General Rules And California General Rules Index - Dwelling Policy Program - 1989 Edition Page # Rule # Additional Coverage Endorsement (ACE)... 35 525. Additional Living Expense - Coverage E... 25 502. Alarm Credits, Fire (See Protective Devices)... 22 408. Automatic Sprinkler Credits (See Protective Devices)... 22 408. Awnings, Signs and Outdoor Radio and Television Equipment (See Windstorm or Hail).... 33 512. Base Premium Computation... 13 301. Billing Fees... 13 210. Building Items - Unit-Owner (Condo)... 28 505. Changes or Cancellations... 11 202. Condominium Unit - Owners, Building Items... 28 505. Construction Definitions... 10 106. Contingent Liability (See Ordinance or Law)... 15 303. Course of Construction (See Dwellings Under Construction)(COC)... 19 403. Coverage B - Other Structures Blanket Coverage... 24 501.A. Specific Structure Coverage... 24 501.B. Wind or Hail Coverage... 33 512. Rented to Others... 24 501.C. Coverage C - Personal Property - In Buildings Subject to Commercial Class Rates or Specific Rates... 18 402. Coverage D - Fair Rental Value... 25 502. Coverage E - Additional Living Expense... 25 502. Coverage Eligibility... 7 103. Coverage A - Dwelling... 7 103.A. Coverage B - Other Structures... 8 103.C. Coverage C - Personal Property... 8 103.D. Coverage D - Loss of Fair Rental Value... 8 103.E. Coverage E - Additional Living Expense... 8 103.F. Deductibles - (Basic & Optional)... 21 406. Demolition Costs Coverage (See Ordinance or Law)... 15 303. Dwelling Tier Program... 13 300. Dwelling Under Construction (COC) Adjusted Base Premium Factors... 19 403. Earthquake (See separate Earthquake Section in your Personal Lines Manual) Eligibility... 7 103. Fair Rental Value - Coverage D... 25 502. Fire Alarm Credits (See Protective Devices)... 22 408. Fire Department Service Charge... 29 507. Fire Protection System Credits (See Protective Devices)... 22 408. Fire Resistive (See Construction Definition)... 10 106.D. Rating Rule (See Superior Construction)... 18 401. Revised--June, 2008 California Dwelling Page 1 Includes copyrighted material of Insurance Services Office, with permission.
General Rules And California General Rules Index (Cont'd) Page # Rule # Gated Community... 22 408. Incidental Occupancies, Permitted... 17 304. Coverage on Contents... 17 304. Offices, Schools or Studios... 17 304. Merchandise in Storage... 17 304. Small Service Occupancies... 17 304. Increased Cost of Construction (See Ordinance or Law)... 15 303. Inflation Guard Coverage (See Value-Up Program)... 21 407. Installment Payment Plan (See Separate Billing Manual Section in Your Unigard Personal Lines Manual) Interpolation... 14 301. Key Premium/Key Factor Display (See Base Premium Computation)... 13 301. Liability Coverages (See Personal Liability Section)... 77 (See Premises Liability Section)... 91 Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Dwelling Fire... 34 524. Personal Liability... 83 305. Loss Assessment Property Coverage... 29 506. Manual Premium Revision... 11 203. Masonry Non-Combustible Construction (See Construction Definitions)... 10 106.D Rating Factors (See Superior Construction)... 18 401. Merchandise in Storage (See Permitted Incidental Occupancies)... 17 304. Minimum Limits of Liability... 5 101. Minimum Premium... 12 206. Miscellaneous Rates... 23 500. Multiple Locations... 11 204. Multiple Policies (Same Property written in two or more Dwelling Policies in one or more companies)... 12 205. Multiple Policy Credit... 20 404. Non-Combustible Construction (See Construction Definitions)... 10 106.D. Rating Factors - (See Superior Construction)... 18 401. Revised--May, 2004 California Dwelling Page 2 Includes copyrighted material of Insurance Services Office, with permission.
General Rules And California General Rules Index (Cont'd) Page # Rule # Ordinance or Law... 15 303. Ordinance or Law - Coverage B Specific Structures and Alterations and Additions... 27 503. Other Structures - Coverage B (Refer to "Coverage B" in this index)... 24 501. Outdoor Radio and Television Equipment, Awnings and Signs (See Windstorm or Hail)... 33 512. Perils Insured Against... 7 102. Permitted Incidental Occupancies... 17 304. Personal Property - Coverage C In Buildings Subject to Commercial Class Rates or Specific Rates... 18 402. Plants, Shrubs and Trees... 29 508. Policy Forms... 5 101.A. Policy Period... 11 201. Premium Payment Plans (See the Billing Section of Your Unigard Personal Lines Manual) Premium Waiver... 12 208. Private Residence Employees - Workers' Compensation... 81 102.J. Protection Classification Codes and Information... 9 104. Protective Devices Credits... 22 408. Rental Value - Coverage D... 25 502. Roof Surfacing Credit Credit for Clay Tile or Slate, Concrete Tile or Metal Roofs... 23 409.A. Actual Cash Value Loss Settlement - Losses to Roofs... 23 409.B. Row House or Townhouse... 20 405. Seasonal Occupancy... 10 105. Semi-Wind Resistive (See Superior Construction)... 18 401. Shrubs, Trees and Plants... 29 508. Signs, Outdoor Radio and Television Equipment, and Awnings (See Windstorm or Hail)... 33 512. Single Building Definition... 10 107. Sinkhole Collapse... 32 511. Smoke Detector Credits (See Protective Devices)... 22 408. Special Fire Protection Class Rating Plan... 9 104. Sprinkler Credits (See Protective Devices)... 22 408. Superior Construction (See Construction Definitions)... 10 106.D. Rating Factors (See Superior Construction)... 18 401. Revised--May, 2004 California Dwelling Page 3 Includes copyrighted material of Insurance Services Office, with permission.
