HOMEOWNERS PROGRAM NEW HAMPSHIRE

Transcription

1 HOMEOWNERS PROGRAM HINGHAM MUTUAL FIRE INSURANCE COMPANY AMERICAN ASSOCIATION OF INSURANCE SERVICES 1745 South Naperville Road Wheaton, IL

2 This manual contains rules, definitions, rating information, and a listing of forms and endorsements filed and approved for the Homeowners Program in this state. Any special rules, definitions, rating information, forms, or endorsements filed by or on behalf of the Company apply in lieu of those referred to in this manual. Refer to the Company for homeowners coverages not available through this manual. RULES TABLE OF CONTENTS Eligibility Program Description Policywriting Instructions Premium Determination Deductibles Premium Modifications Optional Coverages Property Coverages Liability Coverages Farm Coverages -- Liability Additional and Secondary Locations DEFINITIONS Construction Definitions Fire Protection Definitions Territorial Definitions Premium Group Charts RATING INFORMATION Basic Policy Rating Information Rating Information for Optional Coverages IDENTITY RECOVERY COVERAGE EQUIPMENT BREAKDOWN COVERAGE REV 14.7 Includes copyrighted material with permission of AAIS HMFIC

3 INDEX Rules Page Accidental Discharge -- Water-filled Furniture Additional Interests Additional Living Costs -- Increased Limit Additional and Secondary Locations Alarm Systems Animal Collision Application Assignment Association Deductible... SUPP-1 Automatic Adjustment of Limits Basic Limits Burglary Alarm Credit Business Activities Business Property Calculation of Premium Cancellation Care Provided For Others Liability Property Casco Cross Credit Changes in Limits Computers Conditional Endorsements Construction Definitions... Def-1 Contributing Insurance Co-owner Occupancy... 2 Coverages (Basic) and Amounts (Minimum) Coverage A Options -- Form Coverage B -- Extension of Coverage A Coverage C Increased Limits In Residences Occasionally Rented In Units Regularly Rented Reduced Limits Credit Card and Depositors Forgery REV 14.9 Index - i HMFIC

4 Rules Page Debris Removal -- Expanded Deductibles Definitions Construction... Def-1 Fire Protection... Def-1 Territorial... Def-2 Deposit Domestic Employees Dwellings Under Construction Eligibility... 3 Theft Coverage Earthquake Electronic Devices Eligibility... 1 Endorsements Expanded Coverage Endorsement Expanded Replacement Cost Exposure Surcharge... 24a Farm Coverage Options Farm Personal Liability Fire Alarm Credit Fire Department Service Charge Fire Protection Definitions... Def-1 Fire Resistive and Specifically Rated Buildings Fungi, Wet or Dry Rot or Bacteria Coverage, Limited Golf Carts Liability Property Guns Inception Time Incidental Farming Interpolation Jewelry, Watches, and Furs REV 15.0 Index - ii HMFIC

5 Rules Page LexisNexis... 5 Liability Coverage Options Farm Personal Loss Assessment... SUPP-1 Loss Free Credit Loss Settlement Provisions... 7 Mid-Term Changes Minimum Premium Modified Loss Settlement Terms Money and Securities Motorized Vehicle Liability Coverage New Home Credit Office, Professional, Private School, or Studio Occupancy Ordinance or Law -- Expanded Package Policy Requirements Perils Insured Against... 8 Personal Injury Policy Term Policywriting Instructions Preferred Credit Premium Determination Premium Group Charts... Def-3 Premium Modifications Premium Rounding Principal Coverages Liability... 9 Property... 6 Private Structures Extension of Coverage A Optional Coverages Program Description... 6 Property Coverage Options Protective Devices REV 14.9 Index - iii HMFIC

6 Rules Page Rating Tiers... 24a Refrigerated Food Spoilage Renewal Credit Renewal Plan Replacement Value -- Coverage C Restriction of Coverage Row or Townhouses Scheduled Glass Scheduled Personal Property Seasonal Dwellings... 3 Secondary Locations Select Credit... 24a Silverware, Goldware, and Pewterware Smoke Detectors Snowmobiles Specifically Rated Buildings Sprinkler Systems Tenant's Improvements Tenant's Personal Property -- Special Coverage Territorial Definitions... Def-3 Three and Four Family Dwellings -- Liability Transfer of Policy Unacceptable Risk... 3 Unit-Owner's Personal Property -- Special Coverage Vandalism Waiver of Premium Water Damage -- Sewers, Drains, and Sumps Waterbed Liability Watercraft Workers Compensation and Employers Liability REV 15.0 Index - iv HMFIC

7 RULE 1 -- ELIGIBILITY 1.1 Owner Occupied A policy may be issued to an owner-occupant of a dwelling used only for private residential purposes, except as permitted in Rule 1.5, and occupied by no more than four families and no more than two boarders or roomers per family. Use Form 1 or Tenant Occupied A policy may be issued to: -- the tenant (non-owner) of a dwelling or apartment; or -- an owner-occupant of a dwelling, condominium, or cooperative unit which is not eligible for coverage under Rule 1.1 or Rule 1.3; if the residence occupied by the insured is used only for residential purposes, except as permitted in Rule 1.5, and is occupied by no more than one additional family or two boarders or roomers. Use Form Unit-Owners A policy may be issued to the owner-occupant of a condominium or co-operative unit if the unit is used only for residential purposes, except as permitted in Rule 1.5, and is occupied by no more than one additional family or two boarders or roomers. Use Form 6. REV 14.0 Rules - 1 HMFIC

8 1.4 Co-owner Occupancy A policy may be issued to one of the co-owners of a two, three, or four family dwelling provided each co-owner occupies a separate apartment within the dwelling. The dwelling must be used only for private residential purposes, except as permitted in Rule 1.5. Coverage for the other co-owner's interest in the dwelling and related private structures and for premises liability may be provided by endorsement ML-41. Use Form 1 or 3. A Form 4 policy providing coverage for personal property, additional living costs, and personal liability may be issued to the other co-owner(s). 1.5 Incidental Business Occupancies An insured may engage in certain business activities on the insured premises without affecting the eligibility status, provided that the premises is occupied principally for private residential purposes. Refer to the company for eligible business occupancies. 1.6 Other Occupancies At the option of the company, a policy may be issued to: -- an occupant of a dwelling under a life estate arrangement; or -- an occupant of a dwelling who is purchasing the dwelling under a long-term contract. The seller, who retains title until the contract is satisfied, must not act as mortgagee. The dwelling must be used only for private residential purposes, except as permitted in Rule 1.5, and must be occupied by no more than four families and no more than two boarders or roomers per family. Coverage for the owner s/seller s interest in the dwelling and related private structures and for premises liability may be provided by endorsement ML-41. Use Form 1 or 3. REV 15.0 Rules - 2 HMFIC

9 1.7 Dwellings Under Construction A policy may be issued to cover the interest of the intended owneroccupant of a dwelling under construction. The dwelling must be intended to be used only for private residential purposes, except as permitted in Rule 1.5, and occupied by no more than four families and no more than two boarders or roomers per family. Refer to the company for additional guidelines. Use Form 1 or Seasonal Dwellings A policy may be issued to cover a seasonal dwelling that otherwise meets eligibility requirements. Seasonal dwellings which are continuously unoccupied for 3 or more consecutive months during any 1 year period must be written on a Form 1 with a minimum $1,000 deductible in the Standard Tier only. Use Form 1, 3, or 6 and indicate the seasonal occupancy on the declarations. 1.9 Unacceptable Risks The following are unacceptable risks for coverage under this manual: 1. New business on three and/or four family dwellings 2. Mobile homes, trailer homes or house trailers, whether or not set on foundations or otherwise made stationary. 3. Any home where any type of farming operation is done. 4. Log homes (eligible for rating in Standard Tier only) 5. Vacant homes. 6. Homes under renovations. 7. Homes with outside oil tanks (above or below ground in use or abandoned). 8. Homes without central heat or with kerosene heaters. 9. Homes with electrical service less than 100 amps or with fuses. 10. Coverage A less than $100,000 or more than $500,000 on a Form Coverage A less than $50,000 or more than $300,000 on a Form Coverage C less than $15,000 or more than $75,000 on a Form 4 or Form 6. REV 15.0 Rules - 3 HMFIC

10 13 Coverage L less than $100,000 or more than $500, Coverage M less than $1,000 or more than $5, Homes with flat roofs 16. Homes with pools with diving boards and/or slides. 17 Homes with pools that are not properly fenced or if above ground, do not have retractable stairs. 18. Homes with trampolines. 19. Homes built on a slab foundation with pipes located in the slab. 20. Homes built on pilings/piers, etc. 21. Homes when the insured owns a horse, unless the insured has purchased an equestrian liability policy. A certificate of insurance must accompany the application. 22. Homes when the insured and/or any resident of the home own or have in their care/custody the following breeds of dogs: Akita, Bull Terrier, Cane Corso, Chow, Doberman Pinscher, German Shepherd, Husky, Pit Bull, Presa Canarios, Rottweiler, Wolf Hybrid or any combination of these dogs (i.e. lab/shepherd mix). 23. Homes under construction, without the use of a general contractor. A certificate of insurance must accompany the application. 24. Homes when care is provided to others for a fee or compensation. 25. Homes with asbestos siding. 26. Policies previously written with the Hingham Mutual or the Danbury Insurance Company that have been cancelled for non-payment of premium, without prior underwriting approval. 27. Form 1 and/or Form 3 when the home is not a free standing home. Row houses and/or duplexes cannot be written without prior underwriting approval. 28. Homes and/or insureds with prior loss history, unless prior underwriting approval is received. 29. Homes not insured to 80% of replacement value. 30. Homes that are not visible year round and/or are not visible from the road or by a neighbor 31. Secondary and/or seasonal homes, if the pipes are not drained during any period of unoccupancy or there is not a heat monitor in the home. 32. Form 3 on a seasonal home. REV 15.0 Rules - 4 HMFIC

11 1.10 LexisNexis Credit Scoring Effective September 1, 2005, all new business submitted to the Company, must be accompanied by a recent LexisNexis CP Attract Credit Score Model run within the last 30 days. LexisNexis will bill the Company directly for every report it issues. Based upon the score obtained a policyholder will be placed into one of two rating tiers. If you receive the message Initially meets Hingham Program, please refer to other underwriting guidelines, please submit score and completed application to the Company. This risk will be rated in our Preferred Tier if it meets all the other eligibility requirements for the Preferred Tier. If you receive the message Initially meets Danbury Program, please refer to other underwriting guidelines, please submit score and completed application to the Company. This risk will be rated in our Standard Tier. If the message No Hit is received, please try to secure the insured(s) Social Security number, date of birth or previous address and reorder the report. If you receive a No Hit condition a second time after you have secured the additional information, coverage should be written in the Hingham Program, please refer to other underwriting guidelines. This risk will be rated in our Preferred Tier if it meets all the other eligibility requirements for the Preferred Tier. If you receive the message unacceptable, the application should not be submitted to the Company. CP Attract Score Range Program 635+ Preferred Tier Standard Tier REV 15.0 Rules - 5 HMFIC

12 RULE 2 -- PROGRAM DESCRIPTION The following is a general description of the coverages provided by the homeowners policy forms. The policy forms state the complete conditions. 2.1 Policy Forms The following forms are used to provide homeowners coverage. Form 1 -- Basic Form Form 3 -- Special Form Form 4 -- Contents Broad Form Form 6 -- Unit-Owner's Form 2.2 Principal Property Coverages (Mandatory) Forms 1 and 3 provide all of the principal coverages described below. Form 4 includes only Coverages C and D. Form 6 includes only Coverages A, C, and D Coverage A -- Residence With the exception of Form 6, Coverage A covers the residence on the insured premises, including additions and built-in components. On Form 6, Coverage A covers the fixtures, alterations, and additions that are part of the condominium or co-operative unit, structures owned solely by the insured, and other property that is the insured's insurance responsibility Coverage B -- Related Private Structures Coverage B covers unattached structures on the insured premises that are related to the residence, other than structures used for business purposes. Coverage also applies to fences, driveways, sidewalks, and other permanently installed outdoor fixtures on the insured premises. REV 14.0 Rules - 6 HMFIC

13 2.2.3 Coverage C -- Personal Property Coverage C covers personal property owned by or in the care of an insured. Coverage for an insured's personal property usually at a residence other than the insured premises is limited to 10% of the Coverage C limit Coverage D -- Additional Living Costs and Loss of Rent Coverage D covers increased living costs and loss of rent or fair rental value that occur when an insured loss makes the insured premises unfit for use. 2.3 Loss Settlement Provisions Coverages A and B With the exception of Form 6, an 80% insurance-to-value requirement triggers replacement cost loss settlement provisions for buildings covered under Coverages A and B. On Form 6, loss to property covered under Coverage A is settled on a replacement cost basis Coverage C Loss to property covered under Coverage C is settled on an actual cash value basis. REV 14.0 Rules - 7 HMFIC

14 2.4 Perils Insured Against Form 1 insures property covered under Coverages A, B, and C and the related costs covered under Coverage D against risks of direct physical loss by the Basic Perils indicated below. Form 3 insures property covered under Coverages A and B and the related costs covered under Coverage D against all risks of direct physical loss, with certain exceptions. Property covered under Coverage C is insured against risks of direct physical loss by the Broad Perils indicated below. Form 4 insures property covered under Coverage C, the insured s interest in building improvements and betterments, and the related costs covered under Coverage D against risks of direct physical loss by the Broad Perils listed below. Form 6 insures property covered under Coverages A and C and the related costs covered under Coverage D against risks of direct physical loss by the Broad Perils indicated below. Perils Covered Basic Perils Broad Perils Fire or Lightning X X Windstorm or Hail X X Explosion X X Riot or Civil Commotion X X Aircraft X X Vehicles X X Smoke X X Sinkhole Collapse X X Volcanic Action X X Vandalism X X Theft X X Falling Objects X Weight of Ice, Snow, or Sleet X Sudden and Accidental Tearing Apart, Burning, or Bulging X Accidental Discharge of Liquids or Steam X Freezing X Sudden and Accidental Damage from Electrical Currents X REV 14.0 Rules - 8 HMFIC

15 2.5 Principal Liability Coverages (Mandatory) Coverage L -- Personal Liability -- Coverage L pays on behalf of the insured for damages due to bodily injury or property damage caused by an occurrence related to the insured premises or the insured's personal activities. Coverage M -- Medical Payments to Others -- Coverage M pays medical expenses incurred by persons who are not insureds if bodily injury occurs in connection with the insured premises or the insured's personal activities. Coverages L and M can be omitted when contributing insurance applies or when the policy is written to cover an additional or secondary location. See Rules 3.9 and 10. REV 14.0 Rules - 9 HMFIC

16 2.6 Basic Limits The following basic limits apply to the coverages provided by the homeowners policy: Property Forms Coverages 1 & 3 Form 4 Form 6 Residence Refer 10% of to limit Company on personal property Private Structures 10% of limit on residence Personal 50%* of limit on Refer to Refer to Property residence Company Company Additional 40% of 40% of Living Costs 20%** of limit limit on limit on & Loss of on residence personal personal Rent property property * 30% for dwellings occupied by three or four families ** 10% for dwellings occupied by three or four families REV 14.0 Rules - 10 HMFIC

17 Liability Coverages All Forms Coverage L $100,000 Each Occurrence Coverage M $1,000 Per Person **** **** At the option of the company, payments under Coverage M are also subject to a Per Accident Limit. Show the Per Accident Limit on the declarations. REV 14.0 Rules - 11 HMFIC

18 RULE 3 -- POLICYWRITING INSTRUCTIONS 3.1 Inception Time The policy may be issued to take effect at 12:01 A.M. or 12 noon on the inception date. Show the inception time on the declarations. 3.2 Policy Term Annual Rating information for annual policies is shown in this manual. Policies may not be written for terms of less than one year except as specified in the rules shown below. It is permissible to extend a policy for successive annual terms by extension certificate using the rating information, forms, and endorsements in effect on the renewal date Three-Year Prepaid This rule does not apply Three-Year Annual This rule does not apply Less Than One Year A policy may be written for a term of less than one year in order to maintain common anniversary dates with other policies Renewal Plan This rule does not apply REV 14.4 Rules - 12 HMFIC

19 3.3 Minimum Premium There will be a minimum premium of $ on every homeowners policy issued. 3.4 Endorsements Information called for as entries on endorsements can instead be shown on the declarations or a supplemental schedule. 3.5 Additional Interests A homeowners policy can be endorsed to cover the interests of coowners, executors, administrators, trustees, or beneficiaries in the insured premises or the interests of other residents of the insured premises Interests in Coverages A & B and Premises Liability -- Forms 1, 3, and 6 A policy can be endorsed at no additional premium charge to cover the insurable interests of others in the covered property and their liability arising out of the insured premises. Attach endorsement ML-41 and make entries to show the location of the premises, the names of the additional insureds, and the extent of their interests Residents of the Household A policy can be endorsed to provide personal property and personal liability coverage for residents of the named insured's household who are not related to the insured and who would not otherwise be covered as an insured under the policy. Use the rating information shown in this manual. Attach endorsement ML-433 and make entries to show the names of the additional insureds Landlords This coverage is not available REV 14.0 Rules - 13 HMFIC

20 3.5.4 Interest in Coverages A, B, C, L, and M A policy can be endorsed at no additional premium charge to cover the insurable interests of others in property covered under Coverages A, B, and C and their liability arising out of all premises insured under Coverages L and M. Attach endorsement ML 0672 and make entries to show the names of the additional insureds and the extent of their interests. 3.6 Transfer or Assignment At the option of the company, a policy can be endorsed to effect: -- transfer to another location within the same state; or -- assignment from one insured to another in the event of transfer of title of the dwelling. 3.7 Restriction of Coverage If a policy would not be issued because of unusual exposures, the applicant may request a restriction of coverage at no reduction of premium. The request, signed by the applicant, must be referred to the company. 3.8 Cancellation or Changes in Limits or Coverages Policies must be canceled in accordance with the terms of all applicable cancellation provisions. Mandatory coverages may not be canceled unless the entire policy is canceled. If a policy is canceled or the limits are reduced, the amount of any return premium due is calculated on a pro rata basis, subject to any minimum premium requirement. REV 14.0 Rules - 14 HMFIC

21 3.9 Contributing Insurance Coverage under the property section of the policy can be divided between two or more companies. -- All policies must contain the same deductible. -- All additional limits and coverages that apply to the property coverages must be divided between the companies. Coverage for scheduled personal property can be shared at the option of the companies. -- All liability coverage must be assumed entirely by one of the companies. Subtract the liability credit shown in this manual from the total premium and divide the remaining premium between the companies. The company assuming the liability coverage adds to their premium the liability amount that was subtracted as well as any premium for additional liability limits and/or coverages. -- All policies must include the policy number and company names and must identify the company providing the liability coverage. Attach endorsement ML-178 and make the necessary entries Extension of Coverage A -- No Private Structures -- Forms 1 and 3 If the combined replacement cost of all covered related private structures does not exceed $1,000, an amount equal to the Coverage B limit may be added to the Coverage A limit for no additional premium charge. Attach endorsement ML Waiver of Premium An additional premium due when a policy is endorsed after its inception may be waived. Refer to the company for the amount that may be waived. REV 14.0 Rules - 15 HMFIC

22 3.12 Premium Rounding Premiums shown on the declarations may be rounded. Refer to the company for rounding procedures Interpolation Rating information for a limit that is between two limits shown in this manual can be developed by interpolation. Refer to the company Conditional Endorsements Workers' Compensation and Employer's Liability -- Domestic Employees In accordance with New Hampshire regulation 281-A:6, a policy providing personal liability insurance must also provide workers' compensation insurance covering domestic employees, unless the employer (insured) has a separate workers' compensation policy covering domestic employees. When the insured does not have a separate workers' compensation policy, coverage for part-time, occasional, or full-time domestic employees or unknown domestic employee exposures can be provided by endorsement. Refer to the New Hampshire Workers' Compensation Manual for rules and rating information. Attach endorsement ML Calendar Date or Time Failure Exclusion An additional exclusion may be added to exclude the loss that may arise out of the failure of any electronic data processing equipment, computer program, software, media, or data to correctly recognize, interpret, or process any encoded, abbreviated, or encrypted date or time. REV 14.0 Rules - 16 HMFIC

23 3.15 Application The exclusion may not be added if the insured: -- provides proof that no exposure to calendar date or time failure exists; or -- has demonstrated that proper loss prevention techniques have been taken to limit or eliminate its exposure to calendar date or time failure loss. Attach endorsement ML-483. A Hingham Mutual Homeowners Application or an ACORD application must be submitted on all new business. All questions must be completed and the application must be signed by the named insured Deposit A 25% deposit is required on all new direct bill submissions. If the policy is to be direct billed to a mortgagee, please make sure the application is clearly marked as to which mortgagee to bill, and the deposit will be waived. REV 14.0 Rules - 17 HMFIC

