THE INSURANCE SOLUTION FOR YOUR

Transcription

1 THE INSURANCE SOLUTION FOR YOUR HOME

2 HOMEOWNER OPTIONS ADVANTAGES

3 TEXAS HOMEOWNER OPTIONS ADVANTAGES HOMEOWNER OPTIONS PROGRAM HO 0003 AND HO 0005 Coverages Included Optional Coverages ESTATES OPTION HO 0005 Comprehensive Form Miscellaneous Endorsements FI 280TX Estates Endorsement HO 4297 Identity Fraud Expense Coverage DEFENDER OPTION HO 0003 Special Form HO 0005 Comprehensive Form FI 270TX Defender Endorsement HO 4297 Identity Fraud Expense Coverage Miscellaneous Endorsements SECURGARD OPTION HO 0003 Special Form HO 0005 Comprehensive Form HO 4297 Identity Fraud Expense Coverage HO 2302 Special Loss Settlement HO 0004 HO 0530 Functional Replacement Cost Loss Settlement FI 2304 Rep. Cost Pers. Property HO 0420 Special Add l Ins. Cov. A FI 264TX Securgard Plus Endt. Miscellaneous Endorsements ESTATES OPTION HO 0004 Contents Broad Form Miscellaneous Endorsements FI 282TX Estates Renters Form HO 4297 Identity Fraud Expense Coverage DEFENDER OPTION HO 0004 Contents Broad Form Miscellaneous Endorsements FI 272TX Defender Renters Endt. HO 4297 Identity Fraud Expense Coverage HO 0561 Spec. Pers. Prop. Cov. SECURGARD OPTION HO 0004 Contents Broad Form HO 0561 Spec. Pers. Prop. Cov. HO 4297 Identity Fraud Expense Coverage FI 2304 Rep. Cost Pers. Property Miscellaneous Endorsements HO 0006 ESTATES OPTION HO 0006 Unit Owners Form Miscellaneous Endorsements FI 281TX Estates Condominium HO 4297 Identity Fraud Expense Coverage DEFENDER OPTION HO 0006 Unit Owners Form HO 1790 Unit Owners Spec. Cov. FI 271TX Defender Condo Cov. HO 4297 Identity Fraud Expense Coverage Miscellaneous Endorsements SECURGARD OPTION HO 0006 Unit Owners Form HO 1791 Unit Owners Cov. A HO 4297 Identity Fraud Expense Coverage HO 1790 Unit Owners Spec. Cov. FI 2304 Pers. Prop. Rep. Cost Miscellaneous Endorsements 04/12 SA-1

4 TEXAS HOMEOWNER OPTIONS ADVANTAGES EXPLANATION OF THE OPTIONS CONCEPT State Auto provides homeowner coverage with three separate options: SECURGARD, DEFENDER and ESTATES. What makes these options unique is that each one builds on the others with SECURGARD being the base option, DEFENDER being the second option and ESTATES being the most comprehensive option of the three. Why is this an advantage for the insured? This new product enables the insured and agent to select the specific coverages they desire. If they don t want all of the coverages that are available in the ESTATES Option, they can purchase the DEFENDER Option and purchase other coverage options that are available in stand-alone endorsements. This same theory holds true for the SECURGARD Option. If the insured doesn t desire all of the coverage enhancements available in DEFENDER or ESTATES, they can simply purchase the SECURGARD Option and build it up with any optional endorsements they desire. Insured s qualify for any one of the options they desire simply based on the general underwriting guidelines and additional requirements for some coverages. See underwriting guidelines for complete details. 03/08 SA-2

5 STATE AUTO S OPTIONS PROGRAM SECURGARD OPTION

6 TEXAS HOMEOWNER OPTIONS PROGRAM SECURGARD OPTIONS The SECURGARD Option is our base option for the HO 0003, HO 0004 and HO 0006 contracts. From this base you can build a package of endorsements to suit your client s needs. Before you can determine which endorsements to include, it is important to know specifically what each option contains. This section outlines owner s forms, tenant forms and condominium unit owners forms. 1. SECURGARD OPTION HO 0003 SPECIAL FORM COVERAGE INCLUDED HO 0003 Special Form is included in the base SECURGARD Option for owner s forms. This form provides open perils coverage on dwellings and other structures and named perils on contents (personal property). COVERAGE OPTIONS Comprehensive Form-Optional HO 0005 This form provides open perils coverage on buildings and contents (personal property). Special Additional Amount of Insurance For Coverage A HO 0420 Optional This optional endorsement extends Coverage A protection included in the policy to provide replacement cost on the dwelling, when a total loss occurs, up to an additional 25% or 50% of the Coverage A limit in effect. In order for this endorsement to be applicable, the insured must: A. Insure the dwelling to 100% of the replacement cost, as determined by: 1. A State Auto Home Replacement Cost Estimator completed and based on the accuracy of information furnished by the insured, plus a photograph of the dwelling; or, 2. An inspection of the insured dwelling and other building structures. B. Accept the Inflation Protection increase in the policy, agree to each annual adjustment in the dwelling protection coverage limits of liability and pay the premium charged. C. Notify us within 90 days of the start of any additions or other physical changes which increase the value of the dwelling on the residence premises by 5% or more, and pay the resulting additional premium. Replacement Cost Personal Property FI 2304 Optional This optional endorsement extends the Personal Property Coverage provided under the policy to a Replacement Cost basis for an additional premium. 03/08 SO-1

7 TEXAS HOMEOWNER OPTIONS PROGRAM 1. SECURGARD OPTION HO 0003 SPECIAL FORM COVERAGE INCLUDED (Continued) Securgard Plus Option Coverage Endorsement FI 264TX (SECURGARD Option HO 0003 or HO 0005 only) The SECURGARD Option HO 0003 or HO 0005 may be endorsed to provide a number of optional coverages by using the Securgard Plus Endorsement FI 264TX. Coverages that are conveniently packaged together in this endorsement include: Personal Injury Liability Replacement Cost-Personal Property Coverage C is increased to 65% of Coverage A $250 on Money $2,000 on securities $2,000 on watercraft including trailers $2,000 on trailers not used with watercraft $2,000 per article for jewelry, watches, and furs; $3,000 per occurrence $3,000 per occurrence for loss to silverware $10,000 for loss by theft, of firearms and related equipment $2,500 for business property away from the premises which is computer equipment /Originally $500 Service Vehicle Coverage broadened for Section I and Section II Additional Living Expense/Fair Rental Value Option has been broadened Debris Removal has been broadened Trees, Shrubs and Other Plants coverage has been broadened to $750 Fire Department Service Charge - $1,000 Credit Card, Electronic Fund Transfer Card - $1,000. Loss Assessment Coverage-Section I or Section II - $5,000 Freezer Contents-$1,000 with special $50 deductible Lock Replacement-$250 per loss, $500 per term Rented Golf Cart-physical damage - $5,000 Incidental Low Power Recreational Motor Vehicle Coverage up to 15 miles per hour Deductible Waiver-Losses of $50,000 or greater, excluding earthquake, wind/hail or water back-up Arson, Fraud and Theft Rewards Coverage-up to $1,000 Golf Cart Liability to and from golf course Outboard Motor Liability-up to 75 total horsepower Waterbed Liability Special Loss Settlement HO 2302 Optional for SECURGARD only The standard Homeowners Policy provides loss settlement on a replacement cost basis if the Coverage A limit of liability represents at least 80% of replacement value. This percentage amount may be modified to 20%, 30%, 40%, 50%, 60% or 70% of the replacement value and still provide replacement cost loss settlement provision by using the HO 2302 endorsement. We will not pay more than the coverage A limit in effect on any one loss. Functional Replacement Cost Loss Settlement HO 0530 Optional for SECURGARD only The standard Homeowners Policy provides loss settlement on a replacement cost basis if the Coverage A limit of liability represents at least 80% of full replacement value. This optional endorsement changes the loss settlement provisions from a replacement cost basis to a functional replacement cost basis if, at the time of loss, the limit of insurance on the damaged building is at least 80% of the functional replacement cost of the building immediately before the loss. 03/08 SO-3

8 TEXAS HOMEOWNER OPTIONS PROGRAM 1. SECURGARD OPTION HO 0003 SPECIAL FORM COVERAGE INCLUDED (Continued) Miscellaneous Endorsements See the Optional Coverages section in the Homeowner Manual for many more options to further customize each policy to the insured s individual needs. 2. SECURGARD OPTION HO 0004 CONTENTS BROAD FORM COVERAGE INCLUDED HO 0004 Contents Broad Form is included in the base SECURGARD Option for tenant renters forms. This form provides named perils coverage for the insured s contents. COVERAGE OPTIONS Special Personal Property Coverage Form HO 0561 This form extends open perils coverage to contents in the HO 0004 form. Replacement Cost Personal Property Coverage FI 2304 This optional endorsement extends the Personal Property Coverage provided under the policy to a Replacement Cost basis for an additional premium. Miscellaneous Endorsements See the Optional Coverages section in the Homeowner Manual for many more options to further customize each policy to the insured s individual needs. 3. SECURGARD OPTION HO 0006 UNIT OWNERS FORM COVERAGE INCLUDED HO 0006 Unit Owners Form is included in the base SECURGARD Option for condominium unit owners. This form provides named perils coverage for the insured s building and contents. COVERAGE OPTIONS Unit Owners Coverage A-Special Coverage HO 1791 This form provides open perils coverage for those items covered under Coverage A. Unit Owners Coverage C-Special Coverage HO 1790 This form provides open perils coverage for those items covered under Coverage C. 03/08 SO-3

9 TEXAS HOMEOWNER OPTIONS PROGRAM 3. SECURGARD OPTION HO 0006 UNIT OWNERS FORM COVERAGE INCLUDED (Continued) Replacement Cost Personal Property Coverage FI 2304 This optional endorsement extends the Personal Property Coverage provided under the policy to a Replacement Cost basis for an additional premium. Miscellaneous Endorsements See the Optional Coverages section in the Homeowner Manual for many more options to further customize each policy to the insured s individual needs. The SECURGARD Option is the base option that you start with when building your client s homeowner coverage. There are many other optional coverages you can buy to further enhance this product. If you are looking for convenient package endorsements, the following pages reflect the DEFENDER and ESTATES options that can be used to broaden your client s homeowner policy. 03/08 SO-4

10 STATE AUTO S OPTIONS PROGRAM DEFENDER OPTION

11 TEXAS HOMEOWNER OPTIONS PROGRAM DEFENDER OPTIONS The DEFENDER Option is available with the HO 0003, HO 0004 and HO 0006 contracts. It includes a prepackaged endorsement with pre-selected coverages. You can build on this package of coverages by adding additional endorsements to suit your client s needs. This section outlines owner s forms, tenant forms and condominium unit owner s forms. 1. DEFENDER OPTION HO 0003 SPECIAL FORM COVERAGE INCLUDED HO 0003 Special Form is included in the base DEFENDER Option for owner s forms. This form provides open perils coverage on dwellings and other structures and named perils coverage on contents. DEFENDER OPTION ENDORSEMENT FI 270TX (HO 0003 or HO 0005 only) This form is a specially created package of coverages designed to be a convenient option for your home- owning customers. Included in this package of coverages are the following: Personal Injury Liability Replacement Cost-Personal Property Coverage C limit is increased to 70% of Coverage A. Specified Additional Amount of Insurance-Coverage A-25% $250 on Money $2,000 on securities $2,000 on watercraft including trailers $2,000 on trailers not used with watercraft $2,000 per article for jewelry, watches, and furs; $3,000 per occurrence $3,000 per occurrence for loss to silverware $10,000 for loss by theft of firearms and related equipment $2,500 for business property away from the premises which is computer equipment /Originally $500 Service Vehicle Coverage broadened for Section I and Section II Additional Living Expense/Fair Rental Value Option has been broadened Debris Removal has been broadened Trees, Shrubs and Other Plants coverage has been broadened to $750 Fire Department Service Charge $1,000 Credit Card, Electronic Fund Transfer Card - $1,000. Loss Assessment Coverage-Section I or Section II - $5,000 Freezer Contents - $1,000 with special $50 deductible Lock Replacement-$250 per loss, $500 per term Rented Golf Cart-physical damage - $5,000 Incidental Low Power Recreational Motor Vehicle Coverage up to 15 miles per hour Deductible Waiver-Losses of $50,000 or greater, excluding earthquake, wind/hail or water back-up Arson, Fraud and Theft Rewards Coverage-up to $1,000 Golf Cart Liability to and from golf course Outboard Motor Liability-up to 75 total horsepower Waterbed Liability 10/10 DO-1

12 TEXAS HOMEOWNER OPTIONS PROGRAM 1. DEFENDER OPTION HO 0003 SPECIAL FORM COVERAGE - INCLUDED (Continued) COVERAGE OPTIONS Comprehensive Form HO 0005 Optional This form provides open perils coverage on buildings and contents (personal property) and can be purchased separately with the HO 0003 contract. Miscellaneous Endorsements See the Optional Coverages section in the Homeowner Manual for many more options to further customize each policy to the insured s individual needs. 2. DEFENDER OPTION HO 0004 CONTENTS BROAD FORM COVERAGE INCLUDED HO 0004 Contents Broad Form is included in the base DEFENDER Option for tenant renter s forms. This form provides named perils coverage for the insured s contents. DEFENDER OPTION RENTERS ENDORSEMENT FI 272TX This form is a specially created package of coverages designed to be a convenient option for your tenant homeowner customers. Included in this package of coverages are the following: Personal Injury Liability Replacement Cost Coverage-Personal Property $250 on Money $2,000 on Securities $2,000 on watercraft including trailers $2,000 on trailers not used with watercraft $2,000 per article for jewelry, watches and furs; $3,000 per occurrence $3,000 per occurrence for loss to silverware $10,000 for loss by theft of firearms and related equipment $2,500 for business property away from the premises which is computer equipment /Originally $500 Service Vehicle Coverage broadened for Section I and II Additional Living Expense/Fair Rental Value has been broadened Debris removal has been broadened Trees, Shrubs and Plants has been broadened to $750 Fire Department Service Charge-$1,000 Credit Card, Transfer Card - $1,000 Loss Assessment Coverage-Section I or Section II $5,000 Freezer Contents - $1,000 with special $50 deductible Lock Replacement-$250 per loss $500 per policy term Incidental Low Power Recreational Motor Vehicle Coverage up to 15 miles per hour Rented Golf Cart-physical damage - $5,000 Deductible Waiver-Losses of $50,000 or greater excluding earthquake, wind/hail or water back-up Arson, Fraud or Theft Rewards Coverage-up to $1,000 Golf Cart Liability to and from golf course Outboard Motor Liability up to 75 horsepower Waterbed Liability 10/10 DO-2

13 TEXAS HOMEOWNER OPTIONS PROGRAM 2. DEFENDER OPTION HO 0004 CONTENTS BROAD FORM COVERAGE INCLUDED (Continued) COVERAGE OPTIONS Special Personal Property Coverage Form HO 0561 (HO 0004 Only) This form extends open perils coverage to contents in the HO 0004 form. Miscellaneous Endorsements See the Optional Coverages section in the Homeowner Manual for many more options to further customize each policy to the insured s individual needs. 3. DEFENDER OPTION HO 0006 UNIT OWNERS FORM COVERAGE INCLUDED HO 0006 Unit Owners Form is included in the base DEFENDER Option for condominium unit owners. This form provides named perils coverage for the insured s building and contents. DEFENDER OPTION CONDOMINIUM ENDORSEMENT FI 271TX This form is a specially created package of coverages designed to be a convenient option for your condominiumowning customers. Included in this package of coverages are the following: Personal Injury Liability Unit Owners Coverage A-Special Coverage Replacement Cost Coverage-Personal Property Specified Additional Amount of Insurance-Coverage A-25% $250 on Money $2,000 on Securities $2,000 on watercraft including trailers $2,000 on trailers not used with watercraft $2,000 per article for jewelry, watches and furs; $3,000 per occurrence $3,000 per occurrence for loss to silverware $10,000 for loss by theft, of firearms and related equipment $2,500 for business property away from the premises which is computer equipment /Originally $500 Service Vehicle Coverage broadened for Section I and II Additional Living Expense/Fair Rental Value has been broadened Debris removal has been broadened Trees, Shrubs and Plants has been broadened to $750 Fire Department Service Charge - $1,000 Credit Card, Transfer Card - $1,000 Loss Assessment Coverage-Section I or Section II $5,000 Freezer Contents - $1,000 with special $50 deductible Lock Replacement-$250 per loss $500 per term Incidental Low Power Recreational Motor Vehicle Coverage up to 15 mile per hour Rented Golf Cart-physical damage - $5,000 Deductible Waiver-Losses of $50,000 or greater excluding earthquake, wind/hail or water back-up Arson, Fraud or Theft Rewards Coverage-up to $1,000 Golf Cart Liability to and from golf course Outboard Motor Liability up to 75 horsepower Waterbed Liability 10/10 DO-3

14 TEXAS HOMEOWNER OPTIONS PROGRAM 3. DEFENDER OPTION HO 0006 UNIT OWNERS FORM COVERAGE INCLUDED (Continued) COVERAGE OPTIONS Unit Owners Coverage C-Special Coverage HO 1790 This form provides open perils coverage for those items under Coverage C. Miscellaneous Endorsements See the Optional Coverages section in the Homeowner Manual for many more options to further customize each policy to the insured s individual needs. The DEFENDER Option is the second option available when building your client s homeowner coverage. There are many other optional coverages you can buy to further enhance this product. If you are looking for a more comprehensive convenient package of endorsements, the following pages reflect the ESTATES options that can be used to broaden your client s homeowner policy. 03/08 DO-4

15 STATE AUTO S OPTIONS PROGRAM ESTATES OPTION

16 TEXAS HOMEOWNER OPTIONS PROGRAM ESTATES OPTIONS The Estates Option is our third option for the HO 0005, HO 0004 and HO 0006 contracts (HO 0003 is not available with this option). It includes a pre-packaged endorsement which provides the broadest protection available from State Auto in one form. You can further build on this package by adding additional endorsements from our Optional Coverage Section to suit your client s needs. This is broken out for you by owner s forms, tenant forms and condominium unit owners forms. 1. ESTATES OPTION HO 0005 COMPREHENSIVE FORM COVERAGE INCLUDED HO 0005 Comprehensive Form is included in the base Estates Option for owner s forms. This form provides open perils coverage on buildings and contents (personal property) and is a required form. You cannot purchase the HO 0003 form where the Estates Endorsement is a part of the policy. ESTATES OPTION ENDORSEMENT FI 280TX This form is a specially created package of coverages designed to be a convenient option for your home- owning customers. Included in this package of coverages are the following: Personal Injury Liability Coverage B limit is increased to 20% of Coverage A Coverage C limit is increased to 75% of Coverage A Replacement Cost Coverage-Personal Property Specified Additional Amount of Insurance-Coverage A-25% $1,000 on Money $5,000 on Securities $2,000 on watercraft including trailers $3,000 on trailers not used with watercraft $2,500 per article for jewelry, watches and furs; $5,000 per occurrence $10,000 per occurrence for loss to silverware $10,000 for loss by theft, misplacing or losing of firearms and related equipment $10,000 on property on the residence premises used primarily for business purposes $2,000 for business property away from the premises-$10,000 for computer equipment $2,000 for electronic apparatus while in or upon a motor vehicle not used in business $2,000 for electronic apparatus not in or upon a motor vehicle used for business purposes Vault Coverage-up to $25,000 coverage for securities, jewelry and silverware Service Vehicle Coverage broadened for Section I and II Additional Living Expense/Fair Rental Value has been broadened Loss of Use Coverage-no dollar limit for a maximum of 24 months Debris removal-unlimited expense on certain property Debris removal broadened-eliminates requirement that fallen trees damage property Trees, Shrubs and Plants has been broadened to $1,000 03/09 EO-1

17 TEXAS HOMEOWNER OPTIONS PROGRAM 1. ESTATES OPTION HO 0005 COMPREHENSIVE FORM COVERAGE INCLUDED (Continued) Fire Department Service Charge-$1,000 Credit Card, Transfer Card $10,000 Loss Assessment Coverage-Section I or Section II - $10,000 Ordinance or Law Coverage increased to 25% of the Coverage A limit $5,000 for damage caused by Birds, Vermin or Rodents included if no infestation or nesting evident Freezer Contents - $1,000 with special $50 deductible Lock Replacement-$500 per loss, $1,000 per term Rented Golf Cart-physical damage - $5,000 Physical Damage ACV for Owned Golf Carts Deductible Waiver-Losses of $50,000 or greater excluding earthquake, wind/hail or water back-up Arson, Fraud or Theft Rewards Coverage-up to $1,000 Land Restoration Coverage-up to $5,000 for required excavation, replacement or stabilization Golf Cart Liability to and from golf course Incidental Low Power Recreational Motor Vehicle Coverage up to 15 miles per hour Outboard Motor Liability up to 75 horsepower Waterbed Liability $100,000 Volunteer Wrongful Acts Coverage COVERAGE OPTIONS Miscellaneous Endorsements Although our Estates Option Endorsement is very comprehensive, refer to the Optional Coverages section in the Homeowner Manual for many more options to further customize each policy to the insured s individual needs. 2. ESTATES OPTION HO 0004 CONTENTS BROAD FORM COVERAGE INCLUDED HO 0004 Contents Broad Form is included in the base Estates Option for tenant renters forms. This form provides named perils coverage for the insured s contents. ESTATES OPTION RENTERS FORM FI 282TX This form is a specially created package of coverages designed to be a convenient option for your tenant homeowner customers. Included in this package of coverages are the following: Personal Injury Liability Replacement Cost Coverage-Personal Property $1000 on Money $5,000 on Securities $2,000 on watercraft including trailers $3,000 on trailers not used with watercraft $2,500 per article for jewelry, watches and furs; $5,000 per occurrence $10,000 for loss by theft, misplacing or losing of firearms and related equipment $10,000 per occurrence for loss to silverware 04/10 EO-2

18 TEXAS HOMEOWNER OPTIONS PROGRAM 2. ESTATES OPTION HO 0004 CONTENTS BROAD FORM COVERAGE INCLUDED (Continued) $10,000 on property on the residence premises used primarily for business purposes $2,000 for business property away from the premises-$10,000 for computer equipment $2,000 for electronic apparatus while in or upon a motor vehicle not used in business $2,000 for electronic apparatus not in or upon a motor vehicle used for business purposes Vault Coverage-up to $25,000 coverage for securities, jewelry and silverware Service Vehicle Coverage broadened for Section I and II Renter s Special Coverage-Open Peril Coverage on Personal Property Additional Living Expense/Fair Rental Value has been broadened Loss of Use Coverage-no dollar limit for a maximum of 24 months Debris removal-unlimited expense on certain property Debris removal has been broadened Trees, Shrubs and Plants has been broadened to $1,000 Fire Department Service Charge-$1,000 Credit Card, Transfer Card - $10,000 Loss Assessment Coverage-Section I or Section II - $10,000 Ordinance or Law Coverage increased to 25% of the Coverage A limit $5,000 Damage by Birds, Vermin or Rodents included if no infestation or nesting evident Freezer Contents-$1,000 with special $50 deductible Lock Replacement-$500 per loss, $1,000 per term Rented Golf Cart-physical damage - $5,000 Physical Damage ACV for Owned Golf Carts Deductible Waiver-Losses of $50,000 or greater excluding earthquake, wind/hail or water back-up Arson, Fraud or Theft Rewards Coverage-up to $1,000 Golf Cart Liability to and from golf course Incidental Low Power Recreational Motor Vehicle Coverage up to 15 miles per hour Outboard Motor Liability up to 75 horsepower Waterbed Liability $100,000 Volunteer Wrongful Acts Coverage COVERAGE OPTIONS Miscellaneous Endorsements See the Optional Coverages section in the Homeowner Manual for many more options to further customize each policy to the insured s individual needs. 3. ESTATES OPTION HO 0006 UNIT OWNERS FORM COVERAGE INCLUDED HO 0006 Unit Owners Form is included in the base Estates Option for condominium unit owners. This form provides named perils coverage for the insured s building and contents. 03/09 EO-3

