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 00 08 Use Form HO 04 30... 9 Required Coverages... 10 Section II Liability - All Forms... 10 Eligibility... 10 Additional Interests or Additional Insureds - Use Form HO 04 41... 10 Condominium Unit-Owners Policy Form HO 00 06... 10 Farms... 10 Mobile Homes, Trailer Homes or House Trailers... 11 Owners Policy Forms HO 00 03, HO 00 08 or HO 00 03 with HO 00 15... 11 Permitted Incidental Business Occupancies... 11 Secondary Residence Premises... 11 Tenants Policy - Form HO 00 04... 11 Inspections...11 Insurance to Value... 11 Replacement Cost Estimator... 11 Minimum Premium... 11 Policy Term...11 Premium or Form Revision... 12 Protection Class/Community Mitigation Classification Information... 12 Restriction of Individual Policies... 12 Animal Liability Exclusion Use Form DOG-00... 12 Roof Exclusion- Use Form ROOF-00... 12 Exclusion for Outbuildings- Homeowners- Use Form OUTBLDG-00... 12 CREDITS, DEDUCTIBLES & CHARGES... 13 Age of Dwelling Factors -... 13 Alarm and Protective Device Credits Use Form HO 04 16... 13 Territory Location Multipliers Form HO 03 only... 14 Course of Construction Use Form PDE-8007... 14 Deductible Options... 14 Tier Charges or Credits Including No Mortgage Balance Discount... 14 Mature Homeowners Credit... 15 Non-Smoker Discount... 15 Civil Service Employee Discount:... 15 Swimming Pool Surcharge... 15 Policy Fee... 15 Prior Claim Surcharge... 15 1
Secondary Residence Premises Surcharge... 16 Trampoline Surcharge... 16 Wood Burning Stove or Fireplace Inserts Surcharge... 16 Renovation Credit... 16 MANDATORY FORMS... 17 Additional Liability Exclusions Use Form PRE- 1214... 17 Exclusion Claims Arising Out of Lead Use Form GLE-8023... 17 Limited Fungi, Wet or Dry Rot or Bacteria Coverage-Use Forms HO 04 31, 32 or 33... 17 No Coverage for Home Day Care Use Form HO 04 96... 17 Policy Signatures Form Use Form IL 7021... 17 Pollution Exclusion Including Damages from a Hostile Fire - Use Form PRE-1215... 17 Special Provisions Use Form HO 01 43... 17 Trampoline Exclusion Use Form UT HO 23... 17 Utah Homeowners Amendatory Use Form PRE-1216... 17 ADDITIONAL COVERAGES... 18 Condominium Units Regularly Rented to Others Use Form HO 17 33... 18 Coverage C Decreased Limit... 18 Coverage C Increased Limit... 18 Coverage D Loss of Use... 18 Earthquake Coverage - Use Form HO 04 54... 18 Increased Special Limits Use Form HO 04 65... 19 Inflation Guard Use Form HO 04 46... 19 Loss Assessment Coverage Use Form HO 04 35... 19 Other Structures Increased Limits Use Form HO 04 48... 19 Personal Property Replacement Cost Use Form HO 04 90... 20 Refrigerated Personal Property Use Form HO 04 98... 20 Residence Rental Theft Use Form HO 04 80... 20 Scheduled Personal Property Use Form HO 04 61... 21 Special Computer Coverage Use Form HO 04 14... 21 Special Personal Property Use Form HO 00 15... 21 Specified Additional Amount of Insurance for Coverage A Use Form HO 04 20... 21 Water Back Up and Sump Overflow Use Form HO 04 95... 21 LIABILITY COVERAGES... 22 Residence Premises Liability Increased Limits 1 or 2 Family Residence... 22 Residence Premises Three or Four Family Dwelling Use Form HO 04 44... 22 Additional Residence Occupied by Insured Extend Liability - no form necessary... 22 Additional Residence Rented to Others Use Form HO 24 70... 22 Business Pursuits Use Form HO 24 71... 23 Permitted Incidental Occupancies - Residence Premises Use Form HO 04 42... 23 Personal Injury Use Form HO 24 82... 23 Snowmobile Liability Use Form HO 24 64... 23 Structures Rented to Others Residence Premises Use Form HO 04 40... 24 Watercraft Liability Use Form HO 25 12... 24 RATES AND RATING RULES... 25 Homeowners Form Rating... 25 Tenant and Condominium Rating... 25 Tenant Forms HO 00 04... 25 Condominium Unit-Owners Forms HO 00 06,... 25 HO 00 04 TENANTS BASIC PREMIUM CHART... 26 HOMEOWNERS BASIC PREMIUM CHART - MASONRY RATES... 27 HOMEOWNERS BASIC PREMIUM CHART - FRAME RATES... 28 2
