DWELLING PROPERTIES PROGRAM. This Manual Contains Final Rates

Transcription

1 DWELLING PROPERTIES PROGRAM This Manual Contains Final Rates July 2014

2 VIRGINIA PROPERTY INSURANCE ASSOCIATION Base Rates Fire Coverage A & C All Forms Owner Occupied KEY PREMIUMS FP 1 Protection Territory - All Protected Semi- Protected Unprotected Protection Territory - All Protected Semi- Protected Unprotected FP 2 Protection Territory - All Protected Semi- Protected Unprotected Protection Territory - All Protected Semi- Protected Unprotected CONST Number of Families 1 2 Coverage Coverage Building Contents Building Contents M $66 $18 $72 $18 F $82 $23 $91 $23 M $82 $23 $91 $23 F $128 $35 $140 $35 M $99 $27 $109 $27 F $161 $45 $177 $45 CONST Number of Families 3 or 4 5 or More Coverage Coverage Building Contents Building Contents M $96 $27 $50 F $119 $33 $63 M $119 $33 $63 F $185 $51 $97 M $143 $40 $75 F $233 $65 $122 CONST Number of Families 1 2 Coverage Coverage Building Contents Building Contents M $88 $24 $97 $24 F $110 $31 $121 $31 M $110 $31 $121 $31 F $171 $47 $188 $47 M $132 $37 $145 $37 F $215 $60 $236 $60 CONST Number of Families 3 or 4 5 or More Coverage Coverage Building Contents Building Contents M $128 $35 $67 F $160 $44 $84 M $160 $44 $84 F $248 $69 $130 M $192 $53 $101 F $311 $86 $163 KEY FACTORS Limit of Liability (000 s) Limit of Liability (000 s) Coverage C Coverage A Each Additional $1, Each Additional $1, Dwelling Rates Page 1 February 2014

3 VIRGINIA PROPERTY INSURANCE ASSOCIATION Base Rates Fire Coverage A & C All Forms Non-Owner Occupied FP 1 Protection Territory - All Protected Semi- Protected Unprotected Protection Territory - All Protected Semi- Protected Unprotected FP 2 Protection Territory - All Protected Semi- Protected Unprotected Protection Territory - All Protected Semi- Protected Unprotected CONST KEY PREMIUMS Number of Families 1 2 Coverage Coverage Building Contents Building Contents M $72 $18 $80 $18 F $91 $23 $100 $23 M $91 $23 $100 $23 F $140 $35 $154 $35 M $109 $27 $120 $27 F $177 $45 $194 $45 CONST Number of Families 3 or 4 5 or More Coverage Coverage Building Contents Building Contents M $105 $27 $50 F $131 $33 $63 M $131 $33 $63 F $204 $51 $97 M $158 $40 $75 F $256 $65 $122 CONST Number of Families 1 2 Coverage Coverage Building Contents Building Contents M $97 $24 $107 $24 F $121 $31 $133 $31 M $121 $31 $133 $31 F $188 $47 $207 $47 M $145 $37 $160 $37 F $236 $60 $260 $60 CONST Number of Families 3 or 4 5 or More Coverage Coverage Building Contents Building Contents M $141 $35 $67 F $176 $44 $84 M $176 $44 $84 F $272 $69 $130 M $211 $53 $101 F $343 $86 $163 Limit of Liability (000 s) KEY FACTORS Coverag e A Limit of Liability (000 s) Coverag e C Each Additional $1, Each Additional $1, Dwelling Rates Page 2 February 2014

4 VIRGINIA PROPERTY INSURANCE ASSOCIATION BASE RATES Extended Coverage-All Forms Coverages A & C NON-SEASONAL Refer to Rule for rating seasonal properties. Form FP-2 is not eligible for seasonal or secondary coverage. Territory 05-07, 30-31, , 12, Form Coverage A Coverage - C FP-1 FP-2 FP-1 FP-2 Inland $15 $36 $2 $7 Seacoast $61 $119 $26 $65 11, 13 Beachfront $401 $643 $118 $229 Limit of Liability (000 s) Coverage A Limit of Liability (000 s) Coverage C Each Additional $1, Each Additional $1, Dwelling Rates Page 3 February 2014

5 Dwelling Rating Worksheet Dwelling Contents Other Structures Fire Other Perils Fire Other Perils Fire Other Perils Key Premium Increased Limits Factor Initial Premium Rate Pages 1-3 Rate Pages 1-3 X X X X X X = = = = = = Rule 7.1 Vandalism Credit Page 13 n/a n/a n/a Base Premium Mobile Home Factor Rule Page Rule Seasonal Factor Page Fire Resistive Factor Final Premium Rule Page = = = = = = X X X X X X X X X X X X X X X X X X Coverage B Factor.50 Coverage B Factor.50 X X X X X X Rule 5.1 Deductible Factor Page = = = = = = January 2001 Virginia Property Insurance Association AAIS Dwelling Program