19 TEXAS HOMEOWNER OPTIONS PROGRAM 3. ESTATES OPTION HO 0006 UNIT OWNERS FORM COVERAGE INCLUDED (Continued) ESTATES OPTION CONDOMINIUM ENDORSEMENT FI 281TX This form is a specially created package of coverages designed to be a convenient option for your condominiumowning customers. Included in this package of coverages are the following: Personal Injury Liability Unit Owners Coverage A-Special Coverage-Open Perils Buildings Unit Owners Special Coverage-Open Peril Coverage on Personal Property Replacement Cost Coverage-Personal Property Specified Additional Amount of Insurance-Coverage A-25% $1,000 on Money $5,000 on Securities $2,000 on watercraft including trailers $3,000 on trailers not used with watercraft $2,500 per article for jewelry, watches and furs; $5,000 per occurrence $10,000 for loss by theft, misplacing or losing of firearms and related equipment $10,000 per occurrence for loss to silverware $10,000 on property on the residence premises used primarily for business purposes $2,000 for business property away from the premises-$10,000 for computer equipment $2,000 for electronic apparatus while in or upon a motor vehicle not used in business $2,000 for electronic apparatus not in or upon a motor vehicle used for business purposes Vault Coverage-up to $25,000 coverage for securities, jewelry and silverware Service Vehicle Coverage broadened for Section I and II Additional Living Expense/Fair Rental Value has been broadened Loss of Use Coverage-no dollar limit for a maximum of 24 months Debris removal-unlimited expense on certain property Debris removal has been broadened Trees, Shrubs and Plants has been broadened to $1,000 Fire Department Service Charge-$1,000 Credit Card, Transfer Card - $10,000 Loss Assessment Coverage-Section I or Section II - $10,000 Ordinance or Law Coverage increased to 25% of the Coverage A limit $5,000 Damage by Birds, Vermin or Rodents included if no infestation or nesting evident Freezer Contents - $1,000 with special $50 deductible Lock Replacement-$500 per loss, $1,000 per term Rented Golf Cart-physical damage - $5,000 Physical Damage ACV for Owned Golf Carts Deductible Waiver-Losses of $50,000 or greater excluding earthquake, wind/hail or water back-up Arson, Fraud or Theft Rewards Coverage-up to $1,000 Golf Cart Liability to and from golf course Incidental Low Power Recreational Motor Vehicle Coverage up to 15 miles per hour Outboard Motor Liability up to 75 horsepower Waterbed Liability $100,000 Volunteer Wrongful Acts Coverage 04/10 EO-4

20 TEXAS HOMEOWNER OPTIONS PROGRAM 3. ESTATES OPTION HO 0006 UNIT OWNERS FORM COVERAGE INCLUDED (CONTINUED) COVERAGE OPTIONS Miscellaneous Endorsements See the Optional Coverages section in the Homeowner Manual for many more options to further customize each policy to the insured s individual needs. The Estates Option is the third and most comprehensive option that you have available when building your client s homeowner coverage. There are many other optional coverages you can buy to further enhance this product. 03/08 EO-5

21 UNDERWRITING GUIDELINES

22 TEXAS HOMEOWNER OPTIONS PROGRAM New Business Underwriting Guidelines Eligibility ESTATES DEFENDER SECURGARD Guidelines Available Forms HO0005, HO0004, HO0006 HO0003, HO0005, HO0004, HO0006 HO0003, HO0005, HO0004, HO0006 Minimum Coverage Coverage A Coverage B Coverage C HO0003 HO0005 HO0004 HO0006 Coverage D HO-5 HO-3 HO-4 HO-6 100% of Replacement 20% of Coverage A N/A 75% of Coverage A $10,000 $10,000 Unlimited/for 24 months N/A Unlimited/for 24 months Unlimited/for 24 months 100% of Replacement 10% of Coverage A 70% of Coverage A 70% of Coverage A $10,000 $10,000 30% of Coverage A 30% of Coverage A 30% Coverage C 50% Coverage C YOUR OPTION 10% of Coverage A 50% of Coverage A 50% of Coverage A $10,000 $10,000 30% of Coverage A 30% of Coverage A 30% Coverage C 50% Coverage C Coverage E Coverage F Secondary Residence Occupancy Insurance to Value Loss History Financial Stability Photo & Replacement Cost Estimator Town or Rowhouse Alarm System Auto/Home Discount Eligibility $100,000 $1,000 $100,000 $1,000 Eligible with supporting primary residence Coverage E and F are extended from primary residence Must be owner-occupied dwelling and residential only $100,000 $1, % 100% 80% Unless HO 2302, FI 248 or HO 0420 applies One previous loss is permitted in the last three years. Must be reported with details on the application. (See General Underwriting Philosophy Previous Losses) Note: TAC and TIC Art prohibit use of an underwriting guideline based on any of the following: 1) A single prior water damage claim filed by the applicant or in the covered property. 2) Two prior appliance-related claims where certification form WDR-1 has been completed by qualified water damage remediation inspector(s). 3) Any mold damage or mold damage claim(s) provided certification form MDR-1 has been completed by qualified mold remediation inspector(s). In addition to other underwriting criteria, risks will be evaluated based on an applicant s or named insured s credit score developed from information in the person s credit report. Replacement Cost Estimator required. Photo required if home is over five years of age. In addition, the Company will order an inspection report on all homes valued over $750,000 Eligible Central station burglary & fire alarms required for homes with Coverage A over $750,000 or if total Scheduled Personal Property value exceeds $100,000 In order for the Auto/Home Discount to apply, all new homeowners applications must be submitted concurrently with the personal automobile application or the personal automobile policy must currently be written with State Auto. The personal auto applications must meet all of our underwriting requirements to qualify for the discounts. Please see the credits and discounts section of the manual for other eligibility rules and requirements. 03/09 UG-1

23 TEXAS HOMEOWNER OPTIONS PROGRAM New Business Underwriting Guidelines (Continued) Eligibility Guidelines Pools Protection Class ESTATES DEFENDER SECURGARD In-Ground Pools: A 4 fence with locked gate or an elevated decking completely surrounding the pool with a retractable ladder that leads to a self-closing, self-locking gate. Pools with diving boards are eligible if the board is no more than 20 inches above the water level, and the pool has a minimum depth of 8 feet. Pools with pool slides are eligible with a minimum pool depth of 5 feet. Must meet local regulations. Above-Ground Pools: Must be elevated decking completely surrounding the pool and a retractable ladder that leads to a self-closing, self-locking gate. Diving boards and pool slides are ineligible with above ground pools. Must meet local regulations. All Protection Classes are Eligible. Protection Class 8B, 9, or 10 properties must: Be located among 10 or more homes Be located on all-weather state, county or city maintained roads Be visible from the road Protected Suburban properties must: Be located among 10 or more homes Be located on all-weather state, county or city maintained roads Be visible from the road Be within 5 miles of the primary responding fire department Solid Fuel Heating Device Acceptable solid fuel heating devices include wood, coal corn & pellet stoves and other similar stoves, and fireplace inserts. They are eligible with a photo of the unit and a completed supplemental questionnaire, and must: Be UL listed and tested Be professionally installed and meet the manufacturer s recommended clearances Be cleaned and inspected regularly by a certified chimney sweep Not be the primary heat source or located in a workshop, garage or outside structure Not have previous solid fuel heating related losses Not located in protection classes 8B, 9-19 Wood furnace or wood furnace add-ons are not eligible solid fuel heating devices NOTE: A surcharge applies to all risks with solid fuel heating devices 04/12 UG-2

24 TEXAS HOMEOWNER OPTIONS PROGRAM New Business Underwriting Guidelines (Continued) Eligibility ESTATES DEFENDER SECURGARD Guidelines Ineligible Risks Homes with a flat roof Log Homes Homes with roofs not in insurable condition. Homes with asbestos siding Homes with wood shingle roofs Mobile Home or manufactured homes Farm properties Any isolated properties Homes under construction for insured s who are not the intended occupant ( spec" homes) Homes under construction, unless the FI-150 is attached to the policy Homes built with Exterior Insulation and Finish system are ineligible Homes with aluminum or knob and tube wiring Any home that does not have a central heating system Any home with less than 100 amp fuse service Any home that does not have a continuous masonry pier and beam or slab foundation New business (effective 4/26/10 and after) in a tier one county with wind/hail coverage. Homes with tainted/chinese drywall..homes located in a High or Very High brushfire risk area that are less than 1,320 feet from a wildland area, as well as property located in a Very High brushfire risk area classified as a wildland Dangerous Dogs/Exotic Animals The following animals are ineligible: Pets/Animals including but not limited to: Pit Bull (Staffordshire Terrier), Presa Canario, Sharpei, or other fighting breeds, Rottweiler, Wolf Hybrids, Chow, Doberman Pinscher, or any mix which includes these breeds; Any dog with a previous bite history, aggressiveness, or which is unrestrained; and Minimum Deductible Prior Approval Any exotic animal that may be aggressive or dangerous. The minimum all peril deductible is ½%. A minimum 5% wind/hail deductible applies to a portion of Harris County. It will only apply to HO 0003 and HO 0005 policies. A 2% minimum wind/hail deductible applies to the counties of: Bee, Brooks, Fort Bend, Goliad, Hardin, Harris County (portion not in TWIA), Hidalgo, Jackson, Jim Wells, Liberty, Live Oak, Orange, Victoria, and Wharton. A 1% minimum wind/hail deductible applies to the remainder of the state for forms HO 0003 and HO Any risk in a coastal county written by an out of state agency Any home with a roof 15 years or older. 03/13 UG-3

25 TEXAS HOMEOWNER OPTIONS PROGRAM GENERAL UNDERWRITING PHILOSOPHY We are in the business of providing insurance. This statement implies that coverage will be available to a broad cross section of the public at a reasonable cost, with the expectation of profitable operation for both our agents and the Company. While it is our intention to establish a premium structure with sufficient flexibility to accommodate most potential policyholders, there are certain risk characteristics that present such a propensity to loss that they cannot be accepted in our programs. The purpose of this guide is to help define these acceptability standards. It is important to note that State Auto adheres to the terms of any applicable statutes. Thus, to the extent any of the guidelines contained in this document are in conflict with applicable law, the guidelines are superseded by the law. Beyond the general guidelines contained herein, we also recognize the importance of the agent s role in the underwriting process. By virtue of personal inspection of the property, the agent is in a unique position to assess risk characteristics and exercise underwriting judgment. INSURANCE TO VALUE An underwriting profit is achieved, in part, by the application of rates to adequately insured properties. Underinsurance results in rate inadequacy and over insurance may create a moral hazard. Insurance to value not only provides adequate protection for the insured in the event of a large and unexpected loss, but also creates responsible, competitive rates. Our best resource for ensuring adequate insurance to value up front is an agent s personal inspection of the risk. This results in the accurate completion of our replacement cost estimator. This form, developed through extensive, ongoing analysis of building materials and labor costs by geographic area, utilizes square footage, type and style of home, and additional home features to estimate a current replacement cost. The replacement cost estimator is appropriate for all but very large, high valued homes. (See also the following section on high valued homes). Once a risk is written, we automatically apply an inflation factor to help ensure insurance to value throughout the life of the policy. HIGH VALUED HOMES High valued homes present unique exposures. They are usually one-of-a-kind structures, which may contain unique, and possibly rare, building materials. This creates an insurance to value challenge. Therefore, these homes require a valuation by a qualified home appraisal/inspection company. The most desirable risk of this type are protected by central station burglary and fire alarms, located in protected areas, and occupied by financially secure individuals who neither travel nor entertain with great frequency. PREVIOUS LOSSES Previous loss history may be one of the best indicators of future losses. Losses that reflect on the insurability of risks such as those due to carelessness, poor maintenance of the property, hazardous conditions or situations are of utmost concern. Large losses, depending on the circumstances, may also present an undesirable exposure to loss. In addition, a frequency of losses, regardless of the cause, exhibits a higher than average loss exposure and is, therefore, unacceptable. CONDITION OF PROPERTY The condition of a home is extremely important in underwriting the risk. The most desirable risk characteristics include a dwelling in good condition or better which is reflected by proper maintenance and good housekeeping. The absence of these characteristics present a higher than average exposure to loss. 03/08 UG-4

26 BINDING AUTHORITY

27 TEXAS HOMEOWNER OPTIONS PROGRAM BINDING AUTHORITY New Business Submissions The required application and any supplemental documents i.e. photos, replacement cost estimators, appraisals, privacy act notices, Utility Update Credit Certification, etc. need to be fully completed, signed by the Named Insured and Agent and submitted to the company within four (4) working days of the effective date of coverage. Coverage A Protection Class 1-8 $600,000 Protected Suburban $400,000 Protection Class 8B, 9, and 10 $250,000 Scheduled Personal Property Jewelry-Single Item $15,000 Jewelry-Total Schedule $50,000 Furs-Single Item $15,000 Furs-Total Schedule $50,000 Fine Arts-Single Item $15,000 Fine Arts-Total Schedule $50,000 Cameras-Do Not Bind-any coverage on professional photographers. Musical Instruments-Do Not Bind-any coverage on professional musicians. Scheduled Personal Property Jewelry-Single Item $5,000 -Appraisal Requirements Jewelry-Single Item Agreed Value $5,000 Fur-Single Item $5,000 Fine Arts-Single Item $5,000 Higher Limit Binding Authority Refer To Company Out of State Risks Refer To Company Personal Liability $500,000 Wild Fire/Active Fire Line Agents need to get company approval before binding any new business or increasing current exposures for personal lines property, inland marine and auto coverages located within 15 miles of any existing wild fire or active fire line. Moratorium Do not bind any property coverage for 72 hours or any earthquake coverage for 30 days after a Seismic event of 4.0 or greater on the Richter Scale. This applies to both dwelling fire and homeowner policies. Seismic Event Richter Scale Mile Radius of Epicenter Do not Bind Property Coverage Do not Bind Earthquake Coverage miles 72 Hours 30 Days 6.0 or greater 500 miles 72 Hours 30 Days 04/11 BA-1

28 TEXAS HOMEOWNER OPTIONS PROGRAM Coastal Property Moratorium BINDING AUTHORITY (continued) Providing property insurance in coastal areas requires special underwriting consideration, primarily due to hurricane exposure. Therefore, we are providing the following guidelines for property risks located in coastal areas. For your guidance in handling new risks or placing additional coverage for existing accounts during a Hurricane Watch or Hurricane Warning, our guidelines are as follows: From the time the National Hurricane Center (NHC) issues a Hurricane Watch/Warning until 24 hours after the watch or warning is lifted, no new business, increases in existing business, or reduction of any deductibles may be written or bound in the following counties: Angelina, Aransas, Atascosa, Austin, Bee, Brazoria, Brooks, Calhoun, Cameron, Chambers, Colorado, DeWitt, Duval, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Grimes, Hardin, Harris, Hidalgo, Houston, Jackson, Jasper, Jefferson, Jim Hogg, Jim Wells, Karnes, Kenedy, Kleberg, La Salle, Lavaca, Liberty, Live Oak, Madison, Matagorda, McMullen, Montgomery, Nacogdoches, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Augustine, San Jacinto, San Patricio, Shelby, Starr, Trinity, Tyler, Victoria, Walker, Waller, Washington, Webb, Wharton, Wilson, and Zapata. For further information refer to our current Hurricane Bulletin issued at the start of each Hurricane Season. Hurricane Season runs from June 1 st through November 30 th each year. 04/11 BA-2

29 GENERAL RULES

30 General Rules Section TABLE OF CONTENTS Topic Page 1. General Instructions Policy Forms and Descriptions of Coverage Eligibility Additional Interest Mandatory Coverages Processing Instructions Policy Period/Payment Plan Other Insurance Cancellation Or Reductions In Limits of Liability Or Coverages Manual Revisions Restrictions Of Individual Policies Definitions Protection Class Protected Suburban Class Reinstatements /12

31 General Rules Section 1. GENERAL INSTRUCTIONS The Homeowner Options 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 Homeowners policies. The rules, rates, forms and endorsements of State Auto Insurance Companies for each coverage shall govern in all cases not specifically provided for in this manual. Please note that the following rules pertain to all policies unless otherwise noted. 2. POLICY FORMS AND DESCRIPTIONS OF COVERAGE The following is a general description of the coverages provided by the individual Homeowners Policy Forms. The Policy should be consulted for exact contract conditions. A. Property Coverage Section Coverages Property Damage Coverage A Dwelling Coverage B Other Structures Coverage C Personal Property Coverage D Loss of Use 1. Form HO 0003 Special Form Covers dwelling, other structures and loss of use against all risks of physical loss, with certain exceptions. Personal Property is covered against loss on a broad named peril basis. 2. Form HO 0004 Contents Broad Form Covers personal property, including the insured s interest in building additions and alterations, and loss of use against loss on a broad named peril basis. 3. Form HO 0005 Comprehensive Form Covers dwelling, other structures, personal property and loss of use against all risks of physical loss, with certain exceptions. 4. Form HO 0006 Condominium Unit-Owners Form Covers personal property, building additions and alterations of the unit and loss of use against loss on a broad named peril basis. B. Liability Coverage Section Coverages Liability All Forms Coverage E Personal Liability Coverage F Medical Payments to Others 1. Personal Liability Covers payment on behalf of any insured of 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. 03/08 GR-1

32 General Rules Section 3. ELIGIBILITY A. Form HO 0005 is eligible for the ESTATES, DEFENDER and SECURGARD Options. Form HO 0003 is eligible for the SECURGARD Option and DEFENDER Option only. These forms may apply in the following scenarios: 1. To any owner-occupant(s) of a one, two, three or four family dwelling which is used exclusively for private residential purposes. A one family dwelling may not be occupied by more than one additional family or two roomers or boarders. 2. To the purchaser-occupant(s) who has entered into a long term installment contract for the purchase of the dwelling and who occupies the dwelling but to whom title does not pass from the seller until all terms of the installment contract have been satisfied. The seller retains title until completion of the payments and in no way acts as a mortgagee. The seller s interest in the building and premises liability may be covered using Endorsement HO 0441 Additional Insured; or 3. It is permissible to extend the Homeowner Options Policy, without additional premium charge, to cover the interest of a non-occupant joint owner in the building and for premises liability; or 4. To the occupant of a dwelling under a life estate arrangement when the Coverage A amount is at least 80% of the dwelling s replacement cost or 100% of replacement cost if the Specified Additional Amount of Insurance For Coverage A Dwelling is provided in endorsement HO 0420 or any of the DEFENDER or ESTATES optional endorsements. The owners interest in the building and premises liability may be covered using Endorsement HO 0441 Additional Insured; or 5. To cover dwellings in the course of construction provided the policy is issued only in the name of the intended owner-occupant of the dwelling and the following underwriting requirements are met: a. The named insured will be residing in the home when complete. b. The home will be completed within 120 days of the inception date of the policy. c. A Replacement Cost Estimator is submitted with the application and a photo at completion. Use Endorsement FI 150 Provisional Amount Endorsement 6. Residence Held In Trust (All forms except HO 0004) A Homeowner Options Policy may be issued in the name of a trust and trustee(s) when legal title to a one through four family dwelling or a condominium unit is held solely by the trust and; a. The trustee and/or beneficiary or grantor regularly reside in the residence held in trust; and b. The residence held in trust is used exclusively for residential purposes. B. Form HO 0006 A Condominium Unit Owners Policy may be issued in the SECURGARD, DEFENDER or ESTATES Options to the owner-occupant of a single family condominium or cooperative unit which is used exclusively for private residential purposes and is not occupied by more than one additional family or more than two boarders or roomers. C. Form HO 0004 Contents Broad Form policy may be issued in the SECURGARD, DEFENDER or ESTATES Options only in the following scenarios: 1. The tenant(s) (non-owner) of a dwelling or apartment situated in any building; or 2. The owner-occupant(s) of a dwelling, cooperative unit or of a building containing an apartment not otherwise eligible for an Options Policy, provided the residence premises occupied by the insured is used exclusively for residential purposes and is not occupied by more than one additional family or more than two boarders or roomers. 03/08 GR-2

33 General Rules Section 3. ELIGIBILITY (Continued) D. When two or more apartment units in a 2, 3, or 4 family dwelling are occupied by co-owners, each occupying distinct living quarters with separate entrances, a Homeowner Options Policy providing building coverage may be issued to only one of the co-owner occupants of the dwelling. The policy may be endorsed to cover the interest of the other co-owner(s) in the building and for premises liability. A separate Homeowner Options Policy Form HO 0004 may be issued to the co-owner(s) occupying the other apartment in the dwelling. It is permissible to extend the Homeowner Options Policy, without additional premium charge, to cover the interest of a non-occupant joint owner in the building and for premises liability. Use Endorsement HO 0441 Additional Insured. E. Subject to all other sections of this rule, a Homeowner Options Policy may be issued to cover a seasonal dwelling when the primary residence is also written with State Auto Companies. F. A Homeowner Options Policy shall not be issued covering any property to which a farm form or rates apply under the rules of the Company. In no event shall a policy be issued to cover any property situated on premises used for farming purposes. Optional Section II liability coverage is available for certain farm liability exposures. G. A Homeowner Options Policy shall not be issued to cover any mobile home, trailer home, house trailer or sectional home or their contents. H. Certain occupancies incidental to the dwelling are permitted provided: 1. The premises are occupied principally for dwelling purposes; and 2. There is no other business conducted on the premises. I. A Homeowner Options Policy will not be issued to a residence with a flat roof. 4. ADDITIONAL INTEREST A. In addition to the mortgagee(s) shown in the Declarations or elsewhere in the policy, other persons or organizations may have an insurable interest in the residence premises. When coverage is not provided to such persons or organizations under Additional Insured Endorsement HO 0441 or its equivalent, their interest in the residence premises may be acknowledged by naming them in the endorsement referenced in Paragraph D. B. Such persons or organizations are entitled to receive notification if the policy is canceled or non-renewed by the insurer. C. No additional charge is made for use of this endorsement. D. Use Additional Interest Residence Premises HO /08 GR-3

34 General Rules Section 5. MANDATORY COVERAGES A. It is mandatory that insurance be written for all coverages provided under both Property and Liability Coverage Sections of the Homeowner Options Policy. B. Liability Coverage Section of the policy requires coverage for the following exposures. When such exposures exist, refer to the Optional Coverages Section. 1. All additional insured locations where the named insured or spouse maintain a residence other than business or farm properties; and 2. All residence employees of the named insured or spouse not covered or not required to be covered by Worker Compensation Insurance. C. Coverage for business property/business pursuits is limited under the Property Coverage Section and excluded under the Liability Coverage Section of the Homeowner Options Policy. If an incidental business occupancy is permitted by the Company to be covered under a Homeowner Options Policy, it is required that the policy be endorsed, at an additional premium charge, to cover the exposure. When a permitted exposure exists, refer to the Optional Coverage Section of this manual. D. Inflation Protection is provided automatically for all policies. At renewal, Property Coverage Section will be adjusted based on the factors reflecting current construction costs. The renewal premium will be based on the new Property Coverage Section coverage limits. 6. PROCESSING INSTRUCTIONS A. Applications New policies, except agency issued policies, will be issued using the ACORD application. A separate application must be submitted for any secondary residence with a notation in Policies and Coverages Coverage E and F that the policy is for a secondary residence. B. Change Requests You must complete a current ACORD change request, indicating the minimum information requirements for any endorsement that takes place during the term of the policy. This form must be used when making changes. C. Agency Issued Policies Homeowner Policy proof of insurance can be obtained from the agent s office by issuing a policy directly from netxpress. The Evidence of Property Insurance, ACORD27, is available immediately for the insured s convenience for proof of insurance. D. Required Information The date of birth and social security number of the named insured(s) and spouse must be shown on the application or in the remarks section of the application. This is for any applicable discounts the insured(s) may qualify for, as well as enabling us to receive applicable underwriting reports. 03/08 GR-4

35 04/11 TEXAS HOMEOWNER OPTIONS MANUAL General Rules Section 7. POLICY PERIOD/PAYMENT PLAN A. The Homeowner Options Policy may be written for a period of one year. Renewal terms are processed according to the current rates and forms. B. The Homeowner Options Program is eligible for Direct Bill and Electronic Fund Transfer Billing per the table below: Twelve Month Policy Term Pay Plan Options E-Pay Service Available Charge Billing Due Dates Full Pay Yes N/A Full payment due at inception of policy term. Two Pay Yes $3 N/A -- EFT 50% due at inception with remaining due in 6 months. Four Pay Yes $3 N/A EFT 25% due at inception with remaining billed in 25% installments each 90 Monthly Pay Yes $3 N/A - EFT GR-5 days. 1/12 th due at inception with remaining billed in installments every 30 days. C. Timing Considerations The number of installments will be determined by the number of months remaining in the policy term at the time the policy is set up. At renewal, the payment cycle will convert to the valid pay plan that was selected. D. Electronic Funds Transfer ( E-Pay ) The insured has the option of choosing a date between the 1 st and 28 th of the month that they would like the deduction to take place on EFT billed policies. Using the effective date of the policy for the EFT effective date will endure that the insured is current on installment payments. The insured will be notified by the company 14 days in advance of the initial amount of premium to be deducted, as well as any changes to that amount of one dollar ($1.00) or more. This option is available for new and existing business. Once State Auto receives the enrollment form, the insured s policy will be set up for the electronic funds transfer. This option is not available on premium financed, mortgagee billed policies. E. Customers Can Pay: 1) By Check Customers can mail in a check with the invoice billing stub. 2) EFT Customers can have an automatic deduction taken from their bank account. Refer to item D. 3) Payments can be made any time of the day or night, seven days a week, by credit or debit card (Visa or Master Card), or automated check (ACH payment), using either of these options: a) Pay on the Web at After selecting the option to Pay Your Policy customers can make a one-time payment without enrolling in the system or they can enroll in our Pay Now program where personal and payment type information is stored to facilitate and expedite future payments. b) Pay By Phone using our automated service just call , extension F. Agent Sweep /Upload Payments Agents can collect insured payments in their office, deposit in their bank account, and State Auto Sweeps the money out via electronic transaction. 1) New Business Agencies may upload insured new business and down payments through AgentSite netxpress. 2) Installment Payments Agents can Sweep insureds installment payments received in their office via State Auto s AgentSite.

