Homeowners Preferred _March 2007_

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Homeowners Preferred _March 2007_ Powered By Docstoc
					UTAH PREFERRED HOMEOWNERS PROGRAM MANUAL

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
  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........................................... 19
  Scheduled Personal Property – Use Form HO 04 61 ............................................................... 20
  Upgrade Package (Deluxe Form) – Forms HO 04 90, HO 04 95 & HO 04 98.......................... 20
    Personal Property Replacement Cost –Form HO 04 90 ........................................................ 20
    Water Back Up and Sump Overflow – Use Form HO 04 95 .................................................. 20
    Refrigerated Personal Property – Form HO 04 98................................................................. 20
LIABILITY COVERAGES ............................................................................................................. 21
  Residence Premises Liability – Increased Limits – 1 or 2 Family Residence ........................... 21
  Additional Residence Occupied by Insured – Extend Liability - no form necessary.................. 21
  Additional Residence Rented to Others – Use Form HO 24 70 ................................................ 21
RATING RULES ........................................................................................................................... 22
  Homeowners Forms .................................................................................................................. 22
  Tenant Form HO 00 04 ............................................................................................................. 22
  Condominium Form HO 00 06 .................................................................................................. 22
FORM HO 00 06 – BASE PREMIUM CHART.............................................................................. 22
  Coverage C – Premiums ........................................................................................................... 22
  Coverage A – Premiums ........................................................................................................... 22
FORM HO 00 04 – BASE PREMIUM CHART.............................................................................. 23
  Coverage C – Premiums ........................................................................................................... 23
  Coverage A – Premiums ........................................................................................................... 23
FORM HO 00 03 – BASE PREMIUMS......................................................................................... 24
  Protection Classes 1-8 .............................................................................................................. 24




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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     0401    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     0694    Earthquake
   HO 04 61     0491    Scheduled Personal Property
   HO 04 90     0491    Personal Property Replacement Cost
   HO 04 95     1192    Water Back Up and Sump Overflow
   HO 04 96     0491    Home Day Care Coverage Limitation
   HO 04 98     0491    Refrigerated Property Coverage



  Forms          Date   Title
  DOG-00         0104   Animal Liability Exclusion
  IL 7021        0102   Policy Signature Page
  GLE-8023       0192   Exclusion – Claims Arising Out of Lead
  HOC0019UT      0303   Executive Homeowners Coverage Form
  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        0704   Roof Exclusion
  UT HO 23       0602   Trampoline Exclusion
                 0704   Policy Declarations Page
  UU 00 12       0704   Property Underwriting Questionnaire




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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
   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, 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.: propane, 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 $500,000 require prior approval from underwriting.
              -Risks with trampolines must have a fenced yard (a surcharge applies). Special
               trampoline safety netting is strongly recommended.

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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 $1,300,000.
   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 $1,000,000.

   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 actual cash value, if written on ACV settlement, or 100%
      of Replacement Cost if written on Replacement Cost settlement. 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’s 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 competed. 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      The entire house is built in a factory, shipped to consumers’ premises in
      Modular         sections, and assembled on the site, in accordance with local building codes
                      and laws. It is installed on a permanent foundation.
      Site – Built     Single building separated by space. Twin Homes or duplexes may qualify.
      Home             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        Occupied intermittently or for short periods of time such as weekends or
      Dwelling         holidays.
      Course of        Unoccupied home under construction
      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         Unoccupied for three or more consecutive months during a one-year
      Dwelling         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,             Yes           Yes         Yes
           Riot or Civil commotion,
           Aircraft, Vehicles or Smoke
       Vandalism or malicious mischief           Yes           Yes         Yes
       Theft                                     Yes           Yes         Yes
       Volcanic eruption                         Yes           Yes         Yes
       Falling objects, Weight of ice,           Yes           Yes         Yes
       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
       Additional risks with certain           Yes *           No          No
       exceptions (Special Coverage)         Cov. A & B
       Replacement Cost
       For Coverages A and B                     Yes           N/A         Yes
       For Coverage C**                          No            No          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    Refer to Underwriting        N/A                    $5,000
      Limit                   Guidelines
      B - Other Structures    10% of A                     N/A                    N/A
      C - Personal Property   50% of A                     $15,000 Minimum        Refer to
                                                                                  Underwriting
                                                                                  Guidelines
      D - Loss of Use         20% of A                     N/A                    20% 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 $125 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                  -25%
                   1- Years                    -22%
                   2 Years                     -20%
                   3 Years                     -18%
                   4 Years                     -16%
                   5 Years                     -14%
                   6 Years                     - 12%
                   7 Years                     - 10%
                   8 Years                     - 8%
                   9Years                      - 6%
                   10Years                     -5%
                   11 Years                    -4%
                   12 Years                    -3%
                   13 Years                    -2%
                   14 Years                    -1%
                 15 - 1981                      0%
                1965 -1980                     +4%
               1964 or older                   +8%




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   Territory Location Multipliers – Form HO 03 only

   An 8% credit will be applied for those properties located in Washington County

   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       5%
       and the Police Department or to a Central Station

   Course of Construction
     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                                   HO 00 04
         Amount               HO 00 03              HO 00 06
           $250                Base                  Base
            500                 0.90                  0.90
          1,000                 0.80                  0.80
          2,500                 0.75                  0.75
      The above deductible factors apply to all property endorsements and coverage.




