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UTAH PREFERRED HOMEOWNERS PROGRAM MANUAL

Effective 05/01/2014 New, 06/15/2014 Renewal CSE Safeguard Insurance Company

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TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................. 1 FORMS LIST .................................................................................................................................. 3 UNDERWRITING GUIDES ............................................................................................................ 4

Eligible Risks ............................................................................................................................... 4 Ineligible Risks ............................................................................................................................ 4 Course of Construction ................................................................................................................ 5 Secondary Residence Requirements .......................................................................................... 5 Inspections .................................................................................................................................. 5 Insurance to Value ...................................................................................................................... 5

Replacement Cost Estimator ................................................................................................... 5 Photos ......................................................................................................................................... 5 Reports ........................................................................................................................................ 6

GENERAL INFORMATION ............................................................................................................ 7 Applications ................................................................................................................................. 7 Billing Fee .................................................................................................................................... 7 Binding ........................................................................................................................................ 7 Cancellation/Non-Renewal .......................................................................................................... 7 Construction/Occupancy Definitions ........................................................................................... 8 Coverages and Forms – Descriptions and Requirements ........................................................... 9

Section I Coverages - Property Damage ................................................................................. 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 or HO 00 03 with HO 00 15 ............................................. 11 Permitted Incidental Business Occupancies .......................................................................... 11 Secondary Residence Premises ............................................................................................ 11

Minimum Premium .................................................................................................................... 11 Non-Sufficient Fund Fee ........................................................................................................... 11 Policy Term ............................................................................................................................... 11 Premium or Form Revision ........................................................................................................ 11 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 Territory Location Multipliers – Form HO 03 only ...................................................................... 14 Alarm and Protective Device Credits – Use Form HO 04 16 .................................................... 14 Course of Construction .............................................................................................................. 14 Deductible Options .................................................................................................................... 14 Mature Homeowners Credit ...................................................................................................... 15 Multi - Policy .............................................................................................................................. 15 Non-Smoker Discount ............................................................................................................... 15



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Policy Fee .................................................................................................................................. 15 Secondary Residence Premises Surcharge .............................................................................. 15 Swimming Pool Surcharge ........................................................................................................ 15 Civil Service Employee Discount ............................................................................................... 15 Tier Charges or Credits Including “No Mortgage Balance” Discount ........................................ 15 Claim Surcharge 16 Trampoline Surcharge ............................................................................................................... 16 Wood Burning Stove Surcharge ................................................................................................ 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 – 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 Coverage C – Increased Limit ................................................................................................... 18 Earthquake Coverage - Use Form HO 04 54 ............................................................................ 18 Extended Replacement Cost (Specified Additional Coverage A) – Use Form HO 04 20 ......... 18 Inflation Guard – Use Form HO 04 46 ....................................................................................... 18 Other Structures – Increased Limits – Use Form HO 04 48 ...................................................... 18 Special Personal Property – Use Form HO 00 15 ..................................................................... 18 Executive Enhancement Endorsement – Use Form HOC0019UT ........................................... 20 Scheduled Personal Property – Use Form HO 04 61 ............................................................... 21 Upgrade Package (Deluxe Form) – Forms HO 04 90, HO 04 95 & HO 04 98 .......................... 21

Personal Property Replacement Cost –Form HO 04 90 ........................................................ 21 Water Back Up and Sump Overflow – Use Form HO 04 95 .................................................. 21 Refrigerated Personal Property – Form HO 04 98 ................................................................. 21

LIABILITY COVERAGES ............................................................................................................. 22 Residence Premises Liability – Increased Limits – 1 or 2 Family Residence ........................... 22 Additional Residence Occupied by Insured – Extend Liability - no form necessary .................. 22 Additional Residence Rented to Others – Use Form HO 24 70 ................................................ 22

RATING RULES ........................................................................................................................... 23 Homeowners Forms .................................................................................................................. 23 Tenant Form HO 00 04 ............................................................................................................. 23 Condominium Form HO 00 06 .................................................................................................. 23

