American Integrity Insurance Company of Florida

Transcription

1 American Integrity Insurance Company of Florida Homeowners Insurance Program- FLORIDA Voluntary Homeowners HO3-Special Form 2/7/2013 American Integrity Insurance Group

2 Table of Contents UNDERWRITING GUIDELINES BINDING AUTHORITY... 6 HURRICANE - TROPICAL STORM SUSPENSION... 7 ELIGIBILITY - UNDERWRITING... 7 GENERAL... 7 INELIGIBLE RISKS... 8 General Characteristics... 8 Property Features... 9 Property Condition... 9 Liability Exposure(s)... 9 Property Value(s) or more than one home on the property Applicant characteristics and Loss History GENERAL RULES APPLICANT AGE OF HOME(NEW BUSINESS AND RENEWAL) years or less Greater than 30 years Homes over 75 years CANCELLATION OR REDUCTIONS IN LIMITS OF LIABILITY OR COVERAGE INSURANCE SCORE GUIDELINES LAPSE IN COVERAGE/NO PRIOR INSURANCE LOSS HISTORY RATING PLAN MANDATORY COVERAGES MULTIPLE COMPANY INSURANCE OCCUPANCY/USE SINGLE BUILDING DEFINITION POLICY TERM PRIOR CANCELLATIONS/NON-RENEWALS PROPERTIES DEEDED IN AN LLC (LIMITED LIABILITY CORPORATION) OR TRUST RENEWAL PLAN ROOF (NEW AND RENEWAL BUSINESS) SECONDARY/SEASONAL RESIDENCES SWIMMING POOLS (NEW AND RENEWAL BUSINESS) TOTAL RENOVATIONS TOWN OR ROW HOUSE TRAMPOLINES (NEW AND RENEWAL BUSINESS) TRANSFER OR ASSIGNMENT WAIVER OF PREMIUM AIIC Voluntary Homeowners Program December 2012 Page 2

3 WHOLE DOLLAR PREMIUM RULE INSURANCE TO VALUE BINDING AUTHORITY LIMITS/PROGRAM DESCRIPTION CONSTRUCTION DEFINITIONS MANDATORY ENDORSEMENTS AIIC HO 09 SP Special Provisions for Florida HO AIIC Calendar Year Hurricane Deductible (Percentage) with Supplemental Record Keeping Requirement- Florida AIIC Calendar Year Hurricane Deductible (Fixed Dollar) with Supplemental Record Keeping Requirement- Florida AIIC HO DO Deductible Options Notice HO No Section II Liability Coverages for Home Day Care Business, Limited Section I Property Coverages for Home Day Care Business AIIC HO 09 TL- Trampoline Liability Exclusion AIIC HO 09 MLD- Limited Fungi, Mold, Wet or Dry Rot, or Bacteria Coverage Endorsement AIIC Windstorm Exterior Paint or Waterproofing Exclusion- Seacoast- Florida AIIC HO 09 WD Water Damage Exclusion Endorsement MANUAL PREMIUM REVISION MINIMUM AND MAXIMUM VALUE MULTIPLE LOCATIONS PROPERTIES LOCATED ON MORE THAN 5 ACRES IN A PC 9/10 OR A PC 10 PROPERTY PROPERTIES WITH FARM ANIMALS OR HORSES (NOT ON A FARM) PROTECTED SUBDIVISION RULE PROTECTION CLASS COVERAGE OPTIONS ADDITIONAL INSURED ADDITIONAL INTERESTS ANIMAL LIABILITY SPECIAL LIMITS ENDORSEMENT BUSINESS PURSUITS [NO COVERAGE] COVERAGE B - OTHER STRUCTURES CARPORT(S), POOL CAGE(S) AND SCREEN ENCLOSURE(S) (NOT AVAILABLE FOR POLICIES EXCLUDING WIND COVERAGE) COVERAGE C PERSONAL PROPERTY DEDUCTIBLES GOLD RESERVE ENDORSEMENT (NOT AVAILABLE FOR POLICIES EXCLUDING CONTENTS) GOLF CART COVERAGE ENDORSEMENT/GOLF CART COVERAGE ENDORSEMENT - INCREASED LIMITS (NOT AVAILABLE FOR POLICIES EXCLUDING CONTENTS) HOME COMPUTER COVERAGE ENDORSEMENT (NOT AVAILABLE POLICIES FOR EXCLUDING CONTENTS) AIIC Voluntary Homeowners Program December 2012 Page 3