36 General Rules Section 7. POLICY PERIOD/PAYMENT PLAN (Continued) Contact Agency Interface Services at for more information on Sweeping G. NSF Charge: A $20 non-sufficient fund fee will be charged on all returned payments if returned for insufficient funds. H. If the homeowner policy is to be mortgagee bill, the policy must be paid in full. Credit for existing insurance is not permitted. 8. OTHER INSURANCE 9. CANCELLATION OR REDUCTIONS IN LIMITS OF LIABILITY OR COVERAGES It shall not be permissible to cancel any of the mandatory coverages in the policy unless the entire policy is canceled. If insurance is canceled or reduced at the request of either the insured or insurer, the earned premium shall be computed on a pro rata basis. 10. MANUAL REVISION Changes in manual rules or rates will be announced. Each revised page will show the effective date of the revision. Information with a pencil symbol ( ) indicates an important change. Minor editorial changes will not show the symbol. A manual revision, meaning any revision of premium applicable to the Homeowner Options Program 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. When an existing Homeowners Policy is endorsed to take advantage of a reduction in premium, the adjustment shall be made on a pro rata basis. D. Unless otherwise provided at the time the premium revision becomes effective, the premium revision does not affect in-force policy forms and endorsements until the policy is renewed. 11. RESTRICTION OF INDIVIDUAL POLICIES If a Homeowner Options Policy would not be issued because of unusual circumstances or exposures, the named insured may request a restriction of the policy provided no reduction in the premium is allowed. Such requests shall be approved by the Company before binding. 03/09 GR-6

37 General Rules Section 12. DEFINITIONS A. Construction Frame exterior wall of wood or other combustible construction, including wood-iron clad, or plaster on combustible supports. Aluminum or plastic siding over frame. Stucco/Asbestos outer walls of stucco, asbestos board, rigid asbestos sidings. Masonry Veneer exterior walls of combustible construction veneered with brick or stone shall be classified as masonry construction. 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). Mixed 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. Non-Combustible exterior walls, floors and roof constructed of, and supported by metal, asbestos, gypsum, or other non-combustible materials. Masonry Non-Combustible exterior walls constructed of masonry materials (as described in Masonry above) and floors and roof of metal or other non-combustible materials. Fire Resistive exterior walls and floors and roof constructed of masonry or other fire resistive materials or any construction with exterior walls, floors, joists, studs, and roof trusses treated with the Intumescent Fire Retardant Coating, No-Burn Plus. Non-Combustible, Masonry Non-Combustible, and Fire Resistive construction types are eligible for the Superior construction credit in the Credits/Discounts/Charges section. B. Seasonal Dwelling Definition A seasonal dwelling is a dwelling with continuous unoccupancy of three or more consecutive months during any one year period. C. Single Building Definition All buildings or sections of buildings which communicate through unprotected openings shall be considered as a single building. Buildings which are separated by space shall be considered separate buildings. Buildings or sections of buildings which are separated by an 8 inch masonry fire wall which extends uninterrupted from the foundation through the roof in the form of a parapet at least 24 inches high shall be considered single family dwellings. Communications between buildings with independent walls or through masonry fire walls described above shall be protected by at least a Class A Fire Door installed in a masonry wall section. 04/10 GR-7

38 General Rules Section 13. PROTECTION CLASS A. The protection class listings in the Public Protection Classification manual apply to risks insured under Homeowner Options Policies. B. Single Class Areas In a classified area where the primary responding fire department has a single classification (e.g. 6), use the designated classification for all properties located within the classified area. The property must be located within five miles of the responding fire department. Multiple Class Areas In a classified area where two or more classifications are shown for the primary responding fire department, (e.g. 6/9), the classification is determined as follows: Distance to Primary Responding Fire Department Protection Class 5 road miles or less and within 1,000 feet of a Use the first class shown (e.g. 6/9), use 6 hydrant 5 road miles or less and over 1,000 feet to hydrant Use the highest class shown (e.g. 6/9), use 9 More than 5 road miles PROTECTED SUBURBAN CLASSES The Protected Suburban Rule may be applied to risks located in class 9* areas as determined by the Insurance Services Office. The protection class is based on the fire department which is the primary responding department. Back-up or secondary fire departments are not eligible for the Protected Suburban Rule. Refer to the Underwriting Guidelines for Eligibility Requirements. Protection Class of Primary Responding Fire Department** Rate as Protection Class Identify on Application as 1 followed by the Primary Responding Fire Department Class Not Classified 9 19 NOTE: **For split Classification fire departments, use the first listed class. *As of 04/26/10 PC 10 s are no longer eligible for the Protected Suburban classes REINSTATEMENTS Reinstatements, with no lapse in coverage, will be considered on a prior approval basis. The Acord 37, Statement of No Loss, must be completed and received by the Company prior to any reinstatement. 04/12 GR-8

39 CREDITS, DISCOUNTS and SURCHARGES

40 Credits/Discounts/Charges Table of Contents Title Page 1. Actual Cash Value Loss Settlement Windstorm/Hail Losses Roof Surfacing Age of Dwelling Discount Auto/Home Discount Roof Construction Discounts Deductibles Financial Responsibility Rating Home Purchase Discount Loss Experience Rating Number of Family Rating Prime of Life Homeowners Discount Protective Device Credits Solid Fuel Heating Device Surcharge Superior Construction Credit Townhouse/Multi Family Surcharge Utility Update Credit Windstorm, Hurricane and Hail Exclusion Agreement /10

41 Credits/Discounts/Charges 1. ACTUAL CASH VALUE LOSS SETTLEMENT WINDSTORM OR HAIL LOSSES TO ROOF SURFACING TEXAS FI 2305 A. All forms except HO 0004 and HO 0006 B. The policy provides settlement for building losses on a repair or replacement cost basis, subject to certain conditions. C. The policy may be endorsed to provide loss settlement exclusively on an Actual Cash Value basis for roof surfacing when damage is caused by the peril of Windstorm Or Hail. D. Use endorsement FI 2305 Actual Cash Value Loss Settlement Windstorm or Hail Losses to Roof Surfacing - Texas. 2. AGE OF DWELLING DISCOUNT Under the ESTATES, DEFENDER or SECURGARD options, for policy forms HO 0003 or HO 0005 Age of Dwelling premium credits are available. To determine the correct age: Age of dwelling equals the current year minus the year the home was completed. If both Age of Dwelling and Utility Update Credit apply to the policy, the larger of the two will be applied to the adjusted base premium. In the event both credits are the same, Utility Update Credit will apply. 3. AUTO/HOME DISCOUNT This credit is available to insureds that have both a personal lines automobile and homeowner policy written with State Auto Insurance Companies. While the application of this plan is relatively simple, we have outlined below a number of rules and requirements that apply to our various programs. A. Credit The credit applies to all HO 0003, HO 0004, HO 0005 and HO 0006 risks. The credit amount is applied to the adjusted base premium. B. Eligibility All HO 0003, HO 0004, HO 0005 and HO 0006 policies are eligible for the Auto/Home Discount. In addition to the items listed below, please refer to our underwriting guidelines for eligibility requirement. 1. Primary and Secondary residences are eligible to receive the discount. Note: Any homeowner s policy, except HO 0004 and HO 0006 policies with Coverage C less than $20,000 will qualify an eligible auto policy for the discount. 04/12 CD-1

42 Credits/Discounts/Charges 3. AUTO/HOME DISCOUNT (Continued) C. Processing Instructions 1. New Applications When a homeowner application is submitted that is eligible for the Auto/Home Discount, indicate in the Rating Credits area of the application under other. Include the policy number of the corresponding auto risk. 2. Agent Issued Policies Indicate on the daily and accompanying applications, the policy number for the corresponding policy. EXAMPLE: Homeowner Policy A/H DISCOUNT ATX XXXX XXX 3. Mid-Term Changes to Existing Policies The Auto/Home Discount may be added to existing business as of the effective date of supporting coverage. A change request for each policy, with the corresponding policy number shown, must be submitted. 4. Cancellation of a Policy With Auto/Home Discount When one of the two policies with a discount applying is canceled, the Homeowner policy will be set up to remove the discount at the next renewal. 5. Declarations Pages When the Auto/Home Discount credit applies, the annual amount of the credit will be displayed on the declarations page of the policy regardless of term. 4. ROOF CONSTRUCTION DISCOUNTS Roof Construction Discount This discount is based on the roof material and the age of the roof. The discount does not apply to HO 0004 and HO 0006 policies. Categories of roof material include: A. Tile, Concrete, or Slate Roof applies to policies in which the portion of the roof covering the living area of the dwelling is made entirely of clay, concrete, cement-fiber or slate. B. Class 4 Roof - applies to all policies whose roofs are covered with Class 4 Impact Resistant Roofing Materials, other than clay, concrete, cement fiber or slate. Proof must be sent in at the time the discount is applied. Proof would consist of an invoice showing the UL ranking or an inspection (at the insured s expense) by a reputable roofing company. Class 4 Roof Underwriters Laboratories (UL) ranks roofing material from Class 1 to Class 4 based on its resistance to various sized steel balls being dropped from various heights. Class 4 roofing material meets the UL standard for impact resistance based on a steel ball two inches in diameter being dropped from a height of 20 feet. Class 4 shingles use six fasteners per shingle (in high wind areas), have a 102 mile per hour wind warranty and a 30 to 40 year limited warranty depending on the type of shingle selected. 04/10 CD-2

43 Credits/Discounts/Charges 4. ROOF CONSTRUCTION DISCOUNTS (Continued) C. All Other A. Deductible Options 5. DEDUCTIBLES 1. For Forms HO 0003 and HO 0005, the following deductible options are available: ½%, 1%, 1 ½%, 2%, 2 ½%, 3%, 4% and 5%. 2. For Forms HO 0004 and HO 0006, the following deductible options are available: $100, $250, $500, $1,000. B. Windstorm or Hail Deductibles FI 187 For all forms except HO 0004, windstorm or hail deductibles of 1%, 2% or 5% are available. A minimum 5% windstorm or hail deductible will apply to a select portion of Harris County. A minimum windstorm or hail deductible of 2% applies to the counties of Bee, Brooks, Fort Bend, Goliad, Hardin, Harris County (portion not in TWIA), Hidalgo, Jackson, Jim Wells, Liberty, Live Oak, Orange, Victoria, and Wharton. A 1% windstorm or hail deductible will apply to the remainder of the state for forms HO 0003 and HO C. Special Account Deductible Provision In the event a covered loss is incurred because of an accident or occurrence affecting both the home and personal auto policies insured with State Auto, we will apply only one policy deductible, the higher of either the homeowners or personal auto under the personal auto policy. The highest deductible will apply to the total of all damages resulting from the same accident or occurrence. Refer to AU 677 Special Account Deductible Endorsement. 6. FINANCIAL STABILITY RATING This discount or surcharge is based on the credit score ranking of the insured. 7. HOME PURCHASE DISCOUNT This credit is available to any new homeowner policy where the insured has newly purchased their home that meets the following requirements: Eligibility For new business, the home must be purchased within the last twelve months prior to the effective date of the policy. Renewal policies will qualify only if they received the discount when the policy was newly issued and have had continuous coverage under State Auto. 04/11 CD-3

44 Credits/Discounts/Charges 7. HOME PURCHASE DISCOUNT (Continued) The discount applies to HO 0003 and HO 0005 policies only. Primary residences only are eligible for the discount. 8. LOSS EXPERIENCE RATING The loss Experience Rating incorporates the number of losses with the length of time the insured has been with the company. A loss experience surcharge will apply for three (3) year experience period. A. At each renewal the policy will be re-rated based on the number of losses during the preceding experience period. B. The threshold amount (net of deductible): For business written prior to 4/26/11 the threshold amount is $1,000. For business written on or after 4/26/11 the threshold amount is $500. C. Losses in the experience resulting from any of the following will not be surcharged: Windstorm, Hail, Lightning, Earthquake, Mine Subsidence, Sinkhole Collapse, Weight of Ice, Snow, or Sleet, Freeze, Flood, Riots and Civil Commotion, Medical Payments, Catastrophes, claims that are filed but not paid or payable under the policy, and claims submitted under the Prime of Life plan or HomeXtended coverages. D. Watercraft losses that are surcharged will be applied to the watercraft premium. 9. NUMBER OF FAMILY RATING A separate factor will be applied to the base premium for a 3 or 4 family dwelling. 04/11 CD-4

45 Credits/Discounts/Charges 10. PRIME OF LIFE HOMEOWNERS DISCOUNT Prime of Life Extra Value Coverages The Prime of Life Plan affords extra value coverages provided by endorsement TX 199 for insureds ages 45 and older. It applies to policy forms HO 0003, HO 0005 and HO 0006 or HO 0004 with Coverage C of $20,000 or more that qualify for the Auto/Home Discount. Form TX 199 applies. Prime of Life Discount A discount is available to the named insureds and/or spouse who are at least 50 years of age or older and their homeowner policy is part of an Auto/Home Discount account. This discount applies to the HO0003, HO0004, HO0005 and HO0006 forms that are a part of an Auto/Home Discount account. A. Credit This credit is applied to the otherwise applicable annual base premium. B. Eligibility In order for the Prime of Life Discount to apply all new homeowners applications must be submitted concurrently with the personal automobile application or the personal automobile policy must currently be written with State Auto. No trial applications will be accepted, and the personal auto applications must meet all of our underwriting requirements to qualify for the discounts. This credit is available for all HO 0003 and HO 0005 forms in all policy options and all HO 0004 and HO 0006 policy forms with Coverage C limit of $20,000 or greater written in any policy option (ESTATES, DEFENDER or SECURGARD). Primary and Secondary residences are eligible. NOTE: Any homeowner s policy, except HO 0004 and HO 0006 policies with Coverage C less than $20,000 will qualify an eligible auto policy for the discount. C. Processing Instructions 1. New Applications When homeowner applications are submitted that are eligible for the Prime of Life Homeowner Discount, the discount will be automatically applied to the policy. PLEASE INDICATE IN THE APPLICANT INFORMATION SECTION OF THE ACORD APPLICATION THE DATE OF BIRTH AND SOCIAL SECURITY NUMBER FOR THE NAMED INSURED AND SPOUSE. 2. Mid-Term Changes to Existing Policies The Prime of Life Homeowner Discount may be added midterm. 3. Cancellation of a Policy With Prime of Life Discount When one of the two policies receiving the Prime of Life Discount is canceled, the credit will be automatically removed from the remaining policy at the next renewal date. 4. Declarations Pages When the Prime of Life Discount credit applies, the percentage will be displayed on the declarations page of the policy. 04/12 CD-5

46 Credits/Discounts/Charges 11. PROTECTIVE DEVICE CREDITS The following protective devices are eligible for premium credits for the installation of an approved and properly maintained burglar alarm, fire alarm or sprinkler system in the dwelling: TYPE CODE I J K M N O Q PROTECTIVE DEVICE DESCRIPTION Central Station Burglary Alarm System Central Fire Alarm System Burglary Alarm System That Alerts the Police Department Fire Alarm System That Alerts the Fire Department Burglary and/or Fire Local Alarm System Including UL Approved Smoke Detector Devices Sprinkler System In All Areas Including Bathrooms, Attics and Attached Structures Sprinkler System With Sprinklers Totally or Partly Omitted in Bathrooms, Closets, Attics and Attached Structures and With Fire Detectors In All Areas Where the Sprinkler is Omitted The total credit applies to the adjusted base policy premium and the Scheduled Personal Property premium for each class. Note: Identify the type of device on the homeowner application. 12. SOLID FUEL HEATING DEVICE SURCHARGE A surcharge of $50 will be added to all policies with an acceptable solid fuel heating device. This would include wood, corn, pellet and coal stoves, and other similar solid fuel units, and fireplace inserts. The surcharge will be added to the premium in the same rating steps as an optional endorsement. This applies to all forms. 13. SUPERIOR CONSTRUCTION ALL FORMS The premium for an eligible dwelling or apartment unit in a building of superior construction is computed by multiplying the masonry BASE PREMIUM for a comparable dwelling or apartment unit by a separate superior construction factor. Refer to the Construction Definitions page in this manual for eligible construction types. A. All forms except HO 0004 and HO TOWNHOUSE/MULTI FAMILY SURCHARGE B. A multiple family townhouse or row-house is not eligible for coverage if the structure has a flat roof. C. An eligible one, two, three or four family dwelling in a town or row house structure may be written. 04/10 CD-6

47 Credits/Discounts/Charges 14. TOWNHOUSE/MULTI FAMILY SURCHARGE (Continued) Note: An eligible two family owner-occupied dwelling attached to a one family dwelling but not separated by a fire wall would be considered 3 individual family units within a fire division. An eligible four family dwelling attached to a three family dwelling but not separated by a fire wall would be considered 7 individual family units within a fire division. Four 2 family dwellings not separated by fire walls would be considered 8 individual family units. A. Available for forms HO 0003 and HO 0005 only. 15. UTILITY UPDATE CREDIT B. For new business, or for renewal business, the insured may begin to qualify for a discount of for plumbing, electrical and the heating and cooling systems if there have been extensive updates made to those systems within the past seven (7) years. If components of any utility were updated in different years, the premium adjustment is based on the earliest year in which any one of the components of the utility was updated. If both Age of Dwelling and Utility Update Credit apply to the policy, the larger of the two will be applied to the adjusted base premium. In the event both credits are the same, Utility Update Credit will apply. C. The following guidelines must be met in order to qualify for the credit: PLUMBING Improvements include the installation of all new water lines within the structure, including plumbing fixtures, traps, pumps, holding tanks and hot water heater. ELECTRICAL Improvements include the installation of a new, approved circuit breaker service box, fixtures, receptacles and wiring (aluminum wiring is not acceptable). HEATING AND COOLING Improvements include the installation of a new heating plant, including burner, boiler, fans, coupling valves, safety switches or connectors, radiator and baseboard units and compressors on central air conditioning systems. D. Utility Update Credit Certification Form FI 249 must be completed, signed by the agent and insured and submitted with the application before this discount is permitted. 16. WINDSTORM, HURRICANE AND HAIL EXCLUSION AGREEMENT FI 2718 The peril of Windstorm or Hail may be excluded for all coverages, except Coverage D Loss of Use for a secondary only residence, when the property is located in a designated catastrophe area and is eligible for coverage through the Texas Windstorm Insurance Association. 04/10 CD-7

48 OPTIONAL COVERAGES

49 Optional Coverages Table of Contents Title Page 1. Special Homeowner Package Options SECURGARD PLUS Option Coverage Endorsement FI 264TX DEFENDER Option Endorsement FI 270TX DEFENDER Option Condominium Endorsement FI 271TX DEFENDER Option Renters Endorsement FI 272TX ESTATES Option Endorsement FI 280TX ESTATES Option Condominium Endorsement FI 281TX ESTATES Option Renters Endorsement FI 282TX Additional Insured Student Living Away From The Residence Premises HO Additional Residence Rented To Others 1, 2, 3 or 4 Families HO Additional Residence Occupied By Insured Liability (Secondary Residence) Assisted Living Care Coverage HO Basic Liability Coverage Optional Limits Building Additions and Alterations HO 0451 & HO Business Property/Computer Equipment-Increased Limits TX Business Pursuits HO Coverage E Increased Liability Limits Credit Card, Electronic Fund Transfer Card or Access Device, Forgery etc HO Earthquake FI Farmers Personal Liability HO Fire Department Service Charge FI Foundation Coverage HO Functional Replacement Cost Loss Settllement HO Home Based Business FI 211TX & FI 212TX Home Day Care Coverage HO HomeXtended Coverages Endorsement Identity Fraud Expense Coverage - Texas HO Incidental Low Power Recreational Motor Vehicle Coverage HO Insurance To Value Loss Settlement-Common Construction - FI 248 & Special Loss Settlement - HO Landlords Furnishings HO Livestock Limited Mortality Coverage Loss Assessment Coverage HO /12

50 Optional Coverages Table of Contents (Continued) Title Page 33. Loss Assessment Earthquake Coverage HO Loss Of Use Increased Limits Ordinance Or Law Coverage HO Other Members Of Your Household HO Other Structures Coverage HO 0448, HO 0440 & HO Owned Motorized Golf Cart-Physical Loss Coverage FI Owned Snowmobile Liability and Physical Damage TX 48 & HO Permitted Incidental Occupancies Residence Premises HO 0442 & HO Personal Injury - Texas HO Personal Property HO 0450, FI 0465 & FI Personal Property Blanket Coverage FI Refrigerated Personal Property HO Rental To Others Extended Theft Coverage HO Replacement Cost Loss Settlement For Certain Non-Building Structures HO Replacement Cost Personal Property FI Residence Employees Residence Held In Trust HO Scheduled Personal Property FI Scheduled Personal Property Agreed Value FI Special Computer Coverage HO Special Personal Property Coverage HO Specified Additional Amount Of Insurance For Coverage A Dwelling HO Theft of Building Materials FI Unit Owners Coverage A Special Coverage HO Unit Owners Coverage A Dwelling Increased Limits Unit Owners Coverage C Special Coverage HO Unit Owners Modified Other Insurance and Service Agreement HO Unit Owners Regularly Rented to Others HO Volunteer Wrongful Acts Coverage FI 260TX Water Back Up and Sump Discharge or Overflow FI Waterbed Liability FI Watercraft Coverage /12

51 Optional Coverages 1. HOMEOWNER PACKAGE OPTIONS The Options Program was developed to give the insured more of a choice as to what coverages they need. Each package option, starting with the base SECURGARD Option on up through the ESTATES Option builds on itself to make the coverage more comprehensive. Refer to the section in the beginning of this manual, starting on page three, for a more specific description of what is available in each of these endorsements. 2. SECURGARD PLUS OPTION COVERAGE ENDORSEMENT FI 264TX A. This endorsement is available with the HO 0003 or HO 0005 coverage forms only. B. 80% of Replacement Cost is required unless the insured chooses optional replacement cost provisions such as: FI 248 Common Construction (cannot be added on or after 04/26/12); HO 2302 Special Loss Settlement or HO 0420 Specified Additional Amount of Insurance-Coverage A. If HO 0530 Functional Replacement Cost Loss Settlement is selected, 100% of Functional Replacement Cost is required. Refer to the Optional Coverage Section for proper handling of these risks. C. Various insurance to value requirements are available under this form, from 20% of replacement cost up to 100% of replacement cost, depending upon the replacement cost loss settlement provision you select under B above. 3. DEFENDER OPTION ENDORSEMENT FI 270TX A. This endorsement is available with the HO 0003 or HO 0005 coverage forms only. B. The FI 2304 Replacement Cost Personal Property and the HO 0420 Specified Additional Amount of Coverage A are already included in the endorsement form. C. The home must be insured to 100% of replacement cost and the insured must notify us within 90 days of the start of any additions or other physical changes which increase the value of the dwelling or other building structures on the residence premises by 5% or more, and pay any resulting additional premium. 4. DEFENDER OPTION CONDOMINIUM ENDORSEMENT FI 271TX A. This endorsement is available with the HO 0006 Unit Owners Form only. B. The FI 2304 Personal Property Replacement Cost Endorsement is not available with this form since coverage is automatically included. C. The HO 1791 Unit Owners Coverage A Special Coverage is not available with this form since open perils for those items covered under Coverage A Building are automatically covered by this form. 04/12 OC-1