6 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Rule 1. Eligibility Eligible Risks Incidental Business Activities Ineligible Risks... 1 Rule 2. Program Description Policy Forms Required Coverages Optional Coverages & Endorsements Required Endorsements Principal Coverages Coverage A Residence Coverage B -- Related Private Structures Coverage C -- Personal Property Coverage D -- Additional Living Costs and Fair Rental Value Loss Settlement Provisions Form FP-1 and Mobile Homes Forms FP Perils Insured Against Forms FP-1 and FP Policy Limits Form FP Form FP Rule 3. Policywriting Instructions Inception Time Policy Term Annual Additional Interests Coinsurance Restriction of Coverage Cancellation or Reductions in Limits of Liability or Coverages Contributing Insurance Multiple Locations Minimum Premium Waiver of Premium... 7 Rev 4.1 Table of Contents - 1 February 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

7 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL 3.12 Premium Rounding Interpolation... 7 Rule 4. Premium Determination Calculation of Premium Special Rating Instructions Row Houses and Townhouses Mobile Homes Seasonal Properties Dwellings Under Construction Fire Resistive Construction Change in Limits or Addition of Coverages Rule 5. Deductibles Flat Deductibles -- All Perils Minimum Deductible Windstorm or Hail Deductibles Minimum Windstorm or Hail Deductibles Rule 6. Premium Modifications Protective Devices Ordinance or Law Excluding Coverage for Increased Cost to Respond to Pollutants Rule 7. Coverage Options Vandalism -- Form FP-1 Only Inflation Guard Coverage -- Coverages A and B Loss Assessment Without Earthquake Private Structures Specific Structures Residential Rental to Others Incidental Business Activities Related Private Structure Theft Coverage Limited Protective Devices Replacement Value -- Personal and Miscellaneous Property Coverage D - Additional Living Costs and Fair Rental Value Rev 4.1 Table of Contents - 2 February 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

8 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Form FP From FP Tenant's Improvements -- Forms FP-1 and FP Condominium Fixtures, Additions, and Alterations Basic Perils Coverage Broad Perils Coverage Without Coverage C Certified Terrorism Losses Definition 1 -- FIRE PROTECTION DEFINITIONS Definition 2 -- CONSTRUCTION DEFINITIONS Definition 3 -- TERRITORIAL DEFINITIONS Definition 4 -- FIRE PREMIUM GROUP CHART Rev 4.1 Table of Contents - 3 February 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

9 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Rule 1. ELIGIBILITY 1.1 Eligible Risks A Dwelling Properties policy may be issued to cover: a one- to four-family dwelling used for private residential purposes; a private residential dwelling in a row house or townhouse that contains not more than four family units per fire division; a mobile home used for private residential purposes that is not self-propelled and is permanently situated at a fixed location; private structures related to dwellings; a condominium unit-owner's interest in additions, alterations, structures, installations, and other items; or personal property located in a one- to four-family dwelling, row house or townhouse, mobile home, related private structure, apartment, condominium unit, or other structure. 1.2 Incidental Business Activities An insured or an occupant of the insured premises may engage in one of the following incidental business activities on the premises without affecting the eligibility status of the risk: a business or professional office, private school or studio where no more than two people work; a small service business, such as a barber shop, beauty parlor, dressmaker, tailor, or shoe repair where no more than two people work; or storage of merchandise up to $10,000 in value. This rule applies to dwelling and contents coverage only. 1.3 Ineligible Risks A Dwelling Properties policy may not be issued to cover: farm dwellings and farm properties; self-propelled mobile homes and mobile homes not permanently situated at a fixed location; dwellings in row houses or townhouses containing more than four family units per fire division; or dwellings, mobile homes, related private structures, or condominium units with business occupancies other than the incidental business activities described in this manual. Refer to the Manual of Operational Procedures filed by the Association with the State Corporation Commission, Bureau of Insurance, for additional guidelines. Rev 4.0 Rules - 1 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

10 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Rule 2. PROGRAM DESCRIPTION This is a general description of the coverage provided by the Dwelling Properties forms. The policy forms state the complete conditions. 2.1 Policy Forms Required Coverages A Dwelling Properties policy may be issued by using one of the following forms FP-1 Basic Form FP-2 Broad Form Optional Coverages & Endorsements FL-10 Automatic Increase In Insurance (Mandatory with FP-2 Form) FL-14 Insurance By More Than One Company FL-16 Incidental Business Activities FL-216 Premises Alarm or Fire Protection Systems FL-257 Ordinance or Law FL-30 Tenant s Improvements and Betterments FL-32 Condominium Unit-Owner Additions (Broad) FL-50 Residential Association Loss Assessment FL 0405 Windstorm or Hail Deductible FP DP Policies Issued With Restrictions in Coverage FP FL-31 Condominium Unit-Owner Additions (Basic) FP FL-35 Limited Theft Coverage FP-41 Additional Interests FP FL-55 Replacement Value Personal & Miscellaneous Property Required Endorsements Each dwelling policy issued must include the following forms FL 670 Certified Terrorism Losses FP FL 4901 Wet Rot, Dry Rot, Bacteria, Fungi or Protists Exclusion 2.2 Principal Coverages Four principal coverages are available under a Dwelling Properties policy Coverage A Residence Coverage A covers the dwelling, additions, built-in components, attached fixtures, and detachable building items. Coverage also applies to appliances, carpets, and window coverings in rental portions of the dwelling. Tools and equipment used to service the premises are covered under Coverage A when the policy does not otherwise include coverage for personal property. Rev 4.1 Rules - 2 July 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

