Access Home Insurance Company

Transcription

1 Access Home Insurance Company Louisiana Dwelling Program

2 TABLE OF CONTENTS Eligibility-Underwriting... 1 A Dwelling Policy may be issued to provide insurance under... 1 General... 1 Ineligible Risks... 1 Applicant... 2 Insurance to Value... 2 Occupancy... 2 Permitted Incidental Occupancies... 2 Age of Home... 2 Roof... 2 Heating and Cooling Systems... 3 Multiple Locations... 3 Dwelling Under Construction... 3 Loss History... 3 Previous Cancellations/Non-renewals... 3 Binding Authority... 3 High Value Program... 3 Binding Authority Limits / Program Description... 4 Coverage Limits... 4 Policy Form... 4 Loss Settlement... 4 Covered Perils... 4 General Rules... 4 Policy Term... 4 Renewal... 4 Cancellation or Reduction in Limits of Liability or Coverage... 4 Multiple Company Insurance... 4 Transfer or Assignment... 4 Single Building Definition... 4 Townhouse or Rowhouse... 5 Protection Class Information... 5 Construction Definitions... 5 Mandatory Endorsements... 5 Premium Calculation... 5 New Business Tier Criteria... 6 Tier Factor... 7 Coverage A Limit... 7 Coverage C Limit... 8 Protection Class / Construction... 8 Age of Dwelling... 8 Owner Occupancy... 9 Townhouse/Rowhouse /2014 i

3 Discounts & Surcharges... 9 Coverage Options Deductibles Coverage B Limit (Other Structures) Coverage D/E Limit (Fair Rental Value/Additional Living Expense) Windstorm or Hail Exclusion Personal Property Replacement Cost Loss Settlement Loss Assessment Coverage L & M (Personal Liability & Medical Payments) Limited Theft Coverage Limited Water Damage Coverage Vacancy Endorsement Water Back Up and Sump Discharge or Overflow Non-Structural Hail Loss Limitation Endorsement Special Structure Buyback (SSB)...13 Fixed Base Premium Minimum Premium Minimum Earned Premium Waiver of Premium Premium Rounding Additional Fees Inspection Fee Citizens Fair Plan Assessment Base Rate Tables Non-Hurricane Rates Non-Hurricane Territories Hurricane Rates Direct Bill Program Payment Plans... PP 6/2014 ii

4 I. ELIGIBILITY UNDERWRITING A. A Dwelling Policy may be issued to provide insurance under: 1. Coverage A on a dwelling building: a. Used solely for residential purposes except that certain incidental occupancies and/or up to 3 roomers or boarders are permitted; b. Containing not more than 4 apartments; c. Which may be in a town house or row-house structure; or d. In the course of construction. 2. Coverage B on other structures: a. At the same location as a dwelling insured under Coverage A; and b. Not used for business purposes except a permitted incidental occupancy or when rented for use as a private garage. 3. Coverage C on personal property in: a. A dwelling insured under Coverage A; b. Any dwelling, apartment, cooperative or condominium unit used as private living quarters of the insured. 4. Coverage D for the loss of rents incurred on a dwelling currently rented if: A building is insured under Coverage A. 5. Coverage E for the additional living expenses incurred to maintain the insured s household. B. GENERAL 1. All Dwellings must be insured for 100% of replacement cost. 2. Home must be protected with smoke detectors in close proximity of all sleeping areas. 3. Homes located in a Special Flood Hazard Area (Zone A or V) must be covered by a Federal Flood insurance policy with matching building limit (or maximum available). Current flood policy declarations must be retained in agents file subject to audit review. 4. Risks that exclude wind/hail coverage must purchase a Citizens policy with matching limit. 5. Homes with coverage A under $100,000 require 2 photos (front and back) of the home be submitted to underwriting prior to binding. C. INELIGIBLE RISKS 1. Homes with underground fuel tanks. 2. Homes located on more than 15 acres. 3. Homes with historic designations. 4. Homes of unconventional construction, including but not limited to, Log, do-it-yourself, dome, shell, or homes using unconventional parts or not meeting building codes. 5. Homes with wood shingles, flat or corrugated metal roofs. 6. Homes with more than one overlay of shingles (cannot be over wood shingles). 7. Homes with aluminum wiring. 8. Homes with fuses or knob and tube wiring 9. Homes with asbestos roofs or asbestos siding. 10. Homes with wood shake, EIFS or Dryvit siding. 11. Mobile or manufactured homes. 12. Homes without a permanently installed heat source or with wood burning stoves or fireplaces as the primary source of heat. 13. Vacant Homes. 14. Homes located in protection class 10. 6/2014 1