52 Optional Coverages 5. DEFENDER OPTION RENTERS ENDORSEMENT FI 272TX A. This endorsement is available with the HO 0004 Contents Broad Form only. B. The FI 2304 Personal Property Replacement Cost Endorsement is not available with this form since coverage is automatically included. 6. ESTATES OPTION ENDORSEMENT FI 280TX A. This endorsement is available with the HO 0005 Comprehensive Form only and includes everything found in the FI 270TX DEFENDER Endorsement plus many other coverage enhancements. B. This form includes everything that is included under the DEFENDER FI 270TX form with special increased coverage on internal limits. Refer to the ESTATES endorsement section in the front of the manual for complete details. C. The home must be insured to 100% of replacement cost and the insured must notify us within 90 days of the start of any additions or other physical changes which increase the value of the dwelling or other building structures on the residence premises by 5% or more, and pay any resulting additional premium. 7. ESTATES OPTION CONDOMINIUM ENDORSEMENT FI 281TX A. This endorsement is available with the HO 0006 Unit Owners Form only and includes everything found in the FI 271TX DEFENDER Endorsement plus many other coverage enhancements. B. The HO 1791 Unit Owners Coverage A Special Coverage and the HO 1790 Unit Owners Coverage C Special Coverage are not available with this form since open perils for those items covered under Coverage A Building and C contents are automatically covered by this form. 8. ESTATES OPTION RENTERS ENDORSEMENT FI 282TX A. This endorsement is available with the HO 0004 Contents Broad Form only and includes everything found in the FI 272TX DEFENDER Endorsement plus many other coverage enhancements. B. The FI 2304 Personal Property Replacement Cost Endorsement is not available with this form since coverage is automatically included. C. The HO 0561 Special Personal Property Coverage which provides open perils on contents, is not available under this form since coverage is included in this endorsement. 04/10 OC-2

53 Optional Coverages 9. ADDITIONAL INSURED STUDENT LIVING AWAY FROM THE RESIDENCE PREMISES HO 0527 A. The policy provides coverage for a full-time student, who was a resident of the named insured s household before moving out to attend school and is under the age of: and a relative of the named insured; or and in the care of the named insured or a resident relative. B. The policy may be endorsed to provide coverage for other types of students who were residents of the named insured s household before moving out to attend school. For example, part time students or students older than 24. C. Premium The premium charge to extend coverage is a charge of $16 plus an additional amount based on the Personal Liability and Medical Payments limits, determined from the chart below. Additional Insured Student Living Away From The Residence Premises Personal Liability P E Medical Payments Coverage F Limit Premium Limit Premium $100,000 $47 $1,000 Included $200,000 $55 $2,000 $1 $300,000 $63 $3,000 $2 $400,000 $67 $4,000 $3 $500,000 $70 $5,000 $4 $1,000,000 $81 $10,000 $9 10. ADDITIONAL RESIDENCE RENTED TO OTHERS HO 2470 A. The policy may be endorsed to provide coverage when an additional residence is rented to others. B. The premiums shown are for each dwelling structure: Additional Residence Rented to Others HO 2470 Personal Liability Limit (Coverage E) Medical Payments Limit (Coverage F) Limit 1 Family 2 Family 3 Family 4 Family Limit $100,000 $19 $30 $87 $91 $1,000 Included $200,000 $22 $35 $102 $106 $2,000 $1 $300,000 $25 $40 $116 $121 $3,000 $2 $400,000 $27 $43 $124 $130 $4,000 $3 $500,000 $28 $45 $130 $136 $5,000 $4 $1,000,000 $33 $52 $151 $157 $10,000 $9 03/09 OC-3

54 Optional Coverages 11. ADDITIONAL RESIDENCE OCCUPIED BY INSURED LIABILITY (SECONDARY RESIDENCE) A. Liability coverage may be extended to cover one or two family secondary locations, when they are insured for Property Coverage under another insurance program by another company. B. Property Coverage for a secondary residence premises shall be provided under a separate policy. The basic premiums for the secondary residence policy shall be reduced. Liability coverage is not mandatory on the secondary residence policy when: 1. State Auto Companies insures the initial and secondary residences; and 2. the policy number of the initial residence is indicated in the policy covering the secondary residence. C. Please indicate the address of the secondary residence location in the remarks section of the primary residence policy application. D. Make the appropriate charge for each secondary location shown in the Declarations of the primary policy. Note: If the insured location is in another state, refer to the appropriate state manual. Personal Liability (Coverage E) Medical Payments (Coverage F) Limit 1 Family Dwelling 2 Family Dwelling 1 and 2 Family Dwellings Premium Premium Limit Premium $100,000 $7 $14 $1,000 Included $200,000 $8 $16 $2,000 $1 $300,000 $9 $19 $3,000 $2 $400,000 $10 $20 $4,000 $3 $500,000 $10 $21 $5,000 $4 $1,000,000 $12 $24 $10,000 $9 12. ASSISTED LIVING CARE COVERAGE HO 0459 A. The policy provides coverage to named insureds and resident relatives who are members of the insured s household. B. Coverage Description 1. The policy may be endorsed to provide personal property, additional living expense and personal liability coverage to a person regularly residing in an Assisted Living Care facility, provided such person; a. Is related to an insured by blood, marriage or adoption; and b. Is not a member of the insured s household. 2. An assisted living care facility that provides assisted living services such as dining, therapy, medical supervision, housekeeping and social activities. It is not a hospice, prison or rehabilitation facility. 3. The endorsement provides the following basic limits of coverage: a. $10,000 for Coverage C Personal Property with limitations ranging from $100 to $500 for certain items of property. b. $6,000 at $500 per month for Additional Living Expenses; and c. $100,000 for Coverage E Personal Liability. 04/10 OC-4

55 Optional Coverages 12. ASSISTED LIVING CARE COVERAGE HO 0459 (Continued) C. Medical Payments Coverage is not provided and is not available in this form. D. Increased Limits For Coverage C The $10,000 property limit provided by this endorsement can be increased in increments of $1,000 to a maximum of $25,000. E. Increased Liability Limits The $100,000 liability limit provided in this endorsement can be increased, but cannot exceed, the limit of liability provided at the primary insured residence. See below for the rate. F. Premium- 1. Premium for Assisted Living Care Base Limits--$100 plus; 2. Premium for increased Coverage C and increased Coverage E limits is shown in the table below: Assisted Living Care Coverage C Contents Limit Limit Premium $10,000 Included Each additional $1,000 up to $25,000 total $7 Assisted Living Care Coverage E Liability Limit Limit Premium $100,000 Included $200,000 $3 $300,000 $7 $400,000 $9 $500,000 $10 $1,000,000 $ BASIC LIABILITY COVERAGE OPTIONAL LIMITS The basic policy premium includes Liability Coverage Section II limits of $100,000/$1,000. For optional limits for the residence premises, apply the following premiums: Personal Liability Limit Premium Medical Payments Limit Premium (Coverage E) (Coverage F) $100,000 Included $1,000 Included $200,000 $9 $2,000 $3 $300,000 $17 $3,000 $6 $400,000 $22 $4,000 $9 $500,000 $25 $5,000 $12 $1,000,000 $37 $10,000 $27 A. Unless otherwise noted, the same limits must apply to all exposures. B. Unless otherwise stated, Coverage E limits apply on an occurrence basis and Coverage F limits apply on an each person basis. 03/09 OC-5

56 Optional Coverages 14. BUILDING ADDITIONS AND ALTERATIONS HO 0449 AND HO 0451 A. All Forms Building Additions and Alterations at Other Residence HO 0449 When the policy is extended to provide this coverage at residences other than the residence premises, rented to an insured, the premium per $1,000 of insurance shall be the HO 0004 Basic Premium at 30,000 Coverage C multiplied by the Each Additional $10,000 factor then times B. Form HO 0004 Building Additions and Alterations Increased Limits HO 0451 When the limit of liability of 10% of Coverage C is increased, the premium per $1,000 of insurance shall be the HO 0004 Basic Premium at 30,000 Coverage C multiplied by the Each Additional $10,000 factor then times Use form HO0451 to insure other structures on the residence premises for which a tenant has ownership. 15. BUSINESS PROPERTY/COMPUTER EQUIPMENT INCREASED LIMITS TX 0412 A. The $2,500 limit of liability for business property on the residence premises may be increased to $10,000 in increments of $2,500. The limit of liability in excess of $2,500 does not apply to: 1. Business property in storage or held as a sample or for sale or delivery after the sale; 2. Business property pertaining to a business actually conducted on the residence premises. This exposure can be covered by the HO 0442 Permitted Incidental Occupancies endorsement. B. When the on premises limit is increased, the off premises limit for computer equipment is automatically increased, at no additional premium charge, to an amount equal to the on premises limits for business property. C. When the on premises limit is increased, the off premises limit, other than computer equipment, is automatically increased at no additional premium charge to an amount that is 20% of the total on premises limit of liability. D. The premium for each $2,500 increase in coverage is $25. Note: This endorsement is not available with the FI 280TX, FI 281TX or FI 282TX forms since coverage is already provided at the maximum limit under those forms. 16. BUSINESS PURSUITS HO 2471 Coverage may be provided for the liability of the insured arising out of business activities. Coverage is excluded if the insured owns the business, is a partner or maintains financial control in or of the business. Clerical Employees Personal Liability (Coverage E) Medical Payments (Coverage F) Limit Premium Limit Premium $100,000 $6 $1,000 Included $200,000 $7 $2,000 $1 $300,000 $8 $3,000 $2 $400,000 $9 $4,000 $3 $500,000 $9 $5,000 $4 $1,000,000 $10 $10,000 $9 03/09 OC-6

57 Optional Coverages 16. BUSINESS PURSUITS HO 2471 (Continued) Sales person, collector or messenger (G) Including installation, demonstration or servicing operations (B) Personal Liability (Coverage E) Medical Payments (Coverage F) Limit Premium Premium Limit Premium (G) (B) $100,000 $6 $7 $1,000 Included $200,000 $7 $8 $2,000 $1 $300,000 $8 $9 $3,000 $2 $400,000 $9 $10 $4,000 $3 $500,000 $9 $10 $5,000 $4 $1,000,000 $10 $12 $10,000 $9 Teachers laboratory, athletic, manual or physical training including corporal punishment Teachers not otherwise classified including corporal punishment Personal Liability (Coverage E) Medical Payments (Coverage F) Limit Classified Premium Not Classified Premium Limit Classified Premium $100,000 $16 $10 $1,000 Included Included $200,000 $19 $12 $2,000 $2 $1 $300,000 $21 $13 $3,000 $4 $2 $400,000 $23 $14 $4,000 $6 $3 $500,000 $24 $15 $5,000 $7 $4 $1,000,000 $28 $17 $10,000 $12 $9 17. COVERAGE E INCREASED LIABILITY LIMITS Not Classified Premium The following increased limit factors were used to determine the Personal Liability Coverage E increased limits. PERSONAL LIABILITY (COVERAGE E) Limit Factor $100,000 Included $200, $300, $400, $500, $1,000, /09 OC-7

58 Optional Coverages 18. CREDIT CARD, ELECTRONIC FUND TRANSFER CARD OR ACCESS DEVICE, FORGERY AND COUNTERFEIT MONEY HO 0453 When the limit of liability afforded under the policy is increased, the additional premium shall be developed as follows: NEW LIMIT OF LIABILITY ADDITIONAL PREMIUM PER POLICY OPTION SECURGARD OPTION DEFENDER OPTION or ESTATES OPTION FI 264TX SECURGARD PLUS OPTION $1,000 $1 Included Included $2,500 $2 $1 Included $5,000 $3 $2 Included $7,500 $4 $3 Included $10,000 $5 $4 Included Note: This endorsement is not available with endorsements FI 280TX; FI 282TX or FI 281TX since the maximum credit card coverage is already provided in the forms. 19. EARTHQUAKE COVERAGE FI 0454 This peril shall apply to all Property Coverage Sections for the same limits provided in the policy. The following conditions must be met in order to provide coverage: 1. Coverage can only be added at any time. 2. A minimum deductible of 5% of the policy limit applies. 3. The premium is fully earned upon adding the coverage to the policy. ESTATES HO 0005, HO 0006 and HO 0004 The premium for each $1,000 of insurance shall be developed by applying the following factors: CONSTRUCTION FRAME* ALL OTHER EQ ZONE: 5 5 PREMIUM BASIS HO Coverage A Limit Other Structures** Increased Amount Only Coverage C Increase Increased Amount Only Coverage D Increase N/A N/A Increased Amount Only HO Coverage C Limit Other Structures** Increased Amount Only Coverage A Coverage A Limit Coverage D Increase N/A N/A Increased Amount Only HO Coverage C Limit Other Structures** Increased Amount Only Coverage D Increase N/A N/A Increased Amount Only 03/09 OC-8

59 Optional Coverages 19. EARTHQUAKE COVERAGE FI 0454 (Continued) DEFENDER HO 0003, HO 0005, HO 0006 and HO 0004 The premium for each $1,000 of insurance shall be developed by applying the following factors: CONSTRUCTION FRAME* ALL OTHER EQ ZONE: 5 5 PREMIUM BASIS HO Coverage A Limit Other Structures** Increased Amount Only Coverage C Increase Increased Amount Only Coverage D Increase Increased Amount Only HO Coverage A Limit Other Structures** Increased Amount Only Coverage C Increase Increased Amount Only Coverage D Increase Increased Amount Only HO Coverage C Limit Other Structures** Increased Amount Only Coverage A Coverage A Limit Coverage D Increase Increased Amount Only HO Coverage C Limit Other Structures** Increased Amount Only Coverage D Increase Increased Amount Only SECURGARD PLUS HO 0003 and HO 0005 The premium for each $1,000 of insurance shall be developed by applying the following factors: CONSTRUCTION FRAME* ALL OTHER EQ ZONE: 5 5 PREMIUM BASIS HO Coverage A Limit Other Structures** Increased Amount Only Coverage C Increase Increased Amount Only Coverage D Increase Increased Amount Only HO Coverage A Limit Other Structures** Increased Amount Only Coverage C Increase Increased Amount Only Coverage D Increase Increased Amount Only 03/08 OC-9

60 Optional Coverages 19. EARTHQUAKE COVERAGE FI 0454 (Continued) SECURGARD HO 0003, HO 0005, HO 0006 and HO 0004 The premium for each $1,000 of insurance shall be developed by applying the following factors: CONSTRUCTION FRAME* ALL OTHER EQ ZONE: 5 5 PREMIUM BASIS HO Coverage A Limit Other Structures** Increased Amount Only Coverage C Increase Increased Amount Only Coverage D Increase Increased Amount Only HO Coverage A Limit Other Structures** Increased Amount Only Coverage C Increase Increased Amount Only Coverage D Increase Increased Amount Only HO Coverage C Limit Other Structures** Increased Amount Only Coverage A Coverage A Limit Coverage D Increase Increased Amount Only HO Coverage C Limit Other Structures** Increased Amount Only Coverage D Increase Increased Amount Only *For Frame dwellings, otherwise rated as Fire Resistive construction due to the application of the intumescent Fire Retardant Coating, No-Burn Plus, apply the Frame rate for Earthquake rating purposes. **The charge applies separately for Coverage B increased amount, On Premises Other Structures HO 0448, Off Premises Other Structures HO 0440 and Specific Structures Away From the Residence Premises HO 0492 Premium for Higher Deductibles Develop the premium as follows: 1. Determine the premium for the Base Deductible 2. Select the credit factor for the percentage deductible desired from the following table 3. Multiply the premium in Step (1) by the Factor selected in Step (2) Zone Definitions: Deductible Factor Percentage Frame All Other 10% % % % Zone 5 -- Entire State 03/08 OC-10

61 Optional Coverages 20. FARMERS PERSONAL LIABILITY HO 2473 The Homeowners policy may be endorsed to provide coverage for an incidental farming exposure on or away from the residence premises. A. General Underwriting Guidelines (new business effective on or after 4/26/2012) -- Each of the following guidelines must be met in order to warrant further consideration as an incidental farming exposure for coverage in personal lines: 1. The total area of all land used for farming and related purposes must not exceed 25 acres. 2. The insured must not sell or trade more than 25% of the products raised in the farm operations. 3. The farm activity must involve no employees. If the preceding general guidelines are met, the following specific rules regarding eligibility must be followed in order to provide coverage. B. Eligible Risks 1. The entire farming operation, including all buildings, machinery and vehicles, must be located on the insured farming location. 2. Due to the exclusion in the basic homeowners policy for other structures used in whole or in part for business purposes, coverage for all outbuildings used in conjunction with the farming activities must be specifically scheduled on the HO 0448 Other Structures Endorsement. Because Coverage B does not apply, the entire value of the outbuilding must be shown on the endorsement. 3. All barns, outbuildings and other structures must be in good condition. The most preferred outbuildings would be fully enclosed with no open sheds attached; be constructed of continuous mortared masonry or concrete under all exterior walls; and contain noncombustible floors throughout the building, such as earth, concrete, gravel, sand, cinders, asphalt, bricks, blacktop or tile. 4. Photographs are required for all buildings on the property, whether or not insurance is provided. If there are more than three buildings on the property, a diagram is also required that must show all buildings on the property, whether insured or not, and must properly identify each building s size, location and the distance in feet between buildings. C. Ineligible Risks 1. Truck farms involving labor-intensive crops such as vegetables, berries, cherries or nuts; short harvest periods in which farm activity is heightened; and an increased option of transporting crops to the market. 2. Vacant or unoccupied farms, or farms not operated by the named insured unless they are tenant operated under the insured s supervision or contract management. 3. Property containing buildings that are in poor condition, obsolete, or have little value with respect to the present operations or use of the land. 4. Farming operations where the primary activity is manufacturing or processing, or farms with storage facilities not normally included in a farming operation of that size. 5. Farming operations where the principal activity is supplying commodities for manufacturing or processing, or the principal activity is processing by the insured for sale to others, such as creameries or dairies; and farms operating freezing or dehydrating plants. 6. Farming operations involving the raising, boarding, training or use of animals for riding, racing or show purposes. 7. Farms that allow the public to pick their own produce. 8. Youth camps, vacation farms, bed and breakfast operations, dude or guest ranches, or property with barns used for public dances. 9. Properties involving auction sales of livestock and farm products 04/12 OC-11

62 Optional Coverages 20. FARMERS PERSONAL LIABILITY HO 2473 (Continued) 10. Hunting or fishing camps commercially operated for the general public. 11. Greenhouses, unless they are incidental to the residence and contain a total area less than 400 square feet. 12. Farming operations involving the raising of poultry. 13. Farms classified as commercial hatcheries. 14. Commercial milling operations. 15. Custom crop drying operations within buildings. 16. Fur-bearing animal farms (e.g. mink, fox, and rabbit). D. Premium 1. Farms Owned and Operated by the insured. Initial Farm Premises and Each Additional Farm Premises Personal Liability (Coverage E) Medical Payments (Coverage F) Limit Initial Farm Premium Additional Farm Premium Limit Initial Farm Premium Additional Farm Premium $100,000 $30 $10 $1,000 Included Included $200,000 $35 $12 $2,000 $3 $1 $300,000 $40 $13 $3,000 $6 $2 $400,000 $43 $14 $4,000 $9 $3 $500,000 $45 $15 $5,000 $11 $4 $1,000,000 $52 $17 $10,000 $21 $9 2. Farms Owned by Insured and Rented to Others Each Farm Premises* Personal Liability (Coverage E) Medical Payments (Coverage F) Limit Premium Limit Premium $100,000 $10 $1,000 Included $200,000 $12 $2,000 $1 $300,000 $13 $3,000 $2 $400,000 $14 $4,000 $3 $500,000 $15 $5,000 $4 $1,000,000 $17 $10,000 $9 *The Coverage E and Coverage F charge apply separately to each Farm Premises. 3. Farm Employees Coverage is not available. 03/09 OC-12

63 Optional Coverages 21. FIRE DEPARTMENT SERVICE CHARGE FI 55 The limit provided in the basic ISO contracts is $500. If you purchased the FI 280TX, FI 281TX, FI 282TX, FI 270TX, FI 271TX, FI 272TX or the FI 264TX, the coverage was automatically increased to $1,000. The limit provided, regardless of form selected, may be increased. The premium shall be $1.80 per $100 of increase. 22. FOUNDATION COVERAGE HO 0468 The policy does not provide coverage for loss to floor slabs or foundations caused by seepage or leakage of water. The policy may be endorsed to provide coverage for settling, cracking, shrinking, bulging, or expansion of foundations, floor slab or footings that support the dwelling caused by seepage or leakage of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system. The coverage includes the cost of tearing out and replacing any part of the building necessary to repair the system from which the water or steam escaped. The loss to the system from which the water or steam escaped is not covered. The coverage is limited to 15% of the amount of insurance for Coverage A on the date of the loss. 23. FUNCTIONAL REPLACEMENT COST LOSS SETTLEMENT HO 0530 The standard Homeowners policy provides dwelling loss settlement on a replacement cost basis if the Coverage A limit of liability represents at least 80% of its full replacement cost immediately before the loss. If an insured requests Coverage A limit of liability to be less than full replacement value, the functional replacement cost loss settlement provision may be an available option. Functional Replacement Cost Loss Settlement HO 0530 With this option, the replacement cost loss settlement provision is replaced with a functional replacement cost loss settlement provision. A damaged dwelling or separate structure is repaired or replaced with less costly common construction materials which are functionally equivalent to obsolete, antique or custom construction materials. This endorsement is available on Securgard or Securgard Plus only. Year of construction must be prior to 1940 and construction type on the Replacement Cost Estimator must be standard. Policy forms HO3 and HO5 are eligible for this loss settlement provision. Specified Additional Amount of Insurance For Coverage A-Dwelling FI 0420 is not available with this endorsement At the time this endorsement is added, the Coverage A limit of liability must be 100% of the functional replacement value of the home and be shown in the policy declarations. Inflation percentage increases apply to risks with this endorsement. 24. HOME BASED BUSINESS FI 211TX AND FI 212TX See separate Home Based Business section in your manual for rules and rates. 04/12 OC-13

64 Eligible Risks TEXAS HOMEOWNER OPTIONS MANUAL Optional Coverages 25. HOME DAY CARE COVERAGE HO 0497 The policy may be endorsed to provide Property and Liability coverage arising from a home day care business for 1 to 3 children (other than the insured s children) in the dwelling or in another structure on the residence premises. Ineligible Risks If the day care business involves the care of adults or more than three children, it is not eligible for coverage. A. Property Coverage 1. Other Structures If the home day care business is located in another structure, Coverage B does not apply to that structure unless this coverage is indicated on the HO 0497 endorsement. If the business is located in another structure, charge $5 per $1,000 of specific insurance on the structure. 2. Contents The HO 0497 endorsement provides coverage for that property of the permitted business up to the Coverage C limit. However, the HO 0497 does not increase the Coverage C limit. If increased Coverage C limits are desired, refer to the Increased Limits on Personal Property section of this manual. B. Liability Coverage This endorsement provides for an annual aggregate limit of liability for Personal Property Coverages E and Medical Payments F combined. The limit for Medical Payments is subject to the sub limit of liability which applies per person/per accident and does not increase the aggregate limit of liability. Home Day Care Coverage HO to 3 persons, other than insured s children, receiving day care services Personal Liability (Coverage E) Medical Payments (Coverage F) Limit Premium Limit Premium $100,000 $100 $1,000 Included $200,000 $117 $2,000 $5 $300,000 $133 $3,000 $10 $400,000 $143 $4,000 $15 $500,000 $149 $5,000 $19 $1,000,000 $173 $10,000 $ HOMEXTENDED COVERAGES ENDORSEMENT EX199TX A. Coverage Eligibility This package of coverages can be endorsed onto any homeowner form (HO0003, HO0004, HO0005, HO0006) and is available to all insureds, except those that qualify for the Prime of Life Plan. If this endorsement is on the policy and then alter, the insured becomes eligible for the Prime of Life plan, at the next renewal, this endorsement will automatically be removed from the policy and the TX199 will automatically be included in the policy. B. Coverage Description A package of coverages including the following: 1. Guaranteed coverage for cellular phones; 2. Coverage up to $500 for a Global Positioning System (GPS) that is owned by an insured or family member that is not located in or upon a motor vehicle; 04/12 OC-14

65 Optional Coverages 26. HOMEXTENDED COVERAGES ENDORSEMENT EX199TX (Continued) 3. Coverage for Rented Golf Cart Physical Damage up to $3,000; 4. False Alarm Coverage up to $1,000; 5. Fire Extinguisher Coverage up to $250; 6. Computer-Personal Records Coverage up to $1,500 subject to the Section I deductible; 7. Personal Property Business Use Coverage up to $5,000 subject to the Section I deductible; 8. an additional limit of $10,000 for Identity Fraud Expense; 9. coverage for added Mortgage and Related Expense coverage paying up to $1,000 in acquisition costs for title search, appraisal fees and application fees as a result of a total loss to the property and up to $2,000 per year for the difference in interest rate based on the balance owed on the current primary mortgage at the time of the loss and at the terms of the current primary mortgage; 10.Volunteer Wrongful Acts Liability Coverage up to $25,000. C. Rate - $20 per annual premium D. Endorsement Attach the HomeXtended Coverages Endorsement, EX199TX Note: If the TX199, Prime of Life form is attached to the policy, do not attach this endorsement since the insured would automatically receive these coverages as part of the Prime of Life plan. A. Coverage Description 27. IDENTITY FRAUD EXPENSE COVERAGE - TEXAS HO 4297 Identity Fraud is the act of knowingly transferring or using, without lawful authority, a means of identification of another person with the intent to commit, or to aid or abet another to commit, any unlawful activity that constitutes a violation of law. Identity Fraud Expense Coverage endorsement provides $15,000 of coverage to pay for expenses incurred by an insured as a direct result of any one identity fraud first discovered or learned of during the policy period. Such expenses include the costs for: Notarizing fraud affidavits or similar documents. Certified mail sent to law enforcement, financial institutions or credit agencies. Lost income resulting from time taken off work to meet with or talk to law enforcement or credit agencies up to a maximum of $200 per day or $5,000 aggregate. Loan application fees for re-applying for a loan when the application is rejected solely because the lender received incorrect credit information. Reasonable attorney's fees incurred to defend lawsuits brought against the insured and to remove criminal or civil judgments. B. Limit of Liability Up to $15,000 coverage will be provided for the identity fraud of an insured discovered or first learned of during the policy period. 04/12 OC-15