FORM HO 00 06 – BASE PREMIUM CHART .............................................................................. 23 Coverage C – Premiums ........................................................................................................... 23 Coverage A – Premiums ........................................................................................................... 23

FORM HO 00 04 – BASE PREMIUM CHART .............................................................................. 24 Coverage C – Premiums ........................................................................................................... 24 Coverage A – Premiums ........................................................................................................... 24

FORM HO 00 03 – BASE PREMIUMS ......................................................................................... 25 Protection Classes 1-8 .............................................................................................................. 25



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FORMS LIST Forms Date Title HO 00 03 0491 Special Form HO 00 06 0491 Condo Form HO 00 04 0491 Tenants Form HO 00 15 0491 Special Personal Property Coverage HO 01 43 0511 Special Provisions - Utah HO 04 16 0491 Premises Alarm or Fire Protection System HO 04 20 0694 Specified Additional Amount of Insurance 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 41 0491 Additional Insureds HO 04 46 0491 Inflation Guard HO 04 48 0491 Other Structures - Increased Limits HO 04 54 0207 Earthquake HO 04 61 0491 Scheduled Personal Property HO 04 90 0491 Personal Property Replacement Cost HO 04 95 0511 Water Back Up and Sump Overflow HO 04 96 0491 Home Day Care Coverage Limitation HO 04 98 0491 Refrigerated Property Coverage

Forms Date Title DOG-00 0104 Animal Liability Exclusion IL 7021 0913 Policy Signature Page GLE-8023 0192 Exclusion – Claims Arising Out of Lead HOC0019UT 0303 Executive Homeowners Coverage Form PDE-8007 0200 Dwelling in the Course of Construction PRE-1214 0104 Additional Liability Exclusions PRE-1216 0207 Utah Homeowners Amendatory OUTBLDG-00 0704 Exclusion for Outbuildings - Homeowners PRE-1215 0397 Pollution Exclusion ROOF-00 0107 Roof Exclusion UT HO 23 0602 Trampoline Exclusion F.32465A F.32895A

1105 0607

Identity Theft Recovery Equipment Breakdown Enhancement



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UNDERWRITING GUIDES

Eligible Risks

1. Owner-occupied residential dwellings 2. Owner-Occupied residential units 3. Dwelling or Unit must be insured’s primary residence or, if the residence is secondary, we

must also insure the primary residence 4. Year of Construction 1960 or newer. (Homes built prior to 1960 may be acceptable in

standard.) 5. Primary source of heat must be electric, natural gas, propane or properly installed solar 6. Woodburning stoves allowed only as auxiliary source of heat

Ineligible Risks

1. Dwellings or premises in poor physical condition. 2. Poor moral risks, poor credit history, judgments or more than two (2) mortgages. No

bankruptcy within the past 3 years 3. Properties in foreclosure, bankruptcy or repossession 4. Risks with prior arson losses 5. One or more claims in the past 36 months 6. Vacant, seasonal dwellings, or dwellings advertised for sale at time of application 7. Mobile, Manufactured, or Modular Homes 8. Homes with flat roofs or roofs with less than a 3/12 pitch. 9. Animals with high risk of liability claims

Risks with vicious, dangerous or exotic animals. Risks with prior animal liability claims. Risks with prior dog bite claims. Risks with large dogs or multiple dogs Risks with Rottweilers, Chows, Pit Bull/Staffordshire Terriers, Doberman Pinchers,

Akitas, Siberian Huskies, Sharpeis, Malamutes, Great Danes, Wolf-Hybrid and German Shepherds or other breeds known to be aggressive. Call for approval on all questionable breeds.