11 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Coverage B -- Related Private Structures Coverage B covers unattached structures related to the dwelling, including their additions, built-in components, fixtures, and detachable building items. Coverage also applies to fences, driveways, sidewalks, and other permanently installed outdoor fixtures Coverage C -- Personal Property Coverage C covers household contents and personal property usual to the occupancy of the dwelling as a residence Coverage D -- Additional Living Costs and Fair Rental Value Coverage D covers increased living costs and/or loss of rental value that occurs when an insured loss makes a covered location unfit for use. Additional living costs is provided under Form FP-2 only. 2.3 Loss Settlement Provisions Form FP-1 and Mobile Homes Covered losses are settled on an actual cash value basis Forms FP-2 An 80% insurance-to-value requirement triggers replacement cost loss settlement for covered building losses. Other covered losses are settled on an actual cash value basis. Rev 4.1 Rules - 3 July 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

12 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL 2.4 Perils Insured Against Forms FP-1 and FP-2 Form FP-1 (Basic Form Fire and Basic Form Fire and Extended Coverage) and form FP-2 (Broad Form) provide coverage for loss caused by the perils indicated below. Form Used: FP-1 FP-1 FP-2 Fire Fire and Broad Extended Perils Covered Coverage Fire or Lightning X X X Explosion X X X Windstorm or Hail X X Riot or Civil Commotion X X Aircraft X X Vehicles X X Smoke X X Volcanic Action X X Sinkhole Collapse X X Vandalism Optional X Burglary Damage X Falling Objects X Weight of Ice, Snow, or Sleet X Accidental Tearing Apart, Burning, or Bulging X Accidental Discharge of Liquids or Steam X Freezing of Plumbing or Heating System X Sudden and Accidental Electrical Damage X 2.5 Policy Limits FP-1 FP-2 Coverage A -- $4,000 $12,000 Residence Minimum Minimum Coverage B -- Related Private 10% of limit 10% of limit Structures on residence on residence Coverage C -- $1,000 $4,000 Personal Property Minimum Minimum Coverage D -- 10% of limit 10% of limit Fair Rental Value on residence on residence Coverage D -- Not 10% of limit Addl. Living Cost Covered on residence Rev 4.1 Rules - 4 July 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

13 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Form FP-1 An FP-1 policy may include Coverage A and/or Coverage C. Each is rated separately. Minimum limits are shown in rule % of the Coverage A limit applies to Coverage B and to Coverage D (Fair Rental Value) without an additional charge. No coverage is provided under form FP-1 for Additional Living Costs. Payment of a loss under Coverage B or Coverage D will not reduce the Coverage A limit available for the same loss. Show the Coverage B and Coverage D limits on the declarations Form FP-2 An FP-2 policy may include Coverage A and/or Coverage C. Each is rated separately. Minimum limits are determined and filed by the company with the State Corporation Commission, Bureau of Insurance. 10% of the Coverage A limit applies to Coverage B and to Coverage D without an additional charge. Payment of a loss under Coverage B or Coverage D will not reduce the Coverage A limit available for the same loss. Show the Coverage B and Coverage D limits on the declarations. Rev 4.1 Rules - 5 July 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

14 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Rule 3. POLICYWRITING INSTRUCTIONS 3.1 Inception Time The policy must be issued to take effect at 12:01 A.M. on the inception date. Indicate the inception time on the declarations. 3.2 Policy Term Annual Rating information for annual policies is shown in this manual. An annual policy can be extended for successive terms by using a continuation certificate. The premium for each successive term is based on the rating information, rules, forms, and endorsements in effect on the extension date. 3.3 Additional Interests An additional owner's interest in a covered building may be covered without additional charge. That interest shall be shown on the declarations page. 3.4 Reserved for Future Use 3.5 Coinsurance A coinsurance clause is not required in any policy written under the provisions of this manual. 3.6 Restriction of Coverage If a policy would not be issued because of unusual exposures, the applicant may request a restriction of coverage at no reduction in premium. The request, signed by the applicant, must be referred to the company. Each request must be submitted by the company to the State Corporation Commission, Bureau of Insurance. Endorsement FP DP Cancellation or Reductions in Limits of Liability or Coverages If the policy is canceled, coverage is removed or the limits are reduced, the amount of any return premium due is calculated on a pro rata basis. 3.8 Contributing Insurance When the Association provides its maximum limits, coverage may be divided between two or more companies. All policies must contain the same deductible. All additional limits and coverages must be divided between the companies. Endorsement FL Multiple Locations A single policy can be issued to cover property at different locations in Virginia if the same form and same deductible option apply at each location. Describe each location and show the limits that apply. Use supplemental declarations if necessary. Indicate that the deductible applies "at each location". Rev 4.0 Rules - 6 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