4 IDENTITY FRAUD EXPENSE COVERAGE INCIDENTAL OCCUPANCIES [NO COVERAGE] INCREASED REPLACEMENT COST COVERAGE INCREASED SECTION II- LIABILITY COVERAGE LIMITS INFLATION GUARD LIMITED FUNGI, MOLD, WET OR DRY ROT, OR BACTERIA COVERAGE ENDORSEMENT LIMITED WATER DAMAGE ENDORSEMENT LOSS ASSESSMENT COVERAGE ORDINANCE OR LAW COVERAGE OTHER INSURED LOCATION [NO COVERAGE] PERSONAL INJURY -FLORIDA PERSONAL PROPERTY REPLACEMENT COST (NOT AVAILABLE FOR POLICIES EXCLUDING CONTENTS) SCHEDULED PERSONAL PROPERTY ENDORSEMENT (NOT AVAILABLE FOR POLICIES EXCLUDING CONTENTS) INELIGIBLE RISKS SINKHOLE LOSS COVERAGE- FLORIDA SPECIAL PERSONAL PROPERTY COVERAGE (NOT AVAILABLE FOR POLICIES EXCLUDING CONTENTS) WATER BACK UP AND SUMP OVERFLOW WATER DAMAGE EXCLUSION ENDORSEMENT WINDSTORM OR HAIL EXCLUSION- FLORIDA PREMIUM CALCULATIONS AMOUNT OF INSURANCE AGE OF DWELLING BUILDING CODE EFFECTIVENESS GRADING PROTECTION CLASS/CONSTRUCTION DISCOUNTS/SURCHARGES PREMIUM FACTORS - NON HURRICANE BASE RATE ACCREDITED BUILDER DISCOUNT HARDIPLANK SIDING DISCOUNT LAPSE IN COVERAGE/ NO PRIOR INSURANCE SURCHARGE PROOF OF UPDATES DISCOUNT PROTECTIVE DEVICES DISCOUNT SECURED COMMUNITY/BUILDING DISCOUNT SENIOR/RETIREE DISCOUNT PREMIUM FACTORS - HURRICANE BASE RATE WINDSTORM LOSS MITIGATION FEATURES A. ELIGIBLITY B. MITIGATION CREDIT TABLES C. VERIFICATION D. DEFINTION OF TERMS AIIC Voluntary Homeowners Program December 2012 Page 4

5 ADDITIONAL FEES EMERGENCY MANAGEMENT PREPAREDNESS AND ASSISTANCE TRUST FUND SURCHARGE (EMPATF) MANAGING GENERAL AGENCY (MGA) FEE PAYMENT PLAN OPTIONS GENERAL RULES PAYMENT PLANS FORMS TERRITORY BASE RATES TERRITORY DEFINITIONS BY ZIP CODE RATE CALCULATION WORKSHEET AIIC Voluntary Homeowners Program December 2012 Page 5

