HOMEOWNERS PROGRAM RULES/UNDERWRITING GUIDELINES

Transcription

1 HOMEOWNERS PROGRAM RULES/UNDERWRITING GUIDELINES Page Standard Amounts of Coverage HO - 1 Perils Insured Against HO - 1 Eligible List HO - 2 Consideration List - Submit Non-Bound HO - 2 Prohibited List - Do Not Submit HO - 2 Description of Coverage HO - 3 Special Limits of Liability HO - 3 Coverage E Additional Coverages HO - 4 Personal Liability HO - 5 Farmette HO - 5 Optional Coverages Section I Property HO 6 & 7 Optional Coverages Section II Liability HO - 7 DESCRIPTION OF RULES & RATES OF HOMEOWNERS PROGRAMS Homeowner Miscellaneous Rates HO - 7RA Homeowner Rate Formulas HO - 7RB Class A 75 Homeowner Rules HO - 8 Class A 75 Homeowner Rates HO - 8R Class A 50 Homeowner Rules HO - 9 Class A 50 Homeowner Rates HO - 9R Class B 50 Homeowner Rules HO - 10 Class B 50 Homeowner Rates HO - 10R Class C 50 Homeowner Rules HO - 11 Class C 50 Homeowner Rates HO - 11R Homeowner Contents Rules HO - 12 Homeowner Contents Rates HO - 12R FMIC 5/2015 HO - 0

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3 HOMEOWNERS DESCRIPTION HOMEOWNERS POLICY STANDARD AMOUNTS OF COVERAGE SECTION 1 Coverage Homeowners Tenant (HO-4) A - Dwelling Amount of Insurance NA B - Other Structures 10% of Coverage A NA C - Personal Property 75% of Coverage A Amount of Ins. on Class A-75 50% of Coverage A on Class A-50, B & C D - Loss of Use 20% of Coverage A 20% of Cov. C (HO4) L - Personal Liability M - Medical Payments Various Limits Available Various Limits Available PERILS INSURED AGAINST Group 1 - Basic Perils. Fire or Lightning. Removal. Windstorm or Hail. Explosion. Riot and Civil Commotion. Aircraft. Vehicles. Vandalism & Malicious Mischief. Smoke Group 2 - Broad Forms Perils. Theft. Sudden and Accidental Tearing Apart of Heating Systems. Freezing of a Plumbing, Heating or Air Conditioning System. Falling Objects. Weight of Ice, Snow or Sleet. Collapse. Breakage of Glass. Sudden and Accidental Damage from Artificially Generated Electrical Current. Accidental Discharge or Overflow of Water or Steam Group 3 - Other Perils Other Perils covers property described in Coverage A and B against other risks of physical loss, with certain exceptions. FMIC 5/2015 HO - 1

4 HOMEOWNERS UNDERWRITING GUIDELINES ELIGIBLE LIST The Insured may be:. Owner/Occupant of a one to three family dwelling. Tenant of an apartment, dwelling, condominium. CONSIDERATION LIST - Submit Non-Bound The following risk may not be bound by the Agent. Submit to the Company for Underwriting approval:. Premises with questionable unsafe characteristics.. Premises with visible trash and debris that can be removed or cleaned.. Vacant dwellings with future occupancy contemplated.. Unfenced or inadequately fenced swimming pools.. Open pits or stone quarries on the insured location.. Three losses in five years.. Homes being remodeled or with unrepaired damage.. Homes without continuous masonry foundation.. Home Day Care Operations with four or more children.. More than four rental units for any one Insured. PROHIBITED LIST - Do Not Submit The following risks are PROHIBITED:. Commercial risks.. Insureds with known vicious animals.. Rental dwellings containing more than three family units.. Homes heated primarily with woodburning appliances.. Homes without interior plumbing.. Breeding, raising and selling of dogs on the premises.. Insureds with known claim frequency (more than three losses in five years).. Homes with more than two mortgagees.. Homes with more than two roomers or boarders.. Horse stables and training operations.. Insured that has a bankruptcy or under bankruptcy proceedings.. Log Homes.. Insured that has been convicted of a felony. See liability section of manual for the list of those not eligible for Personal Injury coverage. FMIC 5/2015 HO - 2