15 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL 3.10 Minimum Premium A minimum annual premium of $250 shall be charged for each location. The minimum premium may include all chargeable endorsements or coverages for Fire and Allied Lines, if written at the inception of the policy Waiver of Premium An additional or return premium of $10 or less due when a policy is endorsed after its inception may be waived, however, return premiums must be refunded at the request of the insured Premium Rounding Each premium shown on the policy and endorsements shall be rounded to the nearest whole dollar. A premium of fifty cents or more shall be rounded to the next highest dollar Interpolation Rating information for a limit that is between two limits shown in this manual can be developed by interpolation. Example $33,000 desired limit: The nearest increased fire limits shown are $32,000 and $34,000. For $32,000 the key factor is For $34,000 the key factor is Figure the difference between the two key factors and divide by 20. This provides the factor per $ = =.0015 Multiply the factor per $100 time 10, and add to = = The key factor for $33,000 in this example is Rev 4.0 Rules - 7 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

16 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Rule 4. PREMIUM DETERMINATION 4.1 Calculation of Premium Step 1 Determine which of the following apply: Form of Coverage: FP-1 or FP-2 FP-1 Only: Extended Coverage and Vandalism Perils Coverage A Coverage C Special Rating Instructions (Rule 4.2) Deductibles (Rule 5) Premium Modifications (Rule 6) Coverage Options (Rule 7) Step 2 Select the Premium Group from the Territorial Definitions Page that reflects the territory, protection, and construction classifications that apply and determine the occupancy classification. Step 3 If Coverage A applies, use the following steps to determine the premium. (Also follow any special rating instructions described in Rule 4.2.) A. Select the Coverage A FIRE premium for the policy limit, apply the factor for the deductible option selected from Rule 5.1, and apply any special rating factors from Rule 4.2. B. Form FP-1 only: If the extended coverage and vandalism perils apply, select the Coverage A OTHER PERILS premium for the territory and policy limit, apply the factor for the all other perils and windstorm or hail deductible combination selected from Rule 5.2, and apply any special rating factors from Rule 4.2. Form FP-1 only: If the extended coverage perils apply but vandalism does not, reduce the OTHER PERILS premium for the territory and policy limit by the vandalism credit (Rule 7.1), apply the factor for the all other perils and windstorm or hail deductible combination selected from Rule 5.2, and apply any special rating factors from Rule 4.2. Form FP-2: Select the Coverage A OTHER PERILS premium for the territory and policy limit, apply the factor for the all other perils and windstorm or hail deductible combination selected from Rule 5.2, and apply any special rating factors from Rule 4.2. C. The Coverage A premium is the sum of the FIRE and OTHER PERILS premiums determined by following Steps 3A and 3B. Rev 4.1 Rules - 8 February 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

17 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Step 4 If Coverage C applies, use the Coverage C FIRE and OTHER PERILS premiums and follow the process described in Step 3. Step 5 If any premium modifications apply, adjust the Coverage A and/or Coverage C premiums determined in Steps 3 and 4. Step 6 If any coverage options apply, add the additional charges to the Coverage A and/or Coverage C premiums determined in Step 5. Step 7 If both Coverage A and Coverage C apply, the total policy premium is the sum of the premiums determined in Step Special Rating Instructions Row Houses and Townhouses The occupancy classification for eligible row houses and townhouses is determined by the number of family units in the fire division Mobile Homes Use the rating information for a frame dwelling of the appropriate number of families and apply the mobile home factors shown below Seasonal Properties Fire Other Perils Coverage A Coverage C A dwelling normally unoccupied for three or more consecutive months during the year is considered seasonal. Apply the seasonal dwelling factors shown below. Fire Other Perils Coverage A Coverage C A mobile home is also considered seasonal if it is normally unoccupied for three or more consecutive months during the year. Apply the seasonal mobile home factors shown below after the mobile home factors have been applied. Fire Other Perils Coverage A Coverage C Rev 4.1 Rules - 9 February 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

18 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Dwellings Under Construction Use the rating information for nonowner-occupied dwellings Fire Resistive Construction Use the rating information for masonry construction and apply the fire resistive construction factors shown below. Fire Other Perils Coverage A Coverage C Change in Limits or Addition of Coverages Policy limits may be increased or coverages added during the policy term. Compute the additional premium on a pro rata basis using the same forms, endorsements, and rating information in effect when the current policy premiums were calculated. Rev 4.1 Rules - 10 February 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