6 BINDING AUTHORITY Agents have the authority to bind coverage on any risk that is not identified as "ineligible" in the Ineligible Risks section of this underwriting guide. Agent's authority is for the limits stated and outlined in the various sections of this guide. Any exceptions must be referred to the American Integrity Insurance Company (herein after referenced as the Company or AIIC) for approval prior to binding. A dwelling replacement cost estimator must be completed. The amount of coverage carried on the dwelling shall be one hundred percent (100%) of the current replacement cost at inception or renewal. All new business submissions must use forms approved by the Company and must be signed by the insured. Applications must be fully complete and payment must be submitted to the Company within 5 business days of binding. Original signed applications and all other required documentation must be maintained in the agent's files. The only exceptions are 4 Point Inspections (for homes over 30 years of age) and Wind Mitigation Inspections (for homes built prior to 2001) which must be submitted to the Company. The Company will perform periodic audits of the agent's files to ensure compliance with all rules and guidelines. Note: Section of the Florida Statutes provides that any misrepresentation of material fact, omission or incorrect statement on an application for coverage may prevent recovery under the policy. All risks are subject to an inspection to confirm replacement cost values and/or insurability. The applicant must provide the name and phone number of the person responsible for securing access to both the interior and exterior of the dwelling, including arranging for permission to enter a gated/guarded community. Any requests to increase/decrease coverage may need to be submitted to underwriting. Submissions may require information other than that shown on the application. Agents should obtain any information that helps support acceptance of the request being submitted, especially when the information calls for more explanation or when this manual indicates that additional information is required. Such cases include but are not limited to: Documentation of updates to roofing, heating, wiring, plumbing, etc. Determination of replacement cost Appraisals on jewelry and fine arts schedules Evidence of National Flood Insurance Program (NFIP) coverage, if required Evidence of Wind Mitigation features, hip roof and/or Opening Protection For renewal business, the Company has the option to perform an annual inspection to verify correct insurance to value, confirm rating variables such as construction type, and determine if there have been changes in exposure or increased hazards. AIIC will pay the inspection fee on renewal inspections. Our inspections may include but are not limited to an interior, exterior, sinkhole or any combination of these inspections. Risks that do not pass a sinkhole inspection will be non-renewed. The insured may request a comparable policy with no sinkhole coverage (the policy will continue to include Catastrophic Ground Cover Collapse Coverage). Refer to the Sinkhole Loss Coverage section of the manual for complete details. AIIC Voluntary Homeowners Program December 2012 Page 6

7 HURRICANE - TROPICAL STORM SUSPENSION Agents binding authority automatically terminates for new business and coverage increase/decrease when a "Hurricane or Tropical Storm Warning" has been issued by the National Oceanic and Atmospheric Administration or the National Weather Bureau based on the following rules: Hurricanes: Binding is restricted when the Hurricane is within the following boundaries: 72 W longitude, 15 N latitude, 90 W longitude, 32 N latitude. Tropical Storms: Binding is only restricted in areas under a tropical storm warning or watch. The rest of the state remains open. No new coverage shall be written within the first seventy-two (72) hours after a tropical storm or hurricane has left the aforementioned defined area unless the Company has removed the binding restrictions, the agent has inspected the property to verify that no loss has taken place, obtained a signed no loss statement from the applicant and noted on the application that said inspection was made. Renewals will only be issued on an "as expiring" basis for coverage and perils; limits will only be increased to keep pace with established inflation factors. ELIGIBILITY - UNDERWRITING The risk must meet all qualifications and rules before it can be bound. If there is a question regarding the qualifications, please discuss with your underwriter prior to submission. GENERAL The peril of windstorm or hail may be excluded if property is eligible for such coverage from Citizens Property Insurance Company (CPIC) or if the insured signs the AIIC HO XW form, indicating the Request to Exclude Windstorm and Hail Coverage. Homes located in a Special Flood Hazard Area (any combination of Zone A or V) must be covered by a Federal Flood insurance policy with matching Coverage A limit (or maximum limit available). Modular homes; A modular home is constructed of pre-made parts and unit modules at the factory and the entire home is brought to the site in sections which are lifted onto the foundation where they are permanently anchored. Unlike manufactured homes, modular homes must conform to the building codes for the locations where they are erected and will have a DCA sticker or other identifier (usually affixed to the electrical panel). Home must be protected with smoke detectors in close proximity of kitchen and sleeping areas. Porches or decks more than 2 feet off the ground or with 3 or more steps leading to them must have properly installed handrails or safety railings. The Company reserves the right to request color photos of any risk. AIIC Voluntary Homeowners Program December 2012 Page 7