24 RULE 4 -- PREMIUM DETERMINATION The basic policy rating information shown in this manual contemplates the property and liability coverages described in Rule 2. Unless liability coverage is deleted, coverage for the following liability exposures is required if they exist: -- three or four family dwellings; -- all domestic employees of an insured not covered or not required to be covered by Workers' Compensation Insurance; -- all additional or secondary residence premises where an insured maintains a residence, other than business or farm properties; and -- incidental office, professional, private school, or studio occupancies by an insured on residential premises of an insured. Use the rating information shown in this manual. 4.1 Calculation of Premium The premium is computed as follows: Step 1 -- Determine the basic policy premium based on the amount of Coverage A or Coverage C, as applicable, using the basic policy rating information shown in this manual. Step 2 -- Adjust the basic policy premium to reflect the desired deductible. Step 3 -- Adjust the result of Step 2 by any applicable premium modification factors. Step 4 -- Add the result of Step 3 to the charges for any other mandatory or optional property or liability coverages that apply. REV 14.0 Rules - 18 HMFIC

25 4.2 Modified Loss Settlement Terms -- Coverages A and B -- Forms 1 and 3 This coverage is not available 4.3 Tenant's Personal Property -- Special Coverage This coverage is not available 4.4 Unit-Owner's Personal Property -- Special Coverage This coverage is not available 4.5 Changes in Limits or Addition of Coverages Policy limits may be increased or coverages added during the policy term. Compute the additional premium due on a pro rata basis using the same forms, endorsements, rules, and rating information in effect when the current policy premiums were calculated. REV 14.0 Rules - 19 HMFIC

26 RULE 5 -- DEDUCTIBLES A deductible amount is subtracted from all covered property losses, except those losses covered by the following Incidental Property Coverages: Emergency Removal; Fire Department Service Charge; Credit Card, Forgery, and Counterfeit Money; Grave Markers; Loss Assessment; Refrigerated Food Spoilage; and, if applicable, Lock and Garage Door Transmitter Replacement. The deductible amount is subtracted only once per occurrence at each location, regardless of the number of covered items affected. 5.1 Flat Deductibles -- All Perils The policy may be issued with a single deductible amount that applies to all perils. The following flat deductible options are available: Deductible Amount $ ,000 2,500 Use the factors shown in this manual to adjust the premium and show the deductible amount on the declarations. 5.2 $250 Theft Deductible for Coverage C This rule does not apply. 5.3 Higher Catastrophic Windstorm or Hail Deductibles -- Forms 1 and 3 The Company requires a Catastrophic Windstorm or Hail Deductible be added to every property that is located within two (2) miles of the ocean. REV 14.0 Rules - 20 HMFIC

27 The Guidelines are as follows: *Any property located with 1,000 feet of the ocean will be required to have a $5,000 Catastrophic Windstorm or Hail Deductible. *Any property located over 1,000 feet but within 1,500 feet of the ocean will be required to have a $2,000 Catastrophic Windstorm or Hail Deductible. Any property located over 1,500 feet but within two (2) miles of the ocean will be required to have a $1,000 Catastrophic Windstorm or Hail Deductible. Use the factors shown in this manual to adjust the premium. These factors are to be used in lieu of the factors shown in Rule 5.1. Attach endorsement ML-405B and show the deductible on the declarations. REV 14.8 Rules - 21 HMFIC

28 RULE 6 -- PREMIUM MODIFICATIONS 6.1 Protective Devices Use the protective device factors shown in this manual to adjust the premium for the installation of the following approved and properly maintained alarm and/or sprinkler systems: -- Central Station Burglar, Fire and/or Temperature Alarms* -- Fire Department and/or Police Department Alarms -- Local Alarms, Burglar, Fire and/or Temperature Alarms including smoke and/or gas detection -- Sprinkler Systems *Requires documentation from the alarm company. Maximum credit allowed is 15% (or 5% each type; Fire, Burglar, and Temperature) Attach endorsement ML Fire Resistive and Specifically Rated Buildings When a dwelling, apartment, or condominium or co-operative unit is situated in a building of fire resistive or fireproof construction, use the basic rating information shown for brick or masonry construction and apply the factor shown in this manual to adjust the premium. Use the applicable Fire and Extended Coverage rating information for other specifically rated dwellings when written under a homeowners policy. 6.3 Row and Townhouses Use the applicable townhouse or row house factor shown in this manual when an eligible one or two family owner-occupied dwelling is located in a townhouse or row house structure. An eligible two family owner-occupied dwelling is considered two individual units when determining the number of family units within a fire division. REV 14.5 Rules - 22 HMFIC

29 6.4 Expanded Ordinance or Law Coverage - Forms 1, 3 and 6 (Form 4 -- See Rule 7.17) The limitation that applies to the incidental coverage for ordinance or law (25% of the limit that applies to damaged property) can be removed. When the limitation is removed, the limit that applies to covered property includes coverage for the increased cost which results from the enforcement of a code, ordinance, or law which regulates the use, construction, repair, demolition, or removal of property following a covered loss. If the covered loss plus the increased cost is more than the applicable limit, an extra 10% of the applicable limit is available to cover the increased cost. For Form 6, apply the rating information shown in this manual to the Coverage A limit. For all other forms, use the factor shown in this manual to adjust the premium. Attach endorsement ML Replacement Value -- Personal Property The loss settlement provisions that apply to personal property and various miscellaneous items can be converted from actual cash value coverage to replacement cost coverage. When this option is selected, the personal property limit may not be reduced below the limit specified in Rule 2.6. Use the factors shown in this manual to adjust the premium. Attach endorsement ML Automatic Adjustment of Limits -- Forms 1 and 3 The limits that apply to Coverages A, B, C, and D can be automatically increased on an annual basis. Use the factors shown in this manual to adjust the premium. Attach endorsement ML-184 and make an entry to show the amount of increase that applies. REV 14.0 Rules - 23 HMFIC

30 6.7 Expanded Debris Removal Coverage -- Forms 1 and 3 This coverage is not available 6.8 Casco Cross Credit The Company will allow a credit when the insured s personal automobile policy is written through the Casco Indemnity Company and the homeowners policy is rated in the Preferred Tier. Use the factor shown in this manual to adjust the premium. 6.9 Loss Free Credit The Company allows a Loss Free Credit to those properties that have been owned by the named insured for a minimum of three years and have been loss free for the previous three years. Use the factor shown in this manual to adjust the premium New Home Credit The Company allows a New Home Credit to those homes constructed in 1985 or after with heating, plumbing, electrical and roof updated as needed. Use the factor shown in this manual to adjust the premium Renewal Credit The Company allows a renewal credit to homeowners policies that are renewed in the Company. Use the factor shown in this manual to adjust the premium Preferred Credit. A ChoicePoint CP Attract Credit Score Model run within the last 30 days must accompany the application. The company will allow a credit when the credit report indicates that the insured qualifies for the Preferred program and the policy is rated in the Preferred Tier. REV 15.0 Rules - 24 HMFIC

31 Not available if the Select Credit is given. Use the factor shown in this manual to adjust the premium 6.13 Select Credit A ChoicePoint CP Attract Credit Score Model run within the last 30 days must accompany the application. The company will allow a credit when the credit report indicates that the insured qualifies for the Select program and the policy is rated in the Preferred Tier. Not available if the Preferred Credit is given. Use the factor shown in this manual to adjust the premium 6.14 Rating Tiers Two rating tiers are available. Standard Tier will be used for any policy previously written in Danbury Insurance Company. Use the factor shown in this manual to adjust the premium Exposure Surcharge Coverage may be provided on certain types of risk. These risks will be subject to a surcharge based on the exposure as determined by the Company. Additionally, these risks will be rated in thestandard Tier. The following types of risks will be subject to a surcharge: - Log Homes - Homes with in-ground pools with diving boards (pools with slides are not acceptable) - Homes on slab foundations, when pipes are not located in the slab (the Company will not write a risk if the pipes are located in the slab). - Homes located on an island - Coastal properties (properties located within 2 miles of coast) - Any exposure listed above, must be referred to the Company for approval, prior to binding coverage. REV 15.0 Rules - 24a HMFIC

32 RULE 7 -- OPTIONAL PROPERTY COVERAGES 7.1 Vandalism This rule does not apply 7.2 Earthquake Coverage for direct physical loss caused by earthquake can be added. Coverage for exterior masonry veneer is optional. A special deductible provision applies to loss caused by earthquake. When the earthquake deductible exceeds 2%, use the earthquake deductible factors shown in this manual to adjust the earthquake rating information accordingly. Forms 1 and 3 -- Apply the rating information shown in this manual to the Coverage A limit shown on the declarations. If the limit that applies to property covered under Coverage C has been increased (including any increase from the attachment of endorsement ML- 55), apply the applicable earthquake rating information to the increased amount(s). If any of the optional endorsements for private structures (ML-40, ML-42, ML-48, or ML-418) are attached, apply the applicable earthquake rating information to the limit shown on the endorsement for each private structure. Form 4 -- Apply the rating information shown in this manual to the Coverage C limit shown on the declarations. If the limit that applies to property covered under the incidental coverage for tenant's improvements has been increased apply the applicable earthquake rating information to the increased amount(s). Form 6 -- Apply the rating information shown in this manual to the Coverage C limit shown on the declarations. If the limit that applies to property covered under Coverage A has been increased, apply the applicable earthquake rating information to the increased amount(s). REV 14.0 Rules - 25 HMFIC

33 For all forms, attach endorsement ML-54. When the earthquake deductible exceeds 2%, make an entry to show the earthquake deductible percentage that applies. If coverage is provided for exterior masonry veneer, make an entry to show that the masonry veneer exclusion does not apply. 7.3 Dwelling Under Construction -- Theft Coverage can be provided for theft or attempted theft in or to a residence being built or a newly constructed residence before it is occupied. Coverage also applies to theft of materials and supplies used in construction of the residence. Use the rating information shown in this manual. The premium charge for this coverage is fully earned at its inception. A Certificate of Insurance from the general contractor building the home, must accompany the application when submitted to the Company. Attach endorsement ML-422 and make an entry to show the limit that applies. 7.4 Private Structures -- Forms 1 and Increased Limit An additional amount of insurance can be provided for specific private structures that are covered under Coverage B. Use the rating information shown in this manual. Attach endorsement ML-48 and make entries to describe the covered structures and show the additional amount of coverage that applies to each structure Rented to Others Coverage can be provided for private structures on the described premises rented or held for rental to others, used for residential purposes, and occupied by no more than two families. Use the rating information shown in this manual. REV 14.0 Rules - 26 HMFIC

34 Attach endorsement ML-40 and make entries to describe the covered structures, indicate the number of families, and show the amount of coverage that applies to each structure With Incidental Occupancies Coverage for private structures on the described premises with an office, professional, private school, or studio occupancy can be provided. Use the rating information shown in this manual. Attach endorsement ML-42 and make entries to describe the business, describe the covered structures, and show the amount of coverage that applies to each structure Care Provided For Others This coverage is not available Away From Premises -- Coverage B Extension The Coverage B limit can be extended to apply to private structures located away from the described premises that are used in connection with the described premises. Coverage is not provided for structures capable of being used as a residence or for structures used for business purposes. This extension of coverage does not increase the Coverage B limit. Use the rating information shown in this manual. Attach endorsement ML Away From Premises -- Specifically Scheduled Structures Coverage can be provided for specific private structures located away from the described premises that are used in connection with the described premises. Coverage is not provided for structures capable of being used as a residence or for structures used for business purposes. The limit that applies to Coverage B does not apply to specifically scheduled structures. Use the rating information shown in this manual. REV 14.0 Rules - 27 HMFIC

35 7.5 Personal Property Attach endorsement ML-418 and make entries to describe the covered structures and show their locations and the amount of coverage that applies to each structure Increased Limit -- Forms 1 and 3 The Coverage C limit can be increased. Use the rating information shown in this manual. Show the Coverage C limit on the declarations Reduced Limit -- Forms 1 and 3 (Not applicable if ML-55 is attached) For one or two family dwellings, the Coverage C limit can be reduced to not less than 40% of the Coverage A limit. Refer to the company when endorsement ML-42 or another business occupancy endorsement is attached. Use the rating information shown in this manual. Show the Coverage C limit on the declarations In Residences Occasionally Rented For residences rented to others on an occasional basis, the exclusion for theft of personal property from a part of the insured premises usually occupied solely by the insured while it is rented to others can be modified to exclude only certain kinds of theft losses. Use the rating information shown in this manual. Attach endorsement ML-336. REV 14.0 Rules - 28 HMFIC

36 7.5.4 In Units Regularly Rented to Others -- Form 6 only The special limit under Coverage C that applies to personal property used for business purposes can be deleted for property which is incidental to the use of a condominium or co-operative unit regularly rented or held for rental to others. Coverage for loss to money and related items; securities and related items; and jewelry, watches, and furs caused by theft is excluded. Use the rating information shown in this manual. Attach endorsement ML Accidental Discharge Water-filled Furniture This coverage is not available 7.7 Money and Securities The special limits under Coverage C that apply to loss to money, securities, and related items can be increased. Use the rating information shown in this manual. Attach endorsement ML-65 and make entries to show the amount of each increase and the total limits that apply. 7.8 Unscheduled Jewelry, Watches, and Furs Forms 1, 3, 4, and Guns The special limit under Coverage C that applies to loss to unscheduled jewelry, watches, and furs can be increased. Use the rating information shown in this manual. Attach endorsement ML-65 and make an entry to show the amount of the increase and the total limit that applies. This coverage is not available REV 14.0 Rules - 29 HMFIC

37 7.10 Silverware, Goldware, and Pewterware This rule does not apply Business Property The special limit under Coverage C for loss to personal property used for business purposes while on the insured premises can be increased. Use the rating information shown in this manual. The special limit that applies to personal property used for business purposes while away from the insured premises is automatically increased to 10% of the total limit that applies to personal property used for business purposes while on the insured premises. Attach endorsement ML-65 and make an entry to show the amount of the increase and the total limit that applies Electronic Devices The special limit under Coverage C that applies to loss to electronic devices, accessories, and antennas that can be operated from the electrical system of a motorized vehicle or watercraft and other sources of power can be increased. Use the rating information shown in this manual. Attach endorsement ML-65 and make an entry to show the amount of the increase and the total limit that applies Computers Coverage for computer data processing equipment and software can be provided for all risks of direct physical loss, with certain exceptions. Use the rating information shown in this manual. Attach endorsement ML-170 and make entries to describe the covered property and show the limits that apply Refrigerated Food Spoilage This coverage is not available - see Expanded Coverage Endorement REV 14.0 Rules - 30 HMFIC

38 7.15 Additional Living Costs and Loss of Rent This coverage is not available 7.16 Credit Cards and Depositors Forgery The limit that applies to the incidental coverage for loss by forgery or alteration of credit cards, checks or drafts, or acceptance of counterfeit paper currency can be increased. Use the rating information shown in this manual. Attach endorsement ML-30 and make an entry to show the amount of the increase and the total limit that applies Tenant's Improvements -- Form 4 only The limit that applies to the incidental coverage for tenant's improvements (10% of the Coverage C limit) can be increased. Use the rating information shown in this manual. When establishing the limit for tenant's improvements, consider that the limit includes coverage for the increased cost which results from the enforcement of a code, ordinance, or law which regulates the use, construction, repair, demolition, or removal of property following a covered loss. Attach endorsement ML-30 and make an entry to show the amount of the increase and the total limit that applies Fire Department Service Charge This coverage is not available - see Expanded Coverage Endorsement REV 14.0 Rules - 31 HMFIC

39 7.19 Scheduled Personal Property Coverage for scheduled personal property can be provided against all risks of direct physical loss, with certain exceptions. Use the rating information provided in this manual. The following guidelines must be met: 1. A complete description of all scheduled items is required. 2. An up-to-date appraisal for any item insured for $2,500 or more is required. 3. A complete, itemized listing if more than five (5) items are to be scheduled. 4. Maximum that can be written on a single item is $15, Maximum that can be written on a total combined schedule is $30, Minimum ML-61 premium of $25.00 per policy. Attach endorsements ML-61 and ML-61A and make entries to describe the covered property and show the limits that apply Scheduled Glass This coverage is not available 7.21 Water Damage -- Sewers, Drains, and Sumps This coverage is not available see Expanded Coverage Endorsement 7.22 Loss Assessment Refer to Hingham Supplement to Homeowners Manual REV 14.4 Rules - 32 HMFIC

40 7.23 Coverage A Options -- Form 6 only Increased Limit The Coverage A limit can be increased. Use the rating information shown in this manual. Show the Coverage A limit on the declarations Special Coverage Coverage for property covered under Coverage A can be provided against all risks of direct physical loss, with certain exceptions. Use the rating information shown in this manual Golf Carts Attach endorsement ML-32. This coverage is not available 7.25 Expanded Replacement Cost -- Forms 1 and 3 The Coverage A limit shown on the declarations must equal at least 100% of the residence s replacement cost at policy inception or at the time the expanded replacement cost terms are added to the policy % Expanded Replacement Cost At the option of the company, the replacement cost terms that apply to Coverage A can be expanded to pay up to 120% of the Coverage A limit when a covered loss exceeds the limit shown on the declarations and the insured elects to repair or replace the residence. REV 14.4 Rules - 33 HMFIC

41 Use the rating information shown in this manual. Attach endorsement ML % Expanded Replacement Cost At the option of the company, the replacement cost terms that apply to Coverage A can be expanded to pay up to 150% of the Coverage A limit when a covered loss exceeds the limit shown on the declarations and the insured elects to repair or replace the residence. Use the rating information shown in this manual. Attach endorsement ML Animal Collision This coverage is not available 7.27 Expanded Coverage Endorsement Forms 3, 4 and 6 The Company offers an Expanded Coverage Endorsement that includes some changes to the limits and verbiage found in the policy. Definitions - Business is redefined Property Coverages - Limitations on Certain Property is increased - Debris Removal is amended - Fire Department Service Charge is amended - Credit Card, Forgery, Counterfeit Money is amended - Refrigerated Food Spoilage is amended - Lock Replacement coverage is added - Limited Coverage for Water Damage Sewers, Drains & Sumps is added Liability Coverages - Damage to Property of Others is amended - Claims and Defense Cost is amended - Watercraft is amended How Much We Pay for Loss - Deductible is amended Attach endorsement HG-100 See also page HO EB-1 REV 14.7 Rules - 34 HMFIC

42 RULE 8 -- OPTIONAL LIABILITY COVERAGES All mandatory and optional liability coverages must be written at the same limit, except as noted in Rule Increased Limits -- Coverages L and M The limits for Coverages L and M can be increased. Use the rating information shown in this manual. 8.2 Reduced Coverage L Limit This option is not allowed 8.3 Reduced Coverage M Limit This option is not allowed 8.4 Three and Four Family Dwellings -- Forms 1 and 3 When the residence on the described premises is a three or four family dwelling, an additional charge must be made to reflect the increased liability exposure. Use the rating information shown in this manual. 8.5 Domestic Employees This rule does not apply. 8.6 Additional Residence Premises -- Occupied by an Insured Coverage for liability arising out of all additional or secondary residence premises where an insured maintains a residence, other than business or farm properties, is required. Use the rating information shown in this manual. Make entries on the declarations to show the locations of all additional and secondary residence premises to which the liability coverages apply. REV 14.0 Rules - 35 HMFIC

43 8.7 Additional Residence Premises -- Rented to Others Coverage for liability arising out of additional one to four family dwellings owned by the insured and rented or held for rental to others can be added. Use the rating information shown in this manual. This endorsement can only be added to those policies expiring in the Company with the ML-70 already added. Attach endorsement ML-70 and make entries to show the location(s) of the covered premises and to indicate the number of families at each premises. 8.8 Private Structures -- Rented to Others If coverage is provided under the property coverages for private structures rented to others, coverage for liability arising out of those structures is also provided. Use the rating information for Rule 8.7, Additional Residence Premises -- Rented to Others, to make the charge for the liability exposure. Attach endorsement ML-40 and make entries to describe the covered structures and indicate the number of families. 8.9 Waterbed Liability -- Form 4 This coverage is not available 8.10 Business Activities -- Business Not Owned by the Insured Coverage for liability arising out of an insured's business activities, other than activities related to a business of which the insured is sole owner or a partner, can be added. Use the rating information shown in this manual. Eligible business activities are classified as shown below. Make the appropriate charge for each covered person. REV 14.0 Rules - 36 HMFIC