66 Optional Coverages 27. IDENTITY FRAUD EXPENSE COVERAGE - TEXAS HO 4297 (Continued) C. Deductible A $250 deductible applies to this coverage. No other deductible applies to identity fraud expense coverage. D. Endorsement Identity Fraud Expense Coverage - Texas, HO 4297, is a mandatory endorsement attached to all homeowners forms. This endorsement provides complete details on coverages, definitions and additional policy conditions applicable to this coverage. 28. INCIDENTAL LOW POWER RECREATIONAL MOTOR VEHICLE COVERAGE HO 2413 A. The policy may be endorsed to provide liability coverage for certain types of recreational motor vehicles that cannot exceed a speed of 15 mile per hour on level ground. However, even with the endorsement there is no coverage for such vehicles if, at the time and place of an occurrence, the involved vehicle: 1. Is registered for use on public roads or property; 2. Is not registered for use on public roads or property, but such registration is required by law, or regulation issued by a government agency, for it to be used at the place of an occurrence ; or 3. Is being: a. Operated in, or practicing for, any prearranged or organized race, speed contest or other competition; b. Rented to others; c. Used to carry persons or cargo for a charge; or d. Used for any business purpose except for motorized cart while on a golfing facility. B. The following may not be covered: 1. Motorized bicycles; 2. Motorized golf carts; or 3. Mopeds C. Read the endorsement for conditions of coverage applying to eligible motor vehicles. D. Premium Select the appropriate premium for liability and medical payments from the chart on the next page. E. This endorsement is not available with forms FI 280TX, FI 281TX, FI 282TX, FI 270TX, FI 271TX, FI 272TX or FI 264TX since coverage is automatically provided under those endorsement forms. Incidental Low Power Recreational Motor Vehicle Coverage Personal Liability (Coverage E) Medical Payments (Coverage F) Limit Premium Limit Premium $100,000 $40 $1,000 Included $200,000 $47 $2,000 $1 $300,000 $53 $3,000 $2 $400,000 $57 $4,000 $3 $500,000 $60 $5,000 $4 $1,000,000 $69 $10,000 $9 04/12 OC-16

67 Optional Coverages 29. INSURANCE TO VALUE LOSS SETTLEMENT COMMON CONSTRUCTION LOSS SETTLEMENT FI 248 & SPECIAL LOSS SETTLEMENT HO 2302 The standard Homeowners policy provides dwelling loss settlement on a replacement cost basis if the Coverage A limit of liability represents at least 80% of replacement value. If the applicant desires a Coverage A limit of liability less than 80% of the replacement value, we have two options available. A. Common Construction Loss Settlement FI 248 (cannot be added to a policy on or after 04/26/12) The replacement cost loss settlement may be replaced with Common Construction Loss Settlement, FI 248. By use of this endorsement, the insured can select a Coverage A amount as low as 20% of replacement and as high as 70% of replacement in increments of 10%. There will be a corresponding premium savings. The Coverage A limit of liability representing the reduced percentages of replacement value will be shown in the policy declarations. Inflation percentage increases apply to risks with this coverage. B. Special Loss Settlement HO 2302 If the applicant desires a Coverage A limit of liability less than 80% of the replacement value but still wants to retain the replacement cost loss settlement provision, they can do so by using the Special Loss Settlement HO 2302 endorsement. They will still be able to select their Coverage A limit from 20% to 70% to replacement as they do with the option A. above, but they retain the replacement cost loss settlement provision. The Coverage A limit of liability representing the reduced percentage of the replacement value will be shown in the policy declarations. Inflation percentage increases apply to risks with this coverage. Note: The FI 248 and HO 2302 endorsements are not available with FI 280TX, FI 270TX, FI 281TX, FI 271TX, FI 282TX or FI 272TX forms. 30. LANDLORD S FURNISHINGS HO 0546 A. Basic Limit-Forms HO 0003 and HO 0005 automatically cover, on a named perils basis (except Theft), landlord furnishings in an apartment on the residence premises regularly rented or held for rental. The basic limit per apartment is $2,500. B. Increased Limit-The basic limit of $2,500 may be increased in increments of $500 up to a total of $10,000 per apartment. The increased limit applies to the same perils that applies to the basic limit and may vary by rented unit. C. Premium-charge applies on an apartment or unit basis as shown below. Form HO $1.00 per $500 of increase per unit Form HO $1.50 per $500 of increase per unit Note: Coverage is available with the HO 0003 and HO 0005 forms only. 04/12 OC-17

68 Optional Coverages 31. LIVESTOCK LIMITED MORTALITY COVERAGE FI 0452 A. Livestock Limited Mortality Coverage FI0452 Coverage may be provided on a named peril basis for livestock owned by the insured. Livestock is defined as cattle, sheep, swine, goats, horses, mules, donkeys, alpacas and llamas. B. There is a maximum $400 limit per animal. C. No deductible applies. D. Premium Estimated Head of Livestock Premium 1 but not more than 100 $ but not more than 250 $ but not more than 500 $ but not more than 1,000 $80 A. Residence Premises 32. LOSS ASSESSMENT COVERAGE HO Coverage Description The basic policy automatically provides, under Section I Additional Coverage and Section II Additional Coverage, a limit of $1,000 each for assessments relating to the residence premises, excluding assessments resulting from the peril of earthquake. This basic limit is automatically increased to $5,000 under the FI 264TX and all DEFENDER Endorsements, FI 270TX, FI 271TX and FI 272TX and $10,000 under all ESTATES Endorsements-FI 280TX, FI 281TX and FI 282TX. 2. Higher Limits The policy may be endorsed to provide a single additional amount of insurance to be applied to one or more assessments arising out of a single loss covered under: a. Either Section I Additional Coverage or Section II Additional Coverage; or b. Both Section I and Section II Additional Coverages. 3. Premium: Additional Amount Of Coverage Premium $5,000 $4 $10,000 $6 Each Additional $5,000* $1 * Up to $50,000 Additional Coverage B. Additional Locations 1. The policy may be endorsed to provide loss assessment coverage pertaining to additional locations for the insured s share of loss assessments arising out of a single loss covered as noted in paragraph A No more than 2 additional locations can be written in addition to the residence premises. 04/12 OC-18

69 3. Premium: TEXAS HOMEOWNER OPTIONS MANUAL Optional Coverages 32. LOSS ASSESSMENT COVERAGE HO 0435 (Continued) New Amount Of Coverage Premium $1,000 $5 $5,000 $9 $10,000 $11 Each Additional $5,000* $1 * Up to $50,000 Maximum Coverage 33. LOSS ASSESSMENT EARTHQUAKE COVERAGE HO 0436 A. Loss Assessment Coverage- Earthquake HO 0436 When the policy is extended to cover loss assessment resulting from loss by earthquake, the Limit of Liability shall be based on the unit-owners proportionate interest in total value of all collectively owned buildings and structures of the condominium. There is a base deductible of 5% for earthquake coverage. No more than two additional locations can be written in addition to the residence premises. The following rate per $1,000 of Insurance shall apply: Earthquake Zone Frame All Other Note: Coverage is not available unless Earthquake is provided on the primary residence. B. Premium for Higher Deductibles Develop the premium as follows: 1. Determine the premium for the 5% Base Deductible 2. Select the credit factor for the percentage deductible desired from the following table 3. Multiply the premium in Step (1) by the Factor selected in Step (2) Deductible Factor Percentage Frame All Other 10% % % % LOSS OF USE INCREASED LIMITS When the limit of liability for Coverage D is increased, the premium shall be $2 per $1,000 of insurance. Note: This coverage is not available with the FI 280TX, FI 281TX or FI 282TX endorsements since unlimited coverage is provided for up to two years. 04/12 OC-19

70 Optional Coverages 35. ORDINANCE OR LAW COVERAGE HO 0477 A. Basic Limit The basic policy automatically provides up to 10% of the Coverage A limit of liability for forms HO 0003 and HO 0005; for Form HO % of the Building Additions and Alterations limit and for HO 0006, 10% of the coverage A limit; to pay for the increased costs necessary to comply with the enforcement of an ordinance or law. B. Increased Amount of Coverage The policy may be endorsed to increase the basic Ordinance or Law Coverage amount to accommodate the increased costs known or estimated by the insured for materials and labor to repair or replace the damaged property and to demolish the undamaged portion of damaged property and clear the site of resulting debris according to ordinance or law. C. Premium Determination -- HO 0003 and HO 0005 Forms One, Two, Three or Four Family For forms HO 0003 and HO 0005, determine the Basic Premium for form HO 0003 for the territory, protection class and coverage amount that applies. Multiply this premium by the appropriate factor in the chart below, round to the nearest whole dollar and then apply the appropriate Financial Stability Rating Factor. The result is subject to the dollar minimum shown. Percentage of Coverage A Cumulative Total Amount Factor Dollar Minimum 25%* DEFENDER Option and SECURGARD Option 0.05 $30 50% DEFENDER Option and SECURGARD Option 0.14 $80 50% ESTATES Option 0.09 $50 *Estates Forms FI 280TX; FI 281TX and FI 282TX include the 25% limit built in at no charge. D. Premium Determination HO 0004 Form 1. The basic amount of coverage may be increased from the base 10% option to 25% or 50% for the SECURGARD or DEFENDER Options, or from the base 25% option for ESTATES to 50% of the Form HO 0004 Building Additions and Alterations limit. 2. The premium for this additional coverage is determined based on the dollar amount of the increase, represented by the increase percentage selected above the basic limit. 3. The premium for each additional $1,000 of insurance shall be the HO 0004 Basic Premium at 30,000 Coverage C multiplied by the Each additional $10,000 factor then E. Premium Determination for HO 0006 Form 1. The basic amount of coverage may be increased from the base 10% provided in the SECURGARD and DEFENDER Options to 25% or 50%; or from the base 25% provided in the ESTATES Option to 50% of the Form HO 0006 Coverage A limit. 2. The premium for this additional coverage is determined based on the dollar amount of the increase, represented by the increase percentage selected above the basic limit. 3. The premium for each additional $1,000 of insurance shall be the HO 0006 Basic Premium at 30,000 Coverage C multiplied by the Each additional $10,000 factor then times /12 OC-20

71 Optional Coverages 36. OTHER MEMBERS OF A NAMED INSURED HOUSEHOLD HO 0458 A. The policy provides coverage to named insureds, resident relatives who are members of the insured s household and persons under the age of 21 who are in the care of an insured. B. The policy may be endorsed to provide coverage to a person who is a member of the named insured s household but does not fall under the definition of insured in the policy. It does not cover a guest, residence employee, roomer, boarder or tenant. Coverage extends to the person named in the endorsement, and a person under the age of 21 who is in the legal custody of that person. C. All coverages and provisions under Section I and II of the policy that apply to insureds also apply to the person described in Paragraph 1, except Coverages A, B and D (Fair Rental Value only). D. Premium The premium charge to extend coverage for Contents and Additional Living Expenses is $8. For the increased exposure of Personal Liability and Medical Payments, please refer to the chart below. Other Members Of A Named Insured Household HO 0458 Liability and Medical Payments Personal Liability Coverage E Medical Payments Coverage F Limit Premium Limit Premium $100,000 $47 $1,000 Included $200,000 $55 $2,000 $1 $300,000 $63 $3,000 $2 $400,000 $67 $4,000 $3 $500,000 $70 $5,000 $4 $1,000,000 $81 $10,000 $9 When insurance is written on a specific structure: For increased limits Rented to others for dwelling purposes Off premises structures 37. OTHER STRUCTURES Note: The following coverages for Other Structures (other than HO0448) are available on all forms. A. Other Structures HO 0448 (Forms HO0003 and HO 0005 only) Charge $3 per $1,000 of insurance See Form HO0451, Building Additions and Alterations increased limits for HO0004 policyholders needing other structure coverage B. Structures Rented to Others Residence Premises HO 0440 (All Forms) Rented to others for dwelling purposes each structure is rated separately. 1. Property Coverage Charge $5 per $1,000 of insurance 04/12 OC-21

72 2. Liability Coverage: See Chart Below TEXAS HOMEOWNER OPTIONS MANUAL Optional Coverages 37. OTHER STRUCTURES (Continued) Structures Rented to Others Residence Premises HO 0440 Personal Liability Coverage E* Medical Payments Coverage F* Limit Premium Limit Premium $100,000 $11 $1,000 Included $200,000 $13 $2,000 $1 $300,000 $15 $3,000 $2 $400,000 $16 $4,000 $3 $500,000 $16 $5,000 $4 $1,000,000 $19 $10,000 $9 Note: *Coverage E and F are applied per structure C. Specific Structures Away from the Residence Premises HO 0492 (All Forms) This endorsement extends property and liability coverage to other structures away from the residence premises which are not used for business or held for rental. Other structures that may be covered includes items such as, but not limited to permanently attached boat docks, boat lifts and outbuildings used to store equipment. Minimum coverage amount is $5,000. A photo of the structure is required to verify its condition. Charge $7 per $1,000 of insurance 38. OWNED MOTORIZED GOLF CART PHYSICAL LOSS COVERAGE FI 0528 A. The policy may be endorsed to provide coverage for physical loss to a motorized golf cart, including permanently installed accessories, equipment and parts, owned by an insured. Also covered, for an amount equal to 10% of the limit of the highest scheduled cart, are accessories, equipment or parts designed or made solely for the cart that are not permanently installed provided such property is at an insured s residence or in or upon the cart off the insured s residence at the time of loss. Coverage for loss caused by collision is optional and only applies if declared on the schedule of the endorsement. B. Eligibility To be eligible for coverage, the motorized golf cart shall be of the type designed to carry up to four people on a golf course for the purpose of playing golf and shall not have been built, or modified after manufacture, to exceed a speed of 25 m.p.h. on level ground. Read the endorsement for all conditions of coverage. C. Limit of Liability The limit of liability shall be selected by the insured. However, the limit should be representative of the actual cash value of the motorized golf cart including any permanently installed accessories, etc. D. Deductible A deductible amount of $500 applies separately to each involved golf cart and, separately to Section I Property Coverages if not in or upon a golf cart at the time of loss. The $500 deductible replaces any other deductible in the policy with respect to property covered under the endorsement. 04/12 OC-22

73 Optional Coverages 38. OWNED MOTORIZED GOLF CART PHYSICAL LOSS COVERAGE FI 0528 (Continued) E. Premium Rate each cart separately using the premium per $500 of insurance as follows: Golf Carts with Collision $11 per $500 of insurance. Golf Carts without Collision $6 per $500 of insurance. Note: This endorsement is not available with the FI 280TX, FI 281TX or FI 282TX endorsements since coverage is already provided in those forms. Eligibility 39. OWNED SNOWMOBILE TX 48 and HO Engine Size Units up to 750 cc. Please contact your specialist prior to binding coverage on units with an engine size greater than 750 cc. 2. Age of Snowmobile Units ten years old or older not eligible for new business. 3. Prior Losses-New business Please contact your specialist prior to binding coverage on risks with a prior snowmobile loss. 4. Ownership Corporate/business ownership is ineligible. 5. Usage Snowmobiles used commercially, rented or leased to others, or used for racing are ineligible. Additionally, operators with careless operational tendencies, such as but not limited to stunt maneuvers and top speed measuring exercises, are not eligible. It is our desire to insure only those risks which demonstrate a mature, sensible approach to snowmobiling with safety in mind. 6. Operator Experience Occasional and principal operators of the snowmobile must have prior snowmobiling experience. 7. Driving Record Three-year experience period. (Five-year for serious violations) a. Accidents - No operator under age 25 is permitted an accident. Operators age 25 and over are permitted one accident. b. Minor Moving Violations - No operator under age 25 is permitted to have a minor violation. Operators age 25 and over are permitted one minor moving violation. c. Major moving violations - No operator is permitted a major moving violation. d. Total Occurrences - The total number of accidents and convictions within the three-year experience period per household is two. However, the two occurrences may not be for the same operator. 04/12 OC-23

74 Optional Coverages 39. OWNED SNOWMOBILE TX 48 and HO 2464 (Continued) Liability Rates Snowmobiles owned by the named insured or any other insured that is a resident of Named Insured s household must be declared. The charge is the minimum annual premium for any period within a policy year. Apply the following premium, per snowmobile, based on liability limit: Per Owned Snowmobile HO 2464 Personal Liability (Coverage E) Medical Payments (Coverage F) Limit Premium Limit Premium cc 551 cc & over cc 551 cc & over $100,000 $30 $44 $1,000 Included Included $200,000 $35 $51 $2,000 $1 $2 $300,000 $40 $59 $3,000 $2 $3 $400,000 $43 $63 $4,000 $3 $4 $500,000 $45 $66 $5,000 $4 $5 $1,000,000 $52 $76 The liability limit is the Section II, Coverage E Personal Liability Limit. Charge applies separately to each snowmobile owned by the insured, and is the minimum annual premium for each snowmobile for any period within a policy year. Property Rates Determine and total the 100% actual cash value(s) of the snowmobile and trailer including a complete description with make and model. This coverage can only be added if liability coverage is also extended. Physical Damage TX 48 Deductible Premium per $ cc 551 cc & over $250 $2.50 $5.00 $500 $2.25 $4.50 $1,000 $2.00 $4.00 $2,500 $1.75 $3.50 $5,000 $1.50 $3.00 The physical damage deductible does not have to match the basic, Section I policy deductible. Physical damage charge is subject to a minimum annual premium of $25 per snowmobile. 40. PERMITTED INCIDENTAL OCCUPANCIES RESIDENCE PREMISES HO 0442 and HO 2443 A. Permitted Incidental Occupancies Residence Premises HO 0442 The policy may be endorsed to provide Property and Liability coverage on a permitted incidental occupancy on the residence premises or in another structure on the residence premises. B. Permitted Incidental Occupancies Other Premises HO 2443 The policy may be endorsed to provide liability coverage for a permitted incidental occupancy in another residence occupied by the insured. C. Eligibility Please contact your Personal Lines Specialist for eligible/ineligible risks. The rates are shown below: 04/12 OC-24

75 Optional Coverages 40. PERMITTED INCIDENTAL OCCUPANCIES RESIDENCE PREMISES HO 0442 and HO 2443 (Continued) D. Property Coverage Residence Premises HO Other Structures If the permitted business is located in another structure, Coverage B does not apply to that structure. Coverage is provided as indicated on the HO 0442 endorsement. If the business is located in another structure, charge $5 per $1,000 of specific insurance on the structure. Each structure is rated separately. 2. Contents The HO 0442 endorsement provides coverage for that property of the permitted business up to the Coverage C limit. However, the HO 0442 does not increase the Coverage C limit. If increased Coverage C limits are desired, refer to the Increased Limits on Personal Property section of this manual. E. Liability Coverage Residence Premises HO 0442 and Other Residence HO 2443 Note: Liability and Med Pay charges for form HO 0442 are only applied to the first structure rated under this endorsement. Permitted Incidental Occupancies Residence Premises HO 0442 Personal Liability (Coverage E) Medical Payments (Coverage F) Limit Premium Limit Premium $100,000 $20 $1,000 Included $200,000 $23 $2,000 $5 $300,000 $27 $3,000 $10 $400,000 $29 $4,000 $15 $500,000 $30 $5,000 $19 $1,000,000 $35 $10,000 $39 Note: Liability and Med Payment Charge for the HO 2443 is applied separately to each location insured. Permitted Incidental Occupancies Other Residence HO 2443 Personal Liability (Coverage E) Medical Payments (Coverage F) Limit Premium Limit Premium $100,000 $19 $1,000 Included $200,000 $22 $2,000 $3 $300,000 $25 $3,000 $6 $400,000 $27 $4,000 $9 $500,000 $28 $5,000 $11 $1,000,000 $33 $10,000 $21 04/12 OC-25

76 Optional Coverages 41. PERSONAL INJURY HO 2450 A. Liability coverage for Personal Injury to others, such as false arrest, malicious prosecution, wrongful eviction, slander, libel, or violations of right of privacy, may be added to the Homeowners Policy. B. The premium is developed as follows: Personal Injury Liability HO 2450 Personal Liability -- Coverage E Premium $100,000 $14 $200,000 $16 $300,000 $19 $400,000 $20 $500,000 $21 $1,000,000 $24 C. Do not use this form with FI 280TX, FI 270TX, FI 281TX, FI 271TX, FI 282TX, FI 272TX or FI 264TX since coverage is already provided. A. Increased Limit 42. PERSONAL PROPERTY When the limit of liability for Coverage C is increased, the additional premium shall be developed as follows: Form HO $2 per $1,000 of increase Form HO $3 per $1,000 of increase B. Increased Limits Other Residences HO 0450 Coverage for personal property at other residences is limited in the policy form to 10% of Coverage C or $1,000, whichever is greater. This limit may be increased. All Forms -- $7 per $1,000 C. Increased Special Limits of Liability-FI 0465 (Named Perils) or HO 0473 (Open Perils) 1. Money (increased limits) The special limit on money may be increased in increments of $50 to a maximum of $1,000. The additional premium should be developed as follows: Premium for each additional $50 of insurance is $3 Note: This option is not available under the ESTATES forms FI 280TX; FI 281TX and FI 282TX since coverage is already provided at the $1,000 maximum. Current Money Limit By Form Basic Contract FI 264TX SECURGARD PLUS Coverage DEFENDER Option FI 270TX, FI 271TX and FI 272TX ESTATES Option FI 280TX, FI 281TX and FI 282TX $200 $250 $250 $1,000 04/12 OC-26

77 2. Securities (increased limits) TEXAS HOMEOWNER OPTIONS MANUAL Optional Coverages 42. PERSONAL PROPERTY (Continued) The special limit on securities may be increased to a maximum of $5,000 in increments of $100. The additional premium should be developed as follows: Premium for each additional $100 of insurance is $4 Note: This option is not available under the ESTATES forms FI 280TX; FI 281TX and FI 282TX since coverage is already provided at the $5,000 maximum. Current Securities Limit By Form Basic Contract FI 264TX SECURGARD PLUS Coverage DEFENDER Option FI 270TX, FI 271TX and FI 272TX ESTATES Option FI 280TX, FI 281TX and FI 282TX $1,500 $2,000 $2,000 $5, Firearms (increased limits) The special limit of liability for loss by theft of firearms may be increased to a maximum of $10,000 in increments of $100. The additional premium should be developed as follows: Premium for each additional $100 of insurance is $3 Current Firearms Limit By Form Basic Contract FI 264TX SECURGARD PLUS Coverage DEFENDER Option FI 270TX, FI 271TX and FI 272TX ESTATES Option FI 280TX, FI 281TX and FI 282TX $2,500 $10,000 $10,000 $10, Electronic Apparatus The special limit of liability of an apparatus in or upon a motor vehicle or motorized land conveyance may be increased to a maximum of $6,000 in increments of $500. The additional premium is $10 per each additional $500 in coverage. The special limit of liability for an apparatus not in or upon a motor vehicle or motorized land conveyance that is away from the residence premises and used for business may be increased to a maximum of $6,000 in increments of $500. The additional premium is $10 per each additional $500 in coverage. Current Electronic Apparatus Limit By Form Basic Contract FI 264TX SECURGARD PLUS Coverage DEFENDER Option FI 270TX, FI 271TX and FI 272TX ESTATES Option FI 280TX, FI 281TX and FI 282TX $1,500 $1,500 $1,500 $2,000 Note: For electronic apparatus which is "computer equipment", the same limit that is afforded for business property off premises is also afforded to electronic apparatus which is used in business and off the residence premises. For details, see form(s) FI 264TX, FI 270TX, FI 271TX, FI 272TX, FI 280TX, FI 281TX and FI 282TX. 04/12 OC-27