FORMS LIST Forms Date Title # HO 00 02 0491 Broad Form HO 00 03 0491 Special Form HO 00 04 0491 Tenant Form HO 00 06 0491 Condo Form HO 00 08 0491 Modified Coverage Form HO 00 15 0491 Special Personal Property Coverage HO 01 43 0401 Special Provisions - Utah HO 04 14 0491 Special Computer Coverage HO 04 16 0491 Premises Alarm or Fire Protection System HO 04 20 0694 Specified Additional Amount of Insurance HO 04 30 0491 Theft Coverage Increase Form HO 00 08 HO 04 31 0402 Limited Fungi, Wet or Dry Rot, etc.- Forms except HO 00 03 HO 04 32 0502 Limited Fungi, Wet or Dry Rot, etc.- Form HO 00 03 HO 04 33 0502 Limited Fungi, Wet or Dry Rot, etc.- Form HO 00 03 with HO 00 15 HO 04 35 0491 Loss Assessment Coverage HO 04 36 0491 Loss Assessment for Earthquake HO 04 40 0491 Structures Rented To Others - Residence Premises HO 04 41 0491 Additional Insureds HO 04 42 0491 Permitted Incidental Occupancies- Residence Premises HO 04 44 0491 Three or Four Family Dwelling HO 04 46 0491 Inflation Guard HO 04 48 0491 Other Structures - Increased Limits HO 04 50 0491 Increased Personal Property in Other Residence HO 04 53 0491 Credit Card, Fund Transfer, Etc. HO 04 54 0694 Earthquake HO 04 56 0491 Special Loss Settlement HO 04 61 0491 Scheduled Personal Property HO 04 65 0491 Coverage C - Increased Special Limits HO 04 80 0491 Residence Rental Theft HO 04 81 0596 Actual Cash Value Loss Settlement HO 04 90 0491 Personal Property Replacement Cost HO 04 95 1192 Water Back Up and Sump Overflow HO 04 96 0491 Home Day Care Coverage Limitation HO 04 98 0491 Refrigerated Property Coverage HO 17 31 0491 Unit-Owners Coverage C Special Coverage HO 17 33 0491 Unit-Owners Rental to Others HO 24 43 0491 Permitted Incidental Occupancies Other Residence HO 24 64 0491 Snowmobile Liability HO 24 70 0491 Additional Residence Rented to Others HO 24 71 0491 Business Pursuits HO 25 12 1198 Watercraft Liability - Utah HO 24 82 0491 Personal Injury # Not available for new business Note: We are not actively writing the coverages included in the forms list in all programs 3
FORMS LIST Forms Date Title DOG-00 0104 Animal Liability Exclusion IL 7021 0102 Policy Signature Page GLE-8023 0192 Exclusion Claims Arising Out of Lead HOC0019UT 0303 Executive Homeowners Coverage Form OUTBLDG-00 0704 Exclusion for Outbuildings- Homeowners PDE-8007 0200 Dwelling in the Course of Construction PRE-1214 0104 Additional Liability Exclusions PRE-1215 0397 Pollution Exclusion PRE-1216 0207 Utah Homeowners Amendatory UT HO 23 0602 Trampoline Exclusion UU 01 0702 Policy Declarations Page UU 00 12 0702 Property Underwriting Questionnaire 4
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
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 00 03 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 00 08 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 00 03 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 00 06 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 00 04 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
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
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
Coverages and Forms Descriptions and Requirements Forms HO 00 02 - Broad Form No longer available. Rates and Rules applicable to HO 00 08 apply to Form HO 00 02 also except for coverage description. HO 00 03 - Special Form HO 00 03 with HO 00 15 - Special Form with Special Personal Property HO 00 04 - Contents Broad Form HO 00 06 - Unit-Owners Form HO 00 08 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 00 02 HO 00 03 HO 00 04 & HO 00 06 HO 00 08 & HO 04 30 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 00 03 only) ** Replacement cost for contents coverage may be purchased using HO 04 90 Theft Coverage Increase for HO 00 08 Use Form HO 04 30 This form is attached to all HO 00 08 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
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 00 03 or HO 00 08 HO 00 04 or HO 00 06 A Dwelling Minimum Limit Refer to Underwriting Guidelines $1,000 on HO 00 06 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 00 04 40% of C - HO 00 06 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 04 41 Additional Insured Endorsement HO 04 41 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 00 06 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
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 00 08 or HO 00 03 with HO 00 15 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 00 04 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 00 03 and HO 00 08 A minimum premium of $125 is applicable for HO 00 04 and HO 00 06 Policy Term The Homeowners Policy is written for a one-year term. 11
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
CREDITS, DEDUCTIBLES & CHARGES Age of Dwelling Factors - All forms except forms HO 00 04 and HO 00 06 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 - 1981 0 1965-1980 +7% 1945-1964 +15% 1944 or older +30% Alarm and Protective Device Credits Use Form HO 04 16 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