8 INELIGIBLE RISKS DO NOT SUBMIT properties where the following exists: GENERAL CHARACTERISTICS Business Exposure- Properties where business is conducted. Two salient elements to help identify a business include: (1) a profit motive and (2) continuity of the activity. This includes but is not limited to: all manufacturing, retail sales when customer traffic is common, bed & breakfast operations, nursing homes, adult care facilities, produce stands, u-pick-it operations, animal kennels, repair work, hair salons and home day care (3 or more children). Farms and Ranches Properties (dwellings) which are part of a "commercial working farm," working ranch, orchard or grove. "Commercial working farms" are defined as properties with any livestock (such as cows, horses, hogs, goats, etc.), properties on which row crops are grown (other than a domestic garden), or properties with income producing farming/ranching operations. Condemned Properties Properties which have been condemned due to condition, properties located in a condemned area or properties in an area scheduled to be condemned due to urban renewal or highway construction. Inaccessible Properties Properties not readily accessible year round to fire department equipment. Isolated properties including barrier islands not connected to the mainland by a road or where emergency vehicles are unable to access a property due to road in poor condition. A road in poor condition includes but is not limited to: ungraded or unstable dirt, potholes, deep sand or other obstructions preventing emergency access. Isolated properties are defined as those that are not visible from at least two dwellings or in sight of a public road Risks built on Landfills/Refuse Properties built on landfills previously used for refuse. Commercial Properties Mobile/Manufactured Homes, Trailer Home, or House trailer Dwellings located in Citizens High Risk Area or within 1500 feet of tidal waters. Dwellings Constructed Over Water Do-It-Yourself Construction- Buildings or structures that are homemade or rebuilt, or any dwelling with extensive remodeling without permits or a certificate of occupancy. Non-Habitational Properties- Residential risks used primarily for non-habitational purposes or dwellings that were originally designed or constructed for other than habitational purposes. Fraternity or Sorority Houses Fraternity, Sorority or any similar housing arrangement. Vacant or Unoccupied Properties- "Vacant" is defined as a dwelling with no contents or occupants, it is empty. Unoccupied includes dwellings with contents if the dwelling is no longer a place of usual return. Dwellings vacant or unoccupied 30 days or more before purchase by the insured. Risk is acceptable if it was vacant or unoccupied solely due to remodeling or renovation. A vacant home may be eligible for the DP1 Vacant program. Exceptions may be made for Secondary/Seasonal homes. Risks located in a Protection Class 10- Exceptions may be made if the risk has a central monitored alarm system and/or is located in a limited access/gated community. Evidence must be submitted prior to binding. Properties subject to brush or forest fire. Premium financing as a payment option AIIC Voluntary Homeowners Program December 2012 Page 8

9 PROPERTY FEATURES Dwellings of unconventional construction or materials including but not limited to Log or Dome homes, etc. Dwellings in the course of construction Dwellings with asbestos, EIFS (Synthetic Stucco) siding, nonstandard or hazardous building materials (Chinese drywall). Dwellings with an open foundation are eligible for DP-1 only. Roofing: A roof that is worn, with patched areas, multi-layered or has unrepaired damage Shingle/Composition roofs more than 20 years old; validation of roof condition and life expectancy may be required at new business or prior to renewal. Tile or metal roofs more than 40 years old; validation of roof condition and life expectancy may be required at new business or prior to renewal. Asbestos shingle, tin/aluminum or wood shingle roofs. A flat roof unless it is less than 20% of the total roof structure. (We will not consider roofs of porches or carports that are attached only to the fascia or wall of the host structure over unenclosed space in the determination of roof structure.) Plumbing: Dwellings with polybutylene plumbing Heating: Dwellings heated in whole or in part by solid fuel heating devices, such as wood burning stoves or fireplace inserts, or heated by a device which is not controlled by a wall-mounted thermostat (e.g. portable space heater, portable gas heater, or any device utilizing an open flame). Electrical: Properties with any potential hazardous electrical conditions, knob & tube wiring, fuses or Aluminum branch wiring which has not been updated to conform to current local codes Properties equipped with electrical service less than 100 amps PROPERTY CONDITION Property in Disrepair/Existing Damage- Properties in a state of disrepair or properties with existing damage. Dwellings which are not properly maintained, this includes but is not limited to: Dwelling(s) or unattached structure in poor condition, In need of paint or repairs Clutter/debris Un-kept property, etc. LIABILITY EXPOSURE(S) Excessive or Unusual Liability Exposure including but not limited to: A pit bull, pit bull terrier or Staffordshire terrier, wolf, wolf hybrid or any mix of such dogs, owned by the insured or kept on the premises, are ineligible animals Any animal with aggressive tendencies, history of attack or trained as an attack animal owned by the insured or kept on the premises. This includes non-domesticated and/or exotic animals. AIIC Voluntary Homeowners Program December 2012 Page 9

10 Pools not completely fenced, walled or screened. The fence or wall must be of a material that provides a reasonable barrier to entry (e.g. chain link, wood, steel or aluminum), be at least 4 high, permanently installed, comply with local ordinances, and have a self-locking gate or door. The pool may not have a diving board or slide. Above ground pools must have steps that can be locked in the up position. Trampolines in unfenced yards. The fence or wall must be of a material that provides a reasonable barrier to entry (e.g. chain link, wood, steel or aluminum), be at least 4 high, permanently installed, comply with local ordinances, and have a self-locking gate or door. Attractive nuisances including but not limited to: racing or activity courses, large play grounds, skate board or bicycle ramps. Disabled, unused, or untagged vehicles on the premises Risks where the insured owns recreational vehicle(s) including but not limited to: ATV, Dune Buggy, Go Cart, or Dirt Bike. Risks are acceptable if insured provides proof of separate liability coverage with the same limit as provided on this policy. Evidence must be maintained in Agent s Office and is subject to audit at the request of the Company. Applicants in possession of dangerous firearms including, but not limited to, assault-type and rapid fire weapons, except for game hunting rifles or shotguns. PROPERTY VALUE(S) OR MORE THAN ONE HOME ON THE PROPERTY Coverage Limits Minimum/Maximum- Properties for which replacement cost (Coverage A ) is either below or above the limits shown in the Minimum and Maximum Values section of the Homeowners Program Manual. Replacement Cost/MARKET Value Ratio Properties with Replacement Cost exceeding 1 1/2 times the MARKET value, excluding land values may be eligible for the DP1 program only. Homes in foreclosure or repossessed within the past twelve months are subject to underwriting approval and may be eligible for the DP1 Program only. Risks with more than one dwelling on the premises, whether a home or manufactured home, without separate parcel, deed or separate address. Dwellings not occupied by the insured or a single family residence occupied by more than one family. APPLICANT CHARACTERISTICS AND LOSS HISTORY Risks with any prior or current Sinkhole activity on the premises whether or not it results in a loss to the dwelling. If any prior sinkhole loss, coverage cannot be bound. Properties located in close proximity (0.5 miles) to known sinkholes will not be issued with Sinkhole Loss Coverage. Refer to the Sinkhole Loss Coverage section of the manual for complete details. Arson or Insurance Fraud At the time of application, applicants convicted of arson in the past 25 years, cancelled for insurance fraud in the past 15 years or material misrepresentation on an application for insurance in the past 7 years. Applicant(s) who have had a bankruptcy, repossession or foreclosure within the past 60 months. The risk is ineligible for applicants who have sustained more than one (1) loss of any type, other than a weather related event, within the last 36 months. For applicants who have sustained a fire or personal liability loss in the last 60 months, coverage cannot be bound. Refer to underwriting for further review. Property claims that are a result of an act of God will not be used as a cause for cancellation or non-renewal unless the insured has failed to take action reasonably necessary to prevent recurrence of damage to the insured property. AIIC Voluntary Homeowners Program December 2012 Page 10

