum Coverage C is $10,000 if CSE insures the owner s primary residence. The additional premium shall be: 1. 30% of the basic $100** deductible policy premium for Form H004ST % of the basic $100** deductible policy premium for Form H006ST0 ** The $100 deductible is not available for new business. Format Date 10/23/

47 H525 (CSEICO only) H525ST0 Neighborhood Crime Watch (Forms H003ST0 and H006ST0 Only) For a premium credit, the residence premises must be located within the boundaries of a neighborhood crime watch area and the insured must be an active, participating member of that neighborhood crime watch area. The premium credit shall be $15. H590 (CSEICO only) H590ST0 Senior Discount For a premium credit, one of the named insureds must be at least 60 years old and the residence premises must be the insured s principal residence. The premium credit shall be 5% of the basic $100* deductible premium. The premium credit shall be 5% of the basic $100* deductible premium. *The $100 deductible is not available for new business. H660 (CSEICO only) H660CA0 Cal-Vet (Form H004ST0 and H006ST0 Only) This endorsement is to be attached to a Homeowners Unit-Owners policy when the insured has a Cal-Vet loan. There is no additional premium charge or credit for attaching this endorsement. F.30645A (CSEICO only) F.30645A Ordinance or Law Homeowners. This coverage does not increase the limits of liability that apply to the covered property. F.30650A (CSEICO only) F.30650A H003ST0 and H006ST0 Ordinance or Law Basic Limit The policy automatically provides up to 10% of the Coverage A limit of liability to pay for the increased costs necessary to comply with the enforcement of an ordinance or law. Format Date 10/23/

48 F.30655A (CSEICO only) F.30655A H003ST0 and H006ST0 Ordinance or Law Increased Amount of Coverage The H003ST0 policy may be endorsed to increase the basic ordinance or law coverage amount. Compute the premium by multiplying the Base Premium by the appropriate factor below: Percentage of Coverage A Increase in Amount % Total Amount % Factor To develop the H006ST0 premium use a rate of $1 for each $1,000 of additional Coverage A. The coverage A limit cannot be increase to more than 50% of the Coverage C limit of liability. F.30850B (CSEICO only) F.30850B HOMEGARD (Form H003ST0 Only) The limit of liability for Coverage C is increased to 70% of the Coverage A Dwelling limit of liability at no additional premium. Please see a copy of the endorsement for further detail. F.30915A (CSEICO only) F.30915A Sections I and II Exclusions for Computer-Related Damage or Injury The exclusions apply to policies endorsed with the following forms: Permitted Incidental Occupancy-H042STO 0188; Permitted Incidental Business Occupancy- Other Residence-H043STO 0188; Farmers Personal Liability-Incidental Farming Personal Liability-H072STO 0188; or Business Pursuits-H071STO F.30960C (CSE Safeguard only) F.30960C CSE Safeguard Plus Endorsement Increases special limits of liability for personal property. Increases certain additional coverages. Increases the replacement cost on dwellings from 130% to 150% and increases the maximum we will pay on replacement cost contents. See endorsement booklet for details. Charge for endorsement: 12% of premium. Format Date 10/23/

49 F.30970A (CSEICO only) F.30970A(6/99) Home Warranty Endorsement This endorsement is available to qualified insured s with an H0-3 policy (no H0-4 or H0-6) on a home built prior to To qualify for this 5% discount the insured must submit a copy of the CHEERS Energy Efficiency Improvement Report for their home that is provided by the California Home Energy Efficiency Rating System and meet the following requirements. The CHEERS Report will show the initial energy rating and the energy rating with improvements. In order to qualify for the Home Warranty Endorsement the following must apply: Initial Energy Rating with Improvements Required Documentation Rating 70 or above CHEERS Report 69 or above 70 or above CHEERS Report and documentation that improvements have been completed. 69 or below 69 or below Does not qualify This credit is only available for 5 years from the Report Date of the CHEERS Report. *For further information on the CHEERS Report, please visit either the Southern California Edison website at ( or the California Home Energy Efficiency Rating System website at ( F.31025B Homeowner Deluxe Endorsement (CSEICO only) F.31025B Homeowner Deluxe Endorsement (Form H003STO only) For an additional premium, Section I-Property Coverages, Additional Coverages, Conditions, and Section II-Liability Coverages, Exclusions, and Additional Coverages are modified. The additional premium is 18% of the policy premium. Minimum Coverage A of $150,000 is required. All other property qualifications remain the same per the CSE Guidelines. (See a copy of the Homeowners Deluxe Endorsement for specific coverage changes.) Format Date 10/23/

50 F.31550A Pathogenic Organism Exclusion (CSEICO only) F.31550A Pathogenic Organism Exclusion The following exclusion is added to SECTION II-EXCLUSIONS, 1. Coverage E- Personal Liability and Coverage F-Medical Payments to Others do not apply to bodily injury or property damage: m. Arising out of any pathogenic organisms, regardless of any other cause or event that contributed concurrently or in any sequence to that injury or damage. Pathogenic Organisms means any bacteria, yeasts, mildew, virus, fungi, mold, or their spores, microtoxins or other metabolic products. Homeowners Endorsements (F.32210A to G.30980A) Fraud Endorsements, Contact Information Notice F.32210A Fraud Wording Endorsement-H03 (CSEICO Only) F.32215A Fraud Wording Endorsement-H03 (Safeguard Only) F.32225A Fraud Wording Endorsement-H04 (CSEICO Only) F.32230A Fraud Wording Endorsement-H06 (CSEICO Only) F.32280A Contact Information Notice F.32465A Identity Recovery Coverage (CSEICO Only) F.32465A Identity Recovery Coverage (CSEICO Only) For no additional premium, policies endorsed with the Homeowner Deluxe Endorsement (F.31025B) will automatically include Identity Recovery Coverage endorsement. The Identity Recovery Coverage endorsement pays for various outof-pocket expenses due to a covered identity theft, including lost wages, up to specified sub-limits. This endorsement can be endorsed onto policies that do not have the Homeowner Deluxe Endorsement (F.31025B) for an additional premium of $15. F.32470A Identity Recovery Coverage (CSE Safeguard Only) For no additional premium, policies endorsed with the CSE Safeguard Plus Endorsement (F.30960C) will automatically include Identity Recovery Coverage endorsement. The Identity Recovery Coverage endorsement pays for various outof-pocket expenses due to a covered identity theft, including lost wages, up to specified sub-limits. This endorsement can be endorsed onto policies that do not have the CSE Safeguard Plus Endorsement (F.30960C) for an additional premium of $15. F Equipment Breakdown Enhancement (H003)(CSEICO only) Policies endorsed with this endorsement will be covered for Equipment Breakdown, with a $25,000 limit (will be increased to $50,000 effective 11/1/12) and a $500 Format Date 10/23/

