Partners Mutual Insurance Wisconsin Homeowners Manual

Transcription

1 Partners Mutual Insurance Wisconsin Homeowners Manual

2 INDEX Table Page Homeowners General Rules HO - 3 Risk Definitions HO - 4 Binding Authority HO - 5 Prohibited List HO - 6 Prior Approval List HO - 7 Elite Program HO - 8 Custom Program HO - 9 Optional Loss Settlement Program HO - 10 Homeowners Rating HO Premium Determination HO Optional Coverage Packages HO Additional Optional Coverages HO Solid Fuel Burning Devices HO Swimming Pool Requirements HO 32 Older Home Eligibility Requirements HO - 32 Rating Territories HO *Indicates Change PARTNERS MUTUAL INSURANCE HO - 2

3 PARTNERS MUTUAL HOMEOWNERS GENERAL RULES You may bind coverage for those situations designated as ELIGIBLE in these guidelines. PROHIBITED exposures have proven to be historically unprofitable. We do not wish to write risks falling into this category. All homes and premises must be above average in condition and reflect pride of ownership. PRIOR APPROVAL REQUIRED items, including requests for limits other than those shown, require special underwriting attention and cannot be bound until approval is granted by the Regional Office. If you have not received approval DO NOT accept deposit premiums. To help us provide you with a prompt decision; please include the required underwriting information. APPLICATION AND SUBMISSION REQUIREMENTS 1. A fully, correctly and truthfully completed ACORD application signed by the applicant and producer; 2. A completed replacement cost estimate; and 3. A photograph of the dwelling; other structures for which a specific charge is made; any coal or wood burning stove or furnace; any free standing fireplace, fireplace insert or space heater is required and must accompany each application for Homeowners insurance. HOME AND PREMISES INSPECTIONS - Initiated by Partners Mutual 1. Exterior and/or interior inspections are conducted at the discretion of Partners Mutual Insurance. 2. Please advise your insured that an inspector may call to set up an appointment for an interior inspection. If the insured refuses the inspection, the risk will be canceled. 3. Inspectors from our contracted inspection vendors will identify themselves and will carry photo identification for their respective inspection companies. Inspectors will indicate that they are doing the inspection on behalf of Partners Mutual. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 3

4 RISK DEFINITIONS A. Dwelling Owner occupied dwelling used exclusively for private residential purposes containing not more than two families and not more than two boarders or roomers per family. B. Tenant Non owner occupant of a dwelling or apartment. If there are non-related tenants occupying a single unit, separate policies must be issued to each. C. Condominium Owner-occupant of a condominium unit which is used exclusively for residential purposes and is occupied by not more than one additional family or more than two boarders or roomers. D. Builders Risk One or two family dwelling in the course of construction by a qualified general contractor, provided the policy is issued only in the name of the intended owner-occupant of the dwelling. Builders Risk endorsements are to be used with eligible new construction only. E. Other interests 1. Life Estate - Contracts of Sale - The owner life estate or seller (contract of sale) interest is covered by adding HO "Additional Insured." 2. Trusts - The interest of a trust is covered by adding HO 05 43, Residence Held in Trust. F. Co-Ownership of a Two Family Dwelling Co-owners who occupy separate living quarters are covered by issuing an HO-2 or HO-3 to one owner with a HO "Additional Insured" endorsement attached listing the second owner. The second owner may be covered by a tenant policy. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 4

5 BINDING AUTHORITY Refer to Program specific section of this manual for further information. PROGRAM ELITE (Preferred) CUSTOM (Standard) OPTIONAL LOSS SETTLEMENT (Market Value) FORMS HO-3 or HO-5 HO-2,3,4, or 6 HO-2 Insurance to Value 100% of Replacement Cost 100% of Replacement Cost 100% of Market Value and Minimum 50% of Replacement Cost Coverage A Minimum $150,000 $100,000 $90,000 Coverage A Maximum (PPC 1-8) $700,000 $500,000 $200,000 Coverage A Maximum (PPC 9-10) PC 9 $400,000 PC 10 Not Eligible $400,000 $150,000 Coverage C Minimum 75% of Cov. A 40% of Cov. A ($20,000 HO-4 & 6) 40% of Cov. A Coverage C Maximum 100% of Cov. A 75% of Cov. A ($350,000 HO-4 & 6) 75% of Cov. A Minimum Deductible $1,000 $1,000 ($500 HO-4 and 6) $1,000 Age of Dwelling Built since 1950 Built since 1900 Built since 1900 If over 40 years, must meet Older Home Requirements on page HO-32 Public Protection Class (PPC 10 must be located within 8 miles of the primary responding fire department) 1-10 (PPC 10 must be located within 8 miles of the primary responding fire department) Supplemental Heating/Solid Fuel Heating Not Eligible Prior Approval Prior Approval Must meet requirements on page HO Seasonal or Secondary Homes Dwellings Not Eligible Prior Approval. Coverage A not to exceed $200,000 Prior Approval. Coverage A not to exceed $200,000 Partners Mutual must write Homeowners coverage on the primary residence. Liability Minimum $100,000 Liability Maximum $500,000 Earthquake 30 day wait unless added at inception or renewal. See HO-20, Item F. Sewer Backup Homes Over 40 Years Old Swimming Pools Trampolines 30 day wait unless added at inception or renewal. Must meet the Older Home requirements on page HO-32 are ELIGIBLE Above and Inground Pools meeting the requirements on page HO-32 are ELIGIBLE Trampolines meeting the requirements on page HO-13 are ELIGIBLE *Indicates Change PARTNERS MUTUAL INSURANCE HO - 5

6 PROHIBITED LIST Construction and Risk Characteristics Homes without thermostatically controlled, central heating systems Homes with less than 100 amp electrical service Historic homes Unique or ornate construction Geodesic dome or underground construction Homes with pier foundations Mobile Homes structures &/or contents including double wide, trailer homes, house trailers and these type structures that have been physically altered, built on to, etc. (This applies to primary, seasonal, secondary or rental properties). Aluminum wiring Knob & Tube wiring Federal Pacific Stab-Lok breakers Asbestos roofing &/or siding Fuse boxes only Homemade, barrel, or other DIY stoves Homes with no primary heat source Vacant and or unoccupied for more than 30 consecutive days Applicant(s) have been convicted of arson in last 5 years Uncorrected fire or building code violations House for sale Risks with a roof that is primary flat or less than a 3/12 pitch. Risks with a roof that is in poor condition as evidenced by any of the following: o Deterioration caused by the presence of algae and/or moss. o Broken shingles o Shingles that are curled, warped or lifted o More than two layers of roof surfacing. Kerosene or other portable space heaters older than 5 years and/or not U/L approved Constructed prior to 1900 Home in Optional Loss Settlement program where market value of the home is less than 50% of the current replacement cost. Risks with Any of the Following Liability Characteristics Potentially dangerous liability exposures such as unfenced in-ground swimming pools, skate board ramps, three wheeled ATV s, etc. Home Day Care Coverage exceeding three children. The following specified dog breeds: o Akita o American Staffordshire Terrier o Chow Chow o Dingo o Doberman o Pit Bull o Presa Canario o Rottweiler o Wolf Hybrid o Mix of any of the previously listed breeds. Any animal with vicious tendencies or a history of biting Coverage for more than four (4) rental units. A rental unit is defined as the living quarters for one family. More than four (4) such exposures are considered Commercial Lines. This list is not all inclusive. If something falls outside of our acceptable guidelines and is not listed here, please contact your underwriter for prior approval before binding. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 6

7 PRIOR APPROVAL LIST Prior Cancellation for Non-payment or canceled/non-renewed for underwriting reasons. Indicate the prior company, policy number and the reason for termination. Supplemental heating systems, including wood burning stoves. Supplemental heating system must meet NFPA standards and be U/L approved. Additional requirements and rating information can be found on pages HO Homes constructed with Exterior Insulation and Finish Systems (EIFS) Homes of solid log construction. Log kit homes may be accepted. Hand hewn log and/or log and mortar homes are not eligible. Farming activities and properties including former farms where the premises now has unused additional structures such as silos, implements, sheds, etc. Other than domestic variety animals including but not limited to horses. 20 or more acres of land, including properties that are non-contiguous and/or not defined as residence premises. Ponds on residence premises On premises business pursuits including HO 04 42, Office, Professional, Private School or Studio Risk with HO 24 71, Business Pursuits Risks currently undergoing major renovations: o Renovations must be completed within 9 months o General contractors / sub-contractors involved in construction of the dwelling must maintain Workers Compensation coverage. Homes in the course of construction Construction must be completed by a licensed contractor, other than the named insured Construction may not exceed one year Coverage A amount must equal 100% of the expected amount of insurance when completed Risks located within 100 feet of a commercial exposure Foreclosed Homes Snowmobiles with engine size over 600 cc., ATV s, and Personal Watercraft. This list is not all inclusive. If something falls outside of our acceptable guidelines and is not listed here, please contact your underwriter for prior approval before binding. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 7

8 ELITE HOMEOWNERS PROGRAM This is a preferred program and targets homes built since 1950 with Coverage A amounts from $150,000 to $700,000 and located in Public Protection Classes 1-9. This program requires Coverage A to be at 100% of replacement cost. Dwellings with solid fuel stoves are not eligible in this program. PROGRAM ELIGIBILITY 1. Coverage A amount of insurance must equal 100% of its replacement cost. 2. Market Value must be at least 70% of replacement cost. 3. The dwelling must have been built since Dwellings over 40 years of age at the time of application must meet the Older Home Requirements on page HO The dwelling must be located in Public Protection Classes No losses in the last three years other than one weather related loss. 7. Solid fuel burning devices other than a built in fireplace not used as a heating source are not eligible. 8. Seasonal dwellings are not eligible. 9. If there have been any losses other than one weather related claim in the past 5 years, risks with insurance scores below 700 are not acceptable. PROGRAM REQUIREMENTS 1. Coverage A 100% of replacement cost 2. Coverage C Personal Property Minimum amount of insurance is 75% of Coverage A and is written on a Replacement Cost basis. 3. Coverage D Loss of Use Amount of insurance is "Actual Loss Sustained" for 12 consecutive months after the date of direct physical loss or damage. 4. Automatic Increases At each renewal, Partners Mutual will automatically increase Section I limits consistent with construction cost Indices. 5. The Partners Platinum Protection Plan providing additional coverages may be added to the policy at extra charge. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 8

9 CUSTOM HOMEOWNERS PROGRAM This is a standard program and targets homes built since 1900 with Coverage A amounts from $100,000 to $500,000 and located in Public Protection Classes This program requires Coverage A to be at 100% of replacement cost. Dwellings with solid fuel stoves are eligible in this program with prior approval. HO-4 Tenant and HO-6 Condominium policies are written in this program. PROGRAM ELIGIBILITY 1. Coverage A amount of insurance must equal 100% of its replacement cost. 2. Market Value must be at least 70% of replacement cost. 3. The dwelling must have been built since 1900 and not be of ornate or unusual construction. 4. Dwellings over 40 years of age at the time of application must meet the Older Home Requirements on page HO The dwelling must be located in Public Protection Classes No losses in the last three years other than one weather related loss. 7. Solid fuel burning devices are eligible with prior approval and must meet the requirements on pages HO Seasonal dwellings are eligible with prior approval. Insurance for the primary residence must be provided by Partners Mutual. 9. If there have been any losses other than one weather related claim in the past 5 years, risks with insurance scores below 600 are not acceptable. 10. Tenant and Condominium Coverage C Personal property must be insured at 100% of replacement cost. 11. Risks located in Public Protection Class 10 must be within eight road miles of the primary responding fire department. PROGRAM REQUIREMENTS BY HO FORM Owner HO 00 02, HO 00 03, HO Coverage A Dwelling 1. Coverage A 100% of replacement cost 2. Automatic Increases - at each renewal Partners Mutual will automatically increase Section I limits consistent with construction cost indices. 3. The Partners Plus Protection Plan providing additional coverages may be added to the policy at extra charge. Tenant HO Contents Broad Form is written on a replacement cost basis with a minimum theft deductible of $250. The amount of insurance must be equal to 100% of replacement cost value. * 1. The Partners Plus Protection Plan providing additional coverages may be added to the policy at extra charge. Condominium HO Unit Owners. The following coverage features are included at no additional charge: 1. Coverage A-Dwelling is written on "additional risks of loss," replacement cost basis. The base policy includes $10,000 of coverage. Higher limits are available. 2. Coverage C is written on additional risks of loss replacement cost basis. 3. Loss Assessment coverage is included up to $10,000. Higher limits are available. * 4. The Partners Plus Protection Plan providing additional coverages may be added to the policy at extra charge. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 9

10 OPTIONAL LOSS SETTLEMENT HOMEOWNERS PROGRAM This is a market value program and targets homes built since 1900 with Coverage A amounts from $90,000 to $200,000 and located in Public Protection Classes This program requires Coverage A to be at least 50% of replacement cost. Dwellings with solid fuel stoves are eligible in this program with prior approval. PROGRAM ELIGIBILITY 1. Coverage A - Dwelling must be insured for 100% of market value less the value of land and at least 50% of replacement cost. 2. The dwelling must have been built since Dwellings over 40 years of age at the time of application must meet the Older Home Requirements on page HO Solid fuel burning devices are eligible with prior approval and must meet the requirements on pages HO Seasonal dwellings are eligible with prior approval. Insurance for the primary residence must be provided by Partners Mutual. 6. Risks located in Public Protection Class 10 must be within eight road miles of the primary responding fire department. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 10

11 HOMEOWNERS RATING Basic Premium Modifications Maximum total credit available for items A, C, D, E, F, G, I, J and solid fuel is 75%. * A. Car/Home Discount 1. Eligibility. HO 2, 3, and 5 A 22% discount will apply to the final policy premium if the named insured also has a personal automobile policy with Partners Mutual or an application having an effective date within 60 days and the named insured on the auto and home policies are for the same individual (or husband and wife) except for the auto policy for a resident child or parent. The discount for HO 4 and 6 forms is 15%. 2. Effective Date a. New business policies will have the discount applied at once. b. Existing homeowner policies that become eligible as a result of a submitted automobile application will receive the discount on the effective date of the automobile policy. c. If the automobile policy is canceled or non-renewed, the discount will be deleted from the homeowner policy at the next renewal. 3. Qualifying applications must be quoted and issued under the same account number as the existing automobile policy in order to receive the discount. B. Deductibles Section I Property Effective April 1, 2015 the minimum All Peril Homeowners Deductible = $1,000 (HO 4 & 6 = $500) 1. Factors of the $500 deductible base premium. Deductible Factor Deductible Factor $ $1, $ $1, $ $2, $ $5, Not available for new business. 2. Flat Deductible with a 1% Windstorm or Hail Deductible - Form HO Coverage A Up to $99,999 $100,000-$199,999 $200,000-$299,999 $300,000 and above $ ,000 NA ,500 NA NA NA ,000 NA NA NA NA 3. Flat Deductible with a 2% Windstorm or Hail Deductible - Form HO Coverage A Up to $99,999 $100,000-$199,999 $200,000-$299,999 $300,000 and above $ , ,500 NA NA ,000 NA NA NA 0.56 *Indicates Change PARTNERS MUTUAL INSURANCE HO - 11

12 Car/Home Deductible If the insured has both homeowners and car insurance with Partners Mutual at the time of a loss, the maximum deductible amount will not exceed the single highest deductible when multiple items of property are involved in the same occurrence. * C. Dwelling Age Adjustment Age = Current policy term effective year minus year of construction of the dwelling. HO Forms 2,3,5 Dwelling Age Factor Dwelling Age Factor Dwelling Age Factor HO Forms 4 & 6 Dwelling Age Factor Dwelling Age Factor Dwelling Age Factor New and older D. Insurance Score Modifier 1. The insurance score premium modifier is based on the named insured s insurance score. If there are multiple named insured s, the highest score will apply. 2. The insurance score must be determined from the ATTRACT PROPERTY scoring system. 3. An insured may request to have an insurance score updated. The update will apply at the policy renewal date. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 12

13 4. The insurance score premium modifier applies only to the basic premium charge. TIER MODIFICATION TIER MODIFICATION 1-35% discount 6 No Modification 2-30% discount % surcharge 3-20% discount 8 +20% surcharge 4-10% discount 9 +30% surcharge 5-15% discount % surcharge 5. If a score is not available because of insufficient data or is a No Hit, Tier 8 applies. E. Protective Devices HO The following premium credits may be allowed for the installation of a burglar alarm, fire alarm, smoke detector, or automatic sprinkler system in the dwelling. Systems must be professionally installed and properly maintained. Proof of protective devices must be maintained in the agent s office. 1. Central Station Fire Alarm System. 5% 2. Central Station Burglar Alarm system 5% 3. Automatic Sprinkler Systems with sprinklers in all areas 10% 4. Limited Automatic Sprinkler System (not installed in closets, attics, attached structures) 5% These credits apply to the Coverage A Base Premium. F. Roof Surfacing Adjustments 1. If the dwelling roof surfacing material is composed of wood shingles or wood shakes, add a 10% surcharge to the modified base policy premium. This surcharge or credit applies to the Coverage A Base Premium. G. Residential Loss Rating Plan Apply the following factor to the annual base dwelling premium for claims incurred within the past three years for those claims which are attributed to factors under control of the insured and each claim for hail in excess of $5,000 based on the following schedule. # of Claims Factor H. Secondary Residence Credit When liability coverage is provided on the primary residence as well as the secondary seasonal residence, the basic premium for the seasonal residence shall be reduced $7.00. The policy covering the primary residence shall be extended under Section II to cover the additional insured location. See Optional Coverages and Additional Charges Section II-Liability. This credit applies to the Coverage A Base Premium. I. Senior Policyholder Discount If the named insured or spouse is age 50 or over apply a 15% credit to the base policy premium. The credit may be applied to new and renewal policies, but may not be applied mid-term. This credit applies to the Coverage A Base Premium. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 13

14 J. Superior Construction Credit A 10% credit applies to the Masonry Basic Premium when the entire dwelling is constructed of non-combustible materials. This credit applies to the Coverage A Base Premium. K. Trampoline Surcharge Trampolines located on the residence premises must meet the following minimum underwriting requirements: 1. The upper framework to which the bed of the trampoline is attached must be covered by padding at least one inch thick. 2. The area above the trampoline bed must be continuously enclosed by netting to a height of at least six feet. 3. The trampoline cannot be located next to a pool, waterway or other structure from which a person could launch onto or land from the trampoline. 4. Trampoline must be secured in a manner to eliminate rollover during use or during a windstorm. Surcharge - Trampolines meeting the above requirements will have a flat annual surcharge of $40 applied. This charge is fully earned and not subject to seasonal removal or storage of the trampoline. L. Affinity Group Discount Program An Affinity Group Discount of 3% shall be applied for individual members of a company approved risk group. A company approved risk group for the purpose of this rule must meet the following requirements: 1. The group must consist of 1,250 or more individuals who are employees or members of an organization such as, but not limited to, a credit union, association or government department, unit or agency; or 100 or more individuals who are employees of a corporation or partnership. a. This discount will also be available to current Partners Mutual Insurance Employees and to our licensed agents and agency staff members. 2. The group must have been in existence for at least 3 years and not formed primarily for the purpose of obtaining insurance. The group must complete the Affinity Marketing application, and Partners Mutual Insurance will notify the applicant in writing of the decision. We reserve the right to review each application for the Affinity Group Discount and make any inspections necessary to validate the status of any group or member applying for the Affinity Group Discount. An individual must meet the eligibility requirements of the Partners Mutual Homeowners Policy Program. Individual members include employees, members, or customers of an approved risk group. A group member will also include a resident relative of an employee, member, or customer of an approved risk group. The discount will only be added and removed upon renewal. There will be no mid-term adjustments to the policy. For all Forms, a factor of 0.97 shall be applied to the Base Premium. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 14

15 PREMIUM DETERMINATION Construction Definitions 1. Frame Exterior wall of wood or other combustible construction, including wood-iron clad, stucco or wood or plaster on combustible supports, or aluminum or plastic siding over frame. 2. Masonry Veneer Exterior walls of combustible 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. Mixed (Masonry/Frame) A combination of both frame and masonry construction shall be classed and coded as frame when the exterior frame walls exceed 33 1/3% of the total exterior wall area; otherwise class as masonry. 5. Superior Construction Exterior walls and floors and roof constructed of, and supported by metal, masonry, or other non-combustible materials. Public Protection Class 1. The Public Protection Class listings in the ISO Community Mitigation Classification Manual apply to risks insured under Homeowner policies. A. The protection class indicated applies in a municipality or classified area where a single class of fire protection is available throughout (6, 7, 8, etc.) 1. Class 8B may be assigned to a community that provides superior fire protection services and alarm facilities but lack the water supply required for a Class 8 or better. B. In a classification where two or more classes are shown, the classification is as follows: 1. If the split is 6/9: Distance to Primary Responding Fire Department a. 5 road miles or less with hydrant within 1,000 feet 6 b. 5 road miles or less with hydrant beyond 1,000 feet 9 Class c. Over 5 road miles 10 C. In a classified area where a split classifications are shown where no hydrants are installed (Example: 9/10), or where the hydrant distance does not apply due to an alternate creditable water supply (Example: 7/10), the classification is determined as follows: 1. If the split class is x/10: Distance to Primary Responding Fire Department a. Within 5 road miles of fire station, unless otherwise indicated X Class c. Over 5 road miles 10 *Indicates Change PARTNERS MUTUAL INSURANCE HO - 15

16 *Public Protection Class continued Forms 2,3,5 Forms 4 & 6 Frame Masonry Frame Masonry Protection Construction Construction Protection Construction Construction Class Factors Factors Class Factors Factors B B Premium Rounding All premiums shown on the policy are rounded to the nearest whole dollar on annual policies and to the next $.50 on six month policies. Premium Computation Homeowner Program - Elite, Custom, Optional Loss Settlement Base Premium X Key Factor Table (Coverage A Relativities) X Territory Factor X Program Factor (Elite, Custom OLS) X Form Factor (02, 03, 05, 08) X Protection Class/Construction (Frame, Masonry) Factor X Deductible Factor X Dwelling Age Adjustment Factor X Superior Construction Factor X Senior Factor X Protective Device Factor HO X Residential Loss Factor. X Roof Surfacing Factor. X Insurance Score Factor X Solid Fuel Factor X Car/Home Discount Factor X Base Policy Premium = Optional Coverages x Car/Home discount factor + Homeowner Premium = See page HO-11 for the maximum total discount which can be applied to each risk *Indicates Change PARTNERS MUTUAL INSURANCE HO - 16

17 OPTIONAL COVERAGE PACKAGES SECTION I PROPERTY Elite Program PARTNERS PLATINUM PROTECTION PLAN Form $50. Elite risks not of geodesic, log or earth home construction can have the Partners Platinum Protection Plan containing the following additional coverages added at an additional charge. A. Dwelling Replacement Coverage is increased to 125% of the Coverage A Dwelling amount. B. Coverage B Other Structures amount is added to Coverage A Dwelling if there are no other structures on the residence premises. C. Refrigerated Products Covers spoilage to food in a deep freezer or refrigerator from the perils of power failure or mechanical failure up to $500. The Section I deductible applies to losses payable under this coverage. D. Lock Coverage Up to $250 coverage applies for re-keying house locks if keys are stolen. A $25 deductible applies. E. Debris Removal Expenses incurred to remove debris of trees, resulting from windstorm or hail up to $500. F. Credit Card and Fund Transfer Card Coverage The limit of liability is increased to $1,000. G. Coverage C - Personal Property Special Limits of Liability Item 1. Money, bank notes, bullion, gold other than goldware, silver, other than silverware, platinum coins and medals coverage is increased to $500. H. Thermopane Fogging is covered up to $500. A special deductible of $250 applies to this coverage. I. Arson Reward Coverage A minimum reward of $500 and a maximum reward of $5,000 may be offered subject to our discretion. J. Loss of Use Coverage limit is actual loss sustained within 12 months immediately following a covered loss. K. Business Property on the residence premises is increased to $5,000. L. Identity Theft Remediation costs of up to $2,500. M. Collapse from Subsurface Water. N. Personal Injury *Indicates Change PARTNERS MUTUAL INSURANCE HO - 17

18 OPTIONAL COVERAGE PACKAGES SECTION I PROPERTY Custom Program PARTNERS PLUS PROTECTION PLAN Form * Rates: HO 2,3,4,5 = $35, HO 6 = $20 Custom risks insured to 100% of replacement cost and not of geodesic, log or earth home construction can have the Partners Plus Protection Plan containing the following additional coverages added at an additional charge. A. Dwelling Replacement Coverage is increased to a maximum of 125% of the Coverage A Dwelling amount. B. Coverage B Other Structures amount is added to Coverage A Dwelling if there are no other structures on the residence premises. C. Refrigerated Products Covers spoilage to food in a deep freezer or refrigerator from the perils of power failure or mechanical failure up to $500. The Section I deductible applies to losses payable under this coverage. D. Lock Coverage Up to $250 coverage applies for re-keying house locks if keys are stolen. A $25 deductible applies. E. Debris Removal Expenses incurred to remove debris of trees, resulting from windstorm or hail up to $500. F. Coverage C Personal Property Coverage is afforded on a replacement cost basis. G. Credit Card and Fund Transfer Card Coverage The limit of liability is increased to $1,000. H. Coverage C - Personal Property Special Limits of Liability Item 1. Money, bank notes, bullion, gold other than goldware, silver, other than silverware, platinum coins and medals coverage is increased to $500. I. Thermopane Fogging Covered up to $500. A special deductible of $250 applies to this coverage. J. Arson Reward Coverage Includes a minimum reward of $500 and a maximum reward of $5,000 subject to our discretion. K. Loss of Use Coverage limit is actual loss sustained within 12 months immediately following a covered loss. L. Business Property On the residence premises is increased to $5,000. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 18

19 ADDITIONAL OPTIONAL COVERAGES The following optional coverages are available with all programs unless specified otherwise. INCREASED LIMITS SECTION I PROPERTY A. Coverage A Dwelling * 1. HO-6 Unit Owners. The Basic $10,000 open perils replacement cost limit can be increased for $2.50 per $1, HO-6 Unit-Owners Coverage A Dwelling Special Coverage HO The policy automatically provides a basic Coverage A limit of $10,000 on a replacement cost basis for "additional risks of loss" without an additional premium charge. B. Coverage B Other Structures Rates are per $1,000 of coverage. 1. Owner Occupied a. Designed and used for private garage purposes or with HO $2 less than 250 sq. ft. ground floor area. The normal limit of 10% of Coverage A may be increased at the above rate per $1,000 increase: b. Other than a. All structures must be scheduled for coverage to apply $3 2. Rented to Others HO $3 See Section II-Liability for exposure charge. 3. Permitted incidental occupancy (office, studio, or professional) HO $3 See Section II-Liability for exposure charge. 4. Located Away From The Residence Premises HO $5 Coverage only applies to specifically scheduled structures. C. Coverage C Personal Property 1. The standard limit of 50% of Coverage A in the Custom and O.L.S. Programs and 75% in the Elite Program may be increased at a rate of $1 per $1,000 of increase. 2. If the policy is not endorsed to provide coverage on a replacement cost basis, the Coverage C limit can be reduced to 40% of Coverage A at a rate of $1 per $1,000 of reduction. 3. Property in Other Residences HO The normal limit of 10% of Coverage C may be increased at a rate of $6 per $1000 of insurance. 4. Permitted Incidental Occupancy (office, studio, or professional) HO $3. See Section II Liability for exposure charge. 5. Special Limits of Liability HO (Use H when HO or HO applies.) a. Jewelry, Watches and Furs The special $1,500 Theft limit may be increased to $5,000 ($1,000 per item limit) at a rate of $12 per $1,000 increase. b. Money and Securities The special limit of $200 on money may be increased to $1,000 at a rate of $4 per $100 of increase. The special limit of $500 on money when the Homeowners Plus endorsement is attached may be increased to $1,000 at the same rate. The special limit of $1,500 on securities may be increased to $2,000 at a rate of $3 per $100 of increase. c. Silverware, Goldware, Pewterware The special limit of $2,500 for loss by theft may be increased to a maximum of $10,000 at a rate of $3 per $500 of increase. d. Firearms The special limit of $2,500 for loss by theft may be increased to $6,000 at a rate of $2 per $100 of increase. e. Electronic Apparatus The special limit of $1,500 may be increased to $5,000 at a rate of $10 per $500 of increase. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 19

20 6. Business Property HO The special limit of $2,500 ($5,000 when the Partners Plus or Partners Platinum endorsement applies) may be increased to $10,000 at a rate of $25 per $2,500 of increase. 7. Credit Card HO The special limit of $500 may be increased to $10,500 at a rate of $1 per $2,500 of increase. 8. Personal property located on the residence premises in uninsured structures. $3 per $1,000 of coverage. D. Coverage D Loss of Use HO-2, HO-3 and HO-5 The normal limit of 50% of Coverage A Dwelling may be increased at a rate of $2 per $1,000. The special limit of Actual loss sustained for 12 consecutive months after the date of direct physical damage applies to all policies to which the Partners Plus and Partners Platinum Coverages are applicable. E. Loss Assessment Form HO The residence premises special limit of $10,000 can be increased up to $50,000 at a rate of $0.50 per $1,000. Coverage can be provided for each additional location not exceeding two at these premiums per location up to $50,000 at a rate of $0.50 per $1,000. F. Fire Department Service Charge Form The special limit of $500 may be increased at a rate of $2 per $100 of insurance. G. Personal Property Replacement Cost Coverage Form HO Coverage Form HO 00 02, HO or HO may be broadened to provide personal property replacement cost coverage. The Coverage C limit of liability is increased to 75% of Coverage A and cannot be reduced. Premium is 10% of the Basic Premium. This coverage is automatically included on policies issued with the Partners Plus and Partners Platinum endorsements. H. Special Personal Property Coverage, Coverage C Personal Property may be insured for "additional risks of loss". Not available for O.L.S. risks. 1. Dwelling See HO Condominium HO Included in base policy. * I. Foundation Collapse and Theft of Building Materials Coverage for Homes Under Construction Builders Risk Changes Form 2108 Provides foundation collapse and $5,000 theft of building materials coverage for a dwelling under construction. See endorsement for conditions regarding when coverage ceases. The dwelling must be insured for 100% of its completed replacement cost. The flat charge is non-refundable. Select the same deductible as is applicable to the Homeowners policy. This coverage is for new construction only. Deductible Premium $ 500 $ , , , , *Indicates Change PARTNERS MUTUAL INSURANCE HO - 20

21 J. Equipment Breakdown Coverage Provides coverage due to the breakdown of mechanical, electrical or pressurized systems. 1. Policy type and Coverage Forms Policy Coverage Limits HO % of Coverage A* HO % of Coverage A* HO $10,000 HO % of Coverage A* HO $10,000 - Included in base policy. *Subject to a minimum policy limit of $10,000 and maximum policy limit of $25,000. A $500 deductible applies to each occurrence under this coverage regardless of the policy deductible. K. Earthquake Form HO Optional coverage subject to a 10% limit of liability deductible with a $250 minimum. 1. Rate per $1,000 of coverage. Deductible % Frame and Superior Masonry 5% % % % % If exterior Masonry Veneer is covered, rate as Masonry. If not covered rate as frame. 2. Binding - Coverage cannot be bound for 30 days following a 4.0 earthquake or greater for risks within 100 miles of the epicenter. L. Earthquake Loss Assessment Coverage Form HO Written in conjunction with Loss Assessment Coverage HO Coverage is bound based on the unit owner s proportionate interest in total value of all collectively owned buildings and structures of the association. Rates per $1,000 are: Frame $.30; Masonry $.60. M. Limited Water Backup of Sewers, Drains or Sumps Form Coverage may be extended to cover direct loss caused by water which backs up through a sewer, drain, or sump. Maximum binding authority is $25,000. The regular Section I deductible applies. Coverage is Non-binding for 30 days from the date of request. Annual Rate: First $ 1,000 to $10,000 coverage limit $10 per $1,000 Next $11,000 to $25,000 coverage limit $ 8 per $1,000 Next $26,000 to $40,000 coverage limit $ 6 per $1,000 The coverage limit is the total amount we will pay for all losses during one 12 month policy term or any two consecutive 6 month policy terms. The premium is not pro-rated and is fully earned when coverage is made effective. N. Home Day Care Form HO Coverage may be extended to provide property coverage under Coverage C and Section II Liability coverages for non-commercial Home Day Care business in the residence premises. Not eligible if: (1) there are more than 3 persons receiving care; (2) the day care provider is licensed with any state authority or; (3) other day care liability coverage is provided by another insurer. For rating liability refer to Optional Coverages, Section II. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 21

22 O. Dwelling Replacement Cost Enhancement Form 2179 Removes the Coverage A limit when the dwelling is replaced after loss. Annual premium $50. Not available for geodesic, log or earth homes or dwellings whose replacement cost cannot be accurately determined or O.L.S. risks. This coverage is only available when the Partners Platinum or Partners Plus protection plans are also added to the policy. P. Residence Rental Theft Form HO Coverage may be extended to include loss by theft while a portion of the residence premises usually occupied by the insured is occasionally rented in whole or in part to others, or, is rented to a roomer or boarder. Premium $11. Q. Identity Fraud Expense Coverage Form HO Up to $15,000 is available to pay for expenses incurred by an insured as the direct result of identity fraud discovered during the policy period. Includes costs of notary, certified mail, lost income, loan fees and reasonable legal fees. Annual premium $30. R. Sinkhole Collapse Coverage Form HO Coverage may be extended to provide Sinkhole Collapse for $.35 per $1,000 of Coverage A Dwelling. S. Special Computer Coverage Form HO Coverage on computers and related equipment may be provided on an "additional risks of loss" basis for $15. T. Scheduled Personal Property Form HO Items of special value can be insured on a scheduled basis. Refer to the Inland Marine section of this manual. U. Units Regularly Rented To Others Form HO Coverage for personal property and liability may be provided for a charge of 25% of the basic premium. V. Limited Fungi, Wet or Dry Rot or Bacteria Coverage Forms HO 04 26, HO 04 27, HO Coverage a. Provides under Section I up to $10,000 of coverage for loss to real or personal property at the residence premises which is damaged by fungi, rot or bacteria during the policy period. b. Provides under Section II up to $50,000 of coverage for damages because of bodily injury or property damage involving the exposure to fungi, rot or bacteria at the residence premises. 2. Rate - Flat rate of $20, for each residence premises. W. Limited Exterior Matching Coverage Resulting From Loss Caused by Windstorm or Hail Form Coverage - Provides up to $10,000 to replace undamaged aluminum or vinyl siding or composition shingle roofing material which is no longer available in the style or color that matches the replacement for similar property damaged in a covered loss. At least 25% of the roof or siding must be damaged in order for coverage to apply. Applies to Coverage A (dwelling) only; is only available in the Custom or Elite programs and may not be bound until 30 days after the date of the request. 2. Rating -15.0% of the base dwelling premium subject to a minimum annual premium of $60. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 22

23 OPTIONAL COVERAGES AND ADDITIONAL CHARGES SECTION II LIABILITY COVERAGES The coverage limits of Coverage E - Liability and Coverage F - Medical Payments To Others must be uniform for all exposures covered by the policy. All Liability limits are per occurrence. All Medical Payments limits are per each person. A. Increased Limits Residence Premises E Liability/F Medical Pay $100,000/$1,000 $200,000/$1,000 $300,000/$1,000 $500,000/$1,000 Additional Premium $ 0 $5 $9 $14 See Section B for the additional premium charge to increase medical payments above $1,000. B. Increased Limits Coverage F Medical Payments Applicable to each Section II Optional Coverage and Additional Charge. Add the premium for the limit shown below to the base premium for each optional coverage or additional charge made to the policy. Coverage F - Medical Payments to Others $2,000 $3,000 $4,000 $5,000 Additional Premium $2 $4 $6 $8 C. Secondary Residence Premises Occupied by the Insured Required coverage for an additional residence occupied by the insured. This includes seasonal residences, time share condominiums, etc. E Liability/F Medical Pay $100,000/$1,000 $200,000/$1,000 $300,000/$1, ,000/$1,000 1 or 2 family $7 $8 $9 $13 See Section B for the additional premium charge to increase medical payments above $1,000. D. Additional Residence Rented To Others Form HO Optional liability coverage for additional residence premises rented to others, not at the insured's residence premises. Not eligible if more than four (4) rental units. A rental unit is defined as the living quarters for one family. More than four (4) such exposures are considered Commercial Lines. See the Dwelling Fire Section for property rates. E Liability/F Medical Pay $100,000/$1,000 $200,000/$1,000 $300,000/$1,000 $500,000/$1,000 1 Family $30 $33 $36 $42 2 Family Family Family See Section B for the additional premium charge to increase medical payments above $1,000. E. Additional Insured Form HO This form can be used to cover the interest of the dwelling owner/seller in a land contract; dwelling owner in a life estate and; co-owners in a multiple unit dwelling. Coverage is provided under Homeowner coverages A, B, E, and F. A trust or other legal entity can be named under this form but, cannot be added as a named insured. F. Residence Employees A charge is required for each employee in excess of two other than employees whose time of employment is not more than half of the customary full time or to whom the Workers' Compensation exclusion applies as set forth in Section II of the policy. E Liability/F Medical Pay $100,000/$1,000 $200,000/$1,000 $300,000/$1,000 $500,000/$1,000 Premium $5 $5 $7 $9 See Section B for the additional premium charge to increase medical payments above $1,000. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 23

24 G. Business Pursuits Form HO Optional coverage can be extended to provide liability coverage for the insured arising out of a business other than one solely owned by the insured. (For solely owned business coverage, consult the Commercial sections of this manual or the Home Business Section in the Homeowners General Rules.) Premiums apply to each person desiring coverage. Business Class A. Clerical Office Employees: Salespeople, Collectors or Messengers No installation, demonstration or servicing operations. B. Salespeople, Collectors or Messengers including installation, demonstration or servicing operations. C. Teachers-Athletics, laboratory, manual training, physical training and swimming instruction, excluding liability for corporal punishment of pupils. D. Teachers Not otherwise classified, excluding liability for corporal punishment of pupils. E. Teachers Liability for corporal punishment of pupils. Additional premium for this coverage must be added to C or D above. F. For all other occupations Refer to company or Section V. Home Business Insurance Coverage. E Liability/F Medical Pay $100,000/$1,000 $200,000/$1,000 $300,000/$1,000 $500,000/$1,000 Business Class A. $ 3 $ 3 $ 4 $ 6 B C D E See Section B for the additional premium charge to increase medical payments above $1,000. H. Incidental Farming Personal Liability Form HO Optional coverage may be provided for liability of an insured when there is farming or farm land rental on or away from the residence premises. Total farm related income must be less than $10,000 and farmed acreage less than 80. Please submit prior to binding. E Liability/F Medical Pay $100,000/$1,000 $200,000/$1,000 $300,000/$1,000 $500,000/$1,000 On Premise $27.50 $31.90 $34.10 $37.40 Off Premises See Section B for the additional premium charge to increase medical payments above $1,000. * This coverage can no longer be added at new business or new endorsements to existing business effective April 1, I. Permitted Incidental Occupancies Form HO Optional Office, Studio, Professional. See Section I-Property coverages for property rates. Liability premiums for incidental occupancy in the dwelling, another structure on the residence or at an additional residence (HO 24 43) are: E Liability/F Medical Pay $100,000/$1,000 $200,000/$1,000 $300,000/$1,000 $500,000/$1,000 Residence Premises $ 7 $ 9 $10 $14 Additional Residence Occupied by Insured See Section B for the additional premium charge to increase medical payments above $1,000. *Indicates Change PARTNERS MUTUAL INSURANCE HO - 24

25 J. Watercraft Liability Form HO Optional Watercraft Liability is provided for outboard motor powered watercraft at no charge. For all other watercraft apply these premiums. For personal watercraft (Jet Skis or Wave Runners) apply the over 30 MPH charge. E Liability/F Medical Pay $100,000/$1,000 $200,000/$1,000 $300,000/$1,000 $500,000/$1,000 Under 30 feet AND Under 16 mph $15 $17 $19 $ mph Over 30 mph Sailboats ft with no auxiliary power* Sailboats with auxiliary power are rated as inboards. Coverage should be written for the full policy period. These rates contemplate a navigational season of 7 months or less. See Section B for the additional premium charge to increase medical payments above $1,000. K. Recreational Vehicles Form 2102 Optional liability coverage can be provided for each recreational vehicle owned by an insured. Vehicle types eligible for this coverage include fourwheeled ATVs, UTVs, golf carts, snowmobiles, and residential service vehicles including small personal tractors. All other vehicle types, refer to your underwriter prior to binding. E Liability/F Medical Pay $100,000/$1,000 $200,000/$1,000 $300,000/$1,000 $500,000/$1, cc 2 Stroke and cc 4 Stroke Engine First vehicle $24 $30 $35 $52 Each additional vehicle All Other. Refer to your underwriter prior to binding. First vehicle $48 $60 $70 $104 Each additional vehicle See Section B for the additional premium charge to increase medical payments above $1,000. All Other vehicle types will increase at a $4 increment instead of $2. L. Personal Injury Liability Form HO Optional coverage extension for personal injury such as false arrest, libel or invasion of privacy included in Partners Platinum. E Liability/F Medical Pay $100,000/$1,000 $200,000/$1,000 $300,000/$1,000 $500,000/$1,000 Premium $10 $11 $12 $15 M. Home Day Care Coverage Form HO Optional liability coverage not available when more than three persons are receiving care, the day care provider is State licensed or if any day care liability is written elsewhere. E Liability/F Medical Pay $100,000/$1,000 $200,000/$1,000 $300,000/$1,000 $500,000/$1,000 Premium $100 $117 $133 $149 See Section B for the additional premium charge to increase medical payments above $1,000. N. Waterbed Liability Form Optional A Tenant s policy may be endorsed to pay all sums for which an insured is legally liable to pay. Coverage E Limit of Liability $100,000 $200,000 $300,000 $500,000 *Indicates Change PARTNERS MUTUAL INSURANCE HO - 25