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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.
   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      no mtg.
                                                                          Credit
      1                  Choicepoint Attract Score 846-997                  0.80           0.950
      2                  Choicepoint Attract Score 785-845                 0.85            0.935
      3                  Choicepoint Attract Score 748-784                 0.89            0.920
      4                  Choicepoint Attract Score 722-747                 0.93            0.905
      5                  Choicepoint Attract Score 710-721                 0.96            0.890
      6                  Choicepoint Attract Score 682-709                 Base            0.875
      7                  Choicepoint Attract Score 667-681                 1.04            0.860
      8                  Choicepoint Attract Score 651-666                 1.07            0.860
      9                  Choicepoint Attract Score 634-650                 1.11            0.860
      10                 Choicepoint Attract Score 600-633                 1.15            0.860
      ns                             noscore                                1.11           0.860




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UTAH PREFERRED HOMEOWNERS PROGRAM MANUAL

   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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UTAH PREFERRED HOMEOWNERS PROGRAM MANUAL

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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UTAH PREFERRED HOMEOWNERS PROGRAM MANUAL

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 $0.21 per $100 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 for the
      same limits as provided in the policy. The deductible is 5% of the limit of liability for
      Coverage A on Form HO 00 03, and Coverage C on form HO 00 06; subject to a
      minimum deductible of $250. 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                 $0.10        n/a             Coverage C 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 $100.

   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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UTAH PREFERRED HOMEOWNERS PROGRAM MANUAL

   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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UTAH PREFERRED HOMEOWNERS PROGRAM MANUAL

   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
   Not available when the Executive Enhancement Coverage is chosen

      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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UTAH PREFERRED HOMEOWNERS PROGRAM MANUAL

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    $500,000
          1 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    $500,000
          1 or 2 Families              9              15          25
      The above charges apply regardless of the Medical Payments Limit.




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UTAH PREFERRED HOMEOWNERS PROGRAM MANUAL

RATING RULES

   A special 10% cap will apply for all existing CSE Safeguard Insurance Company
   policyholders which will be rolled into this new program. All CSE Safeguard renewals will be
   renewed and re-rated in the new program with their renewal premium not to exceed 110% of
   the prior term premium. At each subsequent renewal, the premium will be increased by an
   amount not to exceed 10% until the policy premium reaches the filed rate level.
   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      $107      $140
       30,000       116       154
       35,000       127       167
       40,000       135       181
       45,000       148       198
       50,000       159         211
     Each Add'l
       $1,000      $2.63       $3.15

   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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UTAH PREFERRED HOMEOWNERS PROGRAM MANUAL

FORM HO 00 04 – BASE PREMIUM CHART
   Coverage C – Premiums

      Amount       Number of Units
       of Ins.      1-4       5+
      $15,000      $100      $113
       20,000       112       122
       25,000       120       131
       30,000       131       145
       40,000       156       179
       50,000       182         200
     Each Add'l
       $1,000      $2.80       $3.15

   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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UTAH PREFERRED HOMEOWNERS PROGRAM MANUAL

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     $152         $169     $169      $186        $210,000        $482         $536     $536      $590
 55,000      $154         $171     $171      $187         215,000        $493         $547     $547      $602
 60,000      $155         $172     $172      $188         220,000        $502         $557     $557      $612
 65,000      $156         $173     $173      $192         225,000        $511         $568     $568      $624
 70,000      $159         $178     $178      $195         230,000        $520         $577     $577      $634
 75,000      $187         $209     $209      $229         235,000        $529         $588     $588      $646
 80,000      $195         $216     $216      $238         240,000        $538         $597     $597      $656
 85,000      $202         $225     $225      $248         245,000        $547         $607     $607      $667
 90,000      $213         $237     $237      $260         250,000        $555         $617     $617      $678
 95,000      $224         $248     $248      $273         255,000        $565         $627     $627      $689
 100,000     $237         $262     $262      $289         260,000        $574         $636     $636      $700
 105,000     $245         $272     $272      $299         265,000        $583         $647     $647      $710
 110,000     $253         $281     $281      $309         270,000        $591         $656     $656      $722
 115,000     $263         $293     $293      $322         275,000        $599         $666     $666      $733
 120,000     $274         $305     $305      $335         280,000        $609         $677     $677      $744
 125,000     $284         $316     $316      $348         285,000        $618         $686     $686      $754
 130,000     $297         $330     $330      $363         290,000        $627         $696     $696      $765
 135,000     $310         $344     $344      $379         295,000        $634         $705     $705      $775
 140,000     $324         $358     $358      $394         300,000        $643         $715     $715      $786
 145,000     $336         $373     $373      $411         305,000        $645         $716     $716      $788
 150,000     $351         $390     $390      $428         310,000        $646         $718     $718      $790
 155,000     $364         $405     $405      $445         315,000        $648         $720     $720      $792
 160,000     $379         $421     $421      $463         320,000        $649         $722     $722      $794
 165,000     $391         $435     $435      $478         325,000        $650         $722     $722      $795
 170,000     $404         $448     $448      $493         330,000        $652         $724     $724      $796
 175,000     $414         $460     $460      $506         335,000        $654         $726     $726      $800
 180,000     $424         $472     $472      $519         340,000        $655         $729     $729      $802
 185,000     $435         $482     $482      $532         345,000        $658         $731     $731      $804
 190,000     $444         $494     $494      $542         350,000        $660         $733     $733      $806
                                                            Each
                                                            Add'l
 195,000     $454         $504     $504      $554          $1000
                                                           $351 –
 200,000     $463         $514     $514      $566        $500,000         $1.83       $1.94    $1.94     $2.52
                                                         $500,000
 205,000     $473         $524     $524      $577           plus          $1.56       $1.65    $1.94     $2.21




Effective 03/12/2007 New, 05/12/2007 Renewal        24              CSE Safeguard Insurance Company

				
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