General Rules And California General Rules Index (Cont'd) Page # Rule # itory Definitions... 37 526. Theft... 31 510. Theft of Building Materials - Course of Construction... 19 403.C. Townhouse or Row House... 20 405. Transfer or Assignment... 12 207. Trees, Plants or Shrubs... 29 508. Unit-Owner (Condo) Building Items... 28 505. Vacant Dwellings (See V.&M.M.)... 15 302. Value-Up Program... 21 407. Vandalism & Malicious Mischief... 15 302. Waiver of Premium... 12 208. Water and Sewer Back-Up... 33 513. Whole Dollar Premium Rule... 12 209. Wind Resistive (See Superior Construction)... 18 401. Windstorm or Hail... 33 512. Workers' Compensation - Private Residence Employees... 81 102.J.... 38 Revised--May, 2004 California Dwelling Page 4 Includes copyrighted material of Insurance Services Office, with permission.
General Rules And Dwelling Policy Program - 1989 Edition Special Notice Effective concurrently with the introduction of Dwelling '89 in California, all new business will be written on Form DP 00 03 - Special form only. References to Forms DP 00 01 - Basic Form and DP 00 02 - Broad Form are intended to service inforce business currently written under these forms. Rule 101. Forms, Coverages, Minimum Limits Of Liability A. Forms The Dwelling Policy Program makes available the following policy forms: 1. DP 00 01 - Basic Form 2. DP 00 02 - Broad Form 3. DP 00 03 - Special Form B. Coverages 1. Forms DP 00 02 and DP 00 03 provide the following Coverages. These Coverages are written as separate items in the policy or in separate policies: Coverage A - Dwelling Coverage B - Other Structures Coverage C - Personal Property Coverage D - Fair Rental Value Coverage E - Additional Living Expense 2. Form DP 00 01 provides Coverages A through D; Coverage E is available by endorsement. Revised--August, 1996 California Dwelling Page 5
General Rules And Rule 101. Forms, Coverages, Minimum Limits Of Liability (Cont'd) C. Minimum Limits of Liability - DP 00 03 The following coverages are subject to a minimum limit of liability: Coverages Minimum Limit 1. Coverage A - Dwelling $ 75,000 Entire State 2. Coverage C - Personal Property $ 4,000 without Coverage A 3. Secondary Dwellings $ 75,000 - Entire State Revised--April, 2000 California Dwelling Page 6
General Rules And Rule 102. Perils Insured Against The following is a general description of the coverages provided by the individual Dwelling Policy Forms. The policy should be consulted for exact contract conditions. DP 00 01 DP 00 02 DP 00 03 Perils Insured Against Basic Broad Special Form Form Form Fire, Lightning, or Internal Explosion Yes Yes Yes Extended Coverage meaning Windstorm or Hail, Explosion, Riot or Civil Commotion, Aircraft, Vehicles, Smoke, Volcanic Eruption Optional* Yes Yes Vandalism or Malicious Mischief Optional** Yes Yes Damage by Burglars, Falling Objects, Weight of Ice, Snow or Sleet, Accidental Discharge of Water or Steam, Sudden Cracking of a Steam or Hot Water Heating System, Freezing, Sudden Damage from Artificial Electric Currents No Yes Yes Additional Risks with Certain No No Yes Exceptions (Special Coverage) Coverage A and B Only * May only be written with the perils of Fire, Lightning, or Internal Explosion. ** May only be written with Extended Coverage. Rule 103. Eligibility A Dwelling Policy may be issued to provide insurance under: A. Coverage A - on a dwelling building: 1. Used solely for residential purposes except that certain incidental occupancies or up to 5 roomers or boarders are permitted; 2. Containing not more than four apartments; and 3. Which may be in a townhouse or row house structure; or 4. In course of construction. Revised--August, 1996 California Dwelling Page 7
General Rules And Rule 103. Eligibility (Cont.) B. Reserved For Future Use. C. Coverage B: 1. At the same location as the dwelling eligible for insurance under Coverage A; 2. Not used for business purposes except a permitted incidental occupancy or when rented for use as a private garage; 3. At a separate location when used in connection with the insured location but not for business purposes. D. Coverage C in: 1. A dwelling eligible under Coverage A; or 2. A dwelling with rental apartments including furnishings, equipment and appliances in halls or utility rooms; or 3. Any apartment, cooperative or condominium unit used as private living quarters of the insured or rented to others. E. Coverage D for the loss of the fair rental value of: 1. A building eligible for insurance under Coverages A or B; or 2. Private living quarters eligible under Coverage C. F. Coverage E for the additional living expenses incurred to maintain the insured's household. Revised--December, 1997 California Dwelling Page 8
General Rules And Rule 104. Protection Classification Codes And Information The Protection Class listings in the Public Protection Classification Manual apply to risks insured under Dwelling Program Policies. 1. The protection class indicated applies in a municipality or classified area where a single class of fire protection is available throughout (8, 7, 6, etc.). 2. In a classified area where two or more classifications are shown (e.g. 6/9), the classification is determined as follows: Distance To Fire Station Class a. 5 road miles or less with hydrant within 1,000 feet * *Use first protection class shown. b. 5 road miles or less with hydrant beyond 1,000 feet ** **Use second protection class shown. c. Over 5 but not more than 10 road miles 9 d. Over 10 road miles 10 3. All other properties are Class 10. 4. Special Fire Protection Class Rating Plan This Rating Plan is no longer available on new business. Dwelling and Other Structures located in Protection Class 9, or 10 were rated the same as the town of the first responding fire department if requirements a.-e. listed below were met. This is now subject to the restriction that the minimum Protection Class used for rating under this rule shall now be Protection Class 9. Dwellings and Other Structures located on farms are ineligible. Dwellings must be: a. located on a year-round passable road and within 5 miles of a recognized fire department that will respond, and b. located within 1000 feet of an operating public fire hydrant or the responding fire department will transport water by an approved tanker operation to use in fighting a fire at the site, and c. clearly visible from at least four neighboring dwellings, and d. not located in a severe brush or forest area, and e. occupied by not more than two family units. Attach Endorsement 138860, Special Fire Protection Rating Plan Endorsement Revised--February, 1999 California Dwelling Page 9