19 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Rule 5. DEDUCTIBLES 5.1 Flat Deductibles -- All Perils The policy may be issued with one of the deductible options shown below. Apply the deductible factors shown below. Deductible Coverage A & C Coverage A & C Amount Fire Other Perils $ See Rule 5.2 $1, See Rule 5.2 $2, See Rule 5.2 The deductible amount is shown on the declarations; no endorsement is needed Minimum Deductible The base deductible is $500. The minimum deductible will be based on the combined limit of building and contents coverage for a location. It will be determined from the chart below. Combined Minimum Values Deductible $1,000 - $100,000 $500 Over $100,000 $1, Higher Windstorm or Hail Deductibles A policy that includes Coverage A will be issued with a deductible applicable to loss caused by windstorm or hail. The windstorm or hail deductible may be higher than the deductible that applies to all other perils. The windstorm or hail deductible must be expressed as a flat dollar amount. The windstorm or hail deductible is applicable to the dwelling and related coverages (Coverages B, C, and any applicable incidental coverages). The following windstorm or hail deductible options are available: Flat Amount $1,000 $2,000 $2,500 $5,000 Rev 4.1 Rules - 11 February 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

20 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL The policy may be issued with one of the deductible combinations shown below. Apply the deductible factors shown below to adjust the OTHER PERILS premium. These factors are to be used in lieu of the factors shown in Rule 5.1. Windstorm or Hail Deductible All Other Perils Deductible $1,000 $2,000 $2,500 $5,000 $ N/A 0.76 $1, N/A 0.71 $2,500 N/A N/A The windstorm or hail deductible amount will be shown on the declarations Minimum Windstorm or Hail Deductibles The base windstorm or hail deductible is $1,000. The minimum windstorm and hail deductible will be based on the combined limit of building and contents coverage for a location. It will be determined from the chart below. Combined Minimum Windstorm or Hail Values Deductible $1,000 - $100,000 $1,000 Over $100,000 $2,000 Rev 4.1 Rules - 12 February 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

21 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Rule 6. PREMIUM MODIFICATIONS 6.1 Protective Devices The protective device factors shown below may be applied for the installation of the following approved and properly maintained alarm and/or sprinkler systems: Endorsement FL -216 Protective Devices FireCoverage A Central Station Alarms - Fire 0.92 Central Station Alarms - Smoke 0.92 Fire Department Alarms 0.95 Police Department Alarms 0.95 Local Alarms Reserved for Future Use 6.3 Reserved for Future Use 6.4 Ordinance or Law Excluding Coverage for Increased Cost to Respond to Pollutants Coverage can be added for the increased cost that results from the enforcement of a code, ordinance, or law that regulates the use, construction, repair, demolition, or removal of debris of covered property following a covered loss. Apply the following ordinance or law factors to the premiums for the following coverages when they are provided by the policy: Excluding Coverage For Increased Cost To Respond To Pollutants Fire Other Perils Coverages A and C; -- Private structures under Rule 7.6; -- Increased limits of Tenant's Improvements (FL-1 and FL-2); and -- Increased limits of Condominium Fixtures, Additions, and Alterations (FL-2). This coverage does not increase the policy limits; therefore, the increased cost that will result from the enforcement of a code, ordinance, or law must be reflected in the limits for the coverages shown above. Endorsement FL 0257 Rev 4.0 Rules - 13 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

22 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL 6.5 Reserved for Future Use 6.6 Reserved for Future Use 6.7 Reserved for Future Use 6.8 Reserved for Future Use Rev 4.0 Rules - 14 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

23 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Rule 7. COVERAGE OPTIONS 7.1 Vandalism -- Form FP-1 Only Vandalism is an optional coverage under policy form FP-1. Make an entry on the declarations to show that FP-1 coverage applies "with vandalism" or "without vandalism". If coverage for vandalism does not apply, use the credit shown below to reduce the OTHER PERILS premium. Vandalism Credit $0.08 Per $1,000 of Insurance 7.2 Reserved for Future Use 7.3 Reserved for Future Use 7.4 Inflation Guard Coverage -- Coverages A and B The Coverage A and B limits can be automatically increased on a quarterly basis. Apply the rating information shown in this manual to all Coverage A and B premiums, including premiums developed under Rule 7.6. Endorsement FL Loss Assessment Inflation Guard Fire Other Perils.5% Quarterly Increase Surcharge-Coverages A And B.75%.75% Without Earthquake Coverage can be added for loss assessment charged to the insured when collectively owned property is damaged by a peril insured against, other than earthquake. Use the rating information shown below. Without Earthquake FP1 $7.07 Per $1,000 of Insurance Without Earthquake FP2 $9.45 Per $1,000 of Insurance Endorsement FL Private Structures Reserved for Future Use Specific Structures Coverage may be provided for a specific private structure adjacent to a covered dwelling for an additional charge. To be eligible for coverage under this rule, a private structure cannot be: used for business purposes; or rented or held for rental to anyone other than a tenant of the residence, except for use solely as a private garage. Rev 4.1 Rules - 15 February 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