78 Optional Coverages 42. PERSONAL PROPERTY (Continued) D. Increased Limits Theft, and Open Peril Coverage 1. Jewelry, Watches and Furs The special limit of liability for theft of jewelry, watches and furs may be increased to a maximum of $6,500. See contract and endorsements for maximum on any one article. The additional premium is $3.50 per each additional $500 in coverage. Current Jewelry, Watches and Furs Aggregate Limit By Form Basic Contract FI 264TX SECURGARD PLUS Coverage DEFENDER Option FI 270TX, FI 271TX and FI 272TX ESTATES Option FI 280TX, FI 281TX and FI 282TX $1,500 $3,000 $3,000 $5, Silverware, Goldware and Pewterware The special limit of liability for loss of theft of Silverware, Goldware and Pewterware may be increased to a maximum of $10,000*. The additional premium is $1.50 per each additional $500 of coverage. Note: For endorsements FI 280TX; FI 281TX and FI 282TX, coverage is already provided for Silverware, Goldware and Pewterware at the $10,000 maximum at no charge. E. Endorsements Current Silverware, Goldware and Pewterware Limit By Form Basic Contract FI 264TX SECURGARD PLUS Coverage DEFENDER Option FI 270TX, FI 271TX and FI 272TX ESTATES Option FI 280TX, FI 281TX and FI 282TX $2,500 $3,000 $3,000 $10, Named Perils Coverage Where Named Perils Coverage is provided by the contract or corresponding endorsements, use form FI 0465 for the above desired increased limits. 2. Open Perils Coverage When Open Perils Coverage is provided in the contract or corresponding endorsements, use endorsement HO 0473 for the above desired increased limits. 43. PERSONAL PROPERTY BLANKET COVERAGE TX 2685 For additional premium, we will offer personal property coverage on a blanket basis for the classes of property listed below up to the limit shown in the Declarations. The blanket maximum per category is $25,000, and the maximum limit per item is $5,000 with the exception of computer systems which offer a maximum category limit of $10,000. Property which is already specifically scheduled is not eligible for coverage under this form. 04/12 OC-28

79 Optional Coverages 43. PERSONAL PROPERTY BLANKET COVERAGE TX 2685 (Continued) 1. Jewelry covers articles of personal adornment composed at least partially of silver, gold, platinum or other precious metals or alloys, whether or not containing pearls, jewels, or precious or semi-precious stones. We do not cover bullion, gold, silver, and other precious metals or unmounted gems. 2. Silverware covers silverware, silver-plated ware, gold-ware, gold-plated ware and pewter-ware worldwide. 3. Fine Arts covers paintings, etchings, lithographs, pictures, tapestries and other bona fide works of art (such as valuable rugs, statuary, marbles, bronzes, antique furniture and silver, manuscripts and rare books, porcelains, rare glass and bric-a-brac) of rarity, historical value or artistic merit. 4. Coin Collections covers rare and current coins, medals, paper money, bank notes, tokens of money and other numismatic property, including coin albums, containers, frames, cards and display cabinets in use with such collections. 5. Computers covers: a. Game machines, computers, monitors, printers and scanners; b. Commercial software and data storage media including tapes, compact discs, DVD s and hard discs; c. Equipment and accessories related to the above. 6. Firearms Blanket Personal Property Coverage Rates Property Class Rate per $1,000 Jewelry $14.30 Silverware $3.90 Fine Arts $3.30 Coin Collections $17.60 Computers $7.50 Firearms $22.00 Minimum Premium Per Class: $ REFRIGERATED PERSONAL PROPERTY HO 0498 A. The policy may be endorsed to provide $500 of covered property stored in freezers or refrigerators on the residence premises for loss caused by power service interruption or mechanical failure. B. A deductible of $100 applies. The additional premium is $15.00 Note: This coverage is not available with forms FI 280TX; FI 270TX; FI 281TX; FI 271TX; FI 282TX; FI 272TX or FI 264TX since coverage is already provided under those forms. 45. RENTAL TO OTHERS EXTENDED THEFT COVERAGE HO 0541 The policy may be endorsed to insure against loss by theft to covered property when all or part of the residence premises usually occupied by the insured is occasionally rented, in whole or in part, to others, or is regularly or occasionally rented to roomers or boarders. 04/12 OC-29

80 Optional Coverages 45. RENTAL TO OTHERS EXTENDED THEFT COVERAGE HO 0541 (Continued) Do not use this form if any of the following forms are reflected: HO0005, HO1790, HO0561, FI280TX, FI281TX or FI282TX. These forms provide open peril coverage for personal property. With any of these forms attached, this endorsement is not needed as coverage is not excluded. The additional premium is $30. Important Note: Once added, coverage cannot be deleted until renewal. 46. REPLACEMENT COST LOSS SETTLEMENT FOR CERTAIN NON-BUILDING STRUCTURES HO 0443 A. The policy provides actual cash value loss settlement for non-building structures covered under Coverage B or specifically scheduled under the policy. B. The policy may be endorsed to provide repair or replacement cost loss settlement for the following types of non-building structures only if they are located on the residence premises: 1. Reinforced masonry walls; 2. Metal or fiberglass fences; 3. Fences made of plastic/resin materials such as polyvinyl chloride; 4. Patios, walks (not made of wood or wood products); and 5. Driveways C. Premium Computation -The premium is computed by multiplying the HO 0003 base premium by a factor of Important Note: This loss settlement condition applies only to Coverage B on the residence premises. This is not available with forms HO 0004 or HO REPLACEMENT COST PERSONAL PROPERTY FI 2304 A. Loss Settlement Option-Personal Property: The policy provides loss settlement on an Actual Cash Value basis for certain types of property. The policy may be endorsed to provide loss settlement on a Replacement Cost Basis for such property whether insured on a blanket or scheduled basis. The minimum Coverage C amount is 65% of the Coverage A limit. B. Loss Settlement Option-Scheduled Personal Property with FI When the Scheduled Personal Property Endorsement FI 2303 is attached to a policy with Replacement Cost Personal Property loss settlement, the following property, if scheduled, will also be subject to repair or replacement cost loss settlement up to the scheduled limit of liability: a. Furs and garments trimmed with fur or consisting principally of fur; b. Cameras, projection machines, films and related articles of equipment; c. Musical instruments and related articles of equipment; d. Silverware, silver-plated ware, goldware, gold-plated ware and pewterware, but excluding pens, pencils, flasks, smoking implements or jewelry; e. Golfer s equipment meaning golf clubs, golf clothing and golf equipment; f. Fine Arts; g. Postage Stamps; h. Rare and current coins; i. Bicycles; j. Gun collectors coverage (not fired); k. Gun coverage (fired); l. Collectibles; 04/12 OC-30

81 Optional Coverages 47. REPLACEMENT COST PERSONAL PROPERTY FI 2304 (Continued) m. Sports Equipment; and n. Hearing Aids. 2. Since the loss settlement condition in Endorsement FI 2303 will pay the insured the least of the following: a. Actual cash value of the property sustaining loss; b. The amount for which the property could be repaired or replaced; or c. The amount of insurance of the property sustaining loss The limit of liability that applies to each scheduled item should be carefully evaluated to insure that the limit selected by the insured represents the cost to replace the item if lost or damaged beyond repair. 3. Jewelry will be subject to replacement cost loss settlement or the amount of insurance. C. Loss Settlement Option-Scheduled Personal Property with Agreed Value FI 460 When Scheduled Personal Property Jewelry With Agreed Value Loss Settlement Endorsement FI 460 is attached to the policy with Replacement Cost Personal Property, the property subject to agreed value loss settlement will not be subject to repair or replacement cost loss settlement. D. Premium Determination- 1. Forms HO 0003 and HO 0005 Multiply the base premium, including any premium adjustment for increased Coverage C, if applicable, by a factor of 0.10 and then apply the appropriate Financial Stability Rating Factor. This amount is subject to an annual minimum of $ Forms HO 0004 and HO 0006 Multiply the base premium by a factor of 0.25 and then apply the appropriate Financial Stability Rating Factor. This amount is subject to an annual minimum of $25. Note: Endorsement FI 2304 is not available with forms FI 270TX, FI 280TX, FI 281TX, FI 271TX, FI 282TX, FI 264TX and FI 272TX since coverage is already provided in the forms. 48. RESIDENCE EMPLOYEES A. Charges do not apply to employees working less than half of the customary full time or to whom worker s compensation exclusion applies as stated in the Liability Coverage Section of the policy. B. There is no additional charge for up to two residence employees per household. C. The charge in the table below is applied on a per employee basis for each employee in the household over the two that are provided free in the contract. For example, if there are four employees, you would apply the charge to two of them. 04/12 OC-31

82 Optional Coverages 48. RESIDENCE EMPLOYEES (Continued) Personal Liability (Coverage E) Medical Payments (Coverage F) Limit Premium Limit Premium $100,000 $6 $1,000 Included $200,000 $7 $2,000 $1 $300,000 $8 $3,000 $2 $400,000 $9 $4,000 $3 $500,000 $9 $5,000 $4 $1,000,000 $10 $10,000 $9 49. RESIDENCE HELD IN TRUST H A. Trust and Trustee Named Insured -- A homeowner policy may be issued in the name of both the trust and trustee when: 1. The residence held in trust is a 1,2,3 or 4 family dwelling or a condominium unit used exclusively for residential purposes, except for certain Permitted Business Occupancies provided: a. The premises is occupied principally for private residential purposes, and b. There is no other business occupancy on the premises. 2. Legal title to the dwelling or condominium unit is held solely by the trust; 3. The resident of the residence held in trust include at least one of the following: The trustee; the grantor of the trust, or the beneficiary of the trust; and 4. The trust and trustee are both shown as the named insured on the policy declarations, regardless of who resides in the residence held in trust. B. Other Persons Insured Grantor and/or Beneficiary Regularly Resides in the Residence Held in Trust. 1. If the trustee regularly resides in the residence held in trust along with the grantor or beneficiary and grantor and/or beneficiary: a. Is related to the trustee and is a member of the trustee s household, the grantor and/or beneficiary is an insured as defined in the policy form and should not be named in Endorsement HO 0543; or b. Is not related to the trustee, or is related but not a member of the trustee s household, the grantor and/or beneficiary must be named in the Endorsement HO 0543 to be covered for personal property, additional living expense, personal liability and medical payments to others. If the grantor and beneficiary are related to each other and members of the same household, only one of the two should be named to the endorsement. 2. If the trustee does not regularly reside in the residence held in trust, the grantor and/or beneficiary must be named in Endorsement HO 0543 whether or not they are related to the trustee. This is necessary to provide the grantor or beneficiary with coverage for personal property, additional living expense, personal liability and medical payments to others. If the grantor and beneficiary are related to each other and members of the same household, only one of the two should be named on the endorsement. C. Liability Coverage Explained 1. Coverage E Personal Liability and Coverage F Medical Payments to Others is provided to the trust and trustee named insured who regularly resides on the residence premises. However, if the trustee named insured does not regularly reside on the residence premises, coverage for the trust and trustee is only provided for bodily injury or property damage arising out of the ownership, maintenance or use of the residence premises (premises liability). 04/12 OC-32

83 Optional Coverages 49. RESIDENCE HELD IN TRUST H (Continued) 2. Endorsement HO 0543 excludes: a. Liability coverage for claims or suits for bodily injury or property damage arising out of any act or decision or failure to act or decide by the trustee named insured in administering the trust except as provided in Paragraph 1; and b. Liability coverage for bodily injury to all insureds covered under this policy, for example, the trustee named insured, the grantor or beneficiary of the trust who is named on the endorsement or any person acting on their behalf. D. Additional Conditions The policy may not be endorsed or extended to insure: 1. Under Section I, any other dwelling on the residence premises, or any other structure, on or away from the residence premises, unless legal title to that other dwelling or structure is held solely by the trust; or 2. Under Section II, any location away from the residence premises unless legal title to that other location is held solely by the trust. E. Premium There will be no additional premium charge for this coverage. See Scheduled Personal Property Section 50. SCHEDULED PERSONAL PROPERTY TX SCHEDULED PERSONAL PROPERTY AGREED VALUE TX2303 See Scheduled Personal Property Section 52. SPECIAL COMPUTER COVERAGE HO 0472 The policy may be endorsed to insure computers and related equipment against risks of physical loss (open peril) subject to certain exclusions. The additional premium is $16 Note: This endorsement is not available with the HO 0005; HO 0561; HO 1790; FI 282TX or FI 281TX endorsements as they already provide open peril coverage for computers. 53. SPECIAL PERSONAL PROPERTY COVERAGE HO 0561 A. Coverage C Personal Property under the HO 0004 Contents Broad Form is insured under a named perils basis. The policy may be broadened to insure Coverage C against additional risks on an open peril basis subject to certain exclusions. B. The premium for this additional coverage is developed by applying a factor of 0.30 to the base HO 0004 premium for the coverage amount selected, then apply the appropriate Financial Stability Rating Factor. This amount is subject to an annual minimum premium of $30. Note: If the FI 282TX endorsement is attached to the policy, do not attach this endorsement since Open Perils Coverage C is already provided in the form. 04/12 OC-33

84 Optional Coverages 54. SPECIFIED ADDITIONAL AMOUNT OF INSURANCE FOR COVERAGE A DWELLING HO 0420 Forms HO 0003 and HO 0005 This optional endorsement extends Coverage A protection under the policy to provide home replacement cost coverage on the dwelling, when a total loss occurs, up to 25% or 50% additional of the Coverage A limit in effect, if the amount of loss is more than the limit of liability indicated on the declarations. In order for this endorsement to be applicable, the insured must: A. Insure the dwelling and other building structures to 100% of their replacement cost, as determined by: 1. A State Auto Home Replacement Cost Estimator completed and based on the accuracy of information furnished by the insured plus a photograph of the dwelling; or 2. An inspection of the insured dwelling and other building structures. B. Accept the Inflation Protection Increase in the policy, agree to each annual adjustment in the dwelling protection coverage limits of liability and pay the premium charged. C. Notify us within 90 days of the start of any additions or other physical changes which increase the value of the dwelling or other building structures on the residence premises by 5% or more, and pay any resulting additional premium. D. The premium for the 25% or 50% option is computed by: 1. Multiplying the HO 0003 base premium by the appropriate factor corresponding to the limit in the table below. 2. Apply the applicable Financial Stability Rating Factor. 3. This amount is subject to an annual minimum premium of $10 for the 25% option, or $20 for the 50% option. CHARGES BY PROGRAM Additional Amt. SECURGARD SEC. PLUS DEFENDER ESTATES 25% Included Included 50% Note: This form is not valid with the FI 248 Common Construction Loss Settlement or the HO 2302 Special Loss Settlement Endorsements or HO 0530 Functional Replacement Cost Loss Settlement. ESTATES Endorsements FI 280TX and FI 281TX and DEFENDER Endorsements FI 270TX and FI 271TX provide this coverage up to 25% above the Coverage A limits. All forms except HO 0004 or HO THEFT OF BUILDING MATERIALS FI 50 Theft coverage for building materials, installed or not installed, may be provided by attaching the Theft of Building Materials Endorsement FI 50 to the policy. Limit Premium $2,000 $35 $5,000 $80 $10,000 $150 $15,000 $215 $20,000 $275 $25,000 $330 $50,000 $530 04/12 OC-34

85 Optional Coverages 56. UNIT OWNERS COVERAGE A SPECIAL COVERAGE HO 1791 Unit-Owners Coverage A Special Coverage HO 1791 The Property Coverage Section I Perils Insured Against may be broadened for Coverage A to cover additional risks of loss. This changes the loss provisions from a named peril basis to an open peril basis. The additional premium is developed as follows: 1. $5,000 basic policy limit -- $6; plus 2. Each additional $1,000 of Coverage A -- $1 Note: If the FI 281TX or FI 271TX endorsement is attached to the policy do not attach this endorsement. Coverage is already included in these two forms. 57. UNIT OWNERS COVERAGE A DWELLING INCREASED LIMITS Currently the Estates Option includes $10,000 Coverage A and the DEFENDER and SECURGARD Options include $5,000 Coverage A. The Coverage A limit may be increased. The premium is developed based on the additional limit of insurance. The premium for each additional $1,000 shall be the HO 0006 Basic Premium at 30,000 Coverage C multiplied by the Each Additional $10,000 factor then times Enter the total Coverage A limit on the Declarations page. 58. UNIT OWNERS COVERAGE C SPECIAL COVERAGE HO 1790 A. Coverage C Personal Property under the HO 0006 Unit Owners Form is insured under a named perils basis. The policy may be broadened to insure Coverage C against additional risks on an open peril basis subject to certain exclusions. B. This option may only be used when the condominium or cooperative unit is owner occupied and not rented to others. C. Premium-The premium for this additional coverage is developed by applying a factor of 0.30 to the base HO 0006 premium for the coverage amount selected, then apply the appropriate Financial Stability Rating Factor. This amount is subject to an annual minimum premium of $30. Note: If the FI 281TX endorsement is attached to the policy, do not attach this endorsement since Open Perils Contents Coverage is already provided in the form. 59. UNIT-OWNERS MODIFIED OTHER INSURANCE AND SERVICE AGREEMENT CONDITION HO 1734 A. Form HO 0006 provides that if there is other insurance in the name of a corporation or association of property owners covering the same property covered by HO 0006, payment for a covered loss under HO 0006 will be excess over the amount recoverable under such insurance. If the Association does not recover under it s policy, for any reason, there is no payment to the insured unit-owner under form HO B. Coverage Description The policy may be endorsed to alter the Other Insurance and Service Agreement Condition to provide for payment of a covered loss in excess of the amount due from the other insurance whether the corporation or association of property owners can collect on it or not. 04/12 OC-35

86 Optional Coverages 59. UNIT-OWNERS MODIFIED OTHER INSURANCE AND SERVICE AGREEMENT CONDITION HO 1734 (Continued) C. Premium-The premium for this additional coverage is developed by applying a factor of 0.25 to the base HO 0006 premium for the coverage amount selected. D. Not available with HO 0005, HO 0004 or HO 0003 coverage forms. 60. UNIT OWNERS REGULARLY RENTED TO OTHERS HO 1733 A. Form HO 0006 and HO 0006 with the HO 1790 excludes Coverage C Personal Property and Liability Coverage Section when the residence premises is regularly rented or held for rental to others. B. The policy may be endorsed to provide such coverage, including theft, subject to the unit being owner occupied at least as often as it is rented to others. C. The premium charge is developed by applying a factor of 0.25 to the base HO 0006 premium for the coverage selected, then apply the appropriate Financial Stability Rating Factor. This amount is subject to an annual minimum premium of $25. D. Not available with the HO 0005, HO 0004 or HO 0003 coverage forms. 61. VOLUNTEER WRONGFUL ACTS COVERAGE FI 260TX A. Under the basic contract, there is no coverage for the insured(s) for volunteer wrongful acts liability for which they become legally responsible. B. With the purchase of this endorsement, we will pay on behalf of an insured amounts an insured becomes legally responsible to pay because of civil claims made against them for a wrongful act. A wrongful act, in respect to this coverage, means actual or alleged error, misleading statement, act or omission, neglect or breach of duty committed by an insured during the policy period in the insureds capacity as a volunteer. C. We do not cover volunteer activity of an insured involving an insured s business or an organization for which an insured receives compensation or that requires the insured s professional services. D. Our limit of liability for this coverage is limited to $100,000. This is the most we will pay for all liability arising out of a single wrongful act regardless of the number of insured s or policy terms. E. Refer to the endorsement and contract for exclusions, limitations and conditions of this coverage. F. Premium-The premium charge to extend coverage is $35. G. This endorsement is not available with the FI 280TX, FI 281TX or FI 282TX since coverage is already provided in those forms. 04/12 OC-36

87 Optional Coverages 62. WATER BACK UP AND SUMP DISCHARGE OR OVERFLOW FI 0469 A. The policy forms exclude coverage for loss resulting from water or water-borne material which backs up through sewers or drains or which overflows or is discharged from a sump, sump pump or related equipment. B. The Homeowner policy may be endorsed to cover the peril of water which backs up through sewers or drains. 1. Coverage can be added at anytime. A 15 day waiting period exists before coverage becomes effective. If a policy is written as new business and the prior policy afforded water back up coverage, the 15 day waiting period will be waived and coverage will be available from the inception of the State Auto homeowners policy. 2. New business or endorsement with one or more water back up or sump occurrences within the past three years should be submitted prior to binding coverage. 3. Coverage can not be bound if a flood or flash flood watch or warning is in place. 4. A $500 deductible applies to this coverage. Amount of Coverage Premium $5,000 $60 $10,000 $80 $15,000 $100 $20,000 $125 $25,000 $ WATERBED LIABILITY FI 181 Coverage may be provided for property damage caused by waterbeds to non-owned property on the residence premises. Personal Liability (Coverage E) Limit Premium $100,000 $15 $200,000 $18 $300,000 $20 $400,000 $21 $500,000 $22 $1,000,000 $26 Note: Coverage cannot be added with the FI 280TX, FI 281TX, FI 282TX, FI 270TX, FI 271TX, FI 272TX and FI 264TX forms since coverage is automatically provided. 64. WATERCRAFT See special Watercraft Section in our manual for liability and physical damage options on all types of watercraft. 04/12 OC-37

88 Home-Based Business

89 HOME BASED BUSINESS FI 211TX AND FI 212TX Home Based Business endorsement coverage offers a package of coverages tailored to the needs of small businesses and may be provided to homeowners who are owners of eligible businesses operated at the primary residence premises. A. Eligible Home-Based Business Operations Please refer to the Home-Based Business endorsement eligibility guidelines for a listing of acceptable types of business operations and whether products liability coverage is included. Not all home businesses are appropriate for this program. The ACORD 74 is required with all new business submissions and at least every three years for renewals to determine if the exposure is still acceptable. The frequency with which questionnaires will be required on renewal business will be dependent upon the type of business and is subject to underwriting discretion. B. Home-Based Business Endorsement Underwriting Eligibility Guidelines 1. Maximum allowable gross sales/receipts is $250,000 annually. Higher gross sales/receipts need prior approval. 2. The business must be operated out of the insured s primary residence, used primarily for dwelling purposes, and is the only location from which the operation of the Home-Based business is conducted. 3. The business must be wholly owned by the named insured and resident relatives and take the form of an individual proprietorship, a partnership or corporation. 4. The business must be in existence for three years unless the applicant worked in a related field for three years or received specific training (e.g., franchise training, etc.). Prior approval required if less than three years. 5. The business operation must occupy no more than 50% of the total area of the residence including basement, garages, and other structures. 6. The electrical, heating and plumbing systems of the residence premises must be modified to safely accommodate the operations of the Home-Based business. 7. The business must employ no more than one full or part-time employee. 8. Applicants must not operate any other business under the same legal name as the covered business. 9. No more than one claim of any type related to the business operation in the past three years. 10. No single claim related to the business for more than $5,000 in the prior three years. 11. All doors to the outside must be equipped with dead bolt locks and/or comparable slider locks for patio doors. 12. Operations which are engaged in sales over the internet are not eligible unless such sales are incidental to the home based business entity. 13. Financial planners that have discretionary trading authority and/or access to customers data/funds are not desirable. Any such exposure must have prior approval. 14. If there is a change in the type of Home Based Business, the company must be notified. C. Home-Based Business Endorsement Coverage General 1. Business covered by this endorsement must be listed on the declarations. 2. Insured includes partnerships and corporations provided only persons insured are involved. 3. Employees are included in the definition of insured. The business may employ no more than one nonresident relative. Property 1. Business Personal Property is covered on or off premises up to $10,000. Additional limits are available up to $50, Computer equipment used in the Home-Based business is included in the Business Personal Property limit. 3. Other structures on the premises used in the Home-Based business are covered. 4. Leased equipment is included as owned if leased for six months or more. 5. Business property of others in your care, custody or control is covered on or off the premises up to $2,500. Additional limits are available up to $10, Business interruption (Business Income and Extra Expense) is included limit equal to loss incurred for up to 12 months or up to 60 day, if loss is due to loss to electronic media. 7. Increased limit on money -- $2,000 on the residence premises --$1,000 off the residence premises. HB-1 04/10