General Rules And Rule 105. Seasonal Dwelling Definition A seasonal dwelling is a dwelling with continuous unoccupancy of three or more consecutive months during any one year period. Rule 106. Construction Definitions A. Frame - exterior wall of wood or other combustible construction, including wood ironclad, stucco on wood or plaster on combustible supports. Aluminum or plastic siding over frame. B. Masonry Veneer - exterior walls of combustible construction veneered with brick or stone. Rate masonry veneer as masonry. C. Masonry - exterior walls constructed of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile or similar materials and floors and roof of combustible construction. (Disregarding floors resting directly on the ground.) D. Superior Construction 1. Non-Combustible - exterior walls and floors and roof constructed of, and supported by metal, asbestos, gypsum, or other non-combustible materials. 2. Masonry Non-Combustible - exterior walls constructed of masonry materials (as described in C. above) and floors and roof of metal or other non-combustible materials. 3. Fire Resistive - exterior walls and floors and roof constructed of masonry or other fire resistive materials. Note: Mixed (Masonry/Frame) - a combination of both frame and masonry construction shall be classed and coded as frame when the exterior walls of frame construction (including gables) exceed 33 1/3% of the total exterior wall area; otherwise class and code as masonry. Rule 107. Single Building Definition A. All buildings or sections of buildings which are accessible through unprotected openings are considered as a single building. B. Buildings which are separated by space are considered separate buildings. C. Buildings or sections of buildings which are separated by: 1. A 6 inch reinforced concrete or an 8 inch masonry party wall; or 2. A documented minimum two hour noncombustible wall which has been laboratory tested for independent structural integrity under fire conditions. Which pierces or rises to the underside of the roof and which pierces or extends to the innerside of the exterior wall shall be considered separate buildings. Accessibility between buildings with independent walls or through masonry party walls described above shall be protected by at least a Class A Fire Door installed in masonry wall section. Revised--August, 1996 California Dwelling Page 10
General Rules And Rule 201. Policy Period The policy may be written for a period of one year and may be extended for successive policy periods by renewal declarations based upon the forms, premiums and endorsements then in effect for the company. For maintaining common anniversary dates, a policy may be written for a period less than one year on a pro rate basis. Rule 202. Changes Or Cancellations If insurance is increased, cancelled or reduced, the additional or return premium will be computed on a pro rata basis. Rule 203. Manual Premium Revision Manual premium revisions are made in accordance with the following procedures: A. The effective date of the revision as announced. B. The revision applies to any policy or endorsement in the manner outlined in the announcement of the revision. C. Unless otherwise provided at the time of the announcement of the premium revision, the revision will not affect in-force policy forms, endorsements or premiums, until the policy is renewed. Rule 204. Multiple Locations A policy may be issued to provide insurance at three described locations in the same state provided: A. The same form and deductible applies at each location; B. The policy declarations page is completed by showing: 1. The total policy premium for all locations in the premium payments section. 2. The deductible by entry of the deductible amount and adding "at each location". 3. Inserting the form number that applies. Revised--June, 2002 California Dwelling Page 11
General Rules And Rule 205. Multiple Policies Unigard does not divide risks with other companies as some of our coverages are unique. Unigard has complete reinsurance facilities to write large Dwelling Property policies so the use of the Multiple Company Insurance rule is, generally, not necessary. If you have a large Dwelling Property policy, contact Unigard well in advance of the effective date. If the account meets our underwriting criteria, we will write the entire account. There is no need to split the coverage with one of your other carriers. Rule 206. Minimum Premium A. For prepaid policies the minimum annual premium shown below will be charged for each policy. B. The minimum premium will include all chargeable endorsements or coverages for Fire or Fire and Allied Lines if written at inception of the policy. C. The minimum annual premium does not include charges for Personal Liability, Premises Liability, Theft or Earthquake Coverage. D. Minimum Premium is $50. Rule 207. Transfer Or Assignment Subject to the consent of the company, all rules of this manual and any necessary adjustments of premium, a policy may be endorsed to effect: A. Transfer to another location within the same state; or B. Assignment from one insured to another in the event of transfer of title of the dwelling. Rule 208. Waiver Of Premium When a policy is endorsed after the inception date the amount of additional premium that may be waived is $3. Rule 209. Whole Dollar Premium Rule A. Each premium shown on the policy and endorsements are rounded to the nearest whole dollar. A premium of fifty cents ($.50) or more is rounded to the next higher whole dollar. B. In the event of cancellation by the company, the return premium will be carried to the next higher dollar. Revised--June, 2008 California Dwelling Page 12
