CITY COUNTY + CPIC ASSESSMENT :.47% STATE ZIP CODE + MGA FEE YEAR CONSTRUCTED # OF UNITS + EMPT FEE CONSTR. TYPE GROUND FLOOR = TOTAL POLICY PREMIUM

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1 SERVICE INSURANCE COMPANY PREFERRED HO-6 PROGRAM P.O. BOX 241, BRADENTON, FL (941) or (877) Florida Condominium Unit Owners Application & Rates UNIT NUMBER FLOOR #: CONTENTS BASE PREMIUM CONDO NAME NAME - INLAND/COASTAL CREDIT + DWELLING A & A BASE PREM MAILING ADDRESS = BASE PREMIUM CITY - LOSS MITIG. & BCEG CREDIT - OTHER CREDITS STATE ZIP CODE - DEDUCTIBLE EFFECTIVE DATE CONDO STREET ADDRESS + LIABILITY TOTAL BASE PREMIUM CITY COUNTY + CPIC ASSESSMENT :.47% STATE ZIP CODE + MGA FEE YEAR CONSTRUCTED # OF UNITS + EMPT FEE CONSTR. TYPE GROUND FLOOR = TOTAL POLICY PREMIUM PROT. CLASS OWNER OCCUPIED PURCHASE PRICE OF CONDO RENTED *Construction Codes FIRE DISTRICT Code Description DISTANCE TO: HYDRANT MAINLAND COAST 1 Frame ADDITIONAL INSURED 2 Joisted Masonry 3 Non-Combustible MORTGAGEE 4 Masonry Non-Combustible 5 Modified Fire Resistive LIST PREVIOUS LOSS HISTORY 6 Fire Resistive 7 Heavy Timber Joisted 8 Superior Non-Combustible 9 Superior Masonry Non-Combustible 10 Brick Veneer RATING QUESTIONS CONTENTS AMOUNT: DWELLING A & A: OTHER CREDITS PROTECTIVE DEVICES CREDIT AOP DEDUCTIBLE WINDSTORM PROTECTIVE LIABILITY: DEVICES CREDIT OTHER CREDITS: PROTECTIVE DEVICES, WINDSTORM PROTECTIVE DEVICES - PROVIDE SPECIFIC DOCUMENTATION IN ORDER TO RECEIVE CREDIT AGENCY NAME: PHONE #: ADDRESS: FAX # AGENT LICENSE #: PREPARED BY AGENT NAME: ANY PERSON WHO KNOWINGLY AND WITH INTENT TO INJURE OR DECEIVE ANY INSURER FILES A STATEMENT OF CLAIM OR AN APPLICATION CONTAINING ANY FALSE, INCOMPLETE, OR MISLEADING INFORMATION IS GUILTY OF A FELONY OF THE THIRD DEGREE. PI280 (4/06) Service Insurance Company (941) P.O. Box 9729, Bradenton, FL 34206

2 SERVICE INSURANCE COMPANY PREFERRED HO-6 PROGRAM P.O. BOX 241, BRADENTON, FL (941) or (877) Florida Condominium Unit Owners Application & Rates Instructions and Guidelines Complete the Preferred HO - 6 Application. Coverage will NOT be considered by the Company unless all data is complete. New business applications must be mailed to Pillar Insurance Agency within three (3) working days. Application must include Full Payment. We do not accept Premium Finance. Claims (cont'd) Pillar will contact Service Insurance Company immediately upon receipt of loss report from your office. Questions about claims should be directed to PILLAR INSURANCE AGENCY office in Bradenton, FL. Back dating of applications is not permitted. All renewals will be direct billed to the insured. Renewal notices are mailed to the insured 60 days in advance of renewal date. If an insured mails renewal payment after the policy has lapsed and/or has been cancelled for non-payment, we may issue a new policy effective the date we receive the payment in our office. You will receive closed claim advise on all losses at the appropriate time. DEDUCTIBLE $ BASE $1,000 - Subtract$30.00 OTHER OPTIONS - REFER TO COMPANY CONTENTS Coverage is bound by Pillar Ins. Agency by return fax, telephone, or Frame Masonry Superior correspondence. $10,000 $355 $338 $305 $15,000 $420 $394 $354 Coverage may not be bound during a hurricane watch, warning or $20,000 $485 $446 $402 during an actual hurricane or for 48 hours following a hurricane. $25,000 $552 $504 $454 $30,000 $607 $557 $503 Policy Credits $35,000 $671 $610 $548 Protective Devices: 2% to 7% $40,000 $732 $671 $604 Windstorm Protective Device: 10% to 20% $50,000 $864 $784 $706 Building Code Effectiveness - 2% to 10% ADD'L $12.00 PER $1,000 Documentation must be submitted to support credits All previous loss information must be submitted with the application. Cancellation of a policy by the insured requires the original policy returned or a lost policy release signed by the insured requesting cancellation. Return premiums are mailed directly to the insured unless otherwise notified. INLAND COUNTIES - Apply 37% credit for Units that are located in an Inland County. This credit applies to the first $50,000 of Contents Coverage. COASTAL COUNTIES - Apply 20% credit for Units that are located in a Coastal County and located more than two (2) miles from the mainland (Intercoastal) coast. This credit applies to the first $50,000 of Contents Coverage. Claims DWELLING A & A All Claims should be reported directly to your office by the insured. $10,000 $46.00 $300,000 INCLUDED $15,000 $67.00 $500,000 $50.00 Your office should FAX IMMEDIATELY an ACORD Loss Report $20,000 $89.00 Form to Pillar Insurance Agency upon notification of loss. ADD'L $5.00 PER $1,000 LIABILITY PI280 (4/06) Service Insurance Company (941) P.O. Box 9729, Bradenton, FL 34206

3 PREFERRED HO 6 CONDO SIX HOMEOWNERS I. GENERAL UNDERWRITING INFORMATION Please be aware that each risk will be underwritten based on its own merit. A. PROGRAM OBJECTIVE This program is designed to offer Condominium Unit Owners Coverage only. B. APPLICATIONS 1. Complete the HO-6 application form PI280. Typed applications are greatly appreciated. Applications must be completed in full. 2. Additional blank copies of the application may be photocopied in your office. 3. All previous loss information must be submitted with the application. 4. We require photos of all complexes. 5. We adhere to ISO Protection Classes. C. BINDING RULES 1. Risks with two or more claims in the last three years should not be bound. 2. Protection Classes 9 & 10 must be submitted for prior approval. 3. Applications are bound as of the date requested. Applications must be submitted within 48 hours after being bound. Coverage will NOT be bound unless all data is complete. 4. Risks with Scheduled Personal Property must be submitted for Prior Approval. To be considered, insured must be a full time Florida resident. 5. All binding authority is rescinded immediately when the National Hurricane Warning Center has issued an advisory warning for a particular area or when a hurricane is within 750 miles of the risk location, which ever occurs first. No binding authority will be extended until 48 hours after the warning has been lifted and agent verifies no damage to structure. 6. No converted apartment, motel or hotel buildings or units titled to corporations. 7. No FRAME construction. 8. Units on barrier islands or within ½ mile of tidal waters on the mainland must meet the following criteria: Superior construction or 5 stories or higher 24 years old or newer Cannot be top floor or ground floor units Rev. 04/05 PREF HO 6-2 FLORIDA SERVICE INSURANCE COMPANY

4 9. Units located more than ½ mile from tidal waters on the mainland must meet the following criteria: If of Superior construction or 5 stories or higher, the building must be 24 years old or newer If of Masonry Non-Combustible construction or Joisted Masonry construction, the building must be built in 1994 or later We will accept ground floor units but will not accept top floor units 10. Units located on mainland within one mile of Gulf or Atlantic Ocean must have a purchase or sales price of at least $200,000. Units located more than one mile from the Gulf or Atlantic Ocean must have a purchase/ sales price of at least $75, No premium Financing is permitted. Full payment is required with the application unless prior underwriting approval has been obtained. 12. The Named Insured cannot be a corporation or company. 13. The Named Insured cannot be a Trust. 14. Minimum Coverage A limit must be at least either $50,000 or 20% of purchase / sales price, whichever is greater. Minimum Coverage C limit must be at least $15, Units constructed using EIFS are not to be bound without prior approval. D. ENDORSEMENTS All endorsements will be computed on a pro-rata basis using the rules and rates in effect at the inception date of the policy. E. RENEWALS 1. Renewals are direct billed and mailed to the insured. 2. Renewals with any loss other than Acts of God or Sinkholes will be reviewed. 3. Risk less than twenty five (25) years will qualify. F. CANCELLATIONS 1. Cancellation of a policy by the insured requires the original policy returned or a lost policy release signed by the insured requesting cancellation. 2. All requests for cancellation will be processed on a pro-rata basis. 3. Return premiums for cancelled renewals are sent directly to the insured unless otherwise notified. Rev. 04/06 PREF HO 6-3 FLORIDA SERVICE INSURANCE COMPANY

5 CLAIMS GUIDELINES 1. Every file with 2 or more claims in a two-year period, or less, is subject for review. 2. Claims are reported to the local agent. The local agent reports those claims directly to the General Agent using ACORD form for Loss Adjustment by mail or fax. Typed forms are greatly appreciated. H. POLICY PAYMENT All policies are direct bill to the insured. II. FORMS A. All policies will automatically include the following forms: HO SI 312 SI 11 HO HO SI 284 HO HO SI 367 HO HC 150 SI 369 B. Increased Ordinance Or Law coverage is not available for this program. III. COVERAGES AND LIMITS OF LIABILITY All New Business will automatically be issued with the following minimum coverages and limits of liability. BUILDING $50,000 CONTENTS 15,000 LOSS ASSESSMENT 2,500 PERSONAL LIABILITY 300,000 MEDICAL PAYMENTS 1,000 DEDUCTIBLE 500 All policies include wind coverage; we do not offer wind excluded coverage IV. SUPPLEMENTAL RATING PROCEDURES * A. The application of percentage credits available for Protective Devices, Windstorm Protective Devices and Building Code Effectiveness will be calculated additively. B. *Jefferson County risks that are located more than two (2) miles from the mainland (Intercoastal) coast receive a 31% credit. C. A $2.00 charge is added to each policy for the State Emergency preparedness Trust Fund. D. A fully earned $25.00 Managing General Agent Fee is added to each policy Rev. 04/05 PREF HO 6-4 FLORIDA SERVICE INSURANCE COMPANY

6 V. WAIVER OF PREMIUMS A. Additional premiums $5.00 and under will be waived. B. Return premiums $5.00 and under will be waived unless requested by the insured. Rev. 04/05 PREF HO 6-5 FLORIDA SERVICE INSURANCE COMPANY

7 FLORIDA SERVICE INSURANCE COMPANY HOMEOWNERS POLICY PROGRAM MANUAL GENERAL RULES PREFERRED HO 6 CONDO SIX PROGRAM The Homeowners Policy Program provides property and liability coverages, using the forms and endorsements specified in this Manual. This Manual contains the rules and classifications governing the writing of the Homeowners Policy. Unless otherwise specified in this manual, all ISO rules, forms and protection classes apply. FORMS AVAILABILITY The company only writes form HO under this program. LIMITS OF LIABILITY AND COVERAGE RELATIONSHIPS A. The limits of liability provided under the Homeowners policy are as follows: 1. Section I - Property Damage Coverage HO A - Dwelling $ 5,000 B - Other Structures N/A C - Personal Property $0 D - Loss of Use 40% of C 2. Section II - Liability All Forms Coverage E - Personal Liability $300,000 Coverage F - Medical Payments to Others $ 1,000 Unless otherwise stated, Coverage E limits apply on an "occurrence" basis. Coverage F limits on an "each person" basis. B. All Forms The limit of liability for Coverages A & C of Section I and E of Section II may be increased. DESCRIPTION OF COVERAGES A. 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. Fire and Lightning Windstorm or Hail, Explosion, Riot or civil commotion, Aircraft, Vehicles or Smoke Vandalism or malicious mischief HO 06 Yes Yes Yes Theft Yes Volcanic eruption Yes HO6 GR 1 Copyright, Insurance Services Office, Inc

8 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 Additional risks with certain exceptions (Special Coverage) No B. Section II Coverages - Liability - All Forms Coverage E - Personal Liability Coverage F - Medical Payments to Others 1. Personal Liability - Covers payment on behalf of any insured for all sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage arising out of an insured's premises or personal activities. 2. Medical Payments to Others - Covers medical expenses incurred by persons, other than the insured, who sustain bodily injury caused by an accident arising out of an insured's premises or personal activities. MANDATORY COVERAGES It is mandatory that insurance be written for all coverages provided under both Section I and II of the Homeowners Policy. ELIGIBILITY A. Form HO A Homeowners Policy may be issued to the owner(s) of a condominium or cooperative unit which is used exclusively for residential purposes, and is not occupied by more than one additional family or more than two boarders or roomers. B. Subject to all other sections of this rule, a Homeowners Policy may be issued to cover a seasonal dwelling. C. A Homeowners Policy shall not be issued to cover any mobile home, trailer home, or housetrailer. D. Certain business occupancies are permitted, provided: 1. The premises is occupied principally for private residential purposes; and 2. There is no other business occupancy on the premises. PROTECTION CLASSIFICATION CODES AND INFORMATION A. Codes Protection Class Code B. Protection Information The Protection Class listings in the ISO Public Protection Classification manual apply to risks insured under Homeowners Program policies. 1. The protection class indicated applies in a municipality or classified area where a single class of fire protection is available throughout (8,7, 6, etc.). 2. In a classified area where two or more classifications are shown (e.g. 6/9), the classification is determined as follows: HO6 GR 2 Copyright, Insurance Services Office, Inc

9 DISTANCE TO FIRE STATION CLASS a. 5 road miles or less with hydrant (+) within 1,000 feet * * First protection class (e.g. 6/9...use Class 6) b. 5 road miles or less with hydrant (+) beyond 1,000 feet 9 c. Over 5 road miles 10 (+) Hydrant distance requirement does not apply when an alternate creditable water supply is available. Refer to footnotes under specific communities in Public Protection Classification Manual for applicability. 3. All other properties are Class 10. CONSTRUCTION DEFINITIONS A. Frame Exterior wall of wood or other combustible construction, including wood iron-clad, stucco on wood or plaster on combustible supports. (Use Construction Code 1.) Aluminum or plaster siding over frame. B. Masonry Veneer Exterior walls of combustible construction veneered with brick or stone. C. Masonry Exterior walls constructed of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile or similar materials and floors and roof of combustible construction (Disregarding floors resting directly on the ground). D. Superior Construction 1. Non-Combustible Exterior walls and floors and roof constructed of, and supported by metal, asbestos, gypsum, or other noncombustible materials. 2. Masonry Non-Combustible Exterior walls constructed or masonry materials (as described in C. above) and floors and roof of metal or other non-combustible materials. 3. Fire Resistive - exterior walls and floors and roof constructed of masonry or other fire resistive materials. Note: Mixed (Masonry/Frame) - a combination of both frame and masonry construction shall be classed and coded as frame when the exterior walls of frame construction (including gables) exceed 33 1/3% of the total exterior wall area; otherwise class and code as masonry. POLICY PERIOD The policy may be written for a period of: A. One year and may be extended for successive policy periods by extension certificate based upon the premiums, forms and endorsements then in effect for the Company. B. Less than one year on a pro rata basis and may be extended for successive policy periods based upon the premiums, forms and endorsements then in effect for the company. CHANGES OR CANCELLATIONS A. It shall not be permissible to cancel any of the mandatory coverages in the policy unless the entire policy is cancelled. B. If insurance is increased, cancelled or reduced, the additional or return premium shall be computed on a pro rata basis. HO6 GR 3 Copyright, Insurance Services Office, Inc

10 MANUAL PREMIUM REVISION A manual premium revision shall be made in accordance with the following procedures: A. The effective date of such revision shall be as announced. B. The revision shall apply to any policy or endorsement in the manner outlined in the announcement of the revision. C. Unless otherwise provided at the time of the announcement of the premium revision, the revision shall not affect: 1. in-force policy forms, endorsements or premiums, until the policy is renewed, or 2. in the case of a Deferred Premium Payment Plan, in-force policy premiums, until the anniversary following the effective date of the revision. MULTIPLE COMPANY INSURANCE Will not be permitted. MINIMUM PREMIUM Is not in effect for this program. TRANSFER OR ASSIGNMENT Subject to the consent of the company, all the rules of this manual and any necessary adjustment of premium, a policy may be endorsed to effect: A. Transfer to another location within the same state; or B. Assignment from one insured to another in the event of transfer of title of the dwelling. WAIVER OF PREMIUM When a policy is endorsed after the inception date, refer to Condo Six General Underwriting pages for the amount of additional or return premium that may be waived. WHOLE DOLLAR PREMIUM RULE Each premium shown on the policy and endorsements shall be rounded to the nearest whole dollar. A premium of fifty cents ($.50) or more shall be rounded to the next higher whole dollar. In the event of cancellation by the company, the return premium may be carried to the next higher whole dollar. BASE PREMIUM COMPUTATION A. The BASE PREMIUM is developed by adding the contents premium (less applicable Inland or Coastal credit) to any additional debits from increase in coverage to Dwelling Alterations or Additions or increased limits. Other credits, deductibles, and liability premiums are then applied and this results in a Total BASE PREMIUM. To the Total Base Premium add a fully earned $25 Managing General Agent fee next. Finally, the state $2.00 surcharge tax is added to give total premium. B. Construction Codes Frame 1 Fire Resistive 6 Joisted Masonry 2 Heavy Timber Joisted Masonry 7 Non-Combustible 3 Superior Non-Combustible 8 Masonry Non-Combustible 4 Superior Masonry Non-Combustible 9 Modified Fire Resistive 5 Masonry Veneer 10 ORDINANCE OR LAW COVERAGE Increased Limits Not available for this program. SPECIAL PERSONAL PROPERTY COVERAGE - HO Not available for this program. PERSONAL PROPERTY (COVERAGE C) REPLACEMENT COST COVERAGE This endorsement SI 312 Personal Property Replacement Cost is automatically included. HO6 GR 4 Copyright, Insurance Services Office, Inc

11 PROTECTIVE DEVICES Approved and property maintained installations of: A. Burglar and fire alarms in the dwelling may be recognized; and B. Automatic sprinklers in the dwelling shall be recognized. To compute the reduced premium, multiply the BASE PREMIUM by the selected factors below: Type of Installation* Factor Central Station Reporting Burglar Alarm.97 Central Station Reporting Fire Alarm.96 Police Station Reporting Burglar Alarm.98 Fire Department Reporting Fire Alarm.97 Local Burglar and/or Fire Alarm.98 Automatic Sprinklers in all areas including attics, bathrooms, closets, attached structures.93 Automatic Sprinklers in all areas except attic, bathroom, closet and attached structure areas that are protected by a fire detector.96 * Refer to company for eligibility, types of systems and devices, installations, and available credits. Use Endorsement HO Premises Alarm or Fire Protection System. FIRE DEPARTMENT SERVICE CHARGE The limit of $500 may be increased subject to the rules and rates of the company. FORM HO COVERAGE A DWELLING BASIC AND INCREASED LIMITS AND SPECIAL COVERAGE - HO A. Basic Limits The policy automatically provides a basic Coverage A limit of $5,000 on a named perils basis. B. Increased Limits The basic limit may be increased. The premium is developed based on the additional limits and rates shown in the table below. Limits Premium $ 5,000 Included 10,000 $ , , Add'l per thousand C. Special Coverage The Section I Perils Insured Against has been broadened to cover additional risks of loss. Endorsement HO Unit-Owners Coverage A - Special Coverage - has been automatically included. FORM HO UNITS REGULARLY RENTED TO OTHERS A. There is no coverage for Coverage C - Personal Property and Section II Liability when the residence premises is regularly rented or held for rental to others. The policy has been endorsed to provide such coverage, including Theft. Endorsement HO Unit-Owners Rental to Others - has been automatically included. REV (04/06) SERVICE INSURANCE COMPANY FLORIDA PREF HO6 PROGRAM HO6 GR 5 Copyright, Insurance Services Office, Inc. 1999

12 LOSS ASSESSMENT COVERAGE A. Residence Premises The policy automatically provides, at no additional charge, $1,000 of loss assessment coverage, excluding Earthquake, for assessments relating to the residence premises. This limit has been increased to $2,500 at no additional charge. No other additional limits are available. Endorsement HO has been automatically included. LOSS OF USE - INCREASED LIMIT (Policies automatically include 40% of Coverage C) Not available. PERSONAL PROPERTY A. Increased Limit The limit of liability for Coverage C may be increased. Charge the additional rate shown on the Application/Rate page for appropriate additional limits. B. Increased Limits - Other Residences Not available. C. Increased Special Limits of Liability Form HC-150 has been added to all policies and no other changes are permitted. D. Scheduled Personal Property (ENDORSEMENT HO 04 61) - Refer ALL schedules. RATE PER GENERAL GUIDELINE LIMIT PER ITEM $100. JEWELRY $7, FURS 5, CAMERAS 2, MUSICAL INSTRUMENTS 5, SILVERWARE 2, GOLFERS EQUIPMENT 5, FINE ARTS* 7,500 * POSTAGE STAMPS 1, COINS 1, FIREARMS not acceptable * See Item H and Fine Arts Premium Chart below. a. Satisfactory evidence of value will be required on all items valued at $1,500 or more (sales slip or other proper documentation). b. A recent qualified appraisal (normally 5 years) will be required on all items over $2,500. c. Not acceptable for schedule property coverage: 1. Students 2. Professional entertainers d. An acceptable appraisal - must be dated and signed by a qualified appraiser and show the four "c" (cut, carat, color & clarity) by scale. e. We do not insure damaged stones unless bill of sale or appraisal clearly shows reduced value. f. We do not want to write damaged or deteriorating furs. g. On furs, we would prefer a sales slip if purchased within the last three years. If item was purchased over three years ago, we require an appraisal to include type, length, color, origin and value. h. Special Breakage Coverage - Fragile Articles. Charge $1.50 per $1,000. i. Minimum Premium $17.00 HO6 GR 6 Copyright, Insurance Services Office, Inc. 1999

13 BASIC PREMIUM CHART FINE ARTS ANNUAL PREMIUMS ENTIRE STATE AMOUNT ONE TO FOUR FAMILES FIVE OR MORE FAMILIES OF MASONRY & FRAME MASONRY & FRAME INSURANCE PROTECTION CLASS PROTECTION CLASS $1,000 or LESS , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , HO6 GR 7

14 SECTION II COVERAGES PERSONAL LIABILITY AND MEDICAL PAYMENTS TO OTHERS RESIDENCE PREMISES - BASIC AND INCREASED LIMITS/OTHER EXPOSURES - BASIC LIMITS A. Residence Premises 1. Minimum limits of liability for Coverage E (Personal Liability) and Coverage F (Medical Payments to Others) are shown below. The premium for these limits is included in the BASE PREMIUM. Coverage E - Personal Liability $300,000 Coverage F - Medical Payments to Others $ 1,000 OTHER INSURED LOCATION OCCUPIED BY INSURED Not available. ADDITIONAL RESIDENCE RENTED TO OTHERS Not available. OTHER STRUCTURES RENTED TO OTHERS - RESIDENCE PREMISES Not available. HOME DAY CARE COVERAGE Not available. PERMITTED INCIDENTAL OCCUPANCIES - RESIDENCE PREMISES AND OTHER RESIDENCES Not available. BUSINESS PURSUITS Not available. PERSONAL INJURY Not available. INCIDENTAL MOTORIZED LAND CONVEYANCES Not available. OUTBOARD MOTORS AND WATERCRAFT A. Coverage is included in the policy form, at no additional charge, for watercraft powered by an outboard engine or motor or combination of outboard engines or motors of up to 25 horsepower, and sailboats less than 26 feet in overall length with or without auxiliary power. B. Coverage is available, for an additional premium, for the following: 1. Watercraft, up to 26 feet in length powered by outboard engines or motors exceeding 25 horsepower, Inboard or Inboard-Outdrive engines or motors. Accumulate total horsepower if two or more engines or motors are regularly used together with any single watercraft owned by insured. 2. Sailboats 26 feet or more in overall length, with or without auxiliary power. C. Coverage must be written to expiration of the policy. It is permissible, however, to stipulate for all watercraft eligible in this rule, the navigational period of each year. Premium shall be adjusted on a pro rata basis. D. For boats not described above, coverage is not permitted under the Homeowners Policy. E. The premium in the state where the insured's residence premises is located shall apply. However, if the insured owns another residence premises in a different state and principally operates the boat from that residence, apply the premium for that state. HO6 GR 8 Copyright, Insurance Services Office, Inc. 1999

15 F. Premium 1. Outboard, Inboard, or Inboard-Outdrive Engines or Motors Length Up to 15 Feet Over 15 to 26 Feet Horsepower Rate Rate Up to 50* $36 $ Refer to Co. 131 over 200 Refer to Co. Refer to Co. 2. Sailboats With or Without Auxiliary Power Overall Length/Feet Rate 26 to 40 feet* $36 over 40 feet Refer to Co. Outboard engines or motors of up to 25 horsepower or sailboats less than 26 feet in overall length with or without auxiliary power are covered in the policy form. Use Endorsement HO Watercraft INCIDENTAL FARMING PERSONAL LIABILITY Not available. OTHER EXPOSURES - PERSONAL LIABILITY INCREASED LIMITS Refer to Company before Binding. Apply the appropriate factor shown below to the basic limits premium for each exposure. Limit Premium 500,000 $50.00 OTHER EXPOSURES - MEDICAL PAYMENTS TO OTHERS INCREASED LIMITS Not available. SPECIAL STATE REQUIREMENTS Special Provisions Endorsement - HO Use this endorsement with all Homeowners policies. ADDITIONAL RULE(S) SPECIAL NOTE The specific premium charge or credit can be obtained by converting the factor shown in the rule to its charge or credit components (For premium charge: factor minus 1.00; For premium credit: 1.00 minus factor) and applying the result to the BASE PREMIUM. LIMITED FUNGI, WET OR DRY ROT, OR BACTERIA COVERAGE I. Section I. Property A. Property Coverage Description and Application of Limits of Liability 1. Basic Limit The policy provides up to $10,000 (subject to a $20,000 policy aggregate) of coverage to pay for loss to covered real or personal property, owned by an insured, that is damaged by fungi, wet or dry rot, or bacteria on the "residence premises" as described in Limited Fungi, Wet or Dry Rot, Or Bacteria Coverage Endorsement SI This basic limit will not exceed the policy limit shown on the declarations page. HO6 GR 9 Copyright, Insurance Services Office, Inc. 1999

16 2. Increased Limits The basic limit may be increased to $25,000 or $50,000 on a per loss basis. These limits must be offered for all new policies and at first renewal for existing policies. With respect to either increased limit option, $50,000 is the policy aggregate. The limit selected should be entered on Limited Fungi, Wet or Dry Rot, or Bacteria Coverage For Section I. Property Coverages Endorsement SI The increased limit will not exceed the policy limit shown on the declarations page. Increased Limits are only available when the policy limits for Coverage A and Coverage C are equal to or greater than the available Increased Limits of coverage. Example: If Coverage A = $35,000 and Coverage C = $35,000 you may only purchase an Increased Limit of $25,000 Coverage. If Coverage A = $50,000 and Coverage C = $50,000 you may purchase either $25,000 or $50,000 Limited Fungi, Wet or Dry Rot, Or Bacteria Coverage B. Premium Computation 1. Basic Limits There is no premium adjustment. 2. Increased Limits Option 1 Section I Limits: $ 25,000 Each Covered Loss $ 50,000 Policy Aggregate... $60.00 Option 2 Section I Limits: $ 50,000 Each Covered Loss $ 50,000 Policy Aggregate... $90.00 II. Section II. Liability A. Liability Coverage Description and Application of Limits of Liability 1. Limit Limited Fungi, Wet or Dry Rot, or Bacteria Section II Liability Coverage endorsement (SI ) is attached to the policy, up to $50,000 of coverage is provided to pay 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. B. Premium Computation 1. Basic Limits There is no premium adjustment. WINDSTORM PROTECTIVE DEVICES A. Eligibility 1. When the policy covers the peril of Windstorm or Hail, a risk located in the State of Florida may be eligible for a premium credit if ALL exterior wall and roof openings in buildings such as doors, windows, skylights and vents, other than roof ridge vents and soffit vents are fully protected with Windstorm Protective Devices such as resistant storm shutters, glazing materials or doors. Windstorm Protective Device Credits do not apply to homes that are built, renovated or retrofitted to Florida Building Code Use Endorsement HO Windstorm Protective Devices. HO6 GR 10 Copyright, Insurance Services Office, Inc. 1999

17 2. The windstorm protective device must be of a recognized product line that has been: a. Designed and built to effectively withstand the wind pressure and impact form wind-borne debris in accordance with the standards established for the area in Florida where the insured property is located by: (1) The Southern Building Code Congress International (SBCCI); (2) The municipality in which the insured property is located, but only if the standards are more stringent than those of the SBCCI; or (3) Another organization acceptable to the insurer provided the standards meet, at a minimum, the wind pressure and impact requirements established by SBCCI; and b. Tested to meet the testing protocol of: (1) SSTD published by the SBCCI; (2) ASTM E1886 or E1996 published by the American Society for Testing and Materials; or (3) Another organization acceptable to the insurer. 3. A building does not require a garage door storm door shutter if the manufacturer of the door warrants that the door meets a factor of safety of 2.5 or better; or the door is retrofitted to meet that factor of safety, and the door meets the required debris impact standard. Note: A factor of safety of 2.5 signifies that the garage door and its components, including the anchorage of the door frame, is designed and installed to withstand at a minimum the external pressure from a windstorm as described in 2.a. above. 4. An insured may forgo an exterior door shutter if the door meets both the required wind pressure and debris impact standards. B. Qualification for Credit 1. All Forms To qualify for the credit, a windstorm protective device shall fully protect ALL exterior openings of: a. The dwelling and any other building on or at the location of the residence premises. 2. Specific Structures Away from the Residence Premises HO To qualify for credit, a windstorm protective device shall fully protect ALL exterior openings of all owned buildings at one or more locations away from the residence premises that contain one or more specifically insured building(s). C. Proof of Compliance We may require proof that the windstorm protective devices used are in compliance with the testing standards of ASTM E1886 or E1996, SSTD or an equivalent. (ASTM E 1996 is tentatively scheduled to be released before the end of 1999.) D. Responsibility for Closing and Securing Shutters We may require the insured to make arrangements with others to close and secure all storm shutters when the insured is not able to do so. E. Classification Plan 1. Class A applies if the risk meets both the wind pressure and debris impact requirements. 2. Class B applies if the risk meets just the wind pressure requirements. Note: Once assigned to the insured property, Class A will remain applicable for subsequent renewals in the same company even if the wind pressure or debris impact requirements become more stringent for the area in which the insured property is located. F. Premium Credit Computations 1. Base Class Premium Credit Compute the premium credit as follows: a. Multiply the sub-total base premium by credit factors below: 1) Class A -.20 for all territories 2) Class B -.10 for all territories HO6 GR 11 Copyright, Insurance Services Office, Inc. 1999

18 RESIDENTIAL WINDSTORM LOSS MITIGATION DEVICES A. Wind Resistive Construction to Florida Building Code General Information When the policy covers the peril of Windstorm or Hail, a risk is eligible for premium discounts if the dwelling has been built or retrofitted in conformance with the windstorm mitigation elements of the Florida Building Code Dwellings built prior to the Florida 2001 Building Code do not have to meet all the minimum standards of the Florida 2001 Building Code to qualify for credits. 2. Florida Building Code Zone Descriptions a. High Velocity Hurricane Zone (HVHZ): Miami-Dade and Broward Counties b. Wind Borne Debris Region (WBDR): Areas with wind speeds in excess of 120 MPH AND/OR areas within one mile of the coast where wind speed is 110 MPH or higher. c. Panhandle Protection Provision Zone: From Franklin County to the Florida-Alabama state line, the WBDR is restricted to the area within one mile of the coast. d. Terrain Exposure C: Applies to all areas in the HVHZ, the barrier islands and that area which lies within 1500 feet of the coastal construction control line or within 1500 feet of the mean high tide line, whichever is less. e. Terrain Exposure B: Applies to all other locations in Florida not defined by the HVHZ, WBDR or Terrain Exposure C. 3. Wind-Resistive Rating Variables Definitions a. Internal Pressure Design (1) Enclosed An enclosed structure is designed assuming that all openings are closed and therefore the wind loads are determined using a small internal pressure inside the building. (2) Partially Enclosed A partially enclosed building is designed assuming that one or more areas of the building are open to allow wind to enter the building and pressurize the interior. This pressurization means that individual parts of the building must be designed to withstand greater wind loads than an Enclosed building and thus are stronger than the similar features of an Enclosed house. b. Secondary Water Resistance (SWR) a layer of protection that protects the building if the roof covering fails. SWR is a water-proofing technique. The most economical way to achieve SWR is by applying a self-adhering modified bitumen tape to the plywood joints of the rood deck. c. Roof Shape (1) Hip Roof has sloping ends and sloping sides down to the roof eave line. (2) Other Roof all roof shapes other than hip. d. Roof Cover (1) FBC Roof coverings that meet the 2001 Florida Building Code standards for improved material requirements and attachment methods. (2) Non-FBC Roof coverings that do not meet the 2001 Florida Building Code requirements. e. Roof to wall connection (1) Toe Nails a connection where approximately three nails are driven at an oblique angle through the rafter into the top plate. (2) Clips pieces of metal that are nailed into the side of the rafter/truss and into the side of the top plate or wall stud. (3) Wraps (a) Single wrap style straps that are attached to the side and/or bottom of the top plate and are nailed to the rafter/truss. (b) Double Straps that are wrapped on both sides and have double the capacity of the single strap. HO6 GR 12

19 f. Roof Deck Attachment (1) Type A Plywood/OSB nailed with 6 penny common nails at 6 spacing on the edge and 12 in the field on 24 truss spacing. (2) Type B Plywood/OSB nailed with 8 penny common nails at 6 spacing on the edge and 12 spacing in the field on 24 truss spacing. (3) Type C Plywood/OSB nailed with 8 penny common nails at 6 spacing on the edge and 6 spacing in the field on 24 truss spacing. (4) Type D - Dimensional lumber and Tongue Groove Decks. g. Opening Protection (1) None (2) Basic opening protections that were designed prior to the SFBC/SSTD 12/ASTM E 1996 standards and thus are considered untested. (3) Hurricane opening protections that are designed for impact resistant standards of SFBC/SSTD 12/ASTM E These standards apply to both impact resistant glazing and impact resistant coverings (i.e. shutters). h. Reinforced Concrete Roof Deck A roof deck designed and constructed in accordance with the provisions of ACI (American Concrete Institute) 318, including integral construction with a masonry wall system. 4. Verification The Company may require documentation that the dwelling was built or retrofitted to meet the minimum standards of the Florida Building Code (2001). Acceptable documentation is a certified statement completed and signed by a certified building inspector or a licensed contractor. Use form IL-0002 (0203) Florida Building Code Mitigation Verification Affidavit. Any cost for certification shall be the insured s responsibility. Dwellings permitted on or after March 1, 2002 need only proof of construction permit date or proof from Building Code Department. 5. Qualification for Credit a. The premium credit does not apply when the peril of Windstorm or Hail is excluded from the policy. b. A home located in the Wind Borne Debris Region (WBDR), including the High Velocity Hurricane Zone (HVHZ), must have approved Opening Protection as required by the 2001 Florida Building Code to qualify for a premium credit. c. Homes constructed prior to Florida Building Code 2001 that have been renovated or retrofitted to Florida Building Code 2001 must submit form IL-0002 (0203) Florida Building Code Mitigation Verification Affidavit. d. Homes that qualify for a BCEG credit and are built, renovated or retrofitted to Florida Building Code 2001, apply a.75 factor to the applicable BCEG credit. e. The following do not apply to homes that are built, renovated or retrofitted to Florida Building Code 2001: 1. New Home Credit 2. Windstorm Protect Device Credit Note: Hip Roof credits on existing policies will only require photos & a statement from the insured. If the home meets any section of the Florida Building Code 2001 the appropriate credit will be given. 6. Premium Computation If the risk is eligible for a Florida Building Code 2001 Windstorm Mitigation Discount, compute the premium credit as follows: a. Multiply the appropriate factor from the Florida Building Code 2001 Credit tables in item 7.a, b, or c by the applicable Windstorm Mitigation Credit Adjustment Factor. b. Multiply the result from step 6.a by the BASE PREMIUM. HO6 GR 13

20 7. Florida Building Code 2001 Windstorm Mitigation Credit Tables a. Dwellings Constructed to Florida Building Code 2001 Territory No Opening Protection Other Roof Shape Opening Protection Hip Roof Shape No Opening Protection Opening Protection Statewide b. Dwellings Constructed prior to Florida Building Code 2001 that have been renovated or retrofitted to Florida Building Code TERRAIN B TERRAIN C Other Roof Hip Roof Shape Other Roof Hip Roof Shape Shape Shape Roof Cover Roof Deck Roof-Wall Connection Opening NO SWR NO SWR NO SWR NO SWR Attachment Protection SWR SWR SWR SWR NON - FBC A Toe Nails None Basic Hurricane Clips, None Single Wraps, or Basic Double Wraps Hurricane NON - FBC B, C, D Toe Nails None Basic Hurricane Clips, None Single Wraps, or Basic Double Wraps Hurricane FBC A Toe Nails None Basic Hurricane Clips, None Single Wraps, or Basic Double Wraps Hurricane FBC B, C, D Toe Nails None Basic Hurricane Clips, None Single Wraps, or Basic Double Wraps Hurricane c. Reinforced Concrete Roof Deck. Opening Protection Terrain B Terrain C None Basic Hurricane Terrain B Territories: Terrain C Territories: All Inland Counties Dade, Duval, Hillsborough, Volusia, Brevard, Broward, Monroe, and All Other Coastal Counties HO6 GR 14

21 Windstorm Mitigation Credit Adjustment Factors 11.5% - Alachua, Baker, Bradford, Calhoun, Clay, Columbia, Gadsden, Gilchrist, Hamilton, Holmes, Jackson, Lafayette, Lake, Leon, Liberty, Madison, Marion, Putnam, Sumter, Suwannee, Union, Washington 59.5% - Bay, Charlotte, Citrus, Dixie, Flagler, Gulf, Hernando, Lee, Levy, Manatee, Okaloosa, Pasco, Santa Rosa, Sarasota, St. Johns, Taylor, Wakulla, Walton 61.6% - Brevard, Volusia 69% - Broward, Collier, Franklin, Glades, Hendry, Okeechobee 73.8% - Dade 49.9% - Desoto, Hardee, Highlands 17.9% - Duval 63.2% - Escambia 31% - Hillsborough 71.1% - Indian River, St. Lucie 40.3% - Jefferson, Nassau 70.8% - Martin 69.3% - Monroe 10.1% - Orange 13.7% - Osceola, Seminole 67.8% - Palm Beach 45.2% - Pinellas 12.2% - Polk HO6 GR 15

22 BUILDING CODE EFFECTIVENESS GRADING A. General Information 1. The Building Code Effectiveness Grading Schedule develops a grade of 1 to 10 for a community based on the adequacy of its building code and the effectiveness of its enforcement of that code. Policies which cover the perils of Windstorm or Hail or Earthquake may be eligible for special rating treatment, subject to the criteria in the following paragraphs. The Building Code Effectiveness Grading factor applies, where applicable, in addition to the Public Protection Classification factors. 2. In some communities, two Building Code Effectiveness Grades may be assigned. One grade will apply to 1 and 2 family dwelling buildings and/or personal property contained in such buildings. The other grade will apply to all other buildings occupied for residential, commercial and/or manufacturing purposes including personal and business property contained therein. The Public Protection Classification Manual will indicate the application of each grade. 3. The Building Code Effectiveness Grades for a community, and their effective dates, are provided in the Public Protection Classification Manual published by ISO Commercial Risk Services, Inc. B. Community Grading 1. The Building Code Effectiveness Grade applies to any building that has an original certificate of occupancy dated in the year of the effective date of the community grading, or later. A rating factor is provided for each community grade. 2. If a community is regraded subsequent to its initial grading, the factor for the revised grade applies to buildings that have an original certificate of occupancy dated the year of the effective date of the revised grading, or later. 3. Where certificates of occupancy are not issued, equivalent documentation acceptable to the company may be used. 4. If, due to an addition or alteration, the original building is changed to comply with the latest building code, the factor for the community grading applicable at the time the reconstruction is completed will apply to such building. 5. The Building Code Effectiveness Grade may apply to Windstorm/Hail or Earthquake, or to both. Specific information is provided in the Public Protection Classification Manual. If the grade in the manual does not apply to one of the perils, the factor should not be applied for that peril. 6. Communities that decline to participate in the Building Code Effectiveness Grading Program will be identified in the Public Protection Classification Manual as not participating. Buildings in these communities will receive a premium surcharge, unless they qualify for individual grading under C. below. This surcharge will apply to any building that has an original certificate of occupancy dated in the year of the effective date of the community evaluation that indicates the community as not participating. C. Individual Grading Where buildings have been built in full conformance with the natural hazard mitigation elements of one of the nationally recognized building codes even though the community grade is greater than 1, or the community is not participating in the program, exception rating procedures may apply. 1. Any building may be classified as Grade 1 for Windstorm/Hail upon certification by a registered or licensed design professional, based on an on-site inspection, that such building is in compliance with one of the three nationally recognized building codes with respect to mitigation of the Windstorm and/or Hail hazard. This classification is effective only from the date of the certification. 2. Any building may be classified as Grade 1 for Earthquake upon certification by a registered or licensed design professional, based on an on-site inspection, that such building is in compliance with the Earthquake hazard mitigation elements of one of the three nationally recognized building codes. This classification is effective only from the date of the certification. HO6 GR 16 Copyright, Insurance Services Office, Inc. 1999

23 D. Ungraded and Non-Participating Risks Buildings which do not meet the criteria in B. and C. for Grade assignment are rated and coded as ungraded or nonparticipating risks. Do not classify as Grade 10. E. Premium Credit Computation 1. Community Grading a. Windstorm or Hail (1) For a risk written in a community that participates in the Building Code Effectiveness Grading program, compute the premium credit as follows: (a) Multiply the total premium less debits and credits by the appropriate factor in E.1.b(1); and (b) Multiply the result from Step (a) above by the Key Factor for the desired amount of insurance. (2) For a risk written in a community that does not participate in the Building Code Effectiveness Grading program compute the premium surcharge as follows: (a) Multiply the total premium before debits and credits by a factor of.01. (3) The premium credit or surcharge does not apply when the peril of Windstorm or Hail is excluded from the policy. (4) Risks that qualify for a BCEG credit and are built, renovated or retrofitted to Florida Building Code 2001, apply a.75 factor to the applicable BCEG credit. b. Credit Factors (1) Windstorm or Hail Factors HO Grade (Code) 1(1) 2(2) 3(3) 4(4) 5(5) 6(6) 7(7) 8(8) 9(9) 10(10) Ungraded (99) Territory All WINDSTORM OR HAIL EXCLUSION BASE CREDIT A. The peril of Windstorm or Hail may be excluded for all coverages, including Coverage D - Loss of Use, if the property is eligible for such coverage from Citizens Property Insurance Corporation. B. To compute the credit, deduct the base premium by the percentage credit that follows by county: 11.5% - Alachua, Baker, Bradford, Calhoun, Clay, Columbia, Gadsden, Gilchrist, Hamilton, Holmes, Jackson, Lafayette, Lake, Leon, Liberty, Madison, Marion, Putnam, Sumter, Suwannee, Union, Washington 59.5% - Bay, Charlotte, Citrus, Dixie, Flagler, Gulf, Hernando, Lee, Levy, Manatee, Okaloosa, Pasco, Santa Rosa, Sarasota, St. Johns, Taylor, Wakulla, Walton 61.6% - Brevard, Volusia 69% - Broward, Collier, Franklin, Glades, Hendry, Okeechobee 73.8% - Dade 49.9% - Desoto, Hardee, Highlands 17.9% - Duval 63.2% - Escambia 31% - Hillsborough 71.1% - Indian River, St. Lucie 40.3% - Jefferson, Nassau 70.8% - Martin 69.3% - Monroe 10.1% - Orange 13.7% - Osceola, Seminole 67.8% - Palm Beach 45.2% - Pinellas 12.2% - Polk HO6 GR 17 Copyright, Insurance Services Office, Inc. 1999