90 HOME BASED BUSINESS FI 211TX AND FI 212TX (Continued) 8. Business credit cards -- $5, Valuable Papers, Accounts Receivable, Business Data -- $5,000. Includes coverage for loss to replace or restore business data. Liability 1. Liability coverage E (Bodily Injury, Personal Injury, Advertising Injury and Property Damage liability) and Coverage F (Medical Payments to Others) extends to the covered Home-Based business operations both on and off the residence premises. NOTE: Personal Injury and Advertising Injury are excluded on some businesses (FI 219). 2. Personal Injury and Advertising Injury are included. NOTE: Personal Injury and Advertising Injury are excluded on some businesses (FI 219). 3. Products Completed Operations coverage is not included or available on all business classes. Refer to eligible business listings for availability. Use endorsements: FI 211TX Home Based Business Endorsement FI 212TX Home Based Business Endorsement, Without Products/Completed Operations Rating A flat charge shall be made for the Home-Based business endorsement coverage based on the Liability Coverage Section limit of liability selected. (The homeowners Liability Coverage Section personal liability limit must equal the Home-Based business liability limit.) D. Additional Coverages Home Based Premiums Liability Coverage E Home Based Premium $100,000 $190 $200,000 $210 $300,000 $225 $400,000 $235 $500,000 $240 $1,000,000 $260 Business Personal Property Coverage Increased Limits Additional limits for Business Personal Property (BPP) coverage may be purchased above the basic BPP limit of $10,000 on and off the premises. Coverage can be increased up to a total limit of $50,000. Business Personal Property Coverage Increased Limits Total Limit Premium $20,000 $20 $30,000 $40 $40,000 $60 $50,000 $80 Business Personal Property of Others Increased Limits The basic limit of $2,500 for Business Property of Others can be increased to a total limit of $10,000. Business Personal Property of Others Increased Limits Total Limit Premium $5,000 $5 $7,500 $10 $10,000 $15 03/08 HB-2

91 HOME BASED BUSINESS FI 211TX AND FI 212TX (Continued) Additional Interests Coverage for third parties can be provided by using endorsement FI 214, Lenders, Loss Payable coverage for additional interest in property held for sale under contract, and FI 215, Additional Insured Lessor of Leased Equipment. E. Eligible Home-Based Business Operations Class Business Operation Description Products Notations Accounting Service Yes Including Tax Service. No Financial Planning Air Conditioning Representative No Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Art and Drafting Supplies Yes Art Studio or Instruction Yes No Galleries or Museums Art Glass Yes No true stained glass manufacturing Automobile Parts and Supplies Representative No Excluding those involved in design, repackaging or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Barber and Beauty Shop Supplies Yes Nothing manufactured by insured or sold under insured s own label Barber Shops Yes No tanning beds Barber/Beauty Supplies Representative Yes Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Beauty Salons Yes No tanning beds Bookkeeping Service Yes No financial planning Bottled Water Representative No Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Bridal Consultant Yes Assists clients with functions and types of service providers. Does not provide or subcontract to provide the services. Does not own banquet or party room Building Material Representatives No Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Business Management Consultant Yes No involvement in re-engineering or layoff advice. Not involved with personal performance evaluation Cake Decorating and Baked Goods Yes No retail bakery sales Calligraphy Yes Camera Repair Yes Including incidental sales of photographic supplies. 03/08 HB-3

92 HOME BASED BUSINESS FI 211TX AND FI 212TX (Continued) Class Business Operation Description Products Notations Ceramics, Pottery or Clay Yes Clothing Sales No Nothing manufactured by insured, or sold under insured s own label Computer Consultant No Ineligible risks are programming concerns, web design and Internet providers. Insureds engaged in providing electronic chat rooms or hosting bulletin boards are also ineligible. Eligible risks must have professional liability Computer Repair Yes Insured must have a backup procedure prior to working on any system Cosmetic Sales Representatives Yes Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Crafts Yes No manufacturing of parts. Hobby shop type of crafts only Dance Studio or Instruction Yes Including incidental sale of dance clothing and supplies. Excluding those involved in gymnastics instruction Decorative Housewares Yes Dental Laboratories No Coverage on precious metal limited to $ Desktop Publishing Yes Personal and Advertising Injury Exclusion FI 219 applies Draftsman Yes Dressmakers Yes No dry cleaning or laundry services Economist Yes Must have professional liability Editor/Proofreader Yes Personal and Advertising Injury Exclusion FI 219 applies Electrical Equipment and Supplies Representative No Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Embroidery Yes Engineer Yes Must have professional liability Engraving Yes Fabrics, including Sewing, Knitting or Yes Quilting Financial Planner Yes Personal and Advertising Injury Exclusion FI 219 applies Florists/Flower Arranging and Gift Basket Arranging Yes Retail only; no commercial greenhouses. Incidental canning of jam/jellies/relishes/etc. as an item included in a basket is acceptable Graphic Artists Yes Grocery/Frozen Foods Representative No Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy. 03/08 HB-4

93 HOME BASED BUSINESS FI 211TX AND FI 212TX (Continued) Class Business Operation Description Products Notations Hardware and Tools (No Power Tools) No Representative Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Heating Equipment Representative No Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Hobby and Model Supplies Representatives No Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Household Products Representative Yes Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Insurance Sales Yes Interior Decorator Consultant Yes No sales, installation or subcontracting Jewelry Engraving Yes Maximum of $5,000 property of others in insured s possession at any one time Jewelry Sales Representative Yes Associated with major national distributors only. Must be named as Vendor Additional Insured on the manufacturer s policy Kitchen and Bath Accessories Yes Leather Goods Yes Magnetic Sign Making Yes Manufacturing Representative No No foreign manufactured products. Must be named as Vendor Additional Insured on the manufacturer s policy Marketing Consultant Yes Advise on best methods for selling clients products or services. Does not become involved with carrying out the plans Music Instruction Yes Including incidental sales of instruments Nails, Manicures and Facials Yes No tanning beds Office Equipment No No installation, service or repair Office Supplies and Stationery Yes Offices General Yes Including Medical Professionals and Lawyers professional coverage excluded from form Party and Paper Goods Sales Yes Party/Wedding Planner Yes Insured must sign no contracts for clients nor assume any responsibility for services rendered. 03/08 HB-5

94 HOME BASED BUSINESS FI 211TX AND FI 212TX (Continued) Class Business Operation Description Products Notations Personal Care Products Yes Personal Shopper Yes Pet Grooming Yes No overnight boarding Photography Studios Yes Only incidental photo finishing Picture Framers Yes Plumbing Supplies Representative No Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Real Estate Agents Yes No property management or investment service exposures. Must attach Personal and Advertising Injury Exclusion form FI 219. Must have professional liability Real Estate Appraiser Yes Must attach Personal and Advertising Injury Exclusion (FI 219) Refrigeration Equipment Representatives No Excluding those involved in design, repackaging, or re-labeling. Excluding direct importing of foreign goods if manufacturer has no U.S. operations. Must be named as Vendor Additional Insured on the manufacturer s policy Researchers Yes Non-Science Research only Resume Service Yes Secretarial Service Yes No temporary employment services Shoe Repair Yes Sign Making Yes No hanging or installing of signs. Also, no electrical or wooden signs made Stationary/Paper Products Yes Stenographic Services Yes No temporary employment services Stereo, TV and VCR Repair Yes Maximum of $5,000 property of others in insured s possession at any one time Tailoring/Alterations and Seamstresses Yes No dry-cleaning or laundry services Tax Collectors Yes Personal and Advertising Injury Exclusion FI 219 applies Taxidermy Yes No flammable materials may be used as stuffing materials Teachers and Tutors Yes Any gymnastics makes the risk ineligible Telemarketing No Involving no more than three lines Telephone Answering Service Yes Translator Yes Travel Agencies Yes No conducted tours, whether within or outside of the U.S Videotaping, Dubbing and Editing Yes Personal and Advertising Injury Exclusion FI 219 applies Voice Instruction Yes Watch or Clock Repair Yes Maximum of $5,000 property of others in insured s possession at any one time Word Processing Services/Transcribers Yes No temporary employment services Writers/Authors Yes Personal and Advertising Injury Exclusion FI 219 applies. 03/08 HB-6

95 SCHEDULED PERSONAL PROPERTY COVERAGE

96 SCHEDULED PERSONAL PROPERTY TX2303 AGREED VALUE JEWELRY FI 460 Shown below are the classes of Personal Property which may be added to a Homeowners Policy by attaching Scheduled Personal Property Endorsement TX2303. This form provides open perils coverage for physical loss or damage, with a few exceptions. We require a complete detailed description for all Scheduled Personal Property, regardless of the value. For jewelry, furs and fine arts and gun collections (non-fired), any item(s) valued at $5,000 or more will require an appraisal dated within five years of the effective date the item(s) was added. For other categories of scheduled items, if the value is $5,000 or more, a bill of sale is required. Our State Auto Options policy has included expanded classes which will enable you to meet more of your insureds scheduling needs without the burden of going to a stand alone inland marine policy. Note: The credit percentage for Protective Devices is applied to the TX2303 premium for each class. A $5.00 minimum premium per class will apply. CATEGORIES JEWELRY DESCRIPTION This class covers personal jewelry anywhere in the world. On any one item with a value of at least $5,000 and over, we require an acceptable appraisal, dated within five years. Do not bind coverage on any one item valued at $15,000 or more or a schedule of items totaling $50,000 or more without prior approval by the company. ANNUAL RATES PER $1,000 $13.00 JEWELRY IN VAULTS JEWELRY AGREED VALUE JEWLERY IN VAULTS FURS Specific items of scheduled jewelry which are kept in a vault in a bank may be insured. The Company must be notified in advance of removal from the vault and a pro-rata additional premium is charged for the period the jewelry is not vaulted. Use endorsement TX 2303 Scheduled Personal Property. Agreed Value-The policy may be endorsed to cover jewelry at an agreed value. This amount will be shown on the Declarations Page. Note: On any one item with a value of at least $5,000 and over, we require an acceptable appraisal, dated within the past five years. Neither the Property Coverage Section deductible, as shown on the Declarations Page, nor the provisions of the FI 2303 apply to this coverage. Use endorsement FI 460 Scheduled Personal Property Agreed Value. Please indicate in the remarks section of the Homeowners application Agreed Value Jewelry -- FI 460. Specific items of scheduled jewelry which are kept in a vault in a bank may be insured. The Company must be notified in advance of removal from the vault and a pro-rata additional premium is charged for the period the jewelry is not vaulted. Use endorsement FI 460 Scheduled Personal Property Agreed Value. This class covers fur garments and garments trimmed with fur anywhere in the world. This coverage does not include artificial furs of man-made fabrics. On any one item with a value of at least $5,000 and over, we require a copy of the bill of sale or an acceptable appraisal, dated within the past five years. $3.40 $15.60 $4.50 $ /11 SP-1

97 CATEGORIES FURS (Continued) CAMERAS MUSICAL INSTRUMENTS DESCRIPTION Do not write or bind coverage on any one item valued at $15,000 or more without prior approval by the company This class covers personal cameras and related equipment anywhere in the world. Do not write or bind coverage on professional photographers. (Nonprofessional use only) This class covers personal musical instruments without restriction as to location. Organs not of a mobile nature are excluded. ANNUAL RATES PER $1,000 $ /11 SILVERWARE GOLFERS EQUIPMENT FINE ARTS POSTAGE STAMPS RARE AND CURRENT COINS Non-Professional use Professional use: First $1,500 Excess of first $1,500 This class covers silverware, silver-plated ware, Goldware, Gold-plated ware and Pewterware anywhere in the world. This class covers golf clubs, golf clothing and golf equipment, excluding motorized carts. The coverage is provided wherever the property may be located. This class covers fine arts and antiques, such as paintings, statuary, tapestries, rare books and numerous other collector type items. Coverage is limited to a named location. Items valued in excess of $5,000 must be accompanied by an acceptable appraisal, dated within the past five years. Do not bind coverage on any one item valued at $15,000 or more or a schedule of items totaling $50,000 or more without prior approval by the company. Fine Arts Without Breakage Fine Arts With Breakage This class covers a collection of postage stamps, including due, envelope, official, revenue, match and medicine stamps, locals, reprints, essays, proofs and other philatelic property. The coverage is extended to cover wherever the property may be located. This class covers a collection of coins, medals, paper money, bank notes and other numismatic property. The coverage applies anywhere in the world. SP-2 $6.50 $30.00 $6.50 $3.50 $12.00 $2.50 $3.00 $6.00 $16.00 BICYCLES Losses of $5 or less are not covered. $75.00 FIREARMS Firearm Collection No Field Use (not fired) Items valued in excess of $5,000 must be accompanied by an acceptable appraisal dated within the past five years. Do not bind coverage on any one item valued at $15,000 or more or a schedule of items totaling $50,000 or more without prior approval by the company. Firearms Used for Hunting and Field Use (fired) $3.00 $20.00

98 SPORTING EQUIPMENT COLLECTIBLES FARM MACHINERY TOOLS CELLULAR PHONES This class covers scheduled sporting equipment such as skiing, fishing, archery, scuba, camping, excluding golfer s equipment. This class covers various types of collections such as baseball cards, dolls (cloth or ceramic), beer cans, comic books, magazines, cigarette lighters, etc. A valid appraisal or some other reliable evidence of value must accompany the application for insuring each item. Without breakage With breakage This class covers scheduled farm machinery including serial number. Unscheduled mobile farm machinery, equipment, tools, accessories and spare parts are limited to $1,000. This class covers portable tools, hand tools and similar items not used for business. Scheduling of specific tools is not required. This class covers cellular phones or other portable personal communication devices which allows voice transmission. Does not apply to laptop computers, desk top computers, global positioning systems (GPS) or other similar devices. $25.50 $25.00 $30.00 $3.90 $30.00 $40.00 HEARING AIDS Use endorsement TX2303 Scheduled Personal Property. $ /11 SP-3

99 WATERCRAFT SECTION

100 Watercraft Section TABLE OF CONTENTS Topic Page 1. General Underwriting Philosophy Binding Authority Watercraft Coverage and Eligibility Optional Coverages Credits Debits Territory Definitions Rating Physical Damage Rates FI 84TX Watercraft Liability Coverage FI Pleasure Boat Rates FI 254TX Yacht Rates FI 255TX /08

101 Watercraft Section 1. GENERAL UNDERWRITING PHILOSOPHY We are in the business of providing insurance. This statement implies that coverage will be available to a broad cross section of the public at a reasonable cost, and the expectation of profitable operation for both our Agents and the Company. While it is our intention to establish a premium structure that will accommodate most potential policyholders, there are certain operator or watercraft characteristics that present such a propensity to loss that they cannot be accepted in our watercraft programs. The purpose of this guide is to help define these acceptability standards. It is important to note that State Auto adheres to the spirit of any statutes pertaining to underwriting situations. Thus, to the extent any of the guidelines contained in this document are in conflict with applicable law, the guidelines should not be considered. Beyond the general guidelines contained herein, we also recognize the importance of the agent s role in the underwriting process. By virtue of personal contact with all applicants, the agent is in a unique position to assess risk characteristics and exercise underwriting judgment. Our watercraft programs are designed to compliment our auto and homeowner programs by providing a market for our insured s who own a pleasure boat or yacht. The Agent may bind coverage: 2. BINDING AUTHORITY A. On any risk, except where specifically prohibited in this Guide; and B. If the required application is fully completed, SIGNED BY THE NAMED INSURED(S) and THE AGENT, and submitted to the Company within four (4) working days of the effective date of coverage. 3. WATERCRAFT COVERAGE Physical damage and liability coverages for watercraft may be provided by endorsement to the Homeowner Options Policy in accordance with the guidelines outlined on the following pages. All watercraft, motors and trailers must be fully described, including the model year, manufacturer, model, serial number, power type (if applicable), length (if applicable), top speed and horsepower (if applicable), with an individual amount of insurance shown for the item. Detached and detachable equipment may be totaled with a blanket amount of insurance. To provide you with the best possible service, we require completion of an ACORD Watercraft Application. (An application is not required for watercraft that is automatically covered under the Homeowner Options Policy.) A. Definitions In this section, the following terms are defined as follows: 1. Watercraft all pleasure boats, regardless of power type or length, including personal watercraft, sailboats and yachts. 2. Pleasure boats all boats with a length of 26 feet or less, including personal watercraft. 3. Yachts all boats with a length greater than 26 feet. 4. Personal Watercraft include, but are not limited to: jet skis, wet bikes, wave runners, mini-jet boats and other similar types of watercraft usually under 16 feet in length. 03/08 WS-1

102 Watercraft Section 3. WATERCRAFT COVERAGE (Continued) B. Eligibility 03/08 1. Type of watercraft The following vessels are ineligible: a. Amphibicars or amphibious vehicles. b. Watercraft with automobile engine conversions (unless factory installed). c. Home built or kit watercraft. d. Marsh craft (Air Propeller watercraft). e. Submarine type watercraft. f. Watercraft with motors that exceed the manufacturer s recommended horsepower for the craft. g. Watercraft over 15 years old, unless accompanied by a recent photo or boat dealer s statement or current marine survey as to condition and value. h. Yachts for which liability coverages only are desired. 2. Type of watercraft The following vessels requires prior underwriting approval: a. Bass boats with an advertised maximum speed of more than 70 miles per hour and all other watercraft that have an advertised maximum speed of more than 55 miles per hour. b. Yachts with a hull value in excess of $250,000. c. Yachts that exceed 40 feet in length. e. Risks with more than one boat loss in the past 3 years. f. Houseboats. 3. Use of watercraft The following vessels are ineligible: a. Watercraft chartered, rented to others, or utilized for any commercial or business purpose. b. Watercraft held for sale. c. Watercraft stored in unsupervised areas. d. Watercraft operated outside of the following boundaries: the inland waters of the forty-eight contiguous states of the U.S., the District of Columbia, the Dominion of Canada, and the Atlantic and Gulf Coastal waters within a 12-mile limit of the coast. 4. Ownership of watercraft The following are ineligible: a. Watercraft titled in the name of a business 5. Exclusions Liability and physical damage coverages do not apply while any Personal Watercraft described on this policy is engaged in competing, practicing or preparing for any prearranged race, competitive speed or mobility contest or any other racing activity. Please refer to the racing exclusion in the Homeowners Pleasure Boat Endorsement. C. Operators of Pleasure Boats, Personal Watercraft and Yachts 1. Age the principal operator must be at least 21 years of age. 2. Experience the principal operator must have at least one year of experience in operating a watercraft of similar size or type or proof of completion of a boating safety course. 3. Driving Record the three year driving record of all operators in the household are considered. There must be: a. No more than 2 minor violations per person. b. No more than 4 minor violations/at-fault accidents per household. c. No major violations. d. No more than 2 at-fault accidents per person. e. No one under 21 with an at-fault accident. f. No one under 21 with more than one minor violation. WS-2

103 Watercraft Section 4. OPTIONAL COVERAGES FOR WATERCRAFT A. Physical damage coverage for watercraft trailers - Coverage can be purchased for the trailer of a covered watercraft. A $100 deductible applies to trailers of pleasure boats and a $250 deductible applies to trailers of yachts. Rate: $2 per $100 of coverage B. Emergency service or towing and labor coverage for disabled watercraft may be provided up to a maximum of $500. Rate: $7 per $100 of coverage C. Sailboat Racing Buy-Back - Racing coverage for loss or damage to the following sailboat components may be purchased: spars, spinnakers or sails. This option is available for pleasure boats only. Attach Sailboats (Racing Buy-back) Amendatory Endorsement, FI 170. Premium: Flat charge of $10 D. Broadened Navigational Territory Limits - When a boat or yacht is rated for Territory III, the coverage territory may be extended from 12 statute miles of the coastline to 20 statute miles of the coastline for pleasure boats and to 50 statute miles of the coastline for yachts. This coverage may be written only if: The captain/owner/operator is a full-time resident of the state/home port where the insured boat is moored. The captain/owner/operator is a member of the U.S. Power Squadron or U.S. Coast Guard Auxiliary and has successfully completed courses relating to navigation and seamanship. The captain/owner/operator has previous experience navigating beyond the 12 mile limit. The craft is equipped with a ship to shore radio, radar and LORAN equipment. The craft is equipped with at least twin engines, is rated for ocean use and is at least 20 feet in length. Attach the applicable increased navigation territory endorsement: Increased Navigational Limits (within 50 miles) FI 146 (yachts) Increased Navigational Limits (within 20 miles) FI 148 (pleasure boats) Premium: Pleasure Boats Flat charge of $25 Yachts Flat charge of $50 E. Broadened Navigational Territory Limits Bahamas (Yacht Only) - When a yacht is rated for Territory III, the coverage territory may be extended from 12 statute miles of the Bahaman Islands. This coverage may be written only if: The captain/owner/operator is a full-time resident of the state/home port where the insured boat is moored. The captain/owner/operator is a member of the U.S. Power Squadron or U.S. Coast Guard Auxiliary and has successfully completed courses relating to navigation and seamanship. The captain/owner/operator has made at least five previous trips to the Bahamas in the last three (3) years. The craft is equipped with a ship to shore radio, radar and LORAN equipment. Watercraft is at least 28 feet in length. 03/08 Attach the Increased Navigation Limits Bahamas Endorsement FI 147 Premium: Flat charge of $150 WS-3

104 Watercraft Section 4. OPTIONAL COVERAGES FOR WATERCRAFT (Continued) F. Additional Insured - Lessor - Coverage may be added to protect the interest of the lessor in cases where the insured s watercraft is leased. Attach the Additional Insured (Watercraft) Endorsement FI 149 Premium: No charge G. Miscellaneous Accessories/Detachable Equipment Increased Limits (Pleasure Boat Only) - The basic policy limit of $500 may be increased. Refer to the policy for a description of coverage. Indicate limit increase on application. Premium: Add limit increase to hull value and rate accordingly. H. Additional Equipment (Yacht Only) Coverage may be purchased for furniture and equipment needed for the maintenance and use of the yacht. Combine limit with yacht hull value on application. Premium: Add limit increase to hull value and rate accordingly. I. Auxiliary Watercraft (Yacht Only) Physical Damage coverage for an auxiliary watercraft and its motor (as described in the policy) may be provided. A $250 deductible applies to the auxiliary watercraft. Indicate the limit for the auxiliary watercraft on the application. Premium: Add to the limit of yacht hull value and rate accordingly. J. Uninsured Watercraft Coverage This optional coverage affords protection for compensatory damages which an insured person is legally entitled to recover from the owner or operator of an uninsured watercraft. Rates are per watercraft. (The rate for an insured yacht will include an auxiliary watercraft used to service the covered yacht.) Use form UW1410. Limit Rate $10,000 $15 $25,000 $25 5. CREDITS The following credits are available for all watercraft unless indicated otherwise. A. Boating Course Credit - An insured is eligible for this credit if he/she has completed a piloting/seamanship course offered by the U.S. Coast Guard Auxiliary or U.S. Power Squadron. Proof of successful completion is required. Credit: 5% (applies to physical damage, liability and medical payments premiums) B. Membership Credit - An insured is eligible for this credit if he/she is an active member of the U.S. Coast Guard Auxiliary or U.S. Power Squadron. Proof of membership is required. Credit: 5% (applies to physical damage, liability and medical payments premiums) C. Fire Extinguishing System Credit This credit is applicable for those watercraft with approved, built-in fire extinguishing systems which automatically discharge upon detection of fire in the engine compartment. The credit does not apply to portable, hand-held fire extinguishers. Credit: 5% (applies to physical damage premiums) D. Diesel Power Credit If craft is powered by a diesel engine, credit will be applied. Credit: 10% (applies to physical damage premiums) 03/08 WS-4

105 E. Sailboat with Auxiliary Engine Credit TEXAS HOMEOWNER OPTIONS MANUAL Watercraft Section 5. CREDITS (Continued) Credit: 10% (applies to physical damage premiums) F. Miscellaneous Safety Equipment Credits are given for miscellaneous safety equipment. Qualifying devices include: Ship to Shore Radio Radar/Doppler/LORAN Sniffer/Fume Detector Depth Sounder/Fathometer/Sonar Radio Direction Finder Electric Cooking and Refrigeration Devices Credit: 2% for each of the above items with a maximum credit of 10% (applies to physical damage premiums) G. Reduced Navigation Period (Yacht Only) Base premiums are calculated based on a seven (7) month navigation period, with the exception of Territory III, Atlantic and Gulf Coastal Waters where base premiums are calculated on a 12 month navigation period. This navigation period, whether seven (7) month or 12 month, may be reduced for a credit. Credit: 5% per month (applies to physical damage premiums) H. Optional Deductibles The basic premiums are for a $250 deductible. The following options are available: Pleasure Boat (Boat and Miscellaneous Equipment only Applies to Physical Damage Only) Yacht -- (Yacht, Equipment and Auxiliary Watercraft only Applies to Physical Damage Only) Deductible Credit/Charge $ 100* +15% $ % $1,000-30% $2,500-40% $5,000-50% Note: $100 deductible option is only available for outboard motors and boats insured under Forms FI- 84TX and FI254TX. I. Auto/Home Discount This credit is available for insureds who have both their automobile and homeowners policies written with the State Auto Insurance Companies. Credit: 15% (applies to physical damage, liability and medical payments premiums) 6. DEBITS The following debits apply to all watercraft unless indicated otherwise. Pleasure Boats apply to hull and miscellaneous equipment premiums. Yachts apply to hull, equipment and auxiliary watercraft premiums. A. Advertised Speed (Not applicable to Personal Watercraft) When advertised speed is greater than 45 mph, apply the following debit: Debit: 80% (applies to physical damage, liability and medical payments premiums) 03/09 WS-5

106 Watercraft Section 6. DEBITS (Continued) B. Increased Navigation Period (Yacht only) Base premiums are calculated on a seven (7) month navigation period, with the exception of Territory III, Atlantic and Gulf Coastal Waters, where base premiums are calculated on a 12 month navigation period. This may be increased (except for territory III where base premiums already contemplate a 12 month navigation) for a premium debit. Debit: 5% per month 7. TERRITORY DEFINITIONS Territory Number Description I Waters of the Great Lakes II Inland Waters of the U.S. (excluding the Great Lakes, Ohio and Mississippi Rivers) III Atlantic and Gulf Coastal Waters (including the inland water tributaries) within 12 statute miles of the coastline IV Ohio and Mississippi Rivers V Chesapeake Bay and its inland tributaries Note: Please include all territories in which the watercraft is navigated. When two or more navigational territories apply, the highest rated territory will be used for rating. For yachts only, the declarations page must reflect the territory or territories in which the craft is operated. 8. RATING Pleasure Boat Rating A. Separate rates apply to Inboard, Inboard/Outdrive and Personal Watercraft (i.e. Jet Skis, Wet Bikes, Wave Runners, Mini-Jet Boats, etc.). B. Miscellaneous accessories must be included in the amount of insurance for the hull for rating purposes. C. When the amount of insurance is not in increments of $1000, interpolation applies. D. Basic premiums are for a $250 deductible. Refer to the Credit Section for optional deductibles. E. All premium calculations are to be rounded to the nearest dollar. Amounts of 50 cents or more are carried to the next higher dollar amount. Where multiple rating steps are needed, rounding is performed at the end of each step. F. To determine the premium, calculations should be performed in the following order: 1. Determine the basic premium by territory, type of watercraft, and amount of insurance from the basic premium pages. If more than one territory applies, the rates for the highest rated territory shall apply. 2. Apply deductible credit if appropriate. 3. Apply any other miscellaneous credits or debits. Yacht Rating A. Equipment, as defined in the policy, must be included in the amount of insurance for the hull for rating purposes. B. When the amount of insurance is not in increments of $5000, interpolation applies. C. Base premiums are for a $250 deductible, and seven (7) month navigation period (except territory III, Atlantic and Gulf Coastal Waters, which is based on a 12 month navigation period). Refer to Credit Section for optional deductibles. 03/08 WS-6

107 Watercraft Section 8. RATING (Continued) D. All premium calculations are to be rounded to the nearest dollar. Amounts of 50 cents or more are carried to the next higher dollar amount. Where multiple rating steps are needed, rounding is performed at the end of each step. E. To determine the premium, calculations should be performed in the following order: 1. Determine the basic premium by territory, type of watercraft, and amount of insurance from the basic premium pages. If more than one territory applies, the rates for the highest rated territory shall apply. 2. Apply a debit or credit for longer or shorter navigation period. 3. Apply deductible credit if appropriate. 4. Apply any other miscellaneous credits or debits. 9. PHYSICAL DAMAGE RATES FI 84TX The following rates apply to Outboard Motors and Boats (including sailboats) 26 feet or less written subject to form FI 84TX Homeowners Watercraft Physical Damage Endorsement. Note: This form does not provide liability coverage. Personal Watercraft and watercraft over 26 feet are not eligible for this form of coverage. PHYSICAL DAMAGE PREMIUMS (Base Premium for $250 Deductible) Sail Boats 26 Feet or Less Territories Amount of Insurance I II III IV V $1000 $29.00 $29.00 $56.00 $29.00 $29.00 Each Add l $1,000 (add) $7.50 $7.50 $15.00 $7.50 $ /12 PHYSICAL DAMAGE PREMIUMS (Base Premium for $250 Deductible) Outboard Motors and Boats (incl. sailboats) 26 Feet or Less Territories Horsepower Amount of Insurance I II III IV V 0-50 $1,000 $38.00 $38.00 $74.00 $38.00 $38.00 Each Add'l $1,000 - (add) $10.50 $10.50 $19.50 $10.50 $ $1,000 $46.00 $46.00 $89.00 $46.00 $46.00 Each Add'l $1,000 - (add) $12.50 $12.50 $23.50 $12.50 $ $1,000 $62.00 $62.00 $ $62.00 $62.00 Each Add'l $1,000 - (add) $16.50 $16.50 $31.50 $16.50 $ $1,000 $67.00 $67.00 $ $ Each Add'l $1,000 - (add) $18.00 $18.00 $34.50 $18.00 $ $1,000 $73.00 $73.00 $ $73.00 $73.00 Each Add'l $1,000 - (add) $19.50 $19.50 $37.50 $19.50 $19.50 WS-7

108 Watercraft Section 9. PHYSICAL DAMAGE RATES FI 84TX (Continued) Age of Hull - applies to Physical Damage Premiums To determine the factor: Age of Hull equals 1 plus the current year minus the Hull Model Year. Age of Hull Factor or More /12 WS-8

109 Watercraft Section 10. WATERCRAFT LIABILITY COVERAGE FI 2475 Liability coverage is included in the policy at no additional charge for the following watercraft. Watercraft owned by the insured and powered by one or more outboard motors with less than 75 total horsepower; or, watercraft rented by an insured and powered by one or more motors regardless of horsepower Sailboats with or without auxiliary power less than 26 feet in length owned by or rented to the insured; or, Watercraft rented to the insured with inboard or inboard-outdrive motor power up to 50 horsepower or; Any watercraft borrowed by the insured For boats not described below, coverage is not permitted under the Homeowners Policy. 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. Accumulate total horsepower if two or more motors are regularly used together with any single watercraft owned by the insured. A. Eligibility 1. All watercraft up to 26 feet in length with inboard or inboard-outdrive motors. 2. Sailboats with or without auxiliary power over 26 feet in length. 3. All watercraft up to 26 feet in length with outboard motor power more than 75 total horsepower. B. Liability Premiums For Watercraft (Inboard, Inboard-Outboard and Outboard) Inboard, Inboard-Outdrive or Outboard Personal Liability -- Coverage E Liability Horsepower Limit $100,000 $24 $27 $30 $32 $35 $200,000 $28 $32 $35 $37 $41 $300,000 $32 $36 $40 $43 $47 $400,000 $34 $39 $43 $46 $50 $500,000 $36 $40 $45 $48 $52 $1,000,000 $42 $47 $52 $55 $61 Sailboats Personal Liability -- Coverage E Liability Length in Feet Limit $100,000 Included $32 $54 $70 $86 $200,000 Included $37 $63 $82 $101 $300,000 Included $43 $72 $93 $114 $400,000 Included $46 $77 $100 $123 $500,000 Included $48 $80 $104 $128 $1,000,000 Included $55 $93 $121 $149 04/12 WS-9

110 Watercraft Section 10. WATERCRAFT LIABILITY COVERAGE FI 2475 (Continued) All Watercraft Medical Payments Coverage F Limit Premium $1,000 Included $2,000 $5 $3,000 $10 $4,000 $14 $5,000 $18 $10,000 $ PLEASURE BOAT HOMEOWNERS FI 254TX The following rates apply to Outboard Motors and Boats, Inboard and Inboard/Outdrive Boats written subject to form FI254TX Homeowners Pleasure Boat Endorsement. Please note that this form of coverage includes liability insurance, physical damage and medical payments coverage. When coverage is desired for Personal Watercraft, they must be insured on this form since, as an inboard craft, there is no coverage under the homeowners policy. Note: Liability and Medical Payments Coverages may be written in any combination, but must be the same limits as provided under Homeowner Section II coverages. Accumulate total horsepower if two or more motors are regularly used together with any single watercraft owned by the insured. A. The following rates apply to outboard motors and boats 26 feet or less. PHYSICAL DAMAGE PREMIUMS (Base Premium for $250 Deductible) Outboard Motors and Boats (incl. sailboats) 26 Feet or Less Territories Horsepower Amount of Insurance I II III IV V 0-50 $1,000 $38.00 $38.00 $47.00 $38.00 $38.00 Each Add'l $1,000 - (add) $10.50 $10.50 $19.50 $10.50 $ $1,000 $46.00 $46.00 $89.00 $46.00 $46.00 Each Add'l $1,000 - (add) $12.50 $12.50 $23.50 $12.50 $ $1,000 $62.00 $62.00 $ $62.00 $62.00 Each Add'l $1,000 - (add) $16.50 $16.50 $31.50 $16.50 $ $1,000 $67.00 $67.00 $ $67.00 $67.00 Each Add'l $1,000 - (add) $18.00 $18.00 $34.50 $18.00 $ $1,000 $73.00 $73.00 $ $73.00 $73.00 Each Add'l $1,000 - (add) $19.50 $19.50 $37.50 $19.50 $19.50 LIABILITY PREMIUMS Outboard Motors and Boats 26 Feet or Less All Territories Liability Horsepower Limit Up to $100,000 $18 $20 $22 $23 $200,000 $21 $23 $26 $27 $300,000 $24 $27 $29 $31 $400,000 $26 $29 $31 $33 $500,000 $27 $30 $33 $34 $1,000,000 $31 $35 $38 $40 04/12 WS-10

111 Watercraft Section 11. PLEASURE BOAT HOMEOWNERS FI 254TX (Continued) MEDICAL PAYMENTS PREMIUMS Outboard Motors and Boats 26 Feet or less All Territories Limit Premium $1,000 Included in base Liability $2,000 $ 5 $3,000 $10 $4,000 $14 $5,000 $18 $10,000 $38 B. The following rates apply to inboard and inboard/outdrive boats. PHYSICAL DAMAGE PREMIUMS (Base Premium for $250 Deductible) Inboard, Inboard/Outdrive Boats 26 Feet or Less Territories Amount of Insurance I II III IV V $1,000 $41.00 $41.00 $79.00 $41.00 $41.00 Each Add'l $1,000 - (add) $11.00 $11.00 $21.00 $11.00 $11.00 Subject to a $35 Annual Minimum Premium PHYSICAL DAMAGE PREMIUMS (Base Premium for $250 Deductible) Personal Watercraft Territories Amount of Insurance I II III IV V $1,000 $82.00 $82.00 $ $82.00 $82.00 Each Add'l $1,000 - (add) $22.00 $22.00 $42.00 $22.00 $22.00 Subject to a $75 Annual Minimum Premium LIABILITY PREMIUMS Inboard and Inboard/Outdrive Boats All Territories Liability Horsepower Limit $100,000 $16 $18 $20 $22 $23 $200,000 $19 $21 $23 $26 $27 $300,000 $21 $24 $27 $29 $31 $400,000 $23 $26 $29 $31 $33 $500,000 $24 $27 $30 $33 $34 $1,000,000 $28 $31 $35 $38 $40 04/12 WS-11

112 Watercraft Section 11. PLEASURE BOAT HOMEOWNERS FI 254TX (Continued) Personal Watercraft All Territories Liability Horsepower Limit $100,000 $32 $36 $40 $44 $46 $200,000 $37 $42 $47 $51 $54 $300,000 $43 $48 $53 $59 $61 $400,000 $46 $51 $57 $63 $66 $500,000 $48 $54 $60 $66 $69 $1,000,000 $55 $62 $69 $76 $80 MEDICAL PAYMENTS PREMIUMS Inboard and Inboard/Outdrive Boats All Territories Limit Premium $1,000 Included in base Liability $2,000 $5 $3,000 $10 $4,000 $14 $5,000 $18 $10,000 $38 Personal Watercraft All Territories Limit Premium $1,000 Included in base Liability $2,000 $10 $3,000 $20 $4,000 $28 $5,000 $36 $10,000 $76 04/12 WS-12

113 Watercraft Section 12. YACHT HOMEOWNERS FI 255TX The following rates apply to yachts and sailboats greater than 26 feet written subject to form FI255TX Homeowners Yacht Endorsement - Texas. Please note that this form of coverage includes liability insurance, physical damage and medical payments coverage. Note: Liability and Medical Payments Coverages may be written in any combination, but must be the same limits as provided under Homeowner Section II coverages. Accumulate total horsepower if two or more motors are regularly used together with any single watercraft owned by the insured. PHYSICAL DAMAGE PREMIUMS (Base Premium for $250 Deductible) Cruiser and Houseboats greater than 26 feet Territories Amount of Insurance I II III IV V $5,000 $121 $85 $173 $98 $103 $10,000 $159 $119 $243 $136 $137 $15,000 $197 $153 $313 $174 $171 $20,000 $235 $187 $383 $212 $205 $25,000 $273 $221 $453 $250 $239 $30,000 $311 $255 $523 $288 $273 $35,000 $349 $289 $593 $326 $307 $40,000 $387 $323 $663 $364 $341 $45,000 $425 $357 $733 $402 $375 $50,000 $463 $391 $803 $440 $409 $55,000 $501 $425 $873 $478 $443 $60,000 $539 $459 $943 $516 $477 $65,000 $577 $493 $1013 $554 $511 $70,000 $615 $527 $1083 $592 $545 $75,000 $653 $561 $1153 $630 $579 $80,000 $691 $595 $1223 $668 $613 $85,000 $729 $629 $1293 $706 $647 $90,000 $767 $663 $1363 $744 $681 $95,000 $805 $697 $1433 $782 $715 $100,000 $843 $731 $1503 $820 $749 Each Add l $5,000- (add) $38 $34 $70 $38 $34 04/12 WS-13

114 Watercraft Section 12. YACHT HOMEOWNERS FI 255TX (Continued) PHYSICAL DAMAGE PREMIUMS (Base Premium for $250 Deductible) Sailboats greater than 26 feet Territories Amount of Insurance I II III IV V $5,000 $100 $63 $150 $61 $86 $10,000 $135 $97 $218 $100 $118 $15,000 $170 $131 $286 $139 $150 $20,000 $205 $165 $354 $178 $182 $25,000 $240 $199 $422 $217 $214 $30,000 $275 $233 $490 $256 $246 $35,000 $310 $267 $558 $295 $278 $40,000 $345 $301 $626 $334 $310 $45,000 $380 $335 $694 $373 $342 $50,000 $415 $369 $762 $412 $374 $55,000 $450 $403 $830 $451 $406 $60,000 $485 $437 $898 $490 $438 $65,000 $520 $471 $966 $529 $470 $70,000 $555 $505 $1034 $568 $502 $75,000 $590 $539 $1102 $607 $534 $80,000 $625 $573 $1170 $646 $566 $85,000 $660 $607 $1238 $685 $598 $90,000 $695 $641 $1306 $724 $630 $95,000 $730 $675 $1374 $763 $662 $100,000 $765 $709 $1442 $802 $694 Each Add l $5,000- (add) $35 $34 $68 $39 $32 Subject to a $75 Annual Minimum Premium LIABILITY PREMIUMS All Territories Limits of Liability (includes $1,000 Medical Payments) Length of Boat (in feet) $100,000 $200,000 $300,000 $400,000 $500,000 $1,000, $36 $42 $48 $51 $54 $ $40 $47 $53 $57 $60 $ $47 $55 $63 $67 $70 $ $58 $68 $77 $83 $86 $ $72 $84 $96 $103 $107 $ $79 $92 $105 $113 $118 $ $86 $101 $114 $123 $128 $ $94 $110 $125 $134 $140 $ & Over $108 $126 $144 $154 $161 $187 04/12 WS-14

115 Watercraft Section 12. YACHT HOMEOWNERS FI 255TX (Continued) MEDICAL PAYMENTS PREMIUMS All Territories Limit Premium $1,000 Included in base Liability $2,000 $5 $3,000 $10 $4,000 $14 $5,000 $18 $10,000 $38 04/12 WS-15

116 TERRITORY PAGES

117 Texas Home Territories by Zip Code: Zip Code Territory Zip Code Territory Zip Code Territory Zip Code Territory /12 T - 1

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124 Texas Home Territories by Zip Code: Zip Code Territory Zip Code Territory Zip Code Territory Zip Code Territory /10 T - 8

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128 Texas Home Territories by Zip Code: Zip Code Territory If the United States Postal Service creates a new zip code for an area that was previously part of another zip code, the new zip code shall be assigned to the same territory as the former zip code. 04/10 T - 12

129 FORMS AND ENDORSEMENTS

130 TEXAS HOMEOWNER OPTIONS FORM INDEX FORM NUMBER Edition Date FORM TITLE NUMERICAL LISTING AU /07 Special Account Deductible Endorsement EX199 TX 01/10 HomeXtended Coverages Endorsement FI 47 10/00 Outboard Motor Liability Coverage (Mandatory if not Estates, Defender or Securgard Plus) FI 50 01/94 Theft of Building Materials Endorsement FI 55 04/88 Endorsement - Fire Department Service Charge FI 84TX 10/00 Homeowners Watercraft Physical Damage Endorsement - Texas FI 99 08/83 Special Exclusion Endorsement FI /88 Increased Navigational Limits (Within 50 Miles) FI /88 Increased Navigational Limits (Bahamas Islands) FI /00 Increased Navigational Limits (Within 20 Miles) FI /00 Additional Insured (Watercraft) FI /92 Provisional Amount Endorsement FI /91 Earthquake Coverage Amendment FI /00 Endorsement (Sailboats) FI /00 Waterbed Liability Coverage FI /00 Windstorm or Hail Deductible FI 211TX 07/05 Home-Based Business FI 212TX 07/05 Home-Based Business Endorsement Office FI /96 Lenders Loss Payable Endorsement FI /96 Additional Insured Endorsement Lessor of Leased Equipment FI /96 Exclusion - Personal Injury and Advertising Injury Home-Base Business FI /00 Common Construction Replacement Cost Loss Settlement FI 254TX 10/00 Homeowners Pleasure Boat Endorsement - Texas FI 255TX 10/00 Homeowners Yacht Endorsement - Texas FI /10 Your Homeowners Options Policy (Cover Page) FI 260TX 10/00 Volunteer Wrongful Acts Coverage - Texas FI 261TX 10/00 Service Vehicle Coverage FI 264TX 10/10 Securgard Plus Option Coverage Endorsement 04/11 1

131 TEXAS HOMEOWNER OPTIONS FORM INDEX (Continued) FORM NUMBER Edition Date FORM TITLE NUMERICAL LISTING FI /00 Additional Living Expense/Fair Rental Value Options Endorsement FI 270TX 10/10 Defender Option Endorsement FI 271TX 10/10 Defender Option Condominium Endorsement FI 272TX 10/10 Defender Option Renters Endorsement FI 280TX 03/10 Estates Option Endorsement FI 281TX 03/10 Estates Option Condominium Endorsement FI 282TX 03/10 Estates Option Renters Endorsement FI /04 Special Provisions - Texas FI /02 Limited Fungi or Microbes Coverage - Texas FI /00 Livestock Limited Mortality Coverage FI /00 Earthquake FI /00 Assisted Living Care Coverage FI460 10/00 Scheduled Personal Property Endorsement (Agreed Value) FI /00 Coverage C Increased Special Limits of Liability Named Perils FI /09 Water Back-up and Sump Discharge or Overflow - Texas FI /00 Owned Motorized Golf Cart Physical Loss Coverage FI /04 Personal Property Replacement Cost Loss Settlement - Texas FI /04 Actual Cash Value Loss Settlement Windstorm or Hail Losses to Roof Surfacing - Texas FI /00 Watercraft HO /00 Special Form HO /00 Contents Broad Form HO /00 Comprehensive Form HO /00 Unit-Owners Form HO /00 Additional Interest Residence Premises HO /00 Premises Alarm or Fire Protection System HO /00 Specified Additional Amount of Insurance For Coverage A Dwelling HO /00 Loss Assessment Coverage HO /00 Loss Assessment Coverage for Earthquake HO /00 Structures Rented to Others (Residence Premises) HO /00 Additional Insured (Residence Premises) HO /00 Permitted Incidental Occupancies HO /00 Replacement Cost Loss Settlement For Certain Non-Building Structures on the Residence Premises HO /00 Other Structures on the Residence Premises Increased Limits HO /00 Building Additions and Alterations (Other Residence) HO /00 Personal Property At Other Residences (Increased Limit) HO /00 Building Additions and Alterations (Increased Limit For HO 0004) HO /00 Credit Card, Electronic Fund Transfer Card or Access Device, Forgery And Counterfeit Money Coverage HO /00 Other Members of Your Household HO /02 Foundation Coverage Texas HO /02 Special Computer Coverage Texas HO /02 Coverage C Increased Special Limits of Liability - Texas HO /00 Ordinance or Law Increased Amount of Coverage HO /00 Specific Structures Away From the Residence Premises HO /00 No Section II Liability Coverages For Home Day Care Business Limited Section I Property Coverages For Home Day Care Business 04/11 2

132 HO /00 Home Day Care Coverage Endorsement HO /00 Refrigerated Property Coverage HO /00 Additional Insured Student Living Away From the Residence Premises HO /00 Funtional Replacement Cost Loss Settlement HO /00 Extended Theft Coverage for Residence Premises Occasionally Rented to Others HO /00 Residence Held in Trust HO /00 Landlords Furnishings HO /02 Special Personal Property Coverage -- Texas HO /09 Water Exclusion Endorsement HO /09 Water Exclusion Endorsement HO /00 Unit Owners Rental to Others HO /00 Unit Owners Modified Other Insurance and Service Agreement Condition HO /02 Unit Owners Coverage C Special Coverage - Texas HO /02 Unit Owners Coverage A Special Coverage - Texas HO /04 Special Loss Settlement Texas HO /00 Incidental Low Power Recreational Motor Vehicle HO /00 Permitted Incidental Occupancies (Other Residence) HO /02 Personal Injury Texas HO /00 Owned Snowmobile HO /00 Additional Residence Rented to Others 1, 2, 3 or 4 Families HO /00 Business Pursuits HO /00 Farmers Personal Liability HO /00 Exclusion of Farm Employees Illegally Employed HO /08 Identity Fraud Expense Coverage Texas TX /00 Increased Limits on Business Property TX 48 06/03 Snowmobile Endorsement (Physical Damage) TX /00 Excluding Coverage While a Certain Person or Persons Operates a Watercraft TX /11 Lead and Pollution Exclusion Endorsement TX199 01/10 Homeowners Prime of Life Endorsement TX /10 Scheduled Personal Property Endorsement TX /11 Blanket Personal Property UW /06 Uninsured Watercraft Coverage - Texas NOTICES AND MISCELLANEOUS FORMS AU /11 Notice of the Policies and Practices of the Disclosure of Nonpublic Personal Information AU /10 Prime of Life Stuffer AU /10 Use of Credit Information Disclosure FI122TX 04/11 Important Notice For Policyholders Supplement to Application Texas FI /02 Utility Update Credit Certification FI /07 Important Notice Texas Consumer Bill of Rights for Homeowners, Dwelling and Renters Insurance FI /07 Notice of Rate Increase for Residential Property Insurance Policies - Texas FI /08 Windstorm, Hurricane and Hail Exclusion Agreement FI /11 Important Notice Pertaining to your Homeowners Policy FIMK425 10/09 State Auto s Identity Theft Protection Program MK466 06/11 Cover Page MK657 07/10 State Auto Flood Notice ML /07 Important Notice Pertaining To Your Personal Auto, Homeowners Or Dwelling Fire Policy ML /11 Important Notice-Pollution/Lead Exclusion Disclosure ST 264TX 10/10 Securgard Plus Option Coverage Endorsement Highlights Stuffer ST 270TX 10/10 Defender Option Endorsement Coverage Highlights Stuffer ST 271TX 10/10 Defender Option Condominium Endorsement Coverage Highlights Stuffer 04/12 3

133 ST 272TX 10/10 Defender Option Renters Endorsement Coverage Highlights Stuffer ST 280TX 03/10 Estates Option Endorsement Coverage Highlights Stuffer ST 281TX 03/10 Estates Option Condominium Endorsement Coverage Highlights Stuffer ST 282TX 03/10 Estates Option Renters Endorsement Coverage Highlights Stuffer ACORD FORMS ACORD /12 Evidence of Property Insurance ACORD /07 Cancellation Request/Policy Release ACORD /01 Statement of No Loss ACORD 67 TX 2007/05 Texas Homeowners and Personal Property Supplement Consumer Bill of Rights for Homeowners, Dwelling and Renters Insurance ACORD 68 TX 2007/05 Texas Homeowners and Personal Property Supplement Consumer Bill of Rights for Homeowners, Dwelling and Renters Insurance ACORD /05 Personal Policy Change Request (Except Auto) ACORD /07 Solid Fuel Questionnaire ACORD /09 Residence Based Business Supplement To Personal Property Applications ACORD /05 Homeowner Application ACORD /08 Personal Inland Marine Application ACORD /06 Watercraft Application ACORD 851 TX 2010/06 Texas Personal Lines Supplement Use of Credit Information Disclosure ACORD 852 TX 2010/06 Texas Personal Lines Supplement Use of Credit Information Disclosure 04/12 4