General Rules And Rule 210. Billing Fees There is no installment fee for the use of the Electronic Funds Transfer billing method. There is no billing fee for insureds who choose to pay their premium in full. Installment Fee: $3 NSF Check Fee: $15 Rule 300. Dwelling Tier Program (Primary and Secondary Locations) Tier 1 - Newer Home Credit Tier 2 Tier 3 The total Dwelling policy premium, excluding premiums from any earthquake, theft, Unit-Owners Building Items, Loss Assessment, Personal Liability and Premises Liability endorsements, is reduced 10% for dwellings built less than 30 years ago when the following conditions are met: 1. The policy provides building or building and contents coverage; and 2. The dwelling building is insured for at full replacement cost. For dwellings constructed 30 or more years ago but less than 51 years ago, use the premiums displayed. For dwellings constructed 51 years ago or more, increase the premiums displayed by 10%. Rule 301. Base Premium Computation To compute the Base Premium, use the Key Premiums and the key factors that are displayed. A. Fire (All Forms), E.C. (DP 00 01), Broad Form (DP 00 02), or Special Form (DP 00 03) Coverage A - Dwelling Coverage C - Personal Property 1. From the Key Premium Table, select the Key Premium for the classifications or coverages that apply to the risk. 2. From the Key Factor Table, determine the Key Factor for the desired limit of liability. If the desired limit of liability is not shown in the table, interpolate as illustrated in paragraph B of this rule. 3. Multiply the Key Premium by the Key Factor and round to the nearest whole dollar to develop the Base Premium ($.50 or more rounded to the next higher whole dollar). 4. Apply the applicable rate of the Dwelling Tier program to the entire premium for Fire and Allied perils. Revised--June, 2008 California Dwelling Page 13
General Rules And Rule 301. Base Premium Computation (Cont'd) B. Interpolation Example When the desired limit of liability is less than the highest limit shown, interpolate the Key Factors using the nearest limit above and below the desired limit. Example: $25,500 desired limit; the nearest limits are $25,000 and $26,000. For $25,000 the Key Factor is 1.082; for $26,000 the Key Factor is 1.098. Figure the difference between the two Key Factors and divide by 10. This provides a factor per $100. 1.098-1.082.016 10 =.0016 Multiply the factor per $100 times five, and add 1.082: the Key Factor for $25,000:.0016 x5.0080 + 1.082 = 1.090 The result, 1.090, is the Key Factor for this example. Refer to the key Premium/Key Factor tables shown. Revised--August, 1996 California Dwelling Page 14
General Rules And Rule 302. Vandalism & Malicious Mischief - DP 00 01 - Rate per $1,000 Develop the Base Premium by multiplying the same limit of liability selection for Extended Coverage by the V&MM following rate: Non Seasonal or Vacant... $.10 Seasonal & Not Vacant....50 Vacant... 9.80 In Course of Construction....14 Rule 303. Ordinance Or Law Coverage The policy may be endorsed to insure Coverages A and B against loss resulting from enforcement of ordinances or laws which regulate construction, repair or demolition of the property. A. Applicability by Form 1. DP 00 01 Coverage is not automatically included in this form but may be added by endorsement. See B. below for rating instructions. 2. DP 00 02 and DP 00 03 A limited amount of coverage is automatically included at each Described Location to pay for the increased costs necessary to comply with the enforcement of an ordinance or law. This amount is equal to 10% of the limit of liability that applies to: a. Coverage A or Unit-Owner Building Items if the insured is an owner of a Described Location; or b. Coverage B if the insured is an owner of a Described Location which is not insured for Coverage A or Unit-Owner Building Items; or This amount may be increased by endorsement. See B. below for rating instructions. B. New or Increased Coverage 1. The policy may be endorsed to add (DP 00 01) or increase (DP 00 02/03) basic Ordinance or Law Coverage to accommodate the increased costs known or estimated by the insured for material and labor to repair or replace the damaged property and to demolish the undamaged portion of damaged property and clear the site of resulting debris according to the ordinance or law. 2. For Form DP 00 01, use Endorsement DP 04 74, Ordinance or Law Form DP 00 01 Only. For Forms DP 00 02 or DP 00 03, use Endorsement DP 04 71, Ordinance or Law - Increased Amount of Coverage. Revised--May, 2004 California Dwelling Page 15
General Rules And Rule 303. Ordinance Or Law Coverage (Cont'd) 3. Premium a. Described Location including Coverage A (1) DP 00 01 (a) Fire and Extended Coverage The premium is computed by multiplying the Base Premium by the appropriate factor shown below: Total Amount Percentage of Coverage A Factors 10%.050 25%.125 50%.225 75%.350 100%.450 (b) Vandalism & Malicious Mischief Multiply the rate per $1,000 used to determine the V.&M.M. Base Premium, by the dollar amount of coverage above. (2) DP 00 02 or DP 00 03 - Fire, Broad or Special Forms The premium is computed by multiplying the Base Premium by the appropriate factor shown below: Percentage of Coverage A Increase In Total Amount Amount Factors 15% 25%.075 40% 50%.175 65% 75%.300 90% 100%.400 (3) Apply Multiple Policy credit, if applicable. No other credits or surcharges apply to Ordinance or Law Coverage. b. Described Location not including Coverage A, but including Coverage B - Specific Structures. Unit-Owner Building Items, and/or Improvements, Alterations and Additions. See Rule 503. for rating instructions. Revised--May, 2004 California Dwelling Page 16
General Rules And Rule 304. Permitted Incidental Occupancies A. One of the incidental occupancies described in B. below is permitted in a premises eligible for coverage under a Dwelling Policy, if: 1. The policy provides insurance under Coverage A, B or C; 2. The incidental occupancy is operated by the insured who is the owner or a resident of the premises; and 3. There are no more than two persons at work in the incidental occupancy. B. Permitted Incidental Occupancies Attach Endorsement DP 04 20 Permitted Incidental Occupancies. 1. Offices, schools or studios meaning offices for business or professional purposes, and private schools or studios for music, dance, photography and other instructional purposes. 2. Small Service Occupancies meaning occupancies primarily for service rather than sales. For example: barber or beauty shop, tailor or dressmaker, telephone exchanges or shoe repair shops using handwork only. 3. Storage of merchandise if the value of the merchandise does not exceed $10,000. C. The amounts of insurance for the contents of the incidental occupancy and merchandise in storage shall be stated as separate contents items in the policy declarations. D. Premium Determine the Coverage C Base Premium under Rule 301, using the single Key Factor for the total amount of insurance for: 1. Household personal property, 2. Contents of the incidental occupancy, and 3. Merchandise in storage. Revised--December, 1997 California Dwelling Page 17