10. Any Commercial exposures or Corporate owned properties 11. Farm properties. 12. Farm animals or Livestock on premises (refer to underwriting) 13. More than two horses on premises 14. Cabins or Mountain locations (refer to standard program) 15. Primary source of heat is not electric or gas (e.g.:, coal, wood, kerosene) 16. Dwelling or appurtenant structures with existing damage unless specifically excluded. 17. Swimming pools with diving boards or slides. Above ground swimming pools unacceptable. 18. Risks of sub-standard construction. 19. Risks with poor housekeeping and maintenance conditions. 20. Homes with open foundations. 21. Homes not built by a licensed contractor. (Contractor must have minimum of $1M CGL

policy for homes in the course of construction.) 22. Unusual liability exposure (e.g. unfenced pools, stairs with no handrails, etc.). 23. Dwellings on a slope of 35 degrees or more. 24. Dwellings built on piers or posts. 25. Dwelling which are architecturally unique (e.g. geodesic, earthen, log homes). 26. Dwellings with less than 1000 square feet of living area. 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 $$750,000require prior approval from UW. -Risks with trampolines (a surcharge applies). Special trampoline safety netting and fenced yard is strongly recommended.



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Course of Construction

1. Available for Form HO 00 03 only 2. To be occupied by the named insured 3. Photos must be submitted upon completion 4. Dwelling must be rated using the address where being constructed (not insured’s current address)

Secondary Residence Requirements

1. Must be located within protection classes 3 – 8 2. Primary dwelling must be insured with the CSE Insurance Group 3. Must be owned by named insured, no multiple owners 4. Must be used exclusively by insured, no rental or time share 5. No Discounts are available and a surcharge applies 6. Liability must be extended to the secondary from another policy

Form HO 00 03 This policy is available for the owner occupied home used exclusively as a private residence, which is constructed after 1959, and may not be more than two separate family units. Minimum $100,000 Coverage A to a maximum of $$1,500,000

HO 00 03 with HO 0015 Homeowner This policy is available for the owner occupied home used exclusively as a private residence, , and may not be more than two separate family units. Minimum $100,000 Coverage A to a maximum of $1,500,000.

HO 00 04 Tenants Form

This policy is available for tenants personal property for applicants occupying a townhouse, condominium, dwelling or apartment unit. The Coverage C minimum is $15,000 subject to a maximum limit of $75,000.

HO 00 06 Unit Owner This policy is available for the owner occupied townhouse, condominium, or co-operative units. Coverage A included limit is $5,000. This may be increased to a maximum of $200,000. The Coverage C minimum is $15,000 subject to a maximum limit of $250,000.

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 Replacement Cost No co-insurance applies.

Replacement Cost Estimator A replacement cost estimator is required to be submitted with the application on each risk.

Photos

United Underwriters will obtain photos of dwellings located in protection classes 1-6. Photographs of dwellings located in protection classes 7-8 are required by 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.



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Reports

Credit Bureau reports, credit scores and other financial or claims reports such as CLUE or UNCLE may be obtained to verify and document underwriting requirements and rating accuracy



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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.

Applications

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. All required sign-offs must be completed. Include complete addresses, names and verifications when necessary. 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 fully-earned billing fee of $6 when applicable.

Binding

Risks will be bound as of the date of the producer’s request if the application is postmarked to the company within 72 hours of the bound date.

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 Accord 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.



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Construction/Occupancy Definitions

Masonry Exterior walls of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block/stone, masonry veneer of brick or stone, or stucco over frame (classified as masonry if 50% or more masonry from foundation to roof line.)

Frame Exterior walls of wood or other combustible construction, including iron-clad, metallic siding,.

Pre-Fab or Modular

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.

Site – Built Home

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.

Condominium 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.

Secondary Dwelling

Occupied intermittently or for short periods of time such as weekends or holidays.


Unoccupied home under construction

Mobile 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.

Manufactured 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. (Not eligible in UU programs)

Seasonal Dwelling

Unoccupied for three or more consecutive months during a one-year period. (i.e. cabin)



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Coverages and Forms – Descriptions and Requirements

Forms HO 00 03 - Special Form HO 00 03 with HO 00 15 - Special Form with Special Personal Property HO 00 04 - Tenants Form HO 00 06 - Unit-Owners 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 03 HO 00 04 HO 00 06 Fire or Lightning Yes

Yes Yes

Windstorm or Hail, Explosion, Riot or Civil commotion, Aircraft, Vehicles or Smoke

Yes Yes Yes

Vandalism or malicious mischief Yes Yes Yes Theft Yes Yes Yes Volcanic eruption 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

Additional risks with certain exceptions (Special Coverage)

Yes * Cov. A & B

No No

Replacement Cost For Coverages A and B For Coverage C**

Yes No

N/A No

Yes 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 the Upgrade Coverage or the Executive Coverage.



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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 Section 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 HO 00 04 HO 00 06 A - Dwelling Minimum Limit

Refer to Underwriting Guidelines

N/A $1,000

B - Other Structures 10% of A N/A N/A C - Personal Property 50% of A

$6,000Minimum $6,000 Minimum

D - Loss of Use 20% of A N/A 40%?of C -

Section II – Liability - All Forms Coverage E - Personal Liability $100,000 Each Occurrence Coverage F - Medical Payments to Others $1,000 Each Person

The limit of liability for Coverages E or F of Section II may be increased. The limit of liability for Coverage A on Form HO 00 06 may be increased. The limit of liability for Coverage C on Form HO 00 03 may be increased. Under Coverage B, an additional amount of insurance may be written on specific other structures. Coverage D may not be increased.

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 A condo policy may be issued to the owner-occupant of a Townhouse or Condominium or Cooperative Unit which is used exclusively for residential purposes.

Farms A Homeowners Policy shall not be issued covering any property to which farm forms or rates apply.



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Eligibility (continued)

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 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 owner-occupant 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 not permitted in the preferred program.

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.

Minimum Premium

A minimum premium of $225 is applicable for HO 00 03 A minimum premium of $150 is applicable for HO 00 06 or HO 00 04

Non-Sufficient Fund Fee

Any check sent back to United Underwriters due to insufficient funds will be charged twenty-dollars ($20.00).

Policy Term

The Homeowners Policy may be written for a one-year term. Premiums are for an annual term.

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.



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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 Outbuildings to be excluded when we would not otherwise accept the risk.



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CREDITS, DEDUCTIBLES & CHARGES

Age of Dwelling Factors - Form HO 00 03

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

Less than 1 Year .60

1- Years .65

2 Years .70

3 Years .74

4 Years .78

5 Years .81

6 Years .83

7 Years .85

8 Years .87

9 Years .89

10 Years .91

11 Years .93

12 Years .95

13 Years .97

14 Years .99

15 - 1986 1.00

1981-1985 1.04

1976-1980 1.08

1966 -1975 1.12

1956-1965 1.22

1946-1955* 1.25

1936-1945* 1.30

1920-1935* 1.35

1919 and older* 1.40

1950 and older are Ineligible as new business



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Territory Location Multipliers – Form HO 03 only

County Territory Factor Davis 0.92

Washington 0.80 Weber 1.06

Remainder of State 1.00

Alarm and Protective Device Credits – Use Form HO 04 16

The following credit may be applied for an approved and properly maintained alarm system provided proof of installation has been submitted to the company.

Alarm Credit Fire and Burglar Alarm Reporting to the Fire Department and the Police Department or to a Central Station

5%


Dwellings in the course of construction may be insured if the named insured is to be the occupant. A 50% credit may be applied.

Deductible Options

Deductible Amount

HO 00 03

HO 00 04 HO 00 06

$250 Base Base 500 0.90 0.90

1,000 0.80 0.80 2,500 0.70 0.70

The above deductible factors apply to all property endorsements and coverage.

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.



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Mature Homeowners Credit

If the insured is age 55 or older and retired, a 10% credit may be applied.

Multi - Policy

When the Named Insured has an in force Auto policy with the CSE Insurance Group, a 5% Discount applies to the Homeowners Policy including Form HO 00 06 and HO 00 04.

Non-Smoker Discount

If all occupants of the home or condominium unit are non-smokers, a 10% credit may be applied.

Policy Fee

A $10 policy fee is applicable to all new policies. Fees are fully earned at policy issuance.

Secondary Residence Premises Surcharge

If the insured owner-occupied dwelling is not the primary residence, apply a 25% surcharge.

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 ground swimming pools more than 36” deep also unacceptable.

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.

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 Tier Criteria Charge or

Credit no mtg.

1 Choicepoint Attract Score 846-997 0.75 0.9502 Choicepoint Attract Score 785-845 0.80 0.9353 Choicepoint Attract Score 748-784 0.85 0.9204 Choicepoint Attract Score 722-747 0.90 0.9055 Choicepoint Attract Score 710-721 0.95 0.8906 Choicepoint Attract Score 682-709 Base 0.8757 Choicepoint Attract Score 667-681 1.05 0.8608 Choicepoint Attract Score 651-666 1.10 0.8609 Choicepoint Attract Score 634-650 1.15 0.86010 Choicepoint Attract Score 600-633 1.20 0.860ns noscore 1.10 0.860



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Homeowner Age/Home value rate variable

For younger homeowners owning higher value homes, the following rate deviations apply:

owner age 300K‐499k 500k‐749k 750k‐1mm 1mm+

<30 1.03 1.10 1.15 1.20

30‐34 1.02 1.03 1.06 1.10

35‐39 1.00 1.01 1.03 1.05

Prior Claim Surcharge

New business must be claim free in order to qualify for the Preferred Homeowners program with certain reasonable exceptions as pre-approved by underwriting. Policies with claims deemed eligible to remain in the preferred program will be surcharged:

Credit

One loss in prior 36 months

This does not include weather related losses below $1,500

+15%

Trampoline Surcharge

If the there is a trampoline on the insured residence, apply a surcharge of $50.

Wood Burning Stove Surcharge

Wood or coal 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 a wood or coal stove exposure exists. The questionnaire and photos must be submitted with the application. The questionnaire must be completed 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.

There is a surcharge of $25 per Exposure.



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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

Form 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 which 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 – Use Form PRE-1215

Pollution exclusion including damages from a hostile fire which involves pollutants. Special Provisions – Use Form HO 01 43

An ISO form which 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.



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ADDITIONAL COVERAGES

Coverage C – Increased Limit Form HO 00 03 only

The limit of liability for Coverage C may be increased at a rate of $2.10 per $1000 of increase. This applies only to ACV coverage.

Earthquake Coverage - Use Form HO 04 54

When Earthquake coverage is provided, it shall apply to all Section I Coverages. The deductible is 5% of the limit of liability for Coverage A on Form HO 00 03, and the total of Coverag A and Coverage C on form HO 00 06; subject to a minimum deductible of $250. $50 minimum premium applies. The rate per $100 is as follows:

Form Frame Other Applied to

HO 00 03 $0.10 0.82 Coverage A Limit

HO 00 06 0.075 n/a Coverage A Limit

0.050 n/a Coverage B Limit

0.025 n/a Coverage C Limit

0.050 n/a Coverage D Limit If Exterior veneer is covered on a veneer home, charge the “other” rates. If it is excluded, use the frame rates.

Extended Replacement Cost (Specified Additional 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 $5 premium charge.

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.

Other Structures – Increased Limits – Use Form HO 04 48 Form HO 00 03 only

An additional limit of liability may be provided for specific structures located on the residence premises. The rate is $0.94 per $1000.

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.



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Executive Enhancement Endorsement – Use Form HOC0019UT Form HO 00 03 Only

All endorsements included in the “Upgrade Package” (see next page) are included automatically with this endorsement along with additional coverages outlined below. A brief description of the HOC0019UT coverage follows. Refer to the forms for exact coverage.

Coverage C - Personal Property is increased to 70% of Coverage A Replacement Cost on Personal Property Extended Home Replacement Cost with Specified Additional Limit of 25% $10,000 Credit Card/Fund Transfer coverage $1,000 unregistered Recreational Vehicle for use off public roads Lock-Replacement Coverage $500 Refrigerated Products Coverage Debris Removal Coverage for Loss Sustained $5,000 Loss Assessment Coverage Ordinance or Law Coverage – 10% additional coverage increased to 25% $10,000 Water Backup of Sewer or Drains No Vacancy Exclusion for Glass Breakage and V&MM $10,000 Coverage for Personal Property regularly kept away from premises $2,500 Damage To Property Of Others Personal Injury Liability Incidental Business Liability if annual proceeds $5,000 or less Increased Special Limits on Personal Property:

Limit Type of Property $ 1,000 Money, bank notes, gold, silver, coins, etc. $ 5,000 Securities, accounts, deeds, tickets and stamps, etc. $ 2,000 Watercraft, including their trailers, furnishings or equipment and outboard motors $ 2,000 Other types of trailers $ 5,000 Theft or misplacing of jewelry, watches, furs and precious and semi-precious stones $ 5,000 Theft or misplacing of guns $10,000 Theft or misplacing of goldware, silverware, silver-plated ware, pewterware, etc. $10,000 Business property while on the residence premises $ 1,000 Business property away from the residence premises

The premium for this coverage is a charge of 20%.