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 00 03 & HO 00 08 HO 00 04 HO 00 06 $250 Base 1.05 Base 500 0.95 Base 0.95 1,000 0.90 0.95 0.90 2,500 0.80 0.90 0.85 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. 1 0.80 846-997 1 0.950 2 0.85 785-845 2 0.935 3 0.89 748-784 3 0.920 4 0.93 722-747 4 0.905 5 0.96 710-721 5 0.890 6 1.00 682-709 6 0.875 7 1.04 667-681 7 0.860 8 1.07 651-666 8 0.860 9 1.11 634-650 9 0.860 10 1.15 600-633 10 0.860 11 1.20 575-599 11 0.860 12 1.25 550-574 12 0.860 noscore 1.12 noscore 0.860 14
Mature Homeowners Credit All Forms Except HO 00 04 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 00 04 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
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
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- 1214 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 04 32 is used with Form HO 00 03 without HO 00 15 attached Form HO 04 33 is used with Form HO 00 03 with HO 00 15 Form HO 04 31 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 04 96 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 01 43 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
ADDITIONAL COVERAGES Condominium Units Regularly Rented to Others Use Form HO 17 33 Form HO 00 06 only When a Condominium Unit is regularly rented to others, write a Form HO 00 06 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 00 04 or HO 00 06 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 00 04 or HO 00 06 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 04 54 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 00 03 or HO 00 08 $1.70 N/A Coverage A Limit HO 00 04 or HO 00 06 1.10 N/A Coverage C Limit HO 00 02, HO 00 03 or Coverage C 1.10 N/A HO 00 08 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
Increased Special Limits Use Form HO 04 65 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 04 46 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 04 35 Form HO 00 06 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 $6.00 10,000 8.00 1.00 Each additional $5,000 (Maximum $50,000) Loss Assessment Coverage for Earthquake Use Form HO 04 36 Not available at this time. Other Structures Increased Limits Use Form HO 04 48 All Forms except HO 00 04 & HO 00 06 An additional limit of liability may be provided for specific structures located on the residence premises. The rate is $2 per $1,000. 19
Personal Property Replacement Cost Use Form HO 04 90 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 00 03 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 00 04 and HO 00 06 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 00 03 13% $25 HO 00 04, HO 00 06 30% $30 Refrigerated Personal Property Use Form HO 04 98 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 04 80 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
Scheduled Personal Property Use Form HO 04 61 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,9 10 1-4 Families 0.40 0.50 0.70 5 or more Families 0.70 0.90 1.30 *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 04 14 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 00 15 Available for Form HO 00 03 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 04 20 Form HO 00 03 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 04 95 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 $35.. 21
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 10 15 25 Medical Payments Limits Covg F $ 500 $1,000 $2,000 $3,000 $4,000 $5,000 Premium Base 5 13 21 29 38 Residence Premises Three or Four Family Dwelling Use Form HO 04 44 Limit of Liability Covg E $100,000 $200,000 $300,000 $500,000 3 Family 13 17 19 22 4 Family 16 18 21 25 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 7 8 9 12 2 Family 7 8 9 12 The above charges apply regardless of the Medical Payments Limit. Additional Residence Rented to Others Use Form HO 24 70 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 30 40 50 60 3 or 4 Family 39 52 65 75 The above charges apply regardless of the Medical Payments Limit. 22
Business Pursuits Use Form HO 24 71 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 7 8 9 11 The above charges apply regardless of the Medical Payments Limit. Permitted Incidental Occupancies - Residence Premises Use Form HO 04 42 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 20 23 26 30 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 24 82 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 11 12 13 15 Snowmobile Liability Use Form HO 24 64 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 25 29 33 38 The above charges apply regardless of the Medical Payments Limit. 23