General Rules And Rule 401. Superior Construction A. Refer to the Construction Definition rule in this manual for details. B. For E.C. rating purposes a dwelling classified as: 1. Fire Resistive is considered Wind Resistive. 2. Masonry Non-Combustible is considered Semi-Wind Resistive. C. Premium Multiply the Masonry Base Premium by the appropriate factor noted below: Fire E.C., Broad & Special Forms Fire Resistive & Masonry Non-Combustible.50.50 Non-Combustible.50 1.00 Rule 402. Coverage C - Personal Property In Buildings Subject To Commercial Class Rates Or Specific Rates A. Fire Use the appropriate factor shown below if the building is classified in Div. 5 of the Commercial Lines Manual, Rule 85, paragraph: B.1. or B.2. B.3. or is rated specifically 1. Fire Resistive, Masonry Non-Combustible & Non-Combustible Multiply the Masonry Coverage C Base Premium by.50 1.00 2. All Other Construction Multiply the Masonry Coverage C. or Frame Base Premium by 1.00 2.00 B. E.C., V&MM, Broad or Special Form Multiply the Coverage C Base Premium by 1.00. Revised--December, 1997 California Dwelling Page 18
General Rules And Rule 403. Dwelling Under Construction (COC) A. Two methods are provided for insuring this exposure. 1. Named Insured Is The Intended Occupant. The policy may be cancelled upon completion of the dwelling. Attach Endorsement DP 11 43 Dwelling Under Construction. 2. Named Insured Is Not The Intended Occupant. The policy shall specify building is in course of construction and permission is granted to complete. For other coverage bases, refer to the Commercial Lines Manual. B. Premium 1. Adjust the Coverage A Owner Occupied Base Premium by allowing a credit of 35%. 2. There is no adjustment to the Coverage A Non-Owner Occupied Base Premium. C. Transportation and Theft of Building Materials This coverage is available only for dwellings under Course of Construction and when the named insured is the intended occupant. This endorsement provides coverage to the insured for: Building material while in transit to the job site, and Theft of building materials that have not been attached to and made part of the dwelling at the dwelling location. A separate $100 deductible applies to a covered loss. Rates $50 for the first $4,000. $7.50 for each additional $1,000 up to a maximum amount of $10,000. The premium is fully earned and is nonrefundable. Attach Endorsement 1433, Transportation and Theft of Building Materials Revised--June, 2003 California Dwelling Page 19
General Rules And Rule 404. Multiple Policy Credit If the Named Insured also has their primary homeowners or auto policy with Unigard, a 5% Multiple Policy credit will be applied to the base fire premiums and all additional premiums except premiums for earthquake, theft, Personal Liability and Premises Liability. All of Unigard s homeowners policies will qualify as a primary policy including our Bronze HO-3, HO-4 and HO-6, including Cal-Vet Condominium policies, Silver and Gold policies. However, this credit will not apply if the only other Unigard policy is another dwelling fire policy or location. Rule 405. Townhouse Or Row House A. Determine the total number of individual family units within a Fire Division. For example, a 2 family dwelling attached to a 1 family dwelling is considered 3 individual family units within a Fire Division if both dwellings are not separated by a fire wall. Four attached 2 family dwellings are considered 8 individual family units within a Fire Division if they are not separated by fire walls. A policy may be issued for: 1. Coverage A when the dwelling contains 1, 2, 3 or 4 individual family units within a Fire Division. 2. Coverage C in a dwelling with 1 or more individual family units within a Fire Division. B. Premium: No. of Individual Family Units Use Coverage A* or C Base Premium for 1, 2, 3 or 4 1, 2, 3 or 4 families 5 or more 5 or more families * Refer to the Commercial Lines Manual for building coverage when it contains 5 or more individual family units within a Fire Division. Revised--June, 2003 California Dwelling Page 20
General Rules And Rule 406. Deductibles All policies are subject to a deductible that applies to loss from all perils. A separate deductible provision applies to Earthquake Coverage. For Theft Coverage, the deductible amount may differ from the deductible amount that applies to Fire and Allied Lines perils. Refer to the Earthquake Section and Theft Coverage rules for the applicable deductible provision. A. Base Deductible $250 Deductible. B. Optional Deductibles All Perils Deductibles Multiply the Base Premium for the Base Deductible by the appropriate factors: E.C., V&MM, Deductible Fire Broad & Special Forms $ 500.97.85 $ 1,000.95.70 $ 2,500.88.60 Rule 407. Value-Up Program (Automatic Adjustment In Insurance) The amount of insurance is adjusted at renewal each year according to replacement cost changes reported to us by Marshall & Swift/Boeckh. There is no additional charge for this enhancement to the policy. The insured will be billed for the new Coverage A amount. Attach 149135 - Value Up Form DP-1. Attach 149140 - Value Up Forms DP-2 and DP-3. Revised--June, 2003 California Dwelling Page 21
General Rules And Rule 408. Protective Devices Premises Approved and properly maintained installations of fire alarms and automatic sprinklers in the dwelling may be recognized for a reduced premium developed by applying the appropriate credit to the base fire premiums. Type of Installation A. Central Station Reporting Fire Alarm a credit of 10% B. Fire Department Reporting Fire Alarm a credit of 7% C. Local Fire Alarm or Smoke Alarm a credit of 5% Local Alarm credits are not applicable if credits under A and/or B above, apply. To qualify for a Local Fire/Smoke Alarm credit, there must be a detector on each floor of the dwelling. D. Automatic Sprinklers in all areas including attic, bathroom, closet and attached structures a credit of 20% E. Automatic Sprinklers in all areas except attic, bathroom, closet and attached structure areas that are protected by a fire detector a credit of 10% Note: Note: Local Fire Alarm credits are not eligible if credits for Central Station or Fire Department Reporting Fire Alarm applies. The above credits apply to the base fire premiums only. It does not apply to non-fire or other additional premiums. None of the Protective Device Credits are available for dwellings during the course of construction (COC). The credit may be applied when the dwelling is completed and occupied. Attach Endorsement DP 04 70 Premises Alarm or Fire Protection System. Gated Community For a residential community protected by perimeter fencing or walls with a gated entry requiring an entry card, a personal identification number or any other form of permission to gain entry - a credit of 3% will be applied to the base fire premiums and all additional premiums, including theft premiums, except premiums for Earthquake, Unit-Owners Building Items, Loss Assessment, Ordinance or Law Coverage, Personal Liability and Premises Liability. Note: The Gated Community Credit is available for dwellings during the course of construction (COC) provided the community is protected by perimeter fencing or walls and the gated entry is operative. Attach Endorsement 151805 Gated Community Credit. Revised--May, 2004 California Dwelling Page 22
General Rules And Rule 409. Roof Surfacing Credit Unigard offers two unique credits applicable to roof surfacing. Apply the appropriate credit to the base fire premiums and all additional premiums except premiums for Earthquake, Unit-Owners Building Items Coverage, Loss Assessment, Ordinance or Law Coverage, Theft, Personal Liability and Premises Liability. A. A 5% credit will be allowed if a dwelling s entire roof surfacing is clay tile or slate, concrete tile or metal. Please use the Roof type adjustment under the Replacement Cost section -- Additional Features of the application or Remarks section of the Change Request form to indicate if the dwelling has such a roof surface. Note: This Roof Surfacing Credit is not available for dwellings during the course of construction (COC). The credit may be applied when the dwelling is completed and occupied. Attach Endorsement 151795 Roof Surfacing Credit. B. A 1% credit will be allowed if we determine that any roof surfacing loss should be settled on an Actual Cash Value basis instead of a Replacement Cost basis. Attach Endorsement 151810 Actual Cash Value Loss Settlement Losses to Roof Surfacing DP0002 and DP0003 Rule 500. Miscellaneous Rates The following rates per $1,000 apply to all occupancies, territories, construction and protection classifications, unless otherwise specified: A. Fire: Protection Class 1-8... $ 2.12 9 & 10... 3.84 B. Extended Coverage (DP 00 01)... 1.56 C. Broad Form (DP 00 02)... 2.33 D. Special Form (DP 00 03)... 3.12 E. Broad Form (DP 00 02) with End. DP 04 65 - Special Coverage... 3.12 Rates for A. are cumulative with either B., C., D., or E. Revised--May, 2004 California Dwelling Page 23
General Rules And Rule 501. Coverage B - Other Structures Coding Note When the policy does not include Coverage A or C, show the entire limit; otherwise Amount of Insurance Code should reflect the increased exposure. A. Coverage for other structures described as covered under Coverage B is automatically provided on a blanket basis for up to 10% of the Coverage A limit. 1. Under DP 00 01, use of this option reduces the Coverage A limit for the same loss. 2. Under DP 00 02 or DP 00 03, this limit is additional insurance. The blanket limit may not be increased. B. Coverage may be purchased for specific structures. See C. below. C. Premium: 1. Structure Rented to Others For Dwelling Purposes Rate each structure separately as a Coverage A Dwelling, Non-Owner Occupied under Rule 301., Base Premium Computation. 2. Structure Not Rented to Others For Dwelling Purposes Enter the limit of liability and description of each structure in the Coverages Declarations of the policy at inception or by endorsement after policy inception. a. Policy includes Coverage A or structure does not have permitted incidental occupancy or is at same described location as the dwelling: (1) Fire E.C., Broad and Special Forms Refer to Dwelling, Rule 500. - Miscellaneous Rates. (2) V&MM (DP 00 01) Refer to Dwelling, Rule 302. - V&MM. b. Policy does not include Coverage A or structure has permitted incidental occupancy or is not at same described location as the dwelling: (1) Fire, E.C., Broad and Special Forms Rate each structure separately as a Coverage A item under Rule 301. in the Dwelling Section using the 1 Family Key Premium (2) V&MM (DP 00 01) Refer to Dwelling, Rule 302. - V&MM. Revised--June, 2003 California Dwelling Page 24
General Rules And Rule 502. Coverage D - Fair Rental Value Coverage E - Additional Living Expense Coding Note: When the policy does not include Coverage A or C, show the entire limit desired. A. Coverage is provided in the forms on a limited basis as follows: 1. DP 00 01 a. Coverage D - Up to 10% of the Coverage A limit is available. Use of this option reduces the Coverage A limit for the same loss. b. Coverage E - not automatically included in form. It may be added as noted in B. below. 2. DP 00 02 or DP 00 03 Coverage D and E combined - Up to 10% of the Coverage A limit is available for Coverage D and Coverage E. combined as additional insurance. B. Coverage may be increased or added as follows: All Forms Coverage D The amount recoverable each month under this coverage shall be based on the lost rental income less any expenses that do not continue during untenability. Enter amount of increase in policy declarations at inception or by endorsement after policy inception. For DP 00 01, however, the amount recoverable each month is limited to a fraction of the total rental value amount insured under the policy. This fraction is equal to: Enter the fraction in the policy declarations. Example for DP 00 01: 1. # of mos. dwelling rented per year $6,000 = Rental Value Coverage in Form (10% of Coverage A. limit of $60,000) 2,000 = Additional Insurance (Shown under Coverage D. in policy declarations) $8,000 = Total Rental Value Amount Insured Scenario A Dwelling is rented for entire year...fraction = 1/12. $8,000 X 1/12 = Up to $666.66 available each month. Scenario B Dwelling is rented 8 months per year...fraction = 1/8. $8,000 X 1/8 = Up to $1,000 available each month. Coverage E Enter initial limit (DP 00 01) or amount of increase (DP 00 02 or DP 00 03) in policy declarations at inception or in the endorsement after policy inception. Always show "up to 25% per month" in the policy or endorsement declarations. Attach Endorsement DP 04 14 Additional Living Expense for DP 00 01. Revised--June, 2003 California Dwelling Page 25
General Rules And Rule 502. Coverage D - Fair Rental Value Coverage E - Additional Living Expense (Cont'd) C. Premium 1. Policy includes Coverage A or Coverage C. a. Fire, E.C., Broad and Special Forms Refer to Dwelling, Rule 500. - Miscellaneous Rates. b. V&MM (DP 00 01) Refer to Dwelling, Rule 302. - V&MM. 2. Policy does not includes Coverage A or Coverage C. a. Fire, E.C., Broad and Special Forms (1) 1-4 Family Dwelling Multiply the Coverage A Key Premium by the Coverage A Key Factor, for: (a) The Coverage D limit, times.53; or (b) The Coverage E limit, times 1.00 (2) 5 or more Family Dwelling Calculate the premium as instructed above using the 4 Family Key Premium. b. V&MM (DP 00 01) Refer to Dwelling, Rule 302. - V&MM. Revised--June, 2003 California Dwelling Page 26
General Rules And Rule 503. Ordinance Or Law Coverage Coverage B - Specific Structures and Building Items A. For Form DP 00 01, the policy may be endorsed to add an amount of Ordinance or Law Coverage equal to the amount noted below. For Form DP 00 02 or DP 00 03, the basic 10% of coverage may be initially increased to the amount noted below: 50% of the total Coverage B or Unit-Owner Building Items limit. B. These amounts may be further increased in 25% increments. C. Premium 1. The premium for this additional coverage is determined based on the dollar amount of coverage added for DP 00 01, or the dollar amount of increase, represented by the increased percentage selected above the basic limit for DP 00 02 or DP 00 03. 2. Refer to Rule 500. - Miscellaneous Rates for the rate for each additional $1,000 of insurance. Rule 504. Reserved For Future Use Revised--May, 2004 California Dwelling Page 27
General Rules And Rule 505. Unit-Owners (Condo) Building Items A. Building items are not covered in the forms. Unit-Owners Building Items is available as an optional coverage endorsed onto form DP0003 for an additional premium. B. Premium 1. Unit-Owners Building Items The following rates per $1,000 apply to all occupancies, territories, construction and protection classifications, unless otherwise specified: a. Fire Protection Class 1-8 $2.12 9 & 10 $3.84 b. Special Form (DP0003) $3.12 The following credits apply: Multiple Policy Credit, and Deductible Credit applies to rate for Fire and Special Form, and Protective Devise credits apply to Fire rate only. The following credits do not apply to this coverage: Gated Community Credit, Roof Surfacing Credit, Newer Dwelling Credit. Note: The total premium for Unit-Owner Building Items is the sum of the rates determined for items 1.a. and 1.b. Other Structures are covered under this endorsement. The limit of liability for the Other Structures must be included in the total limit of liability for Unit-Owners Building items. For example, if building items limit for the condominium is $6,000 and the limit for the other structures is $5,000, the total limit for Unit-Owners Building Items will be $11,000. 2. If DP 04 71, Ordinance or Law Coverage, is endorsed onto the policy, refer to Rule 503. for rating information. Attach Form DP1766UN Unit-Owners Coverage to DP0003. Revised--May, 2004 California Dwelling Page 28
General Rules And Rule 506. Loss Assessment Property Coverage Unit-Owners (Condo) Dwelling Building Owner - All Forms A. Coverage for property loss assessment, for which the insured may be liable, is not included in the forms. Coverage is available for an additional premium for all insured perils except earthquake. Note: When coverage is desired for the peril of Earthquake, refer to the Earthquake Section in this Personal Lines Manual. Attach Endorsement DP 04 63 Loss Assessment Property Coverage. B. Premium: 1. Fire, E.C., Broad and Special Forms: Refer to Dwelling, Rule 500. Miscellaneous Rates. 2. V & MM (DP0001): Refer to Dwelling, Rule 302. V & MM. Rule 507. Fire Department Service Charge The limit of $500 provided under the policy may not be increased. Rule 508. Trees, Shrubs And Other Plants Coding Note: When the policy does not include Coverage A or C, show the entire limit; otherwise Amount of Insurance Code should reflect the increased exposure. A. DP 00 01 1. Coverage for Trees, Shrubs and Other Plants is not provided in this form. However, for an additional premium, coverage is available for specified perils. Coverage is limited to a $500 per item maximum. 2. Coverage may not be written without Coverage A. B. DP 00 02 or DP 00 03 Attach Endorsement DP 04 17 Trees, Shrubs and Other Plans. 1. Up to 5% of the Coverage A limit is available in the form, subject to a $500 per item maximum, for specified perils as additional insurance. 2. Windstorm or Hail Coverage for Windstorm or Hail is available up to 5% of Coverage A limit, subject to a $500 per item maximum, for an additional premium. Attach Endorsement DP 04 18 Windstorm or Hail. Revised--May, 2004 California Dwelling Page 29
General Rules And Rule 508. Trees, Shrubs And Other Plants (Cont.) C. Premium 1. Fire, E.C., Broad and Special Forms. The following rate per $1,000 apply to all occupancies, territories, construction and protection classifications, unless otherwise specified: Fire (DP 00 01) Protection Class 1-8... $ 2.12 9 & 10... 3.84 Extended Coverage Windstorm or Hail (DP 00 01) (DP 00 02/03) Including Excluding itory Wind or Hail Wind or Hail Entire State $7.95 $1.00 $6.95 2. V&MM (DP 00 01) Refer to Rule 302. - V&MM Rule 509. Earthquake Coverage Please refer to the separate Earthquake Section in this Personal Lines Manual. Revised June, 2003 California Dwelling Page 30