11 GENERAL RULES The Homeowners Program provides property and liability coverage, using forms and endorsements specified in this manual. The manual contains the rules and classifications governing the writing of the Homeowners Program policy. The rules, rates, forms and endorsements of American Integrity Insurance Company for each coverage shall govern in all cases not specifically provided for in this manual. APPLICANT Must hold title to home with a maximum of two mortgages. Credit history may be evaluated for all applicants as it relates to insurance eligibility. (Refer to the Insurance Score section of the Homeowners Manual for additional details.) AGE OF HOME (NEW BUSINESS AND RENEWAL) 30 YEARS OR LESS A dwelling 30 years of age or less may be eligible without additional requirements unless information is disclosed at the time of application which would make the risk ineligible. When a dwelling becomes 31 years of age during the policy term, upon renewal it may be subject to the underwriting requirements outlined in the following section. A 4 point inspection or proof of updates may be required prior to policy renewal. GREATER THAN 30 YEARS A dwelling greater than 30 years of age will require an acceptable 4 point inspection or proof of updates to the electrical, HVAC, and plumbing within the past 15 years and roofs replaced within the past 20 years. Documentation must be submitted within 30 days of inception. If the 4 point or proof of updates is determined to be unacceptable the policy may be subject to underwriting action. A dwelling greater than 40 years of age can only be written with the AIIC HO 09 WD WATER DAMAGE EXCLUSION ENDORSEMENT attached (10% credit). Limited Water Damage coverage may be purchased when evidence of satisfactory updates has been provided. Coverage can be added for Water Back Up and Sump Overflow only if the Limited Water Damage coverage has been purchased. The Gold Reserve endorsement may also be purchased if evidence of satisfactory updates has been provided. If an unacceptable 4 point or proof of updates is received the policy may be subject to underwriting action. Evidence of acceptable condition and proof of updates in the past 15 years is required to the following systems: o Plumbing (supply/drain lines have been updated with acceptable materials for all of the sinks, commodes and washer/dryer connections, including the hot water heater), preferred materials for the supply/drain lines are copper, PVC, etc. o Electric (electrical main and sub panels), o HVAC (both heat and A/C units) and o Roof* (including primary and secondary roof systems) *Roof updates are required within the past 20 years. A 4 Point inspection with accompanying color photos, receipts or work orders which include photos showing the updates are accepted as evidence of eligibility. Inspections must be performed by a licensed/qualified inspector or inspection company and the license number and contact number must appear on the report. AIIC accepts any 4 point inspection form if all the required information is indicated. Refer to the Forms section of the Homeowners Program Manual for an acceptable 4 point inspection form. Documentation must be submitted within 30 days of inception for continuation of coverage and must be completed within the last 60 months. AIIC Voluntary Homeowners Program December 2012 Page 11