24 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Use the Coverage A rating information for a one-family, owner-occupied dwelling in the applicable territory, construction, and protection classification; apply the deductible factors; and apply the Coverage B factors shown below. The perils and deductible option must be the same for all Coverage A and Coverage B structures insured under the same policy. Form FP-1 Only: If the extended coverage perils apply but vandalism does not, reduce the OTHER PERILS premium by the vandalism credit (Rule 7.1) before applying the deductible and Coverage B factors. Private Structures Fire Other Perils Coverage B Factors Describe the structure (Coverage B) on the declarations and show the limit that applies Residential Rental to Others Private structures rented to others, or held for rental, for residential purposes can be insured under Coverage A. Use the Coverage A rating information for a nonowneroccupied dwelling in the applicable territory, construction, protection, and occupancy classification and apply the deductible factors. The perils and deductible option must be the same for all Coverage A structures covered by the same policy. Describe the structure (Coverage A) on the declarations and show the limit that applies Incidental Business Activities Related Private Structure A private structure on the premises with incidental business activities related to the private structure can be covered by endorsement. Use the Coverage A rating information for a one-family, owner-occupied dwelling in the applicable territory, construction, and protection classification and apply the deductible factors. The perils and deductible option must be the same for all Coverage A and Coverage B structures covered by the same policy. Endorsement FL 16 Incidental Business Activities Related Private Structure Reserved for Future Use 7.7 Theft Coverage Reserved for Future Use Limited On-premises theft coverage can be added in $1,000 increments to policies that insure personal property in owner-occupied dwellings. The maximum available limit is $5,000. Use the rating information shown below. Limited On-Premises $26.25 Per $1,000 of Insurance Endorsement FP FL Protective Devices The protective device factors shown below may be applied to the premium determined for on-premises limited theft coverage when an approved and properly maintained burglar alarm system has been installed. Rev 4.0 Rules - 16 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

25 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Endorsement FL -216 Protective Devices Premium Modification Factors Central Station Alarms - Fire.92 Police Department Alarms.95 Local Alarms Replacement Value -- Personal and Miscellaneous Property Personal property and other miscellaneous property can be insured for its replacement value. Increase coverage C fire and other perils premium by 45%. Endorsement FP FL Reserved for Future Use 7.10 Reserved for Future Use 7.11 Coverage D - Additional Living Costs and Fair Rental Value Form FP-1 Additional living costs coverage is not provided by this form. The policy automatically includes coverage for fair rental value. The Coverage D basic limit cannot be increased From FP-2 The policy automatically includes coverage for additional living costs and fair rental value. The Coverage D basic limit can be increased for an additional charge. The Coverage D perils must be the same as the Coverage A perils. The additional charge applies only to the amount of insurance in excess of the basic limit. If the insured premises is a one- to four-family dwelling, calculate the Coverage D charge by using the Coverage A base rating information for the territory, construction, protection, and occupancy classification that applies to the dwelling where the insured resides and apply the Coverage D factors shown below. Do not apply any deductible factors. When the policy includes Coverage A, the Coverage D perils must be the same as the Coverage A perils. If Coverage A does not apply, the Coverage D perils must be the same as the Coverage C perils. If the insured premises is a five-plus family building, calculate the Coverage D charge by using the Coverage C rating information for the territory, construction, occupancy, and protection classifications that apply to Coverage C and apply the Coverage D factors shown below. The Coverage D perils must be the same as the Coverage C perils. Show the Coverage D limit on the declarations. Rev 4.0 Rules - 17 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

26 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Coverage D Factors Fire Other Perils One to Four Family Dwellings Five-Plus Family Buildings Tenant's Improvements -- Forms FP-1 and FP-2 When form FP-1 or FP-2 is issued to cover a tenant's personal property, incidental coverage for the tenant's interest in permanent fixtures, alterations, decorations, and additions is automatically extended for up to 10% of the Coverage C limit. Loss settlement is on an actual cash value basis. No additional charge applies and no endorsement is needed. The limit that applies to tenant's improvements can be increased for an additional charge. Use the "Each Add'l $1,000" rating information for the perils and the territory, construction, protection, and occupancy classification that apply to Coverage C and apply the deductible factors. The additional charge applies only to the amount of insurance in excess of 10% of the Coverage C limit. Endorsement FL Reserved for Future Use 7.14 Reserved for Future Use 7.15 Reserved for Future Use 7.16 Reserved for Future Use Rev 4.0 Rules - 18 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