General Rules And Rule 510. Theft Coverage A. A Fire policy insuring Coverages A or C may be extended, for an additional premium, to provide On and Off-Premises Coverage for the perils of Theft and Vandalism and Malicious Mischief (V&MM) resulting from theft. 1. Owner Occupied Dwellings and Condo Units. a. The policy may be extended to provide On or Off-Premises Coverage. b. The minimum limit of liability is $1,000 each for On and Off-Premises Coverage. c. Off-Premises Coverage is only available when On-Premises Coverage is purchased. The limit of liability shall not be greater than that selected for On-Premises Coverage. Attach Endorsement DP 04 72 Broad Theft Coverage. 2. Non-Owner Occupied Dwellings and Condo Units. B. Premium a. The policy may be extended to provide On-Premises Coverage only. b. The minimum limit of liability is $1,000. Attach Endorsement DP 04 73 Limited Theft Coverage. Compute the premiums separately for each premises in the manner and sequence that follows: 1. Theft and V&MM a. Owner Occupied Dwellings, etc. Compute the premiums for the desired limit of liability separately for On and Off-Premises Coverage. On-Premises Entire State... $ 31.61 Off Premises Entire State... $13.25 b. Non-Owner Occupied Dwellings, etc. (On-Premises Only) Multiply the On-Premises premium computed above by a factor of 1.50. Revised--May, 2004 California Dwelling Page 31
General Rules And Rule 510. Theft Coverage (Cont'd) 2. Burglar Alarm Discount (On-Premises Only) Approved and properly maintained installations of burglar alarms in the dwelling may be recognized for a reduced premium - developed by applying the selected factors to the premiums computed in B.1.a or B.1.b. above. Type of Installation* Factor C. Deductibles Central Station Reporting Burglar Alarm.95 Police Station Reporting Burglar Alarm.97 Local Burglar Alarm.98 * Refer to Unigard for eligibility, types of systems and devices, installations and available credits. 1. Base Deductible Attach Endorsement DP 04 70 Premises Alarm or Fire Protection System. $250 Deductible. (Size Code 25) 2. Optional Deductibles To compute the premium for this provision, multiply the premium for the Base Deductible computed in B.1. above by the factor listed below. Ded. Factor $ 500.95 1,000.80 2,500.65 Rule 511. Sinkhole Collapse Coverage Unigard does not provide Sinkhole Collapse Coverage. Revised--June, 2003 California Dwelling Page 32
General Rules And Rule 512. Windstorm Or Hail Coverage - Awnings, Signs & Outdoor Radio And Television Equipment Coding Note: When the policy does not include Coverage A or C, show the entire limit; otherwise Amount of Insurance Code should reflect the increased exposure. The peril of Windstorm or Hail does not cover: A. Awning, Signs and Outdoor Radio and Television Equipment in DP 00 01 or DP 00 02; B. Outdoor Radio and Television Equipment in DP 00 03; whether or not attached to a Dwelling Building or Other Structure. It may be covered for an additional premium. Charge the following rate per $1,000: Outdoor Radio & Awnings Signs TV Equipment $50 $10 $50 Attach Endorsement DP 04 19 Windstorm or Hail, Radio and Television Antennas, Awnings and Signs. Rule 513. Water Back Up And Sump Overflow A. The policy may be endorsed to provide coverage for loss resulting from water which backs up through sewers or drains or which overflows from a sump. The limit of liability available under this option is $5,000. B. A deductible of $250 applies. No other deductible option is available. C. Charge $90 per location. Attach Endorsement DP 04 95 Water Back Up and Sump Overflow. Rule 514-523. Reserved For Future Use Revised--June, 2003 California Dwelling Page 33
General Rules And Rule 524. Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Limited Fungi, Wet or Dry Rot, or Bacteria Coverage automatically provides a Special Limit of Liability as follows: A. $10,000 to pay for loss to covered real or personal property, owned by an insured, that is damaged by fungi, or wet or dry rot, or bacteria on the residence premises as defined in the coverage endorsements. This coverage applies only for the policy period in which the loss or costs occur. B. For Property Coverage, the $10,000 is the most coverage that will be provided during the policy period regardless of the number of locations insured for Limited Fungi, or Wet or Dry Rot, or Bacteria Coverage or the number of claims made during the policy period. This limit may not be increased. Read the endorsement for complete details on coverages, limitations, definitions and additional policy conditions applicable to this coverage. Attach Limited Fungi, Wet or Dry Rot, or Bacteria Coverage Endorsement DP0422UN Revised--June, 2003 California Dwelling Page 34
General Rules And Rule 525. Additional Coverage Endorsement (ACE) - Form DP 00 03 Only This coverage is available for dwellings: insured for 100% of replacement cost, and located in Protection Class 1 through 8. The endorsement provides coverage to the dwelling owner for: Personal property at the insured location up to $1,000. This is in addition to coverage shown in the Declaration. Reward coverage up to $1,000 to any eligible person providing information leading to the arrest and conviction of anyone who sets fire to or vandalizes covered property. Enhanced Replacement Cost-Coverage A Building. This provides full cost of repair or replacement of the dwelling location insured, up to 125% of the Coverage A limit shown on the Declaration. When this coverage is added to an existing policy, please complete the Residential Property Questionnaire, Form 108100. When the coverage is written on new business, complete the Residential Building Cost Guide area on the application. Coverage is available on a per location basis. The additional premium is $10 for each insured location. Attach Endorsement 100653 Additional Coverage Endorsement. Special State Requirements Special Provisions California Endorsement 152475 Attach this endorsement with all Dwelling Policies. Revised--January, 2007 California Dwelling Page 35
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General Rules And Rule 526. itory Definitions The itory pages contain the ZIP Code and statistical code for each territory. 1. Each territory includes a certain area, usually a city and its surroundings and, for rating purposes. In many cases, the area so defined includes several smaller cities, towns, boroughs or villages. 2. As ZIP Code boundaries are changed by the United States Postal Service (USPS), a new ZIP Code may be created. This new ZIP Code may not yet be listed in the following pages. If this is the case, use the rating territory that corresponds to the ZIP Code that formerly applied to the risk. Revised--June, 2003 California Dwelling Page 37