5 Coverage A - Dwellings STANDARD COVERAGE DESCRIPTIONS - SECTION I Covers Dwelling on insured location, including attached structures. Coverage B - Other Structures Provides coverage for other structures on the residence premises set apart from the dwelling by a clear space. This does not include structures used for business, farming, or rented to others. Coverage C - Personal Property Covers personal property owned or used by an Insured. The limit of liability for personal property usually located at an insured s residence, other than the residence location is 10% of the limit of liability for Coverage C, or $1,000 whichever is greater. Students occupying an apartment, rooming house or dormitory room are considered to be temporarily away from the insured location. Coverage for personal property is limited to 10% of the Personal Property coverage of the parent's policy. (This applies if the student is still a member of the parents' household. Some restrictions apply to theft.) Special Limits of Liability $200 Money, Bank Notes, Bullion, Gold, Silver, etc. $1,000 Securities, Accounts, Deeds, Passport, Stamps, etc. $1,000 Watercraft including their trailers, furnishings, equipment and outboard motors. $1,000 On Trailers not used with watercraft. $1,000 On Gravemarkers $1,000 For loss by theft of Jewelry, Watches, Precious & Semi-Precious Stones, Furs, etc $2,000 For loss by theft of Firearms. $2,500 For loss by theft of Silverware, Silver & Gold Plated Ware, etc. $2,500 On Business Property on Insured location. $250 On Business Property off Insured location. $500 Recreational Motor Vehicles. $500 Dismounted Camper Bodies. $200 Detached Tires. $1000 On devices/accessories used to transmit sound or picture which could be connected to a motor vehicle, etc., while in or on the vehicle etc. Coverage D Additional Living Expense Covers reasonable increase in living expense necessary to maintain the Insured's normal standard of living while the Insured lives elsewhere following a covered loss, until the residence location is repaired or replaced, or the Insured permanently relocates. FMIC 5/2015 HO - 3

6 Coverage E - Additional Coverages STANDARD COVERAGE DESCRIPTIONS - SECTION I Refer to the policy for specific coverage availability. a. Trees, Shrubs, Plants and Lawns Covers up to 5% of Coverage A - Dwelling not to exceed $1,500 for damaged trees, shrubs, plants or lawns, caused by specific perils as outlined in the policy. Up to $300 will be paid on any one item. Items grown for business or farming purposes are excluded. Coverage is limited to 250 feet of the Insured dwelling. b. Debris Removal Provides an additional 5% of the Limit of Liability (up to $5000) per occurrence for debris removal. We also pay a reasonable expense not to exceed $ for the removal of trees from the residence location felled by wind. See policy for restrictions and limitations on certain items. c. Credit Card, Forgery, etc. (Applicable only if we provide coverage under Coverage C, Personal Property). Covers up to $1,000 per occurrence for the legal obligation of an Insured to pay because of theft or unauthorized use of any credit card or fund transfer card issued to an Insured. No deductible applies. d. Fire Department Service Covers up to $500 per occurrence for Insured's liability under a contract or agreement when a Fire Department is called to protect the insured property from perils insured against. No deductible applies. e. Refrigerated Products Covers up to $500 for loss or damage to insured contents (Coverage C) of a freezer or refrigerated unit on the insured location. The loss or damage caused by change in temperature must result from: Interruption of electrical service by utility company, mechanical or electrical breakdown of the refrigeration system or accidental interruption of electrical service. No deductible applies. f. Reasonable Repairs Covers necessary repairs made solely to protect covered property from further damage following an insured loss. FMIC 5/2015 HO - 4

7 PERSONAL LIABILITY STANDARD COVERAGE DESCRIPTIONS - SECTION II Liability coverage is provided by Rockford Mutual Insurance Co. Personal Liability Basic Coverage includes:. Bodily Injury & Property Damage. Medical Payments. Damage to Property of Others Various limits are available for Comprehensive Personal Liability and Medical Payment, see the liability section of the manual. FARMETTE ENDORSEMENT FARMETTE With the popularity of the homeowner purchasing small acreages in the country including parcels of land with farm buildings, it is important that you, as Agent, have the opportunity to remain competitive and yet maintain the proper Company underwriting approach. Many rural homeowners are raising livestock for their own consumption, planting large vegetable gardens, and own a few pieces of farm equipment which are not used in a farming operation. The ownership of horses is also popular. As a result of the above, it is important that you, as Agent, be aware of the following underwriting practice that will be fair to both the Insured and Company. Dwellings that are not used in connection with a farming operation may qualify for a Home Protector Policy. Any outbuilding originally constructed for farming purposes must be insured as a farm outbuilding using applicable rates from the farm section of the Agent's Manual. These buildings are not to be insured under the Auxiliary Private Structure coverage. Since maintenance and utility value of these outbuildings tend to be limited or very low, caution should be given to either declining coverage or accepting only at a Class C or D rate. Blanket Farm Personal Property is not acceptable. Use Scheduled Farm Personal Property classification for any livestock or equipment. Farmette liability is to be added when there is minimal farm exposure. If insured is involved in a farming operation, coverage must be on a farm policy. See liability section of manual or contact Forreston Mutual's home office for clarification.. FMIC 5/2015 HO - 5

8 OPTIONAL COVERAGES: SECTION I - PROPERTY COVERAGE B - AUXILIARY PRIVATE STRUCTURES Auxiliary Private Structures coverage is intended for structures which serve the dwelling, including garages, utility buildings, dog houses, etc. Any building which was originally constructed for farming purposes should not be an A.P.S. Those type buildings should be insured as farm outbuildings using applicable rates from the farm section of the Agent's Manual.. For increased A.P.S. limits - rate the amount of increased insurance per $100. COVERAGE C - PERSONAL PROPERTY Increased limit:. When the limit of liability for Coverage C is increased, the additional premium per $100 shall be used. Reduction in Limit: Not allowed. Replacement Cost - Loss Settlement 4. Personal property may be extended to include replacement cost coverage. The rate is 10% of the base premium (after discounts). Antiques, fine arts, statuary and other similar articles are not eligible for the coverage. COVERAGE D - ADDITIONAL LIVING EXPENSE Increased Limit: The amount of insurance for A.L.E. may be increased. Use the rate per $100. REFRIGERATED PRODUCTS The Home Protector and Tenant programs automatically provide $500 coverage for Refrigerated Products. An additional amount may be purchased using the Refrigerated Products rate. SUMP PUMP FAILURE OR WATER BACKUP OF SEWERS OR DRAINS (FMIC ) Sump Pump failure or water backup of sewers or drains provides coverage for direct loss to the property described caused by water which backs up through sewers or drains, or water which enters into and overflows from within a sump pump or sump pump well. This coverage does not apply: a. If the loss is caused by the negligence of any Insured. b. If the loss occurs or is in progress: (1) Five days after the effective date of this coverage, if added at the inception date or renewal date of this policy. Coverage is available in increments of $1000. A flat $250 deductible per occurrence will apply. This coverage is not available for dwellings that have had problems with this type of damage in the past unless action has been taken to eliminate the problem. FMIC 5/2015 HO - 6

9 IDENTITY FRAUD EXPENSE (FMIC-010) This optional endorsement can be purchased to provide $5, coverage for an insured s expense arising out of an occurrence of identity fraud. EQUIPMENT BREAKDOWN COVERAGE (FMIC-011) This optional endorsement can be purchased to add coverage for physical damage to specified types of covered property that occurs as a result of an equipment breakdown accident. MINE SUBSIDENCE & EARTHQUAKE Refer to the sections in this manual for rates and underwriting guidelines. OPTIONAL COVERAGES SECTION II - LIABILITY The following optional coverages are offered by Rockford Mutual and can be attached to Forreston Mutual policies. See the "Farm and Personal Liability" section of the Manual for underwriting rules and rates. a. ADDITIONAL INSURED (RMIC , RMIC , & RMIC ) b. ADDITIONAL RESIDENCE OCCUPIED BY INSURED c. RENTAL DWELLINGS (RMIC & DL 24 11) d. DWELLING PREMISES OLT (RMIC & DL 24 11) e. PERSONAL INJURY (RMIC ) f. INCIDENTAL BUSINESS PURSUITS (99-420) g. HOME DAY CARE, ONE TO THREE CHILDREN (RMIC ) h. WATERBED LEAKAGE LEGAL LIABILITY (RMIC ) i. FARMETTE LIABILITY (RMIC ) j. FARMS RENTED TO OTHERS (RMIC ) k. RECREATIONAL UNITS (RMIC Watercraft Owners Endorsement) (RMIC Recreational Vehicles Owners Endorsement) FMIC 5/2015 HO - 7

10 Forreston Mutual Insurance Co. Homeowner Miscellaneous Rates Effective 5/2015 Policy Fee $40 Minimum Premium Per Policy $50 Personal Property Replacement Cost Unscheduled Personal Property - Additional Auxiliary Private Structures - Additional (Not Farm) Additional Living Expense Fire Department Service Charge - Additional Refrigerated Products - Additional Sump Pump Failure/Backup of Sewers or Drains 10% of the base premium (after discounts) 13 per $100 of insurance 40 per $100 of insurance 30 per $100 of insurance $1.00 per $100 of insurance $1.00 per $100 of insurance $20.00 per $1000 coverage with flat $250 deductible. Identity Fraud Expense $5, Coverage $12.00 Flat Premium Builders Risk Earthquake Mine Subsidence See Earthquake section of this manual 70% of Class B Rental Rate See Mine Subsidence section of this manual Boat Docks Class C Outbuilding Rate A replacement cost estimator is to be completed on all dwellings. For rating purposes, a maximum of 50% depreciation will be taken on Class B&C. If insured for less than that amount a $35.00 surcharge will apply. HO-7RA

11 Forreston Mutual Insurance Co. HOMEOWNER RATES Effective 5/2015 Use these town rates to calculate premiums for coverage amounts not shown on the premium pages. THESE ARE BASE RATES FOR $500 DEDUCTIBLE. OTHER DEDUCTIBLES ARE SUBJECT TO DEDUCTIBLE FACTOR SHOWN BELOW. Base Rate Per $100 Coverage Policy Type Coverage Amount Fire Fire Fire Wind Owner Occupied Dwellings FPC 1-5 FPC 6-8 FPC 9-10 Special 100 $100, Class A-75 $ 70, Class A -50 Repair $ 60, Class B - 50 $ 40,000 To 49, $ 50,000 To 69, $ 70, Class C - 50 $ 20, Contents (Tenant HO) $ 10, Deductible Factors Ded. Factor Calculate the premium for $500 $ POLICY FEE $40.00 deductible using the rates above, then $ multiply by the appropriate factor to $ calculate the premium for other $ deductibles. $ 1, $ 2, $ 3, $ 5, Territory Factors Terr. Factor See Page 13 in the General Section for a list of Territories by County HO-7RB

12 DESCRIPTION OF HOMEOWNER PROGRAMS/ELGIBILITY CLASS A-75 HOMEOWNER Perils Available Loss Settlement Types Available Basic Perils Actual Cash Value Broad Form Perils 80% Replacement Cost Other Perils Standard Amounts Min. Amount of Ins. Max. Binding Authority of Coverage $70,000 $300,000 HHG - 75% of Cov. A APS - 10% of Cov. A ALE - 20% of Cov. A Replacement on HHG is included at no additional charge. Eligibility Requirements: Dwelling construction year 1975 or newer. a. Dwelling and detached structures of superior character and excellent repair. Premises clean; free from weeds and trash. Continuous masonry or concrete foundation under all exterior walls, (porches excepted). b. Residence must have an approved roof, central furnace, wiring and plumbing all 35 years of age or less, or updated within the last 35 years. Must meet local building codes and building contractor inspection. Wood burning appliance must be UL approved. c. Owner-occupied, one or two family permanent residence. d. When insured for replacement cost the dwelling must be insured for 80% of the replacement value. When insured for actual cash value (ACV) the dwelling must be insured for a minimum of the ACV which can not be less than 60% of the replacement cost. Inflation factor will apply. Other Perils not available on ACV policy. e. 100-amp electrical service, updated within the last 35 years. f. Complete interior plumbing, being a permanent pipe system supplied by water from a continuous reliable source. g. Smoke detector on each floor including basement. h. Cost estimator and photographs (front & rear) submitted with application. i. Modular homes not permitted. j. Readily accessible to a fire truck. FMIC 5/2015 HO - 8

13 Forreston Mutual Insurance Co. Town A-75 Homeowner Effective 5/2015 Fire + Wind Premium $1000 Deductible $2000 Deductible $3000 Deductible Amount of FPC FPC FPC FPC FPC FPC FPC FPC FPC Coverage HO-8R

14 DESCRIPTION OF HOMEOWNER PROGRAMS/ELIGIBILITY CLASS A-50 REPAIR HOMEOWNER Perils Available Basic Perils Broad Form Perils Loss Settlement Types Available Loss Settlement Clause 3 Special Repair/Replacement Cost With Commonly Used Building Material Standard Amounts Min. Amount of Ins. Max. Binding Authority of Coverage $60,000 $300,000 HHG - 50% of Cov. A APS - 10% of Cov. A ALE - 20% of Cov. A Replacement on HHG is included at no additional charge. Eligibility Requirements: a. Dwelling of good construction and in good repair. Premises clean; free from weeds and trash. Continuous masonry or concrete foundation under all exterior walls, (porches excepted). b. Residence must have an approved roof, furnace, wiring and plumbing all 35 years of age or less, or updated within the last 35 years. Must meet local building codes and building contractor inspection. Wood burning appliance must be UL approved. c. Owner-occupied, one to three family permanent residence. d. Insured for at least 50% of replacement cost. Inflation factor will apply. e. 100-amp electrical service, updated within the last 35 years. f. Complete interior plumbing, being a permanent pipe system supplied by water from a continuous reliable source. g. Smoke detector on each floor including basement. h. Cost estimator and photographs (front & rear) submitted with application. i. Readily accessible to a fire truck. FMIC 5/2015 HO - 9

15 Forreston Mutual Insurance Co. Town A-50 Repair Homeowner Effective 5/2015 Fire + Wind Premium $1000 Deductible $2000 Deductible $3000 Deductible Amount of FPC FPC FPC FPC FPC FPC FPC FPC FPC Coverage HO-9R

16 DESCRIPTION OF HOMEOWNER PROGRAMS/ELIGIBILITY CLASS B-50 HOMEOWNER Perils Available Loss Settlement Types Available Basic Perils Actual Cash Value Broad Form Perils 80% Replacement Cost Other Perils (45,000. Min. Cov.) Standard Amounts Min. Amount of Ins. Max. Binding Authority of Coverage $40,000 $300,000. HHG - 50% of Cov. A APS - 10% of Cov. A ALE - 20% of Cov. A Personal Property Replacement Cost charge is 10% of Base Rate. Eligibility Requirements: a. Dwelling of good construction and in good repair. Premises clean; free from weeds and trash. Continuous masonry or concrete foundation under all exterior walls, (porches excepted). b. Residence must have an approved roof, central furnace, wiring and plumbing. Must meet local building codes and building contractor inspection. Wood burning appliance must be UL approved. c. Owner-occupied, one to three family permanent residence. d. When insured for replacement cost the dwelling must be insured for 80% of the replacement value. When insured for actual cash value (ACV) the dwelling must be insured for a minimum of the ACV, which if less than 50% of the replacement cost a $35.00 surcharge will apply. Inflation factor will apply. Other Perils not available on ACV policy. e. 100-amp electrical service updated within the last 40 years. f. Complete interior plumbing, being a permanent pipe system supplied by water from a continuous reliable source. g. Smoke detector on each floor including basement. h. Cost estimator and photographs (front & rear) submitted with application. i. Readily accessible to a fire truck. FMIC 5/2015 HO - 10

17 Forreston Mutual Insurance Co. Town B-50 Homeowner Effective 5/2015 Fire + Wind Premium $1000 Deductible $2000 Deductible $3000 Deductible Amount of FPC FPC FPC FPC FPC FPC FPC FPC FPC Coverage HO-10R

18 DESCRIPTION OF HOMEOWNER PROGRAMS/ELIGIBILITY CLASS C-50 HOMEOWNER Perils Available Loss Settlement Types Available Basic Perils Actual Cash Value Broad Form Perils Standard Amounts Min. Amount of Ins Max. Binding Authority of Coverage $20,000. $300,000. HHG - 50% of Cov. A APS - 10% of Cov. A ALE - 20% of Cov. A Personal Property Replacement Cost charge is 10% of Base Rate. Eligibility Requirements: a. Dwelling fully utilized and in a good state of repair. Premises clean; free from weeds and trash. Continuous masonry or concrete foundation under all exterior walls, (porches excepted). b. Residence must have an approved roof, heating system, electrical wiring of at least 60 amp service and plumbing. Wood burning appliances must be UL approved. c. Owner-occupied, one to three family permanent residence. d. Insured for at least minimum of actual cash value. If insured for less than 50% of replacement cost, a surcharge of $35.00 will apply. Inflation factor will apply. e. Complete interior plumbing, being a permanent pipe system supplied by water from a continuous reliable source. f. Smoke detector on each floor including basement. g. Cost estimator and photographs (front & rear) submitted with application. h. Readily accessible to a fire truck. FMIC 5/2015 HO - 11

19 Forreston Mutual Insurance Co. Town C-50 Homeowner Effective 5/2015 Fire + Wind Premium $1000 Deductible $2000 Deductible $3000 Deductible Amount of FPC FPC FPC FPC FPC FPC FPC FPC FPC Coverage HO-11R

20 DESCRIPTION OF HOMEOWNER PROGRAMS/ELIGIBILITY TENANT PROTECTOR POLICY Standard Amounts Perils Available Loss Settlement Types Available of Coverage Basic Perils Actual Cash Value ALE - 20% of Cov. C Broad Form Perils Replacement Cost Contents Minimum Amounts of Insurance/Binding Authority: Minimum Maximum Policy Type Amount of Ins. Binding Tenant Homeowner $10,000 $75,000 Personal Property Replacement Cost charge is 10% of Base Rate. Eligibility Requirements: a. The Standard Tenant Homeowners policy provides coverage for tenants of apartments and rental dwellings. b. Under $10,000 coverage is available for landlords insuring contents in a rental dwelling. FMIC 5/2015 HO - 12

21 Forreston Mutual Insurance Co. Homeowner Contents (Tenant HO) Effective 5/2015 Fire + Wind Premium $500 Deductible $1000 Deductible $2000 Deductible $3000 Deductible Amount of FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC FPC Coverage HO-12R