27 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL 7.17 Condominium Fixtures, Additions, and Alterations Basic Perils Coverage When policy form FP-1 is issued to a condominium unit-owner to cover the unit contents, 10% of the Coverage C limit is automatically extended to cover the unit-owner's interest in fixtures, additions, alterations, structures, installations, and other building related items. Coverage applies on a basic perils basis. No additional charge applies. Attach Endorsement FP FL-31 and show the limit that applies (10% of the Coverage C limit) on the declarations as Coverage A -- Condominium Fixtures, Additions, and Alterations. The 10% limit can be increased for an additional charge. Use the rating information shown below for "Basic Perils -- Increased Limit". The additional charge applies only to the amount of insurance in excess of 10% of the Coverage C limit. Fire Rates Per $1,000 of Insurance Frame Masonry Protected $5.18 $4.14 Semi-Protected $8.03 $5.18 Unprotected $10.10 $6.22 Extended Coverage Rates Per $1,000 of Insurance Inland $0.25 Seacoast $0.64 Beachfront $2.32 Attach Endorsement FP FL-31 and show the total limit that applies on the declarations as Coverage A -- Condominium Fixtures, Additions, and Alterations Broad Perils Coverage When policy form FP-2 is issued to a condominium unit-owner to cover the unit contents, 10% of the Coverage C limit is automatically extended to cover the unit-owner's interest in fixtures, additions, alterations, structures, installations, and other building related items. Coverage applies on a broad perils basis. No additional charge applies. Attach Endorsement FL-32 and show the limit that applies (10% of the Coverage C limit) on the declarations as Coverage A -- Condominium Fixtures, Additions, and Alterations. The 10% limit can be increased for an additional charge. Use the rating information shown below for "Broad Perils -- Increased Limit". The additional charge applies only to the amount of insurance in excess of 10% of the Coverage C limit. Rev 4.1 Rules - 19 February 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

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30 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Definition 1 -- FIRE PROTECTION DEFINITIONS Protected Partially Protected Unprotected Building is located within five road miles of a responding fire department and within 1,000 feet of a fire hydrant. Building is located within five road miles of a responding fire department, but does not otherwise qualify for Protected status. All others. Definition 2 -- CONSTRUCTION DEFINITIONS Building or Fire Division Fire Resistive Frame Masonry Masonry Veneered Mixed One part of an enclosed structure that is separated from other parts of the structure by space or by masonry walls that are at least eight inches thick and that go through or to the underside of the roof. Any openings through such masonry walls must be protected by fire doors that are approved for installation on fire walls. A dwelling with exterior walls, floors, and roof constructed entirely of masonry or noncombustible materials on incombustible supports and having a Fire Resistance Rating of at least one hour. A dwelling with exterior walls constructed of combustible materials, such as wood, or constructed of incombustible materials on combustible supports. A dwelling with exterior walls constructed of brick, concrete block, concrete, tile, or other masonry materials or constructed of incombustible materials on incombustible supports. A dwelling with exterior walls constructed of a combustible material covered with masonry. Dwellings of masonry veneered construction will be classified as masonry for rating purposes. Dwellings of mixed frame and masonry construction will be classified as frame for rating purposes if walls of frame construction exceed 33-1/3% of total exterior wall area. Rev 4.1 Definitions - 23 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

31 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Definition 3 -- TERRITORIAL DEFINITIONS Independent City EC Zone Territory Alexandria Inland 139 Bedford Inland 141 Bristol Inland 106 Buena Vista Inland 141 Charlottesville Inland 141 Chesapeake Seacoast 136 Clifton Forge Inland 141 Colonial Heights Inland 105 Covington Inland 141 Danville Inland 105 Emporia Inland 105 Fairfax Inland 140 Falls Church Inland 140 Franklin Inland 105 Fredericksburg Inland 141 Galax Inland 106 Hampton Seacoast 133 Harrisonburg Inland 141 Hopewell Inland 105 Lexington Inland 141 Lynchburg Inland 141 Rev 4.1 Definitions - 24 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

32 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Independent City EC Zone Territory Manassas Inland 140 Manassas Park Inland 140 Martinsville Inland 105 Newport News Seacoast 132 Norfolk Seacoast 135 Norton Inland 107 Petersburg Inland 105 Poquoson Seacoast 134 Portsmouth Seacoast 136 Radford Inland 106 Richmond Inland 130 Roanoke Inland 137 Salem Inland 138 South Boston Inland 105 Staunton Inland 141 Suffolk Seacoast 136 Virginia Beach except Beach Area Seacoast 110 Beach Area Beachfront 111 Waynesboro Inland 141 Williamsburg Inland 141 Winchester Inland 141 Rev 4.1 Definitions - 25 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

33 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL All of the following areas are designated as Beach Area in the Independent City of Virginia Beach: Starting northward from the North Carolina border, east of line running along the western shore of Back Bay area to where Hell Point Creek empties into North Bay; thence, along Hell Point Creek to Lake Tecumseh and Redwing Lake; from Redwing Lake along a creek to Lake Christine; thence, along South Surfside Avenue to Dare Drive and north to Lake Wesley; across Rudee Inlet to Atlantic Avenue, extending along Atlantic Avenue to Cape Henry Lighthouse. Also, all islands that are a part of, or east of, the Chesapeake Bay Bridge Tunnel. County EC Zone Territory Accomack except Beach Area Seacoast 112 Beach Area Beachfront 113 Albemarle Inland 141 Allegheny Inland 141 Amelia Inland 105 Amherst Inland 141 Appomattox Inland 105 Arlington Inland 140 Augusta Inland 141 Bath Inland 141 Bedford Inland 141 Bland Inland 107 Botetourt Inland 141 Brunswick Inland 105 Buchanan Inland 107 Buckingham Inland 105 Campbell Inland 105 Rev 4.1 Definitions - 26 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