51 deductible. This coverage also includes Expediting Expense, Spoilage Coverage, and Pollutant Clean-up and Removal caused by a covered equipment breakdown, up to specified sublimits. The loss must be at the residence premises. If we replace equipment due to a covered equipment breakdown, we may pay up to 25% more than we otherwise would to replace it with equipment that is better for the environment, safer, or more efficient than the equipment being replaced. F Equipment Breakdown Enhancement (H004)(CSEICO only) Policies endorsed with this endorsement will be covered for Equipment Breakdown, with a $25,000 limit (will be increased to $50,000 effective 11/1/12) and a $500 deductible. This coverage also includes Expediting Expense, Spoilage Coverage, and Pollutant Clean-up and Removal caused by a covered equipment breakdown, up to specified sublimits. The loss must be at the residence premises. If we replace equipment due to a covered equipment breakdown, we may pay up to 25% more than we otherwise would to replace it with equipment that is better for the environment, safer, or more efficient than the equipment being replaced. F Equipment Breakdown Enhancement (H006)(CSEICO Only) Policies endorsed with this endorsement will be covered for Equipment Breakdown, with a $25,000 limit (will be increased to $50,000 effective 11/1/12) and a $500 deductible. This coverage also includes Expediting Expense, Spoilage Coverage, and Pollutant Clean-up and Removal caused by a covered equipment breakdown, up to specified sublimits. The loss must be at the residence premises. If we replace equipment due to a covered equipment breakdown, we may pay up to 25% more than we otherwise would to replace it with equipment that is better for the environment, safer, or more efficient than the equipment being replaced. F Equipment Breakdown Enhancement (CSE Safeguard only) Policies endorsed with this endorsement will be covered for Equipment Breakdown, with a $25,000 limit (will be increased to $50,000 effective 11/1/12) and a $500 deductible. This coverage also includes Expediting Expense, Spoilage Coverage, and Pollutant Clean-up and Removal caused by a covered equipment breakdown, up to specified sublimits. The loss must be at the residence premises. If we replace equipment due to a covered equipment breakdown, we may pay up to 25% more than we otherwise would to replace it with equipment that is better for the environment, safer, or more efficient than the equipment being replaced. F.33980A Additional Interests Residence Premises In addition to the Mortgagee(s) shown in the Declarations, the persons or organizations named in the Declarations also have an interest in the residence premises. If we decide to cancel or not to renew a policy, the persons or organizations named in the Schedule will be notified in writing. All other provisions of this policy apply. This endorsement is available in the CSEICO HO3, HO4 and HO6 and CSE Safeguard HO3 programs. Format Date 10/23/

52 G.30980A (CSE Safeguard only) G.30980A CSE Safeguard Personal Property Endorsement Allows for the scheduling of Fine Arts, Musical Instruments, Silverware & Jewelry. Scheduled Personal Property Premium Charges Category Rate per $100 Fine arts $ 0.25 statewide Musical instruments $ 1.25 Los Angeles County 0.70 balance of state Silverware $ 0.50 statewide Jewelry $ 2.00 Los Angeles County 1.75 balance of state Property Endorsements (Coverage E and F Increased Limits) Initial Residence Coverage E, Increased Limits Initial Residence Coverage E, Increased Limits Additional Premium Limit $ Premium $ CSEICO CSE Safeguard 200, N/A 300, , N/A 500, ,000, Initial Residence Coverage F, Increased Limits Initial Residence Coverage F, Increased Limits Additional Premium Limit $ Premium $ CSEICO CSE Safeguard 2, , , , Increased Limits Additional Residence Coverage E (CSEICO only) Increased Limits Additional Residence Occupied by Insured (One- or Two-Family) Coverage E Additional Premium Limit $ Premium $ 100, , , , ,000 9 Format Date 10/23/

53 Increased Limits Additional Residence Coverage F (CSEICO only) Increased Limits Additional Residence Occupied by Insured (One- or Two-Family) Coverage F Additional Premium Limit $ Premium $ 2, , , ,000 4 Format Date 10/23/

54 Product Comparison CSEICO Homeowners Program Feature CSEICO CSEICO w/ Deluxe Endorsement Policy Forms Available H03 H04 H06 H03 Minimum Coverage H03 (metro) $120,000 H03 (nonmetro) $80,000 H04 $25,000 H06 $25,000 $150,000 Maximum for binding Maximum Coverage A with UW approval H03 $800,000 H04 $250,000 H06 $250,000 Le Club/President s Council HO3 $1,000,000 $1,500,000 Le Club/President s Council $2,000,000 $800,000 Le Club/President s Council $1,000,000 $1,500,000 Le Club/President s Council $2,000,000 SQFT Minimum Extended Replacement Cost HO3 150% included HO3 175% Replacement Cost Contents HO3 70% of Coverage A HO4 Endorse H500 HO6 Endorse H500 HO3 70% of Coverage A Liability Limits Offered $100,000-$500,000 $1,000,000 with UW approval Umbrellas available separately HO3 $1,000 per occurrence Damage to Property of others HO4 $500 per occurrence HO6 $500 per occurrence HO3 Included under bodily injury definition Personal Injury HO4 Endorse HO82 HO6 Endorse HO82 Building & Ordinance 10% of coverage A and is an additional amount of insurance 20% of coverage A and is not an additional amount of insurance; is subject to the limit of coverage A Deductibles Offered $250 $500 $1000 $2500 $5000 Identity Recovery Coverage Available $15.00 Included Backup of sewers and drains (see policy conditions) Pathogenic Organisms HO3 Only $3,000 under coverage A & C HO3 Only $5,000 limitation for clean-up/removal. Ensuing damages as a result of a covered loss is reported and occurs within 365 days of the date of a covered loss. Debris Removal $500 Money, bank notes, bullion, gold other than goldware, silver, silverware, platinum, coins & medals Securities, accounts, deeds, etc Watercraft Trailers not used for watercraft Grave markers HO3 $1,000 HO4 $200 HO6 $200 HO3 $5,000 HO4 $1,000 HO6 $1,000 HO3 $3,500 HO4 $1,000 HO6 $1,000 HO3 $4,500 HO4 $1,000 HO6 $1,000 HO3 $6,000 HO4 $1,000 HO6 $1,000 $5,000 under coverage A & C $10,000 limitation for cleanup/removal. Ensuing damages as a result of a covered loss is reported and occurs within 365 days of the date of a covered loss. Agency Use Only. This information is for ease of comparison and does not change the policy contract in any way. Always refer to the policy contract for coverage information and details. Information is subject to change without notice. Format Date 10/23/