Structures Rented to Others Residence Premises Use Form HO 04 40 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 30 40 50 60 3 or 4 Family 39 52 65 75 The above charges apply regardless of the Medical Payments Limit. Watercraft Liability Use Form HO 25 12 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 26-49 HP 31 44 54 64 50+ HP 38 49 59 69 Inboard Motors Over 50 HP 62 73 83 93 Inboard/Outboard Motors Over 50 HP 43 54 64 74 Sailboats Over 26 Feet 42 52 62 72 Medical Payments Limits Covg F $ 500 $1,000 $2,000 $3,000 $4,000 $5,000 Outboard Motors 26-49 HP -2 0 4 8 12 16 50+ HP -2 0 5 10 15 20 Inboard Motors Over 50 HP - 3 0 6 12 18 24 Inboard/Outboard Motors Over 50 HP - 2 0 5 10 15 20 Sailboats Over 26 Feet - 3 0 6 12 18 24 24
RATES AND RATING RULES Homeowners Form Rating To determine policy premiums apply the factor shown below to the otherwise applicable premium for Form HO 00 03 (as shown in the Homeowners Basic Premium Charts) Forms Factor HO 00 02 * 0.950 HO 00 03 1.000 HO 00 08 0.950 * Form HO 00 02 - Not available for new business. For Form HO 00 03 with HO 00 15 apply a factor of 1.15 to the Form HO 00 03 premium after the deductible charge or credit is applied. Tenant and Condominium Rating Tenant Forms HO 00 04 Use the premiums shown on the HO 00 04 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 00 04 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
HO 00 04 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 7,000 100 110 135 32,000 184 202 268 8,000 100 110 140 33,000 188 206 274 9,000 100 110 146 34,000 192 210 280 10,000 100 114 151 35,000 195 214 286 11,000 100 118 156 36,000 199 218 292 12,000 110 122 162 37,000 203 222 298 13,000 112 126 167 38,000 206 226 303 14,000 116 130 173 39,000 210 230 309 15,000 120 134 178 40,000 214 235 314 16,000 124 138 184 41,000 218 239 320 17,000 128 142 189 42,000 221 243 325 18,000 132 146 195 43,000 225 247 331 19,000 136 150 200 44,000 229 251 336 20,000 140 154 204 45,000 232 255 342 21,000 144 158 209 46,000 236 259 347 22,000 148 162 214 47,000 240 263 353 23,000 151 166 219 48,000 244 267 358 24,000 155 170 225 49,000 248 271 364 25,000 159 174 230 50,000 252 275 370 26,000 162 178 236 27,000 166 182 241 Each 28,000 170 186 245 additional $4.00 $5.00 $6.00 29,000 173 190 251 $1,000 30,000 177 194 257 26
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 $202 155,000 $414 $518 $786 5,000 111 139 210 160,000 428 535 813 10,000 116 145 221 165,000 439 548 833 15,000 123 154 235 170,000 451 564 856 20,000 128 160 242 175,000 462 578 879 25,000 133 166 252 180,000 474 593 901 30,000 143 179 271 185,000 487 609 926 35,000 150 188 286 190,000 499 624 948 40,000 158 198 300 195,000 512 640 972 45,000 168 211 320 200,000 524 655 995 50,000 174 218 331 205,000 538 672 1023 55,000 184 230 349 210,000 553 692 1051 60,000 193 241 366 215,000 567 709 1077 65,000 204 255 388 220,000 581 727 1105 70,000 216 270 410 225,000 591 739 1123 75,000 228 285 433 230,000 597 746 1134 80,000 235 293 445 235,000 610 763 1159 85,000 242 303 461 240,000 624 780 1186 90,000 250 312 475 245,000 638 797 1211 95,000 256 320 486 250,000 654 817 1242 100,000 264 329 501 105,000 273 341 519 Each Add l $2.54 $3.06 $5.22 110,000 292 365 554 $1,000 115,000 305 382 580 $251,000 to 120,000 318 398 604 $500,000 125,000 332 415 630 Each Add l $2.25 $2.89 NA 130,000 345 432 655 $1,000 135,000 358 447 680 $501,000 to $1,000,000 140,000 371 464 706 145,000 386 483 734 150,000 400 501 761 27
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 $298 155,000 $488 $609 $1157 5,000 130 163 309 160,000 503 629 1195 10,000 138 171 326 165,000 517 646 1226 15,000 145 181 345 170,000 530 663 1260 20,000 150 187 356 175,000 544 680 1292 25,000 156 196 371 180,000 558 698 1326 30,000 168 210 400 185,000 573 717 1362 35,000 178 221 420 190,000 587 734 1395 40,000 186 233 442 195,000 602 753 1431 45,000 198 247 470 200,000 616 770 1464 50,000 206 257 488 205,000 633 791 1505 55,000 217 270 513 210,000 651 814 1547 60,000 228 284 540 215,000 667 834 1585 65,000 240 300 570 220,000 684 856 1625 70,000 254 317 604 225,000 696 870 1652 75,000 269 336 637 230,000 702 878 1668 80,000 276 346 655 235,000 718 898 1706 85,000 286 356 677 240,000 734 918 1744 90,000 294 367 699 245,000 751 938 1782 95,000 301 377 715 250,000 769 961 1828 100,000 310 388 737 105,000 321 401 763 110,000 343 429 815 Each Add l $2.79 $3.37 $5.74 115,000 360 450 853 $1,000 120,000 374 468 888 125,000 390 488 927 130,000 406 507 965 $251,000 to $500,000 135,000 421 527 1,000 Each Add l $2.64 $3.18 N/A 140,000 437 547 1,039 $1,000 145,000 454 568 1,079 $501,000 to 150,000 471 589 1,119 $1,000,000 28