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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 Cameras and Projection Equipment * $1.60 Coin Collections - Rare and Current Coins 1.60 Computers 1.60 Fine Arts (breakage excluded) 0.53 Furs (personal) 0.45 Golfer’s Equipment 1.60 Guns 1.60 Jewelry 1.20 Musical Instruments * 0.53 Silverware 0.53 Stamps (postage stamp collections) 1.60

*Non-professional only. A professional is a person who uses the insured instrument(s) or camera(s) for any remuneration.

Upgrade Package (Deluxe Form) – Forms HO 04 90, HO 04 95 & HO 04 98

The following three coverages are included in the upgrade package. They are not available separately. Personal Property Replacement Cost –Form HO 04 90

This form changes the Coverage C Personal Property Loss Settlement from Actual Cash Value to Replacement Cost. Use of this form increases the Coverage C limit to 70% of Coverage A. Replacement cost also applies to items scheduled in this policy.

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.

Refrigerated Personal Property – Form HO 04 98

This form provides $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.

For Form HO 00 03, increase the base premium by 15%. For Form HO 00 06, increase the base premium (A & C) by 15%. For Form HO 00 04, increase the base premium (C) by 15%.



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LIABILITY COVERAGES The basic limit of liability for Coverage E - Personal Liability is $100,000. The Coverage F - Medical Payments To Others basic limit is $1,000 per person and $25,000 per occurrence. 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 Cov. E $100,000 $300,000 $500,000

Premium Base 25 35

Medical Payments Limits Cov. F $1,000 $3,000 $5,000

Premium Base 20 40

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 Cov. E $100,000 $300,000 $500,0001 or 2 Families 7 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 Cov. E $100,000 $300,000 $500,0001 or 2 Families 9 15 25

The above charges apply regardless of the Medical Payments Limit.



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RATING RULES

Homeowners Forms

The basic premiums for Form HO 00 03 are shown on the following Homeowners Base Premium Charts. 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 Form HO 00 04

Coverage C Use the premiums on the HO 00 04 – Base Premium Chart shown below for the selected Coverage C amount of insurance.

Condominium Form HO 00 06

Coverage C Use the premiums on the HO 00 06 – Base Premium Chart shown below for the selected Coverage C amount of insurance.

Coverage A

The policy includes $5,000 of Coverage A. Higher limits may be provided. See below

FORM HO 00 06 – BASE PREMIUM CHART

Coverage C – Premiums

Amount Number of Units

of Ins. 1-4 5 + $25,000 $117.70 $154.00

30,000 $127.60 $169.40

35,000 $139.70 $183.70

40,000 $148.50 $199.10

45,000 $162.80 $217.80

50,000 $174.90 $232.10

Each Add'l

$1,000 $2.76 $3.30

Coverage A – Premiums

Higher limits for Form HO 00 06 Coverage A may be provided at a rate of $1.00 per $1,000 of increase.



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FORM HO 00 04 – BASE PREMIUM CHART

Coverage C – Premiums

Amount Number of Units

of Ins. 1-4 5 + $15,000 $115.50 $130.52

20,000 $129.36 $140.91

25,000 $138.60 $151.31

30,000 $151.31 $167.48

40,000 $180.18 $206.75

50,000 $210.21 $231

Each Add'l

$1,000 $3.08 $3.47

Coverage A – Premiums

Higher limits for Form HO 00 04 Coverage A may be provided at a rate of $1.00 per $1,000 of increase.



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FORM HO 00 03 – BASE PREMIUMS

Protection Classes 1-8

Protection Classes Protection Classes

Amount 1-6 7 & 8 Amount 1-6 7 & 8

of Ins. Masonry Frame Masonry Frame of Ins. Masonry Frame Masonry Frame

$50,000 $173.96 $193.42 $193.42 $212.88 $210,000 $551.65 $613.45 $613.45 $675.26

55,000 $176.25 $195.71 $195.71 $214.02 215,000 $564.24 $626.04 $626.04 $688.99

60,000 $177.40 $196.85 $196.85 $215.17 220,000 $574.54 $637.49 $637.49 $700.43

65,000 $178.54 $198.00 $198.00 $219.74 225,000 $584.84 $650.08 $650.08 $714.17

70,000 $181.98 $203.72 $203.72 $223.18 230,000 $595.14 $660.38 $660.38 $725.61

75,000 $214.02 $239.20 $239.20 $262.09 235,000 $605.44 $672.97 $672.97 $739.35

80,000 $223.18 $247.21 $247.21 $272.39 240,000 $615.74 $683.27 $683.27 $750.79

85,000 $231.19 $257.51 $257.51 $283.84 245,000 $626.04 $694.71 $694.71 $763.38

90,000 $243.78 $271.25 $271.25 $297.57 250,000 $635.20 $706.16 $706.16 $775.97

95,000 $256.37 $283.84 $283.84 $312.45 255,000 $646.64 $717.60 $717.60 $788.56

100,000 $271.25 $299.86 $299.86 $330.76 260,000 $656.94 $727.90 $727.90 $801.15

105,000 $280.40 $311.30 $311.30 $342.21 265,000 $667.24 $740.49 $740.49 $812.60

110,000 $289.56 $321.60 $321.60 $353.65 270,000 $676.40 $750.79 $750.79 $826.33

115,000 $301.00 $335.34 $335.34 $368.53 275,000 $685.56 $762.24 $762.24 $838.92

120,000 $313.59 $349.07 $349.07 $383.41 280,000 $697.00 $774.83 $774.83 $851.51

125,000 $325.04 $361.66 $361.66 $398.29 285,000 $707.30 $785.13 $785.13 $862.95

130,000 $339.92 $377.69 $377.69 $415.45 290,000 $717.60 $796.57 $796.57 $875.54

135,000 $354.80 $393.71 $393.71 $433.77 295,000 $725.61 $806.87 $806.87 $886.99

140,000 $370.82 $409.73 $409.73 $450.93 300,000 $735.91 $818.32 $818.32 $899.58

145,000 $384.55 $426.90 $426.90 $470.39 305,000 $738.20 $819.46 $819.46 $901.87

150,000 $401.72 $446.36 $446.36 $489.85 310,000 $739.35 $821.75 $821.75 $904.16

155,000 $416.60 $463.52 $463.52 $509.30 315,000 $741.64 $824.04 $824.04 $906.44

160,000 $433.77 $481.83 $481.83 $529.90 320,000 $742.78 $826.33 $826.33 $908.73

165,000 $447.50 $497.86 $497.86 $547.07 325,000 $743.93 $826.33 $826.33 $909.88

170,000 $462.38 $512.74 $512.74 $564.24 330,000 $746.21 $828.62 $828.62 $911.02

175,000 $473.82 $526.47 $526.47 $579.12 335,000 $748.50 $830.91 $830.91 $915.60

180,000 $485.27 $540.20 $540.20 $594.00 340,000 $749.65 $834.34 $834.34 $917.89

185,000 $497.86 $551.65 $551.65 $608.87 345,000 $753.08 $836.63 $836.63 $920.18

190,000 $508.16 $565.38 $565.38 $620.32 350,000 $755.37 $838.92 $838.92 $922.47

195,000 $519.60 $576.83 $576.83

$634.05

Each Add'l

$1000

200,000 $529.90 $588.27 $588.27 $647.79 $351 –

$500,000 $1.88 $1.99 $1.99 $2.58

205,000 $541.35 $599.72 $599.72 $660.38 $500,000

plus $1.58 $1.67 $1.97 $2.24

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