55 CSEICO Homeowners Program Feature CSEICO CSEICO w/ Deluxe Endorsement Theft of Jewelry, watches, furs, precious and semi-precious stones Theft of Firearms Theft of silverware, silverplated ware, goldware, goldplated ware, pewterware Theft of Rugs, carpet and tapestry (except wall to wall carpeting) Business Personal Property, on premises Business Personal Property, off premises HO3 $2,500 per item $10,000 aggregate HO4 $1,000 HO6 $1,000 HO3 $2,500 HO4 $1,000 HO6 $1,000 HO3 $3,000 per item $10,000 aggregate HO4 $2,500 HO6 $2,500 HO3 Only $2,500 per item $7,500 aggregate HO3 $10,000 HO4 $2,500 HO6 $2,500 HO3 $1,000 HO4 $250 HO6 $250 Spoilage of Food HO3 Only $500 Re-key Locks due to theft HO3 Only $1,000 Reward for arrest and conviction for arson HO3 Only $5,000 Golf Carts HO3 Only $2,000 Additional Living Expense for a child under age 21 attending school more than 30 miles from residence premises HO3 Only $200 per month for up to 3 months Trees, shrubs and other plants ( see policy for perils insured against) HO3 $1,500 HO4 $500 HO6 $500 Credit card, fund transfer, forgery and counterfeit money $1,000 Loss Assessment HO3 $5,000 HO4 & HO6 $1,000 Government Owned Property HO3 Only $500 Electronic Data Processing hardware & related peripheral equipment Payment Plans Alarm Credits HO3 Only $5,000 There is no coverage for any electronic data processing hardware and related peripheral equipment including CRT screens, disc drivers, printers and modems, discs and tapes, which can not be replaced due to obsolescence Pay in full 4 pay plan: 25% down + 3 pay with $6 installment fee per payment or 25% down + 3 EFT pay with $2 installment fee per payment 6 pay plan: 16.7% down + 5 pay of 16.66% with $6 installment fee per payment or 16.7% down + 5 EFT pay of 16.66% with $2 installment fee per payment Checks, Credit Cards and Electronic Check payments accepted Central Station Burglary Alarm System 10% Central Station Fire Alarm system 10% Burglary system that alerts the police department 7% Fire alarm system that alerts the fire department 7% Local Burglary Alarm or Smoke Detectors 5% Sprinkler System 0% Maximum Available Credits 15% Multi-policy discount 10% Neighborhood Watch Credit $15 Homegard Credit Year Built 1960 or newer Minimum SQFT 1200 No losses in past three years Year Built No Age Restriction Updated / Up to Code if over 30 years old galvanized plumbing is Updates acceptable if it s 40 years of age or less and the policy deductible amount is at least $1,000 circuit breakers required Roofs No wood shake, tar and gravel, flat roofs unless replaced within 20 years. No Composition/Asphalt Shingle roofs unless replaced within 30 years. Agency Use Only. This information is for ease of comparison and does not change the policy contract in any way. Always refer to the policy contract for coverage information and details. Information is subject to change without notice. Format Date 10/23/

56 CSEICO Homeowners Program Feature CSEICO CSEICO w/ Deluxe Endorsement Properties built before 1960 must be retrofitted if MMI is higher than 8.0. With verification that a seismic gas shut-off valve has been installed to the Retrofitting residence, we will waive the guidelines requiring structures be anchored or bolted to the foundation and crawlspaces and basements have sheathing. All other guidelines will still apply. Supporting Business Not Required Seasonal / Secondary Residences Eligible with Supporting Primary Modular & Manufactured Homes Eligible if there is a permanent foundation and wood frame construction. No Mobile Homes. Protection Class Protection Classes 1-7 and properties using the suburban rating rule are eligible. Protection Class 8-10 ineligible. HO3: ISO FireLine Wildfire Hazard Assessments of high or extreme are ineligible, moderate cannot have a wood shake roof. Brush HO4 & HO6: ISO Wildfire Hazard Assessments of high may be submitted non-bound; extreme is ineligible; moderate cannot have a wood shake roof. Slope Dwellings must not be on a slope of 35 degrees or more. Risks must not be directly exposed to the Pacific Ocean or within 1000 Coastal feet of the normal high tide levels of the Pacific Ocean, an island or keys or waterfront property directly exposed to large open bays or harbors on these bodies of water. Soil Type Dwellings located on fill or bay mud (S4) soft soil types or built on piers or posts. Determining Replacement Cost Marshall & Swift RCT Express Available in SPInn Common Construction Frame or Brick Eligible Risks which are Construction Type architecturally unique (e.g.; geodesic, log homes, Victorian or Edwardian) are not eligible. Course Of Construction Properties currently under construction are not eligible. Ineligible if applicants have had any of the following losses in the past three years: any liability loss that is the insured s responsibility or indicates insured negligence; any theft/vandalism loss where steps have not been taken to mitigate future losses or due to a moral/morale hazard (i.e. insured carelessness or indifference); any water loss that indicates Losses insured negligence, deferred maintenance and/or insured has not taken steps to mitigate future losses; any loss over $5,000 as a result of insured negligence, deferred maintenance and/or insured has not taken steps to mitigate future losses; two (2) or more losses as a result of insured negligence, deferred maintenance and/or insured has not taken steps to mitigate future losses. Choicepoint Mortgagees Named Insured Employment CLUE required for eligibility. If more than 2 mortgagees, submit non-bound. Must be owner occupied. Corporation listed as named insured are not eligible. Civil Servants and Non-civil servants eligible; Ineligible Occupations are reporters, authors, editors, publishers, broadcasters, television and/or radio personalities, professional actors, athletes, entertainers, or celebrities, elected or candidates for positions in public office. Agency Use Only. This information is for ease of comparison and does not change the policy contract in any way. Always refer to the policy contract for coverage information and details. Information is subject to change without notice. Format Date 10/23/

57 CSEICO Homeowners Program Feature CSEICO CSEICO w/ Deluxe Endorsement Guard dogs and dog breeds with a known propensity for viciousness, such as Chows, Akitas, Doberman-Pinschers, Pit-Bulls (a.k.a. American Staffordshire Terrier), Working American Bulldogs, Presa Canarios, Animals Rottweilers and Mastiffs (all types), Non-Domesticated Animals (i.e.., large cats, wolf hybrid dogs, bears, snakes, etc) or any mixed breeds containing the above dog types or any dog with a prior bite history is ineligible. Trampolines Not Eligible Bars on Windows Acceptable if windows are covered by releasable security bars. Nonreleasable security bars are ineligible. Pools Pools and diving boards are acceptable if up to current code. Slides are ineligible. Earthquake Mandatory Offer made through Geo Vera. CSE Safeguard Homeowners Program Feature Safeguard Safeguard Plus Policy Forms Available H03 # of Units One family dwelling Minimum Coverage $85,000 Maximum for Binding $800,000 Le Club/President s Council $1,000,000 Maximum Coverage A with UW approval SQFT - Minimum for Binding $1,500,000 Le Club/President s Council $2,000, sq ft ERC endorsement 130% 150% Determining Replacement Cost Marshall & Swift RCT Express Available in SPInn Replacement Cost Contents 50% of Coverage A 70% of Coverage A Liability Limits Offered $100,000 $500,000 $1,000,000 available by request. Umbrellas available separately. Year Built No Age restriction Fully Updated if over 30 years old galvanized plumbing is acceptable if it s 40 Updates years of age or less and the policy deductible amount is at least $1,000 Circuit breakers required. Properties built before 1960 must be retrofitted if MMI is higher than 8.0. With verification that a seismic gas shut-off valve has been installed to the residence, we Retrofitting will waive the guidelines requiring structures be anchored or bolted to the foundation and crawlspaces and basements have sheathing. All other guidelines will still apply. Roofs No wood shake, tar and gravel, flat roofs unless replaced within 20 years. No Composition/Asphalt Shingle roofs unless replaced within 30 years. Ineligible if applicants have had any of the following losses in the past three years: any liability loss that is the insured s responsibility or indicates insured negligence; any theft/vandalism loss where steps have not been taken to mitigate future losses or due to a moral/morale hazard (i.e. insured carelessness or Losses indifference); any water loss that indicates insured negligence, deferred maintenance and/or insured has not taken steps to mitigate future losses; any loss over $5,000 as a result of insured negligence, deferred maintenance and/or insured has not taken steps to mitigate future losses; two (2) or more losses as a result of insured negligence, deferred maintenance and/or insured has not taken steps to mitigate future losses. Deductibles $500 $1,000 $2,500 $5,000 Multi Policy Discount 12% no umbrella, 13% with umbrella Agency Use Only. This information is for ease of comparison and does not change the policy contract in any way. Always refer to the policy contract for coverage information and details. Information is subject to change without notice. Format Date 10/23/

58 CSE Safeguard Homeowners Program Feature Safeguard Safeguard Plus Alarm Credits Available Available up to maximum combined device credit 18%. Building & Ordinance $15,000 $25,000 Clue Report Agents have the ability to run CLUE through ChoicePoint. CSE pays the cost of the reports. Risks with Doberman-Pinschers, Rottweilers, Pit-Bulls (aka American Staffordshire Terriers), Chows, or Akitas are eligible, however there is no coverage under the Dogs policy for liability losses caused by these animals. Presa Canarios, Working American Bulldogs, Mastiffs (all types), any mixed breed containing any of the above dog types or any dogs with prior bite history are ineligible. Brush ISO FireLine Wildfire Hazard Assessments of high or extreme are ineligible, moderate cannot have a wood shake roof. Protection Class 1 7 and properties using the suburban rating rule are eligible. Protection Class 8 10 ineligible. Pay in full 4 pay plan: 25% down + 3 pay with $6 installment fee per payment or Payment Plans 25% down + 3 EFT pay 6 pay plan: 16.7% down + 5 pay of 16.66% with $6 installment fee per payment or 16.7% down + 5 EFT pay of 16.66% Check or Credit or EFT Check Payable to CSE Insurance Group or EFT from Agents Trust Account. Binding Authority 10 days from effective date, must be uploaded and trailing documents faxed within 24 hours. Scheduled Personal Property Only the following schedules are available: Fine Arts: $0.25 per $100 statewide Musical Instruments: $1.25 per $100 Los Angeles; $0.70 per $100 remainder of state Silverware: $0.50 per $100 statewide Jewelry: $2.00 per $100 Los Angeles; $1.75 per $100 remainder of state Watercraft $1,000 Securities, accounts, deeds, etc see contract $500 $1,000 Money, bank notes, bullion, gold other than goldware, silver, silverware, platinum, $100 $200 coins & medals Trailers not used for watercraft $500 $1000 Grave markers $1,000 $1,000 Jewelry, watches, furs (see contract) $1,000 per item $7,500 max $1,000 per item $10,000 max Firearms $1,000 $2,000 Silverware, silverplated ware (see contract) $500 per item $2,500 max $500 per item $3,500 max Business Personal Property, on premises $1,000 Business Personal Property, off premises $250 Re-Key Locks due to theft $200 $300 Arrest & Conviction for Arson $1,000 $ 2,500 There is no coverage for any $ 3,500 There is no coverage for any electronic data processing hardware and electronic data processing hardware and Computer & computer related peripheral equipment including related peripheral equipment including related equipment on premises CRT screens, disc drivers, printers and CRT screens, disc drivers, printers and modems, discs and tapes, which can not modems, discs and tapes, which can not be replaced due to obsolescence. be replaced due to obsolescence. Rug, Carpet ( except wallto-wall carpets) or tapestry $2,500 per item $7,500 max Antiques, fine arts, paintings, (see policy) $5,000 max Bicycles $500 per item $1,500 max Agency Use Only. This information is for ease of comparison and does not change the policy contract in any way. Always refer to the policy contract for coverage information and details. Information is subject to change without notice. Format Date 10/23/

59 CSE Safeguard Homeowners Program Feature Safeguard Safeguard Plus Baseball Cards or similar memorabilia and comic $100 magazines Compact discs, cassettes, tapes, electronic games, $1,000 etc. Identity Theft Recovery Available Included Debris Removal $500 $1,000 Loss Assessment $1,000 $5,000 Backup of sewers and drains Fences (wood) Clean up or otherwise remove Pathogenic Organisms Loss Settlement Provision of 3.b. (1) b. Up to $3,000 for direct loss to Coverage A-Dwelling and Coverage C- Personal Property ACV $5,000 limitation for clean-up/removal. Ensuing damages as a result of a covered loss is reported and occurs within 365 days of the date of a covered loss. The replacement cost of that part of the building damaged with common construction techniques and materials commonly used by the building trades in standard new construction for similar use on the same premises. Will not pay for the cost to repair or replace obsolete, antique or custom construction with like and kind quality. Agency Use Only. This information is for ease of comparison and does not change the policy contract in any way. Always refer to the policy contract for coverage information and details. Information is subject to change without notice. Format Date 10/23/

60 Inland Marine Scheduled Personal Property Introduction Eligible Inland Marine property may be added by endorsement (H0-61STO Endorsement) to a CSE Insurance Company H003, H004, or H006. The scheduled personal property coverage requires additional premium. CSE Safeguard policies require the G.30980A endorsement and coverage is available for Fine Arts, Musical Instruments, Silverware & Jewelry only. Binding Authority An agent s binding authority is based on a percentage of the Homeowner policy s unscheduled personal property (Coverage C) limit. As the limit of a policy s unscheduled personal property coverage increases, so does the agent s binding authority, up to a maximum amount as listed below: Agent Binding Authority Any one item, pair or set, including stamp or coin collections Total schedule of all items on the policy % of Unscheduled Personal Property (Coverage C) 20% or $30,000, whichever is less 50% or $50,000, whichever is less All scheduled personal property (per item or aggregate) exceeding the agent s binding authority must be submitted non-bound for underwriting approval. See the non-bound submission procedure in this section. Ineligible Risks Risks with frequent travel exposure (more than 4 weeks) Persons in the public eye and/or engaged in and high profile occupations Residents of rooming or boarding houses or college dormitories Sports Card collections Note: See specific Scheduled Personal Property categories for ineligible property. Non-Bound (Submit for Approval) Persian or hand woven rugs valued at over $2,000 or located on floors (CSEICO only) Items not in the care, custody, or control of the named insured Any schedule exceeding agent binding authority. Format Date 10/23/

61 Policies may be issued covering only engagement rings, wedding rings, and guard rings in the name of the two individuals as their interest may appear, irrespective of domicile. Non-Bound Submission Procedure An agent may not bind an application where the risk does not qualify for coverage under the underwriting guidelines of this section of the manual. Underwriting will review a non-bound endorsement submitted by an agent if the following conditions are met: Agent does not accept premium. Agent indicates non-bound on the endorsement. Applicant and agent do not sign and date the endorsement. Endorsement does not show effective dates but is otherwise completed in full. Agent includes with the endorsement a detailed description of the circumstances surrounding the non-bound submission. If Underwriting approves the endorsement for binding, Underwriting will return the original endorsement to the agent requesting the premium and an effective date. To assure prompt handling, the agent should forward the endorsement, premium and underwriting memo of acceptance through the normal new business submittal process. Policy Provisions Coverage This endorsement provides coverage for all risks of direct physical loss or damage, subject to certain exclusions and conditions (see endorsement contract for specific exclusions and conditions). Territorial Limit This endorsement covers the scheduled property world-wide. However, fine arts are covered only within the United States and Canada. Deductible No deductible is applied to a loss for property covered by this endorsement. Format Date 10/23/

62 Pair, Set, or Parts Loss to a Pair or Set Parts In case of a loss to a pair or set, we may elect to: repair or replace any part to restore the pair or set to its value before the loss, or pay the difference between actual cash value of the property before and after the loss. In case of a loss to any part of covered property, consisting of several parts when complete, we will pay for the value of the part lost or damaged. No Assignment Clause Scheduled personal property does not contain an assignment clause; therefore, CSE will not transfer the insurance with the property. When the property is no longer owned by the insured, the item or schedule must be deleted from the policy. Newly Acquired Property Jewelry, Furs, Cameras, and Musical Instruments Only Fine Arts We cover newly acquired property of a class already insured. The lesser of the following limits applies: 25% of the amount of insurance for that class of property, or $10,000. When new property is acquired the insured must: report these objects to us within 30 days, and pay the additional premium from the date acquired. When fine arts are scheduled, we cover objects of art acquired during the policy period for their actual cash value. However, we will pay no more than 25% of the amount of insurance for fine arts scheduled. For coverage to apply for newly acquired fine arts the insured must: report the acquisition of these objects to us within 90 days, and Format Date 10/23/

63 pay the additional premium from the date acquired. Golf and Sports Equipment, Silverware, Stamps and Coins Golf equipment, silverware, sports equipment, and stamp and coin coverages are not automatically covered and must be scheduled for coverage to begin. Preparing Endorsements The scheduled personal property is an endorsement and, as such, must be added within 30 days of acquisition of the property by the named insured using a current ACORD Policy Change Request form (PCR). The PCR must indicate which items, sets, or collections are to be added, along with the appropriate values of each item, set, or collection. In addition, all documentation (appraisals, bills of sale, gemologist diagrams, etc.) should be attached to the PCR. Backdating Backdating of scheduled personal property is strictly prohibited. Backdating is defined as follows: posting an effective date of the coverage prior to the time coverage is bound, without prior underwriting approval. Rounding of the premium all premiums for coverage must be rounded to the nearest dollar. For purposes of this rule, an amount of $0.50 or more shall be rounded up to a $1.00. Eligibility and Rates Camera (CSEICO only) Property Covered Scheduled cameras, projection machines, and related equipment Movable sound equipment pertaining to the recording, projection, reproduction, and operation of motion pictures Home video cameras, playback recorders and articles of equipment pertaining thereto Miscellaneous property such as films, binoculars, telescopes, microscopes and the like, which are used in conjunction with cameras or photographic equipment Not Covered Television cameras and equipment; coin and token-operated devices; cameras or other camera property for account of dealers, manufacturers and individuals principally engaged in photography or videography for remuneration. Format Date 10/23/

64 Value The minimum value for camera body shall be $200. The minimum value for each item of miscellaneous equipment shall be $50. Appraisal Items over $500 require an appraisal or bill of sale not more than 24 months old. Schedule Requirements All items must be individually listed and supported by an accurate description, to include the manufacturer s name, type, serial number, purchase price, date of purchase, and the amount of insurance applicable. The application should be accompanied by an appraisal or bill of sale (if appraisal is not warranted). Miscellaneous items of not more than 10% of the total amount of insurance to be scheduled under this floater may be blanketed. Premium Fine Arts The annual premium per $100 of insurance shall be $1.35. Property Covered Value Scheduled paintings, etchings, pictures, tapestries, art glass windows, bonafide works of art (such as valuable rugs, statuary, marbles, bronzes, antique furniture, rare blocks, antique silver, manuscripts, porcelains, rare glass, and bric-a-brac) of rarity and historical value, and antique guns built prior to December 31, The minimum value per item shall be $200. Appraisals Items over $2,500 require an appraisal or bill of sale not more than 24 months old. Schedule Requirements Endorsement should itemize articles to be insured, with respective amounts of insurance applicable. The locations at which the property is situated at inception of the policy are to be stipulated in the policy with the insured value at each location. The application should be accompanied by an appraisal or bill of sale. Format Date 10/23/

65 Premium The annual premium per $100 of insurance shall be as follows: Premium $ Coverage CSE Amount CSEICO Safeguard First $10, Over $10, Coverage above $200,000 is not available. Fur (CSEICO only) Property Covered Value Scheduled fur coats, neckpieces, evening wraps and garments trimmed with fur or consisting principally of fur, being property of insured and resident family members. The minimum value per item shall be $500. Appraisals Items valued at more than $1,000 require an appraisal or bill of sale no older than 24 months. The appraisal should include a complete description of each scheduled item; it must describe the type and color, the length of garment, the country of origin, and date and place of purchase. Schedule Requirements All items must be described and scheduled with the value of each item listed. Upon renewal, scheduled fur policies may be subject to a reduced coverage amount due to a nominal depreciation factor, unless a current appraisal is submitted. In this case the policy will be amended to indicate the new appraised value. The endorsement should be accompanied by an appraisal or bill of sale. Premium The annual premium per $100 of insurance shall be $0.45. Territory* Premium $ 9, 10, 11, 12, 13, 16, 17, 18, 19, 20, 21, 69, , Remainder of state 0.45 * Find territory listings in the Homeowner rating pages. Format Date 10/23/

66 Golf Equipment (CSEICO only) Property Covered Golf clubs, clothing, and equipment Property Not Covered Value Watches and jewelry, golf balls (except against loss by fire or burglary), property held for sale. The minimum value per set shall be $250. Schedule Requirements All items to be scheduled must include a complete description and value. Premium Jewelry The annual premium per $100 of insurance shall be $0.80. Property Covered Scheduled jewelry, watches, rings, pens, pencils, flasks, smoking equipment, cigarette cases, and similar articles. Property of the insured and resident family members is covered by the policy. Servants are not considered family members. Property Not Covered Value Damaged gemstones including chipped or cracked diamonds, or other items of value which need repair Loose gemstones The minimum value per item shall be $250. Appraisals Items valued at more than $5,000 require a local appraisal no older than 24 months, and should include the following information: Format Date 10/23/

67 Each ring should be described as silver, platinum, white or yellow gold with K (carat) weight as 10, 14, 18, 20 or 24 and specified as either a signet, engagement, Wedding, or dinner ring. Each ring or earring with precious stone settings should be described as having one, two, three or more stones and the color, cut, clarity and weight of stones or gems indicated. Each bracelet, brooch or pin should be similarly described giving its size, and indicating color, kind and weight of stones or gems. Necklaces should be described indicating the number and length of strands and the kind, number and color of stones or gems. Watches and bands must be properly described to indicate man or woman s jewels, the maker, works, and the jeweled settings in case or wrist band. Other articles of jewelry must be clearly identified according to maker, shape, setting, etc. Schedule Requirements The application should itemize all articles to be insured, with applicable amounts of insurance, and should be accompanied by a current appraisal or bill of sale. Note: To facilitate claim settlement, an application for an article of jewelry worth more than $25,000 must be accompanied by a photo and jewelry or gemologist diagram in addition to the appraisal. These articles may not be bound. (See nonbound submission procedure.) Specific Items in Bank Vaults Items in a bank vault require a minimum value of $10,000. Items may not be out of the bank vault for more than 10 days a year. The annual premium for specific items in bank vaults shall be $0.30 per $100 of insurance. Due to a substantially reduced rate, coverage on items in bank vaults shall cease unless the insured notifies the company in advance of any removal from the vault and pays the appropriate additional premium pro-rata for the length of time the property is off bank premises. Broad Pair and Set Coverage When this coverage is desired, an additional premium is charged for the total amount of insurance on the applicable items, at an annual rate of $0.50 per $100 of insurance. Format Date 10/23/

68 Premium The annual premium per $100 of insurance shall be as follows: CSEICO Territory* Premium $ 9, 10, 11, 12, 13, 16, 17, 18, 19, 20, 21, 69, , 15, 26, 27, 33, 34, 54, 57, 62, 63, 64, 65, 66, 67, 68 & Remainder of state 1.60 * Find territory listings in the Homeowner rating pages. CSE Safeguard Territory Premium $ Los Angeles County 2.00 Remainder of state 1.75 Musical Instruments Property Covered Musical instruments, articles, and support equipment Property Not Covered Value Musical instruments played for remuneration are not covered. A professional under this form is designated as a person who receives remuneration for playing a musical instrument during the term of the policy. Radios, hi-fi stereo equipment, TVs and tape recorders Sheet music The minimum per item value shall be $200. Appraisals Items valued at more than $2,000 require an appraisal or bill of sale not older than 24 months. Schedule Requirements The application should itemize articles to be insured, including identification numbers and amounts of insurance. The application should be accompanied by a current appraisal or bill of sale. Format Date 10/23/

69 Premium The CSEICO annual premium per $100 of insurance shall be $0.40 for entire state. The CSE Safeguard annual premium per $100 of insurance shall be: Territory Premium $ Los Angeles County 1.25 Remainder of state 0.70 Silverware Property Covered Silverware, silver-platedware, goldware, gold-platedware, pewterware. Property Not Covered Value Pens, pencils, flasks, smoking implements, accessories or articles of personal adornment; property pertaining to the business, profession, or occupation of the insured. The minimum value for individual serving pieces shall be $ The minimum value for a set of service shall be $100. Appraisals Items valued at more than $1,000 require an appraisal or bill of sale not older than 24 months. Collections valued at more than $3,000 require an appraisal or bill of sale not older than 24 months. Schedule Requirements All property must be scheduled to show name of manufacturer, pattern, and values. CSE does not require a meticulous listing of each item being scheduled; however, the property must be adequately described. For example: One set gold, International flatware (or other manufacturer s name) consisting of 4, 6, 8, etc., place settings of the following (list type of spoons as dessert, coffee, soup; forks as dinner, salad, etc.; and any other miscellaneous pieces). Next, state the pattern of the gold flatware and the value, etc. The endorsement should be accompanied by a current appraisal or bill of sale. Format Date 10/23/

70 Premium The CSEICO annual premium per $100 of insurance shall be $0.30 The CSE Safeguard annual premium per $100 of insurance shall be $0.50 Sports Equipment Floater (CSEICO only) Property Covered Scheduled sports equipment and accessories Property Not Covered Golf Equipment Clothing Boats Bicycles Underwater (SCUBA) equipment Theft from an unattended automobile is excluded unless there is visible evidence of forcible entry to a securely locked, fully enclosed body or compartment. Value The minimum value per item shall be $200. Schedule Requirements All property must be scheduled to show name of manufacturer; identifying marks or numbers (including serial numbers, if applicable); and the amount of insurance for each scheduled item. Expensive guns (valued at more than $500) and foreign made guns must be supported by a bill of sale which lists the guns serial number. Premium The annual premium per $100 of insurance shall be $5.00. Format Date 10/23/

71 Stamp and Coin Collection (CSEICO only) Property Stamps Postage stamps including due, envelope, official, revenue, match and medicine stamps, covers, locals, reprints, essays, proofs, and other philatelic property owned by or in the custody or control of the insured, including the books, pages, and mountings Coins Value Rare and current coins, medals, paper money, bank notes, tokens of money, and other numismatic property owned by or in custody or control of the insured including coin albums, containers, frames, cards, and display cabinets in use with such collection. The minimum value for individual stamps and coins shall be $10. The minimum value for collections shall be $100. Appraisals Items valued at more than $10 require an appraisal, bill of sale, or listing in an official stamp or coin catalogue, not older than 24 months. Schedule Requirements All scheduled items must be itemized with applicable amounts of insurance. Stamps or coins valued in excess of $300 each should be listed. The application should be accompanied by a current appraisal, bill of sale, or catalogue listing. Premium Stamp Collection The annual premium per $100 of insurance shall be $0.40. Coin Collection The annual premium per $100 of insurance shall be $1.15. Format Date 10/23/

72 Change History 10/16/2014 Updates Added risks located on more than 5 acres of land to the Ineligible Risks section. 6/10/2014 Updates Updated Safeguard homeowners fees increasing the reinstatement fee to $20, introducing a new late payment fee and waiving EFT installment fees. Updated the rate differentials for the Safeguard GTO/GTS tiers, increased the Tile Roof Discount factor and adjusted the CSE Safeguard Newer Home Premium Credit and Older Home Surcharge section. Also for Safeguard, renamed the Persistency Discount to Loyalty Discount, updated the Multi-Policy Discount to include factors for policies with/without supporting umbrellas, increased the Safeguard occupation credit for civil servants and removed the Home Inspection Discount. Amended the coverage and premium charge details for the Safeguard Plus endorsement. Increased agent s Coverage C binding authority for CSEICO HO4 and HO6 policies to $250,000 and for the HO32 Unit Owners, Special Coverage endorsement to $300,000 (including the automatic 10% of Coverage C). Updated the description for Neighborhood Crime Watch. 11/25/2013 Updates Updated the Ineligible Risks section and Losses sections of the Product Comparison chart to include vandalism losses as ineligible along with theft losses. 9/25/2013 Updates Updated the Ineligible Risks and Dwelling Soil Type sections to clarify that dwellings located on fill or bay mud soil are on soft soil. 5/17/2013 Updates Updated the H032 Endorsement by removing the requirement that Coverage A cannot exceed the Coverage C limit of liability. Updated the GTO and Homegard Rating renewal criteria for policies with multiple losses. 2/25/2013 Updates Removed references of short-rate cancellations for the Safeguard program when the policy is cancelled at the insured s request during the first policy term. Updated the CSEICO and CSE Safeguard Persistency Discount descriptions. Format Date 10/23/

73 11/2/2012 Updates Amended the chart for the H035 endorsement for clarify that one rate for the endorsement is for forms HO3 and HO6 with the H032 endorsement. 10/18/2012 Updates Updated the Extended Replacement Cost section of the CSEICO Homeowners Program product comparison chart to clarify coverage is for HO3 policies only. Added the F.34130A and F.34205A Limited Wildfire Smoke, Soot, Ash or Debris Coverage endorsements. 9/7/2012 Updates Updated references to the Equipment Breakdown Enhancement endorsement amending the endorsement number and updating the coverage limit effective 11/1/12. 8/24/2012 Updates Updated the H216 endorsement to clarify that the maximum credit allowed for CSEICO policies is 15%. 8/3/2012 Updates Made corrections to the Newer Home Premium Credit and Older Home Surcharge chart. Updated the Replacement Cost Contents section of the CSEICO Homeowners Program product comparison chart. 5/15/2012 Updates Updated the Ineligible Risks section to include all types of Mastiff dogs and dwellings purchased through distressed financial sales. 1/20/2012 Updates Updated the HO42, HO70, HO72, H164 and H313 endorsements to list the premium amounts for the $1 million limit. 12/12/2011 Updates Updated the Replacement Cost Statement section to advise where the insured s copy of the replacement cost estimator can be located and to remind agents to give a copy of the estimator to the insureds. Changed the Replacement Cost Contents section to advise that the H500 endorsement can be added to HO4 and HO6 policies. Amended the H032 endorsement details to advise of an agent binding authority limit of $50,000 (including the automatic 10% of Coverage C) for Coverage A. Removed references to German Shepherds in the Safeguard guidelines. Format Date 10/23/

74 9/20/2011 Updates Updated the Signatures and Dates section to list the forms required to be signed and retained in the agent s office. Changed the Ineligible Risks section to include risks within a 1 mile radius of an active wildfire. Added the F.33980A Additional Interests Residence Premises endorsement to the Endorsements section. 8/15/2011 Updates Updated the Ineligible Risks section to include dwellings rented to others without a carbon monoxide device. 6/7/2011 Updates Updated references for the 6 Pay Plan so that it is now offered for both new business and renewals. 4/20/2011 Updates Updated the description of the F.30960B endorsement clarifying that policies without the Safeguard Plus endorsement receive 130% replacement cost on dwellings. Amended the Miscellaneous section to clarify that Coverage C- Personal Property, Increased Limits and Coverage D- Loss of Use, Increased Limits are for CSEICO only. Changed the Ineligible Risks to state that manufactured homes without a permanent foundation and without wood frame construction are ineligible. Renamed all references to the 55 and Retired discount to Senior Discount and updated the description. 11/18/2010 Updates Amended description of unusual liability exposures in the Ineligible Risks section to include dwellings with lead based paint. Removed references to the rating disk. Updated the Inland Marine Binding Authority section and the special limits of liability coverages on the comparison chart to differentiate between HO3, HO4 and HO6 (when applicable). 7/14/2010 Updates Updated the reasons for non-renewal in the Non-Renewal section. 2/09/2010 Updates Updated the "Theft of Rugs, carpet and tapestry" section of the comparison chart to clarify that coverage only applies to HO3 policies. Format Date 10/23/

75 11/10/2009 Updates Updated the Ineligible Risks section for applicants with prior losses. Also updated the Losses rows in both the CSEICO and CSE Safeguard Homeowners Program product comparison charts. 6/25/2009 Updates Updated the reference to Le Club/President's Council agents in the "Agent Binding Authority" section. Changed the "Non-Bound Risks" section to include "Dwellings exceeding binding authority limits." Updated the "Maximum Coverage A with UW approval" row in the CSEICO "Product Comparison" chart. Updated the "Maximum for Binding" and "Maximum Coverage A with UW approval" rows in the CSE Safeguard "Product Comparison" chart. 5/12/2009 Updates Replaced the F.32815A, F.32820A, F.32825A, and F.32830A endorsements with the F.32815B, F.32820B, F.32825B, and F.32830B endorsements. Updated the ISO FireLine Wildfire Hazard Assessment score requirements for CSEICO HO4 and HO6 policies. Increased the amount an item of scheduled jewelry can be worth before an appraisal is required from $2,500 to $5,000. Increased the maximum Coverage A that can be submitted non-bound to $1,500, /5/2008 Updates Updated the description of the F.30850B Homegard endorsement adding "Please see a copy of the endorsement for further detail." Amended the H035 "Loss Assessment Coverage" endorsement advising that ICO HO3 policies have $5,000 of coverage extended through the Homegard endorsement. Updated the "Loss Assessment" section of the CSEICO comparison chart. Corrected the listed rates for the H074 "Three or Four- Family Dwelling Premises" endorsement. Edited the alarm credits section of the CSEICO comparison chart. 10/7/2008 Updates Updated the pathogenic organisms description in the policy comparison charts. Format Date 10/23/

76 8/22/2008 Updates Amended the Construction Age factors for the Safeguard HO3 policy for years & Added the Persistency Discount for Safeguard HO3 policy Amended the qualifications for the GTO Program Rates for Renewals. Inland Marine Made a correction in the Binding Authority chart, and increased the photo & jewelry/gemologist diagram requirement for scheduled jewelry items above $10,000 to above $25,000 per item. Updated premium charge chart for the H043 Permitted Incidental Business Occupancy, adding the option and amount for $1,000,000 coverage limit. Updated both ineligible list and comparison charts to include the acceptability of galvanized plumbing if 40 years or newer and policy deductible is at least $1,000. Updated both ineligible list and comparison charts to include the acceptability of Composition/Asphalt shingle roofs if replaced in the last 30 years from 20 years. Updated the Home Inspection discount criteria to indicate that a copy of the home inspection is not required if the home is in escrow. 8/1/2008 Updates Added the Tile Roof Discount/Wood Shake Roof Surcharge details for Safeguard policies. 7/1/2008 Updates Added the Civil Servant Professional Occupation Discount for Safeguard policies. 5/1/2008 Updates Amended the ineligible risks list to include those currently in pre-foreclosure or foreclosure. 4/15/2008 Updates Updated the policy writing fee description for Safeguard policies. Format Date 10/23/

77 3/1/2008 Updates Updated the policy writing fee description for Safeguard policies. Added information regarding the 6 pay installment plan. Increased agent binding authority for Coverage C on H004 policies to $80,000. 2/12/2008 Updates Added the policy writing fee for new Safeguard policies. Updated the ineligible risks section for the CSE Safeguard policy with respect to ineligible dog breeds. Amended the ineligible risks list to show 800 is the minimum square footage versus 1,000. Corrected the description for H500 Replacement Cost on Contents description. Corrected the description for the H590ST0 55 and Retired discount. Updated the company-initiated mid-term cancellation reasons. 11/29/2007 Updates Amended the ineligible risks list and brush exposure descriptions to list the Wildfire Hazard Assessment verbiage. 11/02/2007 Updates Amended the ineligible risks list to include swimming pools with slides. Added the product comparison charts for CSEICO Homeowners Program and CSE Safeguard Program. 10/16/2007 Updates Reduced the premium charge for Identity Recovery Coverage (F.32465A and F.32470A) from $25 to $15. Corrected the non-bound risks section to have agents refer risks with Coverage A exceeding $800,000 rather than $600,000. Format Date 10/23/

78 8/29/2007 Updates Updated the Ineligible Risks section by removing Presa Canarios from the list of excluded dogs for CSE Safeguard and updating the description of Pit-bull to include American Staffordshire Terrier. Corrected the H216 Premises Alarm or Fire Protection System discount by adding a maximum credit of 15% to the CSEICO Protective Device Premium Credit description. 6/22/2007 Updates Updated the Safeguard Homeowners guidelines by adding the Home Inspection Discount, deleting the Safeguard Homeowners GTP (Preferred) Rating tier, amending the qualifications for the Outstanding rating tier, and amending the Newer Home Premium Credit percentages. Lowered the minimum limit of liability for CSEICO H004 and H006 policies to $25,000. Updated the H500ST0 endorsement to list the minimum limit of liability for Coverage C at $25,000. Format Date 10/23/