5 15. Properties located entirely or partially over water. 16. Homes with farm exposure. 17. Homes in which a Home Day Care is being operated. 18. Homes rented for less than a 12 month term. 19. Risks with no prior insurance, other than new purchase. Proof of prior insurance coverage in the form of a declarations page must be retained in agents file subject to audit review. D. APPLICANT 1. Must hold title to home with a maximum of two mortgages. 2. Credit is evaluated along with prior insurance, claims history, condition of property, age of property, and other risk factors. E. INSURANCE TO VALUE Risks must be insured for 100% of replacement cost. Values will be increased/decreased at renewal based on the Xactaware 360 Value Replacement Cost Index. F. OCCUPANCY 1. Seasonal owner occupied homes (occupied by the owner more than 4 and less than 9 months) may be rented to others for periods not less than 1 month 2. Rental properties must be rented on leases with minimum terms of 1 year. G. PERMITTED INCIDENTAL OCCUPANCIES (DP 04 20) 1. One of the incidental occupancies described below is permitted in a premises for which the policy provides insurance under Coverage A or C, if: a. The incidental occupancy is operated by the insured who is the owner or a resident relative of the owner of the premises; and b. There are no more than 2 persons at work in the incidental occupancy. 2. Permitted Incidental Occupancies: a. Offices, Schools or Studios, meaning offices for business or professional purposes, and private schools or studios for music, dance, photography and other instructional purposes. b. Small Service Occupancies meaning occupancies primarily for service rather than sales. For example: barber or beauty shop, tailor or dressmaker. c. Generally, incidental business pursuits are permitted if they do not present significant property damage hazard. Business pursuits are allowable if they do not involve significant client traffic, cooking, manufacturing, etc. d. Home Day Care is not permitted. H. AGE OF HOME 1. Dwelling must be maintained in good condition regardless of age. 2. Homes more than 40 years old will be written on the DP-3 form with the following revisions: a. Losses resulting from water damage will be limited to $10,000 unless loss caused by a "wind or hail" loss. b. Liability must be excluded (unless certification is received stating there is no lead based paint exposure). I. ROOF 1. Composite shingle roofs must have been replaced within 15 years. 2. We do not accept homes with wood, flat or corrugated metal roofs. 3. Homes with poured concrete flat roofs are acceptable. 6/2014 2

6 J. HEATING AND COOLING SYSTEMS Heating/cooling systems must be permanently installed. Homes utilizing space heaters or fireplaces as their primary source of heat are ineligible. K. MULTIPLE LOCATIONS This program does not permit coverage for multiple locations on the same policy. L. DWELLING UNDER CONSTRUCTION A dwelling in the course of construction may be insured if the named insured is the property owner; however, the builder must be a licensed contractor and provide his own General Liability coverage*. Use Endorsement DP Dwelling Under Construction. This endorsement does not affect premium. *Owner as builder risks is not eligible. M. LOSS HISTORY 1. Claims are evaluated both in rating and as part of the underwriting process. Claims resulting from an Act of God will not be used as the sole criteria to non-renew, cancel, or increase the premium on a policy. 2. Unacceptable prior loss history (at this or any other location): a. Three or more claims reported within 3 years. b. 1 or more liability claims within 3 years. 3. Contact Underwriting, do not bind: Two or more claims reported (at this or any other location) within 5 years. N. PREVIOUS CANCELLATIONS / NON-RENEWALS Risks previously canceled or non-renewed by another insurer for reasons other than reduction of hurricane exposure or withdrawal from the Louisiana market must be referred to company prior to binding. II. BINDING AUTHORITY A. Agents may bind coverage on risks meeting the following criteria without contacting the company. Signed Application must be maintained in Agent s office and is subject to audit at request of the company. A risk is not considered bound until the policy is issued. 1. Home/Applicant must meet the Eligibility/Underwriting guidelines presented on pages Homes with Coverage A under $100,000 require 2 photos (front and back) of the home submitted for review prior to binding. 3. Agents may bind risks up to a maximum of $500,000 Coverage A without contacting Underwriting. 4. Risk must meet the Eligibility/Underwriting guidelines. Any risk not meeting the guidelines, but judged by the agent to be a good risk, must be referred to Underwriting before binding. 5. In the event of a hurricane or tropical storm, agents must refer to our website bulletins for binding authority restrictions. These restrictions do not apply to business that has already been bound prior to the restriction going into effect. B. HIGH VALUE PROGRAM 1. Single-family homes with Coverage A ranging from $500,000 to $1,000,000 are eligible. 2. Agents may not bind coverage. All applications must be submitted to the Underwriting Department for underwriting and binding of coverage. 6/2014 3

7 III. BINDING AUTHORITY LIMITS / PROGRAM DESCRIPTION A. COVERAGE LIMITS Coverage Limits A - Dwelling $75,000 to $1,000,000 B - Other Structures 0% to 20% of Coverage A C - Contents $0 to $250,000 D Fair Rental Value/Additional Living Expense 0% to 20% of Coverage A $100,000 to $500,000 L - Personal Liability (Must be excluded on homes older than 40 years) Four-plexes are eligible if liability coverage is excluded. M - Medical Payments $1,000 to $5,000 B. POLICY FORM Access Home Insurance Company uses an ISO DP Special Form, with some revisions. C. LOSS SETTLEMENT Losses under Coverage A - Dwelling and Coverage B Other Structures are covered at replacement cost subject to certain conditions unless an endorsement is attached changing settlement to Actual Cash Value (ACV). This endorsement, DP Actual Cash Value Loss Settlement, is required on homes older than 40 years. Losses under Coverage C - Personal Property will be covered at ACV at the time of loss, which means there will be a deduction for depreciation. D. COVERED PERILS Contents (Coverage C): Fire or Lightning, Internal Explosion, Windstorm or Hail, Explosion, Riot or Civil Commotion, Aircraft, Vehicles or Smoke, Vandalism or Malicious Mischief, Volcanic Eruption, Damage by Burglars, Falling Objects, Weight of Ice, Snow or Sleet, Sudden Cracking of a Steam or Hot Water Heating System, Freezing, Sudden Accidental Damage from Electrical Current, Accidental Discharge of Water or Steam (unless excluded by endorsement). Dwelling (Coverage A and B): Additional covered perils with certain exceptions (Special Coverage). IV. GENERAL RULES A. POLICY TERM The standard policy term is one year and may be extended for successive policy periods by renewal. B. RENEWAL If the company elects to offer renewal, policy may be renewed by the policyholder by paying the renewal premium prior to the expiration of the current policy. Renewal policy will be issued based on the premiums, forms and endorsements in effect at time of renewal. A new declaration page as well as any revised policy forms will be sent to the insured. Copies of notices and declaration page will be sent to the mortgagee(s). C. CANCELLATION OR REDUCTIONS IN LIMITS OF LIABILITY OR COVERAGE 1. Mandatory coverages may not be canceled unless the entire policy is canceled. 2. If insurance is increased or reduced, the additional or return premium shall be computed on a pro-rata basis. 3. The insured may cancel the policy at any time for any reason. We will refund any unearned premium pro rata. D. MULTIPLE COMPANY INSURANCE We will not provide coverage for a dwelling that is also covered by another insurance policy. E. TRANSFER OR ASSIGNMENT No transfers or assignments are permitted. Each insured and/or property will require submission of a new application. F. SINGLE BUILDING DEFINITION Buildings that are separated by space shall be considered separate buildings. Buildings or sections of buildings, which are separated by a 6-inch reinforced concrete or 8-inch masonry party wall that pierces or rises to the underside of the roof and pierces or extends to the inner side of the exterior wall, shall be considered a separate building. Accessibility between buildings with independent walls or through masonry party walls described above shall be protected by at least a Class A Fire Door installed in a masonry wall section. 6/2015 4

8 G. TOWNHOUSE OR ROWHOUSE Determine the total number of individual family units within a Fire Division. For example, a 2 family dwelling attached to a 1 family dwelling is considered 3 individual family units within a Fire Division if both dwellings are not separated by a firewall. Four attached 2 family dwellings are considered 8 family units within a Fire Division if they are not separated by firewalls (and thus ineligible). A policy may be issued for: 1. Coverage A when a dwelling contains 4 or less family units within a Fire Division. 2. Coverage C in a dwelling with 1 or more individual family units within a Fire Division. H. PROTECTION CLASS INFORMATION The Protection Class listings in the Public Protection Classification Manual apply. Risks located in a protection class 10 are ineligible. In a classified area where 2 or more classifications are shown (e.g. 6/9), the classification is determined as follows: Miles to Fire Station Feet to Hydrant Class Less than 7 Less than 1,000 first PC Less than 7 More than 1,000 9 More than 7 10 I. CONSTRUCTION DEFINITIONS 1. Frame exterior wall of wood or other combustible construction, including wood-iron clad, stucco on wood or plaster on combustible supports, and aluminum or plastic siding over frame. 2. Masonry Veneer exterior walls of frame construction veneered with brick or stone. 3. Masonry exterior walls constructed of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile, or similar materials, and floors and roof of combustible construction. 4. Superior Construction - exterior walls, floors, and roof constructed of masonry or other non-combustible materials. 5. Hardiplank concrete based siding over frame construction. Note: Mixed (Masonry/Frame) a combination of both frame and masonry construction shall be classified as Frame when the exterior walls of frame construction (including gables) exceed 30% of total exterior wall area; otherwise classify as Masonry. J. MANDATORY ENDORSEMENTS 1. Endorsement AHD LA SP Special Provisions is attached to all Dwelling Policies. It includes the ISO Special Provisions in addition to the following: Additional Living Expense and Fair Rental Value Loss Participation requires the policyholder to pay 20% temporary living expenses. 2. Endorsement AHD LA SPL Liability Special Provisions is attached to all policies that include Liability coverage and adds the following exclusions to the standard ISO Special Provisions: a. Bodily Injury or Property Damage arising out of an assault and/or battery committed by the named insured. b. Bodily injury or property damage caused by any animal owned by or kept by you or any insured whether or not the injury or damage occurs on the premises or any other location. V. PREMIUM CALCULATION Premiums are calculated separately for dwelling and contents. Both the dwelling and contents premium are determined by separately calculating the peril premium for fire, other perils and hurricane. The following abbreviations may be used throughout the rating section of his manual: Dwelling Contents Fire F-D F-C Other Perils OP-D OP-C Hurricane H-D H-C 7/2013 5

9 A. NEW BUSINESS TIER CRITERIA Tiered rating is utilized to broaden underwriting eligibility and properly match rate to risk. Consumer data gathered from the applicant and third party providers determines new business tier placement. Once assigned to a tier at new business, the policy remains in the same tier at renewal. Criteria used for tier placement include liability limit on prior homeowner policy, credit score, and prior claims. Proof of prior insurance in the form of a declarations page showing the prior liability limit must be retained in agent s file. These documents will be subject to review during an audit. Per L.R.S. 22:1333, claims caused by an Act of God are not counted towards the number of claims in tier criteria. Credit will be re-run at every third renewal as if the policy were new. Based on the new credit score, the policyholder will be placed in the appropriate tier as if it were a new business policy. Prior Liability Credit Score Placement by Prior Claims Prior Liability Credit Score Placement by Prior Claims Limit Range Limit Range $300, $300, $300, $300, $300, $300, $300, $300, $300, $300, $300, $300, $300, $300, $300,000 NH-ND NH-ND $100, N/A $100, N/A $100, N/A $100, N/A $100, N/A $100, N/A $100, N/A $100, N/A $100, N/A $100, N/A $100, N/A $100, N/A $100, N/A $100, N/A $100,000 NH-ND N/A NH-ND /2013 6

10 B. TIER FACTOR Apply the following tier factor to F-D, OP-D, H-D, F-C, OP-C & H-C. C. COVERAGE A LIMIT (Dwelling) Tier Fire/Other Hurricane Apply the selected dwelling limit factor to the F-D, OP-D & H-D rate: Dwelling Limit Factor Dwelling Limit Factor $100, $205, $105, $210, $110, $215, $115, $220, $120, $225, $125, $230, $130, $235, $135, $240, $140, $245, $145, $250, $150, $255, $155, $260, $160, $265, $165, $270, $170, $275, $175, $280, $180, $285, $185, $290, $190, $295, $195, $300, $200, $305, For coverage amounts greater than $300,000, multiply the coverage limit by 1.7 and divide that amount by $300,000. 7/2013 7

11 D. COVERAGE C LIMIT (Contents) Apply the selected contents limit factor to the F-C, OP-C & H-C rate: Contents Limit Fire/Other Hurricane 5, , , , , , , , , , , , For coverage amounts greater than $60,000, use the following formula: Fire/Other Perils: Multiply 0.8 x (the contents amount - $60,000) plus $60,000, then divide this amount by $60,000. For example: the factor for $80,000 contents coverage is [.8 x (80,000 60,000) + 60,000] / 60,000 = Hurricane: Divide the contents amount by $60,000 to get the factor. For example: the factor for $80,000 contents coverage is (80,000 / 60,000 = 1.333). E. PROTECTION CLASS / CONSTRUCTION Frame, stucco and hardiplank are rated as frame. Brick and brick veneer, are rated as masonry. Apply to the Fire rates for both Dwelling and Contents. Apply to the Other Peril & Hurricane rates for both Dwelling and Contents. F. AGE OF DWELLING Dwelling Contents Prot. Class Frame Masonry Frame Masonry Dwelling Contents Construction Other Perils Hurricane Other Perils Hurricane Frame Masonry Apply to all perils for both dwelling and contents: Age of Age of Other Age of Other Fire Other Perils Hurricane Fire Hurricane Fire Hurricane Home Home Perils Home Perils & Older Age is determined by subtracting the year in which construction of the residence was completed from the year in which the policy is effective. 7/2013 8

12 G. OWNER OCCUPANCY The premium varies based on whether the dwelling is owner-occupied or renter-occupied, and how many months the dwelling is owner-occupied. The factors for each are below and apply to all perils for both dwelling and contents. Dwellings rented for less than a 12 month period are not eligible for coverage. Dwelling Contents Occupancy Fire Other Perils Hurricane Fire Other Perils Hurricane Owner Renter Dwelling Contents Months Owner- Hurricane Hurricane Fire Other Perils Fire Other Perils Occupied H. TOWNHOUSE / ROWHOUSE Number of units within a Fire Division (refer to Townhouse / Rowhouse definition). Apply to the fire premium for both dwelling and contents. I. DISCOUNTS & SURCHARGES Units Dwelling Contents The following discounts and surcharges are applied to the premium as indicated below. The cumulative rate impact from discounts, including age of home cannot exceed 55% and the cumulative impact from both discounts and tier factor, including age of home cannot exceed 60%. Discounts are not applied to the Hurricane premium (unless specified otherwise). 1. Building Code Discount or later Louisiana Uniform Construction Code (Apply to F-D, OP-D, F-C, OP-C) A 10% discount is offered for new homes permitted and built under the 2008 Louisiana Uniform Construction Code. Applies to all perils both dwelling and contents including Hurricane. 2. Secured Community/Building Discount (Apply to OP-C) A 10% discount is applied for homes located in a neighborhood protected by 24 hour-manned security or passkey gates protecting all entrances to community. 3. Protective Device Discount 5% discount for fire alarm reporting to fire or central station. (Apply to F-D and F-C only) 8% discount for complete home sprinkler system. (Apply to F-D and F-C only) Home Security Discount: (Apply to OP-C only)level 1-5% discount for complete local burglar alarm covering all exterior doors & windows. Level 2-8% discount for complete burglar alarm reporting to police/central station. An insured cannot have both of the fire protection discounts or both of the home security discounts. If they qualify for both of either type of discount, they will receive the better credit. 4. Certified Property Manager Discount (Apply to F-D, OP-D, F-C, OP-C) A 5% discount applies to the fire and other perils premium if the property is managed by a certified property manager. 6/2014 9

13 5. New Purchase discount (Apply to F-D, OP-D, F-C, OP-C) A 10% discount is offered to homeowners who are obtaining their policy to coincide with the purchase of a home. The discount is phased out over time (7% in Year 2, 3% in Year 3, and 0% in Year 4). Agents must keep a copy of the HUD statement on file to support this discount. 6. No Contents Surcharge (Apply to F-D and OP-D) A 5% surcharge applies to all perils of the dwelling premium if there is no contents coverage on the policy. 7. Wood Burning Stove A 20% surcharge applies to the fire premium for both dwelling and contents. 8. Lapse In Coverage Surcharge (Apply to F-D, OP-D, F-C, OP-C) 10% surcharge for 1 policy year (subject to underwriting approval) for any policy bound with a lapse in coverage of 90 days or less. Any risk with a lapse of coverage more than 90 days is ineligible for coverage. Proof of prior policy cancellation/nonrenewal date must be retained in agent s file subject to audit review. 9. Wind Mitigation Discounts The following discounts apply only to the Hurricane premium for both dwelling and contents: a. Complete Window & Opening Protection A 15% discount applies if a residence is equipped with opening protection that meets the following requirements: (1) All exterior openings including windows, doors, skylights, and vents are protected. (roof ridge vents and soffit vents do not need to be protected) (2) Protection devices have passed the following cyclic loading and windborne debris impact tests ASTM E 1886 and ASTM E 1996 (Missiles D or E). (3) A licensed contractor with proper permits has installed the devices. (4) A qualified professional has certified the existence of the protective devices. b. Hip Roof A 15% discount applies if the home is constructed with a hip roof covering the entire structure. A hip roof is one that slopes down to meet all walls (like a pyramid). This design has superior ability to withstand high winds and will result in a premium credit. However, other factors can negate the value of this design. The discount is not applicable if the roof has skylights or overhangs that exceed 18. c. Flat Tile Roof A 2% discount applies if the roof covering is flat tile. d. Building Code Discount A 15% discount applies when all of the following hurricane protection requirements of the 2006 State Uniform Construction Code (SUCC) have been included in the construction of the home. Any home built 2007 or newer can obtain this discount automatically. Any home older that 2007 must have a Louisiana Hurricane Loss Mitigation Survey Form completed by a qualified professional that certifies all of the following: (1) The home was built to all 2006 SUCC requirements. (2) Secondary water resistance on all roof areas. (3) Roof-deck attachment with 8d nails spaced every 12 minimum on intermediate panel supports and 6 minimum on panel edges. (4) Roof-wall connected with single-wraps. (5) Floor-to-foundation connections designed and installed in accordance to the SUCC. *Evidence and supporting documentation for all wind mitigation discounts must be retained in agent s file. These documents will be subject to review during an audit. 10. Surcharges The following surcharge factors apply to the hurricane premium only for both dwelling and contents: Covered Porch 1.03 Open Water Exposure** 1.20 Screened Enclosures 1.10 ** Applies to risks with exposure to open water greater than ¼ mile in width. This factor is not duplicative of any other rating factor. 6/

14 VI. COVERAGE OPTIONS A. DEDUCTIBLES The standard deductible is $500 for Fire, Other Perils, and Hurricane. The hurricane deductible cannot be less than the fire and other perils deductible. The hurricane deductible varies by region of the state. Zone A = Northern Louisiana (includes Non-Hurricane Territories ), Zone B = Central Louisiana (includes Non-Hurricane Territories ), and Zone C = Southern/Coastal Louisiana (includes Non-Hurricane Territories ). For policies with wind coverage, use Endorsement AHD HD Hurricane Deductible-Louisiana. Deductibles may only be changed at time of renewal. Hurricane Hurricane Deductible CovA CovA Fire/Other Zone A Zone B Zone C Deductible ($000's) ($000's) Fire/Other Zone A Zone B Zone C , , , , % % % % % % % % , , , , % % % % % % % % > , ,000 > , ,500 > % % > % % > % % > % % > , , % % % % B. COVERAGE B LIMIT (Other Structures) Insured may select desired coverage limit for other structures located on the residence premises. Other structures may not be rented to others, or used by non-related persons for residence purposes. Coverage equal to 10% of Coverage A is included in the basic policy. The following coverage amounts are available and the factor is applied to the F-D, OP-D & H-D premium. C. COVERAGE D/E LIMIT (Fair Rental Value/Additional Living Expense) Coverage for loss of rents (Coverage D) or additional living expense (Coverage E) equal to 20% of Coverage A is provided as standard with the DP-3 policy. An applicant can choose to delete this coverage from the policy for a reduction in premium of 5%. Applies to F-D, OP-D & H-D. D. WINDSTORM OR HAIL EXCLUSION (DP 04 37) % of Cov. A Factor 0% % % % % 1.10 Deletes coverage for losses from the perils of windstorm and hail for a reduction of premium. The premium reduction equals the entire hurricane premium and a portion of the other perils premium. Applicant must provide proof that coverage for wind and hail is provided from Citizens Property Insurance Corporation. 6/

15 E. PERSONAL PROPERTY REPLACEMENT COST LOSS SETTLEMENT (AHD PPRC) Provides for settlement of losses for contents coverage (Coverage C) on a replacement cost basis. A factor of 1.35 is applied to the contents premium for fire, other perils and hurricane. F. LOSS ASSESSMENT COVERAGE (DP 04 63) Provides coverage for association property assessments relating to the residence premises. Premium: Limit Premium $ 5,000 $15 10, G. COVERAGE L & M (Personal Liability & Medical Payments) 1. Liability and Medical Payments coverage may be added to a Dwelling policy that covers a 1-4 family dwelling or building items for a condominium unit-owner. Both (Form DL Personal Liability) and Form DL Premises Liability are required. Number of Families Liability Limit $100,000 $40 $60 $80 $100 $300, $500, Liability Underwriting Requirements: a. General (1) Porches or decks more than 2 ft. off the ground or with 3 or more steps leading to them must be protected with properly installed handrails. (2) Liability coverage is not available if the policy is written in the name of an LLC, Corporation or Trust. (3) Liability coverage is not available on properties larger than 5 acres. b. Medical Payments: Coverage can be purchased for the following premium: Limit Premium $ 1,000 $5 $2,500 8 $5, H. LIMITED THEFT COVERAGE (DP 04 73) A Fire policy including Coverages A and C may be extended to cover theft of personal property. Theft coverage covers losses resulting from the theft of personal property from the insured premises. Losses are subject to the other perils deductible. Premium for theft coverage is calculated by applying a 1.5 factor to the OP-C premium. I. LIMITED WATER DAMAGE COVERAGE (AHD LA LWD) Homes older than 40 years of age are written with the limited water damage coverage endorsement. Limited coverage is provided for sudden and accidental discharge or overflow of water or steam from within a plumbing, heating, A/C, or automatic sprinkler system or from within a household appliance. The limit of liability for all covered property under this option is $10,000. J. VACANCY ENDORSEMENT (AHD LA VAC) Vacant dwellings are ineligible. However, if the dwelling insured under this program becomes vacant during the policy period, a vacancy endorsement may be added with home office approval which provides 90 days of vacancy before the vandalism and malicious mischief exclusion applies. A fully-earned surcharge of 20% is applied to the other perils premium for both dwelling and contents. K. WATER BACK UP AND SUMP DISCHARGE OR OVERFLOW (DP 04 95) The policy may be endorsed to provide coverage for loss resulting from water which backs up through sewers or drains or which overflows from the sump. The limit of liability under this option is $5,000. The policy deductible or $1,000, whichever is greater, applies. The endorsement may be added for a premium of $25. 6/

16 NON-STRUCTURAL HAIL LOSS LIMITATION ENDORSEMENT (AHD HL) This endorsement is mandatory for properties with metal roofs or aluminum siding. In all other instances, it may be added at the option of the insured. The endorsement provides that when damage from hail consists only of dents to the exterior surface of a home or other structure, not causing structural damage, we will pay the lowest of the cost of repairing or replacing the damaged portion of the property; or 2% of the amount of insurance provided under Coverage A Dwelling. The factor for this endorsement is.97 and applies to OP-D only. L. SPECIAL STRUCTURE BUYBACK (SSB) This endorsement provides coverage for damage caused by the perils of wind, hail and hurricane to specific types of other structures excluded from coverage in our policy. Statewide SSB base rate = $14.00 per thousand of coverage. Additional premium = (Amount of coverage desired / 1,000) x $14.00 x the filed zip code relativity for hurricane. The zip code relativities are calculated as the hurricane base rate for the zip code divided by the hurricane base rate for the base zip code Example: $10,000 of coverage in zip code (East Baton Rouge Parish) $10,000 / $1,000 x $14.00 x.486 = $68.04 premium. M. FIXED BASE PREMIUM A $65 fixed expense constant is included as part of the final premium calculation. N. MINIMUM PREMIUM Minimum final premium per policy is $250. O. MINIMUM EARNED PREMIUM A minimum premium of $50 is earned on each policy regardless of how long the policy is in force. P. WAIVER OF PREMIUM When a policy is first issued or endorsed after the inception date, additional or return premium of less than $5 is waived. However, we will return unearned premium upon request. Q. PREMIUM ROUNDING Premiums are not rounded during the calculation process. Total premium for Fire, Extended Coverage, Hurricane and each Additional Coverage are rounded to the nearest whole dollar. Amounts of $.50 and greater are rounded up. VII. ADDITIONAL FEES A. INSPECTION FEE A fully earned inspection fee of $25 is charged on DP-3 policies for homes more than 20 years old. B. CITIZENS FAIR PLAN ASSESSMENT An amount equal to the Citizens FAIR Plan percentage assessment is applied to the policy premium. 6/

17 BASE RATE TABLES Non-Hurricane Rates Dwelling Contents Territory Fire Other Fire Other /

18 NON-HURRICANE TERRITORIES Zip Code Non-Hurricane Zip Code Non-Hurricane Zip Code Non-Hurricane Zip Code Non-Hurricane Zip Code Non-Hurricane Territory Territory Territory Territory Territory /

19 NON-HURRICANE TERRITORIES - continued Zip Code Non-Hurricane Zip Code Non-Hurricane Zip Code Non-Hurricane Zip Code Non-Hurricane Territory Territory Territory Territory /

20 BASE RATE TABLES / HURRICANE RATES Hurricane Hurricane Hurricane Hurricane Hurricane Hurricane Zip Code Zip Code Zip Code Dwelling Rate Contents Rate Dwelling Rate Contents Rate Dwelling Rate Contents Rate , , , , , , , , , , , , , , , , ,870 2, , , , , ,708 2, , , , ,058 1, ,708 2, ,134 1, , ,082 1, , , , , , ,134 1, ,870 2, , , , , , , , , , , , , , , , , , ,870 2, , , , , , , , , , , , , , ,058 1, ,082 1, ,058 1, , , , , , , ,138 2, , , , , , , , , , , , , , , , , , , , , , , , , , /

21 HURRICANE RATES continued Hurricane Hurricane Hurricane Hurricane Hurricane Hurricane Zip Code Zip Code Zip Code Dwelling Rate Contents Rate Dwelling Rate Contents Dwelling Rate Contents Rate , , , , , , , ,699 1, ,699 1, ,699 1, , , , , , /

22 HURRICANE RATES continued Hurricane Hurricane Hurricane Hurricane Hurricane Hurricane Zip Code Zip Code Zip Code Dwelling Rate Contents Rate Dwelling Rate Contents Rate Dwelling Rate Contents Rate /