34 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL County EC Zone Territory Caroline Inland 141 Carroll Inland 106 Charles City Inland 141 Charlotte Inland 105 Chesterfield Inland 131 Clarke Inland 141 Craig Inland 141 Culpeper Inland 141 Cumberland Inland 105 Dickenson Inland 107 Dinwiddie Inland 105 Essex Inland 141 Fairfax Inland 140 Fauquier Inland 141 Floyd Inland 106 Fluvanna Inland 141 Franklin Inland 105 Frederick Inland 141 Giles Inland 107 Gloucester Seacoast 134 Goochland Inland 141 Grayson Inland 106 Rev 4.1 Definitions - 27 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

35 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL County EC Zone Territory Greene Inland 141 Greensville Inland 105 Halifax Inland 105 Hanover Inland 141 Henrico Inland 131 Henry Inland 105 Highland Inland 141 Isle of Wight Seacoast 136 James City Inland 141 King and Queen Inland 141 King George Inland 141 King William Inland 141 Lancaster Seacoast 134 Lee Inland 107 Loudoun Inland 140 Louisa Inland 141 Lunenburg Inland 105 Madison Inland 141 Mathews Seacoast 134 Mecklenburg Inland 105 Middlesex Seacoast 134 Montgomery Inland 106 Rev 4.1 Definitions - 28 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

36 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL County EC Zone Territory Nelson Inland 141 New Kent Inland 141 Northampton except Beach Area Seacoast 112 Beach Area Beachfront 113 Northumberland Seacoast 134 Nottoway Inland 105 Orange Inland 141 Page Inland 141 Patrick Inland 106 Pittsylvania Inland 105 Powhatan Inland 105 Prince Edward Inland 105 Prince George Inland 105 Prince William Inland 140 Pulaski Inland 106 Rappahannock Inland 141 Richmond Inland 141 Roanoke Inland 138 Rockbridge Inland 141 Rockingham Inland 141 Russell Inland 107 Scott Inland 107 Shenandoah Inland 141 Rev 4.1 Definitions - 29 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

37 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL County EC Zone Territory Smyth Inland 106 Southampton Inland 105 Spotsylvania Inland 141 Stafford Inland 141 Surry Inland 105 Sussex Inland 105 Tazwell Inland 107 Warren Inland 141 Washington Inland 106 Westmoreland Inland 141 Wise Inland 107 Wythe Inland 106 York Seacoast 134 All of the following areas are designated as Beach Area in the Counties of Accomack and Northampton. The following and similar localities not specifically named, being the marshlands, necks and island east of the Eastern shore Peninsula: Adams Island Hog Island Myrtle Island Assateague Island Little Cobb Island Parramore Island Assawaman Island Long Point Island Piney Island Cedar Island Matomkin Island Ship Shoal Island Chincoteague Island Mink Island Smith Island Cobb Island Mockhorn Island Wallops Island Fisherman Island Morris Island Wreck Island Rev 4.1 Definitions - 30 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

38 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL Definition 4 -- FIRE PREMIUM GROUP CHART Territory Protected Partially Protected Unprotected Masonry All Frame All Rev 4.1 Definitions - 31 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

39 DWELLING LIABILITY PROGRAM This Manual Contains Final Rates July 2014

40 VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING LIABILITY MANUAL Rule 1. ELIGIBILITY PERSONAL COVERAGES 1.1 Personal Liability Coverage Personal Liability Coverage may be provided for a person maintaining a residence in a one-to-two family owner occupied dwelling. Personal Liability Coverage may also be provided for a resident non-owner maintaining a residence in a located in a one- to fourfamily dwelling, row house or townhouse, mobile home, related private structure, apartment, condominium unit, or other structure. Rule 2. PROGRAM DESCRIPTION PERSONAL COVERAGES 2.1 Mandatory Coverages The following is a general description of the coverages provided by Form FPGL-1. The coverage parts state the complete conditions Coverage L Liability Coverage L pays on behalf of the insured for damages due to bodily injury or property damage caused by an occurrence arising out of the insured premises or the insured's personal activities Coverage M Medical Payments to Others Coverage M pays medical expenses, incurred by persons who are not insureds, for bodily injury related to the insured premises or the insured's personal activities. 2.2 Limits of Liability The basic limits of liability for each coverage are: Coverage L $100,000 Per Occurrence Coverage M $1,000 Per Person $25,000 Per Accident Rule 3. POLICYWRITING INSTRUCTIONS Unless indicated otherwise, this rule applies to the Personal Liability Coverages. 3.1 Policy Issue Personal Coverages The Personal Liability Coverages described in this manual must be issued as endorsements to dwelling fire policies Reserved for Future Use Package Policies When Personal Liability Coverage is used as an endorsement to a dwelling fire policy, the policy conditions that address assignment, cancellation, change, inspections and examination of books also govern Personal Liability Coverage. Fire and Personal Liability Package Fire Policy + FPGL-1 Rev 3.3 Rules - 1 July 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission