UTAH STANDARD HOMEOWNERS PROGRAM MANUAL

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1 FORMS LIST... 3 PROGRAM DESCRIPTION... 5 UNDERWRITING GUIDES... 5 Eligible Risks...5 Ineligible Risks... 5 Photos... 6 Reports... 6 GENERAL INFORMATION... 7 Application... 7 Billing Fee... 7 Binding... 7 Binding for Risks with Prior Losses... 7 Cancellation/Non-Renewal... 7 Construction/Occupancy Definitions... 8 Coverages and Forms Descriptions and Requirements... 9 Section I Coverages - Property Damage... 9 Theft Coverage Increase for HO Use Form HO Required Coverages Section II Liability - All Forms Eligibility Additional Interests or Additional Insureds - Use Form HO Condominium Unit-Owners Policy Form HO Farms Mobile Homes, Trailer Homes or House Trailers Owners Policy Forms HO 00 03, HO or HO with HO Permitted Incidental Business Occupancies Secondary Residence Premises Tenants Policy - Form HO Inspections...11 Insurance to Value Replacement Cost Estimator Minimum Premium Policy Term...11 Premium or Form Revision Protection Class/Community Mitigation Classification Information Restriction of Individual Policies Animal Liability Exclusion Use Form DOG Roof Exclusion- Use Form ROOF Exclusion for Outbuildings- Homeowners- Use Form OUTBLDG CREDITS, DEDUCTIBLES & CHARGES Age of Dwelling Factors Alarm and Protective Device Credits Use Form HO Territory Location Multipliers Form HO 03 only Course of Construction Use Form PDE Deductible Options Tier Charges or Credits Including No Mortgage Balance Discount Mature Homeowners Credit Non-Smoker Discount Civil Service Employee Discount: Swimming Pool Surcharge Policy Fee Prior Claim Surcharge

2 Secondary Residence Premises Surcharge Trampoline Surcharge Wood Burning Stove or Fireplace Inserts Surcharge Renovation Credit MANDATORY FORMS Additional Liability Exclusions Use Form PRE Exclusion Claims Arising Out of Lead Use Form GLE Limited Fungi, Wet or Dry Rot or Bacteria Coverage-Use Forms HO 04 31, 32 or No Coverage for Home Day Care Use Form HO Policy Signatures Form Use Form IL Pollution Exclusion Including Damages from a Hostile Fire - Use Form PRE Special Provisions Use Form HO Trampoline Exclusion Use Form UT HO Utah Homeowners Amendatory Use Form PRE ADDITIONAL COVERAGES Condominium Units Regularly Rented to Others Use Form HO Coverage C Decreased Limit Coverage C Increased Limit Coverage D Loss of Use Earthquake Coverage - Use Form HO Increased Special Limits Use Form HO Inflation Guard Use Form HO Loss Assessment Coverage Use Form HO Other Structures Increased Limits Use Form HO Personal Property Replacement Cost Use Form HO Refrigerated Personal Property Use Form HO Residence Rental Theft Use Form HO Scheduled Personal Property Use Form HO Special Computer Coverage Use Form HO Special Personal Property Use Form HO Specified Additional Amount of Insurance for Coverage A Use Form HO Water Back Up and Sump Overflow Use Form HO LIABILITY COVERAGES Residence Premises Liability Increased Limits 1 or 2 Family Residence Residence Premises Three or Four Family Dwelling Use Form HO Additional Residence Occupied by Insured Extend Liability - no form necessary Additional Residence Rented to Others Use Form HO Business Pursuits Use Form HO Permitted Incidental Occupancies - Residence Premises Use Form HO Personal Injury Use Form HO Snowmobile Liability Use Form HO Structures Rented to Others Residence Premises Use Form HO Watercraft Liability Use Form HO RATES AND RATING RULES Homeowners Form Rating Tenant and Condominium Rating Tenant Forms HO Condominium Unit-Owners Forms HO 00 06, HO TENANTS BASIC PREMIUM CHART HOMEOWNERS BASIC PREMIUM CHART - MASONRY RATES HOMEOWNERS BASIC PREMIUM CHART - FRAME RATES

3 FORMS LIST Forms Date Title # HO Broad Form HO Special Form HO Tenant Form HO Condo Form HO Modified Coverage Form HO Special Personal Property Coverage HO Special Provisions - Utah HO Special Computer Coverage HO Premises Alarm or Fire Protection System HO Specified Additional Amount of Insurance HO Theft Coverage Increase Form HO HO Limited Fungi, Wet or Dry Rot, etc.- Forms except HO HO Limited Fungi, Wet or Dry Rot, etc.- Form HO HO Limited Fungi, Wet or Dry Rot, etc.- Form HO with HO HO Loss Assessment Coverage HO Loss Assessment for Earthquake HO Structures Rented To Others - Residence Premises HO Additional Insureds HO Permitted Incidental Occupancies- Residence Premises HO Three or Four Family Dwelling HO Inflation Guard HO Other Structures - Increased Limits HO Increased Personal Property in Other Residence HO Credit Card, Fund Transfer, Etc. HO Earthquake HO Special Loss Settlement HO Scheduled Personal Property HO Coverage C - Increased Special Limits HO Residence Rental Theft HO Actual Cash Value Loss Settlement HO Personal Property Replacement Cost HO Water Back Up and Sump Overflow HO Home Day Care Coverage Limitation HO Refrigerated Property Coverage HO Unit-Owners Coverage C Special Coverage HO Unit-Owners Rental to Others HO Permitted Incidental Occupancies Other Residence HO Snowmobile Liability HO Additional Residence Rented to Others HO Business Pursuits HO Watercraft Liability - Utah HO Personal Injury # Not available for new business Note: We are not actively writing the coverages included in the forms list in all programs 3

4 FORMS LIST Forms Date Title DOG Animal Liability Exclusion IL Policy Signature Page GLE Exclusion Claims Arising Out of Lead HOC0019UT 0303 Executive Homeowners Coverage Form OUTBLDG Exclusion for Outbuildings- Homeowners PDE Dwelling in the Course of Construction PRE Additional Liability Exclusions PRE Pollution Exclusion PRE Utah Homeowners Amendatory UT HO Trampoline Exclusion UU Policy Declarations Page UU Property Underwriting Questionnaire 4

5 PROGRAM DESCRIPTION The Standard Homeowners Program is designed to provide coverage for the owner or renter of a house, townhouse or condo, or an apartment renter that may have had up to two prior losses (excluding a total loss), may have had no prior insurance, or may be in an unprotected fire district. UNDERWRITING GUIDES Eligible Risks 1. Owner-occupied residential dwellings 2. Owner-Occupied residential units 3. Tenant-occupied residential units 4. Dwelling or Unit must be insured s primary residence or, if the residence is secondary, we must also insure the primary residence. 5. Older homes must have the following renovations: Over 30 years of age- New roof within the past 20 years Homes prior to 1960 must have updated electrical system- 100 Amp or better and circuit breakers. Homes prior to 1945 must have updated plumbing system- no lead or galvanized pipes for incoming water. Ineligible Risks 1. Dwellings or premises in poor physical condition. 2. Poor moral risks, poor credit history, judgments or more than two (2) mortgages. 3. Vacant or seasonal dwellings or dwellings advertised for sale at time of application. 4. Mobile or Manufactured Homes. 5. Dwelling with ferocious, dangerous or exotic animals. Risks with prior dog bite claims. We are concerned about big dogs, multiple dogs. Unacceptable breeds include, but are not limited to: Rottweilers, Chows, Pit Bull/Staffordshire Terriers, Doberman Pinchers, Akitas, Siberian Huskies, Malamutes, Sharpeis, German Shepherds and other wolf-hybrids. Call for underwriting approval on all questionable breeds 6. Any Commercial exposures. 7. Farm properties. 8. Dwelling with unfenced yards containing a swimming pool, spa, or hot tub. 9. In-home Day Care exposures. 10. Dwelling with primary heat from wood or coal burning stoves, or a wood/coal cook stove. 11. Properties in bankruptcy, foreclosure, or repossession. 12. Corporate owned properties. 13. Prior arson losses. 14. Dwelling or appurtenant structures with existing damage unless specifically excluded. NOTE: The final decision as to acceptability will remain with the company. 15. Swimming pools with diving boards or slides. Above ground swimming pools unacceptable. 16. Risks of sub-standard construction. 17. Risks with poor housekeeping and maintenance conditions. 18. Homes with open foundations. 19. Homes not built by a licensed contractor. (Contractor must have minimum of $1M CGL policy for homes in the course of construction.) 20. Unusual liability exposure (e.g. unfenced pools, stairs with no handrails, etc.). 21. Dwellings on a slope of 35 degrees or more. 22. Dwellings built on piers or posts. 23. Dwelling which are architecturally unique (e.g. geodesic, earthen, log homes). 24. Dwellings with less than 1000 square feet of living area. 5

6 NOTE: The final decision as to acceptability will remain with the company -Swimming Pools require prior approval from underwriting (a surcharge applies) -Properties valued above $500,000 require prior approval from underwriting. -Risks with trampolines must have a fenced yard (a surcharge applies). Special trampoline safety netting is strongly recommended. Form HO This policy is available for the owner occupied home used exclusively as a private residence, which is less than 40 years old, and may not be more than two separate family units. Minimum 75,000 Coverage A to a maximum of $1,000,000. Form HO This policy is available for the owner occupied home used exclusively as a private residence which is 50 years old or less, and may not be more than two separate family units. Minimum $50,000 Coverage A to a maximum of $500,000. HO with HO 0015 Homeowner This policy is available for the owner occupied home used exclusively as a private residence, which is 30 years old or less, and may not be more than two separate family units. Minimum $75,000 Coverage A to a maximum of $1,000,000. HO Unit Owner This policy is available for the owner occupied townhouse, condominium, or co-operative units. Coverage A, included limit is $1,000. This may be increased to a maximum of $200,000. The Coverage C minimum is $6,000 subject to a maximum limit of $250,000. HO Tenant This policy is available for tenants of an apartment situated in a building or house. The Coverage C minimum is $6,000 subject to a maximum limit of $250,000. For all Forms: The Coverage E minimum is $100,000 and the maximum is $500,000. The Coverage F minimum is $500 and the maximum is $5,000. Photos United Underwriters will obtain photos of dwellings located in protection classes 1-6. Photographs of dwellings located in protection classes 7-10 are required of the agent. Photos of ALL woodstoves must be submitted on all homes with this exposure. New photographs will be required every seven (7) years for renewal policies. Reports Credit Bureau reports, credit scores and other financial or claims reports such as CLUE or UNCLE s may be obtained to verify and document underwriting requirements and rating accuracy. 6

7 GENERAL INFORMATION The Homeowners Program provides property and liability coverages. The rules, rates, forms and endorsements filed by or on behalf of the Company for each coverage shall govern in all cases not specifically provided for in this manual. Application Each application must be fully completed, dated, and signed by both the agent and insured. It is imperative that the application includes all the information requested and needed to properly underwrite the risk submitted. The identity and address of all owners and entities with an insurable interest in the property must be included. Billing Fee There will be a billing fee of $6. Binding Risks will be bound as of the date of the producers request if the application is postmarked to the company within 72 hours of the bound date. Binding for Risks with Prior Losses Any risk with prior claims in the last three(3) years requires approval from the underwriting department prior to binding. In order to received approval, a quotation must be submitted through INSURE P.A.S. and a copy of the completed underwriting property questionnaire must be submitted via fax along with the following information: date or dates of prior losses, approximate amount for each loss, type of damage that caused the loss, and a detailed description of what has been done to mitigate future claims from this loss, i.e. replaced roof/plumbing. Cancellation/Non-Renewal Flat cancellation is not permitted once a policy is in force, except in the case of proven identical duplicate coverage. A binder is considered a policy. Cancellation at the request of the insured must be accompanied by the insured s latest declarations page or a signed Acord Cancellation Request/Policy Release and giving the reason for cancellation. There will be a flat $25 fee assessed instead of a short rate penalty. Cancellations for underwriting reasons are pro-rata. Cancellation at agency request is not allowed. Any cancellation or non-renewal will be in compliance with applicable Sections of Utah Insurance Laws. 7

8 Construction/Occupancy Definitions Masonry Frame Pre-Fab or Modular Site Built Home Condominium Secondary Dwelling Course of Construction Mobile Manufactured Seasonal Dwelling Exterior walls of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block/stone, masonry veneer of brick, stucco, or stone over frame (classified as masonry if 50% or more masonry from foundation to roof line.) Exterior walls of wood or other combustible construction, including iron-clad, metallic siding The entire house is built in a factory, shipped to consumers premises in sections, and assembled on the site, in accordance with local building codes and laws. It is installed on a permanent foundation. Single building separated by space. Twin Homes or duplexes may qualify. Units must meet conditions of: a) No common utilities b) Each unit has a minimum of 900 square feet c) Units have a common wall constructed of fire resistant material with no opening/doorways between units d) Each unit has two entrances (i.e. front & back) e) Units are constructed with no part above (on top) of another unit. Building or project, which is divided into individual owned units. Owner retains an undivided interest as a tenant in common facilities/areas utilized by all condominium residents. Occupied intermittently or for short periods of time such as weekends or holidays. Unoccupied home under construction Any home built on a steel chassis, moved to a site on wheels and set on pier and are anchored to the ground by steel straps or put on cinder blocks. Wheels may be removed and skirting put around the bottom of the dwelling. Popularly known as mobile home, built on a chassis (a metal frame) to conform to a regulatory code established by HUD. Most rest on piers and are anchored by steel straps. Unoccupied for three or more consecutive months during a one-year period. (i.e. cabin) 8

9 Coverages and Forms Descriptions and Requirements Forms HO Broad Form No longer available. Rates and Rules applicable to HO apply to Form HO also except for coverage description. HO Special Form HO with HO Special Form with Special Personal Property HO Contents Broad Form HO Unit-Owners Form HO Modified Coverage Form Coverages Section I Property Damage Section II - Liability Coverage A - Dwelling Coverage E Personal Liability Coverage B Other Structures Coverage F Medical Payments to Others Coverage C Personal Property Coverage D Loss of Use Section I Coverages - Property Damage The following is a general description of the coverages provided by the individual Homeowners Policy forms. The policy shall be consulted for exact contract conditions. HO HO HO & HO HO & HO Fire or Lightning Yes Yes Yes Yes Windstorm or Hail, Explosion, Riot Yes Yes Yes Yes or Civil commotion, Aircraft, Vehicles or Smoke Vandalism or malicious mischief Yes Yes Yes Yes Theft Yes Yes Yes Limited Volcanic eruption Yes Yes Yes Yes Falling objects, Weight of ice, snow or sleet, Accidental discharge of water or steam, Sudden and accidental tearing apart of a heating system or appliance, Freezing, Sudden accidental damage from electrical current Yes Yes Yes No Additional risks with certain exceptions (Special Coverage) Replacement Cost For Coverages A and B For Coverage C** No Yes * Cov. A & B Yes No Yes No No Yes No No Modified No * Additional risks may be added for Coverage C by purchase of HO 0015 (Form HO only) ** Replacement cost for contents coverage may be purchased using HO Theft Coverage Increase for HO Use Form HO This form is attached to all HO policies. It provides $5,000 coverage for theft on premises and $1,000 coverage for theft away from premises. This is included without additional charge. No additional increase is allowed. 9

10 Required Coverages The minimum coverages required under the Homeowners Policy are as follows: It is mandatory that insurance be written for all coverages provided under both Sections I (Property Coverage) and II (Liability) of the Homeowners Policy. If the following exposures exist, they must be declared and the proper additional premium paid: (1) All additional residence premises where the Named Insured or spouse maintain a residence other than business or farm properties; (2) Permitted incidental occupancies by the insured or on the residential premises of the insured.; Section I - Property Damage Coverage HO or HO HO or HO A Dwelling Minimum Limit Refer to Underwriting Guidelines $1,000 on HO B - Other Structures 10% of A N/A C - Personal Property 50% of A Refer to Underwriting Guidelines D - Loss of Use 20% of A 20% of C - HO % of C - HO Section II Liability - All Forms Coverage E - Personal Liability Coverage F - Medical Payments to Others $100,000 Each Occurrence $500 Each Person The limit of liability for Coverages C of Section I and E or F of Section II may be increased. Under Coverage B of Section I an additional amount of insurance may be written on specific other structures. Eligibility Additional Interests or Additional Insureds - Use Form HO Additional Insured Endorsement HO may be attached: 1. To cover the seller s interest in the building and premises liability in the case of a purchaser/occupant; or 2. To cover the owner s interest in the building and premises liability in the case of a life estate agreement; or 3. To cover the interest of additional owners. There is no premium charge for this endorsement. This coverage is limited to the building and premises liability. Condominium Unit-Owners Policy Form HO May be issued to the owner-occupant of a Townhouse or Condominium or Cooperative Unit which is used exclusively for residential purposes, other than permitted incidental occupancies. Farms A Homeowners Policy shall not be issued covering any property to which farm forms or rates apply. 10

11 Mobile Homes, Trailer Homes or House Trailers A Homeowners Policy shall not be issued to cover any mobile home, trailer home, or house trailer whether or not set on blocks, foundations or otherwise made stationary. Owners Policy Forms HO 00 03, HO or HO with HO May be issued: 1. To an owner-occupant of a dwelling which is used exclusively for private residential purposes, other than incidental business occupancies; or 2. To cover while in course of construction only the interest of the intended owneroccupant in the dwelling provided the completed dwelling will be used exclusively for residential purposes. 3. To one of the co-owners of a dwelling provided at least one co-owner occupies the dwelling. 4. to the purchaser-occupants who reside in the dwelling, have entered into a long term installment contract purchasing the dwelling and to whom the title will not pass until all the terms of the contract have been met. The seller retains the title until completion of the payments and the seller does not in any way act as a mortgagee. Permitted Incidental Business Occupancies Incidental occupancies are permitted provided the premises are occupied principally for residential purposes and there is no other business conducted on the premises. The additional premium for the liability exposure must be charged. Secondary Residence Premises A policy may be written to cover a secondary location meeting the requirements of the eligibility rule, subject to the rates and rules of this manual and for an additional fee. Liability must be extended from another policy. Tenants Policy - Form HO May be issued: 1. To the tenant (non-owner) of a dwelling (house, apartment or condominium) situated in any building; or 2. To the owner-occupant or co-owner occupant of a dwelling or a building containing an apartment who is not otherwise eligible for a Homeowners Policy under the Owners Forms rules; Providing the residence premises occupied by the Insured is used exclusively for residential purposes, other than permitted incidental occupancies, and is not occupied by more than one additional family or more than two boarders or roomers per family. Inspections The company reserves the right to order an inspection of any insured premises. This inspection may be interior or exterior. If requested, the inspection must be allowed or a policy cancellation will be processed. Insurance to Value Dwelling Must be insured at 100% of actual cash value, if written on ACV settlement, or 100% of Replacement Cost if written on Replacement Cost settlement. No coinsurance applies. Replacement Cost Estimator A replacement cost estimator is required to be submitted with the application on each risk. Minimum Premium A minimum premium of $250 is applicable for HO and HO A minimum premium of $125 is applicable for HO and HO Policy Term The Homeowners Policy is written for a one-year term. 11

12 Premium or Form Revision A policy may not be endorsed or canceled and rewritten for the sole purpose of taking advantage of a change in premium resulting from a Premium Revision. Protection Class/Community Mitigation Classification Information Classification of Public Fire Protection (PPC) 1. The protection class indicated applies in a municipality or classified area where a single class of fire protection is available throughout (e.g. 8, 7, 6, etc.) 2. In a classification where two or more classifications are shown (split classifications - e.g. 6/9 or 6/8B) the classification is determined as follows: Distance to Fire Station Class a. 5 road miles or less with hydrant distance within 1000 feet * b. 5 road miles or less with hydrant distance beyond 1000 feet 9 or 8B c. Properties not listed in a or b 10 * First Protection Class (e.g., 6/9 use Class 6) 3. In a split classification where no hydrants are installed (e.g. 9/10) or hydrant distance does not apply due to an alternative water supply (e.g. 7/10): Distance to Fire Station Class a. 5 road miles or less * b. Properties not listed in a. above and all others 10 * First Protection Class (e.g., 7/10 use Class 7) 4. Subscription fire departments are indicated by a footnote. Class 10 applies to individual properties that do not subscribe to the listed subscription fire department. When other than Class 10 is applied attach copy of fire department contract. Restriction of Individual Policies If a Homeowners Policy would not be issued because of unusual exposures, the Named Insured may request a restriction of the policy provided no reduction in the premium is allowed. Animal Liability Exclusion Use Form DOG-00 Allows specific animals to be described and excluded. Requires signature of insured. Roof Exclusion- Use Form ROOF-00 Allows roofs to be excluded when we would not otherwise accept the risk. Exclusion for Outbuildings- Homeowners- Use Form OUTBLDG-00 Allows for Outbuildings to be excluded when we would not otherwise accept the risk. 12

13 CREDITS, DEDUCTIBLES & CHARGES Age of Dwelling Factors - All forms except forms HO and HO For the purposes of this rule, a dwelling is considered new if it has been completed and occupied within the last year. Subtract the year of construction (date completed and first occupied) from the effective date of coverage to determine age of dwelling. Age of Dwelling Credit or Charge 1 Year or less -20% 2 Years -18% 3 Years -16% 4 Years -14% 5 Years -12% 6 Years -10% 7 Years -8% 8 Years -6% 9 Years -4% 10 Years -2% 11 years % % 1944 or older +30% Alarm and Protective Device Credits Use Form HO The following credits may be applied for an approved and properly maintained alarm system provided proof of installation has been submitted to the company. Only one credit from the following schedule may be applied. No combination of credits other than those shown, are permitted. Credit Local Fire Alarm or Smoke Alarm 2% Complete Local Burglar Alarm System 5% Local Fire Alarm or Smoke Detector; and 3% Deadbolt Locks; and Fire Extinguisher Local Fire Alarm or Smoke Alarm; and 7% Complete Local Burglar Alarm System Local Fire Alarm or Smoke Alarm; and 8% Complete Local Burglar Alarm System; and Dead Bolt Locks; and Fire Extinguisher Fire and/or Burglar Alarm Reporting to either Fire 10% Department, Police Department or Central Station Fire and/or Burglar Alarm Reporting to either Fire 12% Department, Police Department or Central Station; and Dead Bolt Locks; and Fire Extinguisher OR Complete Automatic Sprinkler System 12% 13

14 Territory Location Multipliers Form HO 03 only An 8% credit will be applied for those properties located in Washington County. Course of Construction Use Form PDE-8007 Dwellings in the course of construction may be insured if the named insured is to be the occupant. The course of construction form limits coverage to Coverages A and B. A 50% credit may be applied. Deductible Options Deductible Amount HO & HO HO HO $250 Base 1.05 Base Base , , The above deductible factors apply to all property endorsements and coverage. Tier Charges or Credits Including No Mortgage Balance Discount Premium will be adjusted based on the applicants Choicepoint Attract insurance score. Additional discounts given to applicants who can demonstrate further financial stability by carrying no mortgage on the insured property. TIER Discount Factor Attract score tier no mortgage noscore 1.12 noscore

15 Mature Homeowners Credit All Forms Except HO If the insured is age 55 or older and retired, a 10% credit may be applied. Non-Smoker Discount If all occupants of the home are non-smokers, a 10% credit may be applied. Civil Service Employee Discount: A 10% policy discount will be applied if the named insured is a public employee. Employer and Occupation must be listed on application and copy of employee i.d. submitted with application, to qualify for discount. Swimming Pool Surcharge If the there is a swimming pool on the insured residence, apply a surcharge of $50. Pools with diving boards and/or slides are not acceptable in any program. Above grounds swimming pools are also unacceptable in any program. Policy Fee A $10 policy fee is applicable to all new policies. Fees are fully earned at policy issuance. Prior Claim Surcharge All Forms Except HO One loss in prior 36 months This does not include weather related losses below $1,500 Credit +25% Two or more losses during prior 36 months +50% 15

16 Secondary Residence Premises Surcharge If the insured owner-occupied dwelling is not the primary residence, apply a 25% surcharge. Liability for the Secondary Residence must be extended from another policy. Trampoline Surcharge If there is a trampoline on the insured residence, apply a surcharge of $50. Wood Burning Stove or Fireplace Inserts Surcharge Wood burning stove questionnaire must be completed, signed, and must include two (2) photos -- one of the stove and one of vent system on outside of dwelling, when wood stove exposure exists. The questionnaire and photos must be submitted with the application. The questionnaire must be inspected and signed by a licensed contractor or member of the local fire department, when the wood stove is not factory installed or commercially installed by a licensed contractor or appliance distributor. Charge for each additional exposure presented when a wood or coal-burning device exists in a dwelling: Wood or Coal Burning Stoves or Furnaces - All Types Fireplace inserts or Free Standing Fireplaces Built in Fireplaces: Metal or Masonry Chimneys $35 per year $35 per year No Charge Renovation Credit Dwellings constructed prior to 1945 are eligible for a 20% renovation credit if the company receives documentation that all Plumbing, Heating, Electrical and Roofing systems have been completely replaced in the previous 15 years 16

17 MANDATORY FORMS Refer to forms for detailed description of coverage. In case of any differences, the form will prevail. Additional Liability Exclusions Use Form PRE Endorsement excludes assault and sexual molestation, etc. Exclusion Claims Arising Out of Lead Use Form GLE-8023 Excludes liability for claim arising out of direct or indirect exposure to lead or lead products. Limited Fungi, Wet or Dry Rot or Bacteria Coverage-Use Forms HO 04 31, 32 or 33 Form HO is used with Form HO without HO attached Form HO is used with Form HO with HO Form HO is used with all other forms. The following limited amounts of insurance are automatically provided: Section I Fungi, Wet or Dry Rot or Bacteria - $10,000 for loss to covered real or personal property. Section II Fungi, Wet or Dry Rot or Bacteria - $50,000 for damages because of bodily injury or property damage involving the inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any fungi, wet or dry rot or bacteria. No Coverage for Home Day Care Use Form HO An ISO form that limits Section I Coverage and excludes Section II coverage for Home Day Care Operations. Policy Signatures Form Use Form IL 7021 Adds appropriate Company Officers Signatures to the policy. Pollution Exclusion Including Damages from a Hostile Fire - Use Form PRE-1215 Pollution exclusion includes damages from a hostile fire that involves pollutants. Special Provisions Use Form HO An ISO form that revises the basic policy to comply with state specific requirements. Provides 10% of Coverage A for Ordinance and Law Coverage, redefines definition of collapse, glass replacement is changed to safety glazing material, clarifies meaning of earth movement and other provisions and adds Utah specific cancellation and nonrenewal criteria. Trampoline Exclusion Use Form UT HO 23 Excludes liability for loss due to use of trampoline unless trampoline surcharge assessed. Utah Homeowners Amendatory Use Form PRE-1216 Broadens Exclusion for vegetation and flood 17

18 ADDITIONAL COVERAGES Condominium Units Regularly Rented to Others Use Form HO Form HO only When a Condominium Unit is regularly rented to others, write a Form HO policy for that location and attach this endorsement which revises the Form to allow regular rental. The rate for attachment of this endorsement is 25% of the premium after the application of deductibles. Coverage C Decreased Limit Not available for Forms HO or HO The limit of liability for Coverage C may be decreased to an amount not less than 40% of Coverage A at a rate of $1 per $1,000 of increase. This is not permitted when there are Permitted Incidental Occupancies on premises. Coverage C Increased Limit Not available for Forms HO or HO The limit of liability for Coverage C may be increased at a rate of $1 per $1,000 of increase. Coverage D Loss of Use The Loss of Use limit may be not be increased above the basic limit provided in the policy. Earthquake Coverage - Use Form HO When Earthquake coverage is provided, it shall apply to all Section I Coverages for the same limits as provided in the policy. The deductible is 5% of the limit of liability for either Coverage A or Coverage C, whichever is greater, subject to a minimum deductible of $250. The premium shall be developed as follows: Forms Frame Other Applied to HO 00 02, HO or HO $1.70 N/A Coverage A Limit HO or HO N/A Coverage C Limit HO 00 02, HO or Coverage C 1.10 N/A HO Amount of Increase * All Forms 1.10 N/A Other Structures Amount of Increase Earthquake Coverage is available for frame structures or for structures with exterior masonry veneer provided the exterior masonry veneer is excluded. Use the frame rates. This is not available for other types of construction. * For policies with Replacement Cost for Personal Property, charge only for the amount of increased Coverage C that is over 70% of the Coverage A limit. 18

19 Increased Special Limits Use Form HO The Homeowners policy places maximum limits on several types of personal property. This form allows these maximum limits to be increased. Type of Property Policy Limit Rate per Increment Maximum Limit Jewelry, Watches & Furs (theft)* $1,000 $8.00 per $100 $ 5,000 Silverware, Goldware & Pewterware (theft) 2,500 $3.00 per $500 5,000 Firearms (theft) 2,000 $3.00 per $100 5,000 Money 200 $6.00 per $100 1,000 Securities 1,000 $4.00 per $100 2,000 Inflation Guard Use Form HO The policy may be endorsed to provide for automatic increases of 5% in the Section I Coverages. At the option of the insured, this may be added to any form. The additional premium is $5. Loss Assessment Coverage Use Form HO Form HO Only The policy automatically includes $1,000 of loss assessment coverage (excluding earthquake). This limit may be increased from a minimum of $5,000 to a maximum of $50,000. Limit of Liability Premium $5,000 $ , Each additional $5,000 (Maximum $50,000) Loss Assessment Coverage for Earthquake Use Form HO Not available at this time. Other Structures Increased Limits Use Form HO All Forms except HO & HO An additional limit of liability may be provided for specific structures located on the residence premises. The rate is $2 per $1,

20 Personal Property Replacement Cost Use Form HO All Forms This form changes the Coverage C Personal Property Loss Settlement from Actual Cash Value to Replacement Cost. Replacement cost also applies to items scheduled in this policy. The policy deductible must be $250 or greater. If a higher deductible is chosen, the credit should be applied prior to the charge for this endorsement. Form HO Available only if the dwelling is not more than 30 years of age and the policy is insured for 100% of replacement cost. Form HO and HO Available only if the building is not more than 30 years of age and the Coverage C limit is at least $15,000. Forms Charge Minimum Charge HO % $25 HO 00 04, HO % $30 Refrigerated Personal Property Use Form HO The policy may be extended to provide $500 of coverage for covered property stored in the freezers or refrigerators on the residence premises for loss caused by power service interruption or mechanical failure. The amount of $100 per occurrence will be deducted from each loss. The premium for this coverage is $10. Residence Rental Theft Use Form HO Coverage may be provided for loss by theft while the portion of the residence premises normally occupied by the insured is rented to others on an occasional basis or while there is rental to a roomer or boarder. The additional premium is $15. 20

21 Scheduled Personal Property Use Form HO When coverage is desired for Scheduled Personal Property a minimum premium of $15 is applicable. The additional premium for each $100 of insurance shall be as follows: Scheduled Property Rate per $100 Jewelry $ 1.30 Furs (personal) 0.40 Cameras and Projection Equipment 1.50 (Non-professional)* Musical Instruments (non-professional only)* 0.45 Silverware 0.30 Golfer s Equipment 1.00 Postage Stamps 0.45 Rare and Current Coins 1.70 Guns 2.00 Fine Arts Protection Classes Breakage Excluded 1-8 8b, Families or more Families *A professional is a person who uses the insured instrument(s) or camera(s) for pay. (Any remuneration during the policy period is counted as for pay ) Special Computer Coverage Use Form HO This changes the loss settlement provisions for computers from named perils to risks of physical loss unless excluded. Recovery is limited to media that can be replaced on the open market. Limit of Liability Premium $4,000 $5 5,000 8 Special Personal Property Use Form HO Available for Form HO only Expands the perils for personal property from named perils to risks of physical loss unless excluded basis. There is a 15% additional premium. Specified Additional Amount of Insurance for Coverage A Use Form HO Form HO Only The endorsement waives the policy limit on Coverage A - Dwelling in the event a covered property loss exceeds that amount. It provides for a maximum loss payment of 125% of the coverage limit for Coverage A - Dwelling. The policy limit must be equal to 100% of replacement cost. A Residential Cost estimator must be completed and submitted with application and/or endorsement. There is a $20 premium charge. Water Back Up and Sump Overflow Use Form HO This endorsement covers loss caused by water that backs up through sewers and drains, or water that overflows from within a sump. A $250 Deductible applies to this coverage. The maximum paid under this endorsement is $5,000. The premium charge is $

22 LIABILITY COVERAGES The basic limits of liability for Coverage E - Personal Liability and Coverage F - Medical Payments To Others are $100,000 and $500 respectively. These limits may be increased as shown below. If the policy provides any additional liability coverages, these must match the coverage amount for the residence premises, unless otherwise noted. Residence Premises Liability Increased Limits 1 or 2 Family Residence Limit of Liability Covg E $100,000 $200,000 $300,000 $500,000 Premium Base Medical Payments Limits Covg F $ 500 $1,000 $2,000 $3,000 $4,000 $5,000 Premium Base Residence Premises Three or Four Family Dwelling Use Form HO Limit of Liability Covg E $100,000 $200,000 $300,000 $500,000 3 Family Family The above charges apply regardless of the Medical Payments Limit. Additional Residence Occupied by Insured Extend Liability - no form necessary If the insured maintains a one or two family dwelling in addition to the principal residence, coverage may be extended from the primary policy. Use to extend liability from the primary policy to a Secondary location. Limit of Liability Covg E $100,000 $200,000 $300,000 $500,000 1 Family Family The above charges apply regardless of the Medical Payments Limit. Additional Residence Rented to Others Use Form HO If the Insured owns not more than two (one or two family) dwellings) rented to others, coverage for Liability and Medical Payments may be extended from the primary residence policy. Limit of Liability Covg E $100,000 $200,000 $300,000 $500,000 1 or 2 Family or 4 Family The above charges apply regardless of the Medical Payments Limit. 22

23 Business Pursuits Use Form HO This coverage does not apply to sole owners or partners of any business, or to bodily injury, sickness, disease or death of any fellow employee of the insured. This does not replace professional liability coverage. The occupations that may be covered are: 1. Clerical Employees 2. Salespersons, Collectors or Messengers Limits of Liability Covg E $100,000 $200,000 $300,000 $500,000 Premium The above charges apply regardless of the Medical Payments Limit. Permitted Incidental Occupancies - Residence Premises Use Form HO Incidental occupancies are permitted provided the premises are occupied principally for residential purposes and there is no other business conducted on the premises. Permitted Incidental Occupancies includes such occupancies as Offices, Schools or Studios meaning offices for business or professional purposes, and private schools or studios for music, dance, photography and other instructional purposes. Coverage C must be increased to at least 60% of the Coverage A Limit. Charge for the increased Coverage C and the liability exposure. Limits of Liability Covg E $100,000 $200,000 $300,000 $500,000 Premium The above charges apply regardless of the Medical Payments Limit. If the incidental occupancy is in another structure on the residence premises, charge a rate of $3 per $1,000 for the property insurance in addition to the charges for Coverage C and liability. Personal Injury Use Form HO This endorsement extends Bodily Injury Liability coverage to also cover Personal Injury (libel, slander, etc.). Limits of Liability Covg E $100,000 $200,000 $300,000 $500,000 Premium Snowmobile Liability Use Form HO Liability Coverage may be provided for an owned snowmobile not covered under the policy. Each snowmobile owned by the Named Insured or any other Insured who is a resident of the Named Insured s household must be declared. The premium charge shall apply separately to each snowmobile. Limits of Liability Covg E $100,000 $200,000 $300,000 $500,000 Premium The above charges apply regardless of the Medical Payments Limit. 23

24 Structures Rented to Others Residence Premises Use Form HO The Homeowners Policy may be endorsed to provide coverage for other structures on the described premises, rented or held for rental to others, provided such structure is used for residential purposes and is not occupied by more than two families. The charge for insurance on the building is $3 per $1,000. Limit of Liability Covg E $100,000 $200,000 $300,000 $500,000 1 or 2 Family or 4 Family The above charges apply regardless of the Medical Payments Limit. Watercraft Liability Use Form HO The premium for liability for watercraft which have greater horsepower than those covered in the basic policy is shown below. When two outboard motors are used together with one watercraft, use 100% of horsepower of larger plus 50% of horsepower of smaller to determine total horsepower. 1. Coverage must be written to expiration of the policy period. 2. Coverage is not permitted under the Homeowners Policy for the following types of watercraft: Rental boats, Jet boats, Jet skis, Skidoo s, Wave runners, any high performance, racing and/or speed boats. 3. Apply a 25% surcharge if the watercraft is capable of speeds over 45 MPH. 4. Apply a 25% surcharge if unaccompanied operators under age 21. Limits of Liability Covg E $100,000 $200,000 $300,000 $500,000 Outboard Motors HP HP Inboard Motors Over 50 HP Inboard/Outboard Motors Over 50 HP Sailboats Over 26 Feet Medical Payments Limits Covg F $ 500 $1,000 $2,000 $3,000 $4,000 $5,000 Outboard Motors HP HP Inboard Motors Over 50 HP Inboard/Outboard Motors Over 50 HP Sailboats Over 26 Feet

25 RATES AND RATING RULES Homeowners Form Rating To determine policy premiums apply the factor shown below to the otherwise applicable premium for Form HO (as shown in the Homeowners Basic Premium Charts) Forms Factor HO * HO HO * Form HO Not available for new business. For Form HO with HO apply a factor of 1.15 to the Form HO premium after the deductible charge or credit is applied. Tenant and Condominium Rating Tenant Forms HO Use the premiums shown on the HO Tenants Basic Premium Chart for the selected Coverage C amount of insurance. Condominium Unit-Owners Forms HO 00 06, Coverage C Rates Use the premiums shown on the HO Tenants Basic Premium Chart for the selected Coverage C amount of insurance and multiply that premium by a factor of.80. Coverage A Rates The policy includes $1,000 of Coverage A. Higher limits may be provided at a rate of $1.20 per $1,000 of increase. 25

26 HO TENANTS BASIC PREMIUM CHART CONTENTS PC 1-6 PC 7-8 PC 8B, CONTENTS PC 1-6 PC 7-8 PC 8B, 9 & 10 9 & 10 $6,000 $100 $110 $130 31,000 $181 $198 $262 7, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Each 28, additional $4.00 $5.00 $ , $1,000 30,

27 HOMEOWNERS BASIC PREMIUM CHART - MASONRY RATES DWELLING PC 1-6 PC 7-8 PC 8B, 9 & 10 DWELLING PC 1-6 PC 7-8 PC 8B, 9 & 10 $1,000 $106 $133 $ ,000 $414 $518 $786 5, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Each Add l $2.54 $3.06 $ , $1, , $251,000 to 120, $500, , Each Add l $2.25 $2.89 NA 130, $1, , $501,000 to $1,000, , , ,

28 HOMEOWNERS BASIC PREMIUM CHART - FRAME RATES DWELLING PC 1-6 PC 7-8 PC 8B, 9 & 10 DWELLING PC 1-6 PC 7-8 PC 8B, 9 & 10 $1,000 $126 $156 $ ,000 $488 $609 $1157 5, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Each Add l $2.79 $3.37 $ , $1, , , , $251,000 to $500, , ,000 Each Add l $2.64 $3.18 N/A 140, ,039 $1, , ,079 $501,000 to 150, ,119 $1,000,000 28