12 A dwelling which does not meet these requirements may be eligible for the DP program subject to underwriting approval. HOMES OVER 75 YEARS A home over 75 years of age is ineligible and may be eligible for the DP Program only. A dwelling attaining 75 years during the policy term may continue on the HO3 Special Form program if it meets the greater than 30 years of age underwriting requirements. CANCELLATION OR REDUCTIONS IN LIMITS OF LIABILITY OR COVERAGE Mandatory coverages may not be cancelled unless the entire policy is cancelled. If insurance is increased or reduced, the additional or return premium shall be computed on a pro-rata basis, subject to the minimum premium rule. The insured may cancel the policy at any time for any reason. We will refund any unearned premium pro rata subject to the waiver of premium rule. Note: Hurricane deductible options may only be amended at renewal of the policy. A policy may not be cancelled and rewritten to circumvent this rule. INSURANCE SCORE GUIDELINES The credit of all Named Insureds may be reviewed in compliance with section F.S. and Florida Rule 69B with the consent of the applicant or insured. Credit is evaluated along with prior claims history, condition of property and other risk factors. Credit history is ordered and an Insurance Score (IS) is determined only on the Named Insureds for all new business policies. The agent must obtain permission from the applicant prior to requesting the credit report. If the Insurance Score is below 650, or there is a No Hit/No Score, a CLUE report and a property inspection report are ordered. More than one non- weather related claim or poor condition of the property will make the risk ineligible. When an Insurance Score cannot be generated due to either a No Hit or lack of data the applicant or policyholder will not be adversely affected. A No Hit/No Score qualifies for a discount. For an insured or applicant whether adversely affected by their credit history or not, credit will be reviewed, with policyholder approval, once every two (2) years or at the request of the insured. The insured will receive a discount if their Insurance Score has improved to 700 or above. Insurance Score discounts are available based on an independent grade derived from the applicants credit record, as shown below: Factor Level 2: Score of 750 or greater 0.80 Level 1: Score of and No Hit/No Score 0.90 LAPSE IN COVERAGE/NO PRIOR INSURANCE Risks with a lapse in coverage that exceeds 30 days from the date of the lapsed/cancelled policy or have had no prior insurance, must obtain Underwriting approval prior to binding. A Statement of No Loss must accompany any request. If approved, the risk will be subject to a 10% surcharge which will be applied for one (1) year from the date of issuance of the policy. The surcharge does not apply to first time home buyers or renewals. Refer to the Credits/Surcharges section of the manual for the surcharge rules. Any lapse in coverage greater than 90 days will not be accepted in this program and may be eligible for the DP1 program. AIIC Voluntary Homeowners Program December 2012 Page 12

13 LOSS HISTORY RATING PLAN Introduction The Loss History Rating Plan recognizes the loss history of an insured or applicant, for both property and liability coverage, in determining the appropriate premium. This plan will only recognize those losses occurring within the past 36 months. Eligibility A loss shall be considered eligible for a surcharge under this plan if: The loss occurred during the 36 months immediately preceding the date of application for a new policy or the preparation of the renewal policy. (Subject to the date of loss restriction discussed above); The loss occurred with respect to a risk eligible for coverage under the Homeowners Policy Program; The loss was sustained with respect to the property or liability of an insured under the policy being rated and; The combined claim payments generated for the loss equal or exceed $500. Surcharges apply to the non-hurricane portion of the premium only. Exceptions The following shall not be considered eligible for rating under the Plan: A loss resulting from an Act of God or weather related event. A loss for which payment occurred only with respect to Medical Payments to Others or similar coverage. A loss to a dwelling currently owned by an insured or applicant which occurred prior to ownership. Administration of Loss History Rating Plan Information necessary to determine the loss history of the Named Insured or applicant shall be obtained from any one or combination of the following: An application signed by the applicant A loss history or claims history report obtained from an insurance exchange A company s internal records. Premium Computation Multiply the NHR Base Premium by the appropriate factor from the following table: Number of Eligible Losses Factor or More Refund of Increased Premium If, after an increased premium is generated based on the requirements of this Plan, it is determined that a loss does not meet the requirements of this Plan, the insurer shall refund the increased portion of the premium attributable to such loss as generated by the Plan. AIIC Voluntary Homeowners Program December 2012 Page 13

14 MANDATORY COVERAGES It is mandatory that insurance be written for all coverages provided in Section I and Section II of the Homeowners Policy. MULTIPLE COMPANY INSURANCE We will not provide coverage for a dwelling that is also covered by another insurance policy. OCCUPANCY/USE Residence must be: Owner occupied by owner's immediate family only (no roomers or boarders). Occupied at least 9 months per year unless risk qualifies for exception outlined in Secondary /Seasonal Residence section of the Homeowners Program Manual. Used for private residential purposes only. Properties with home day care exposure of 3 individuals or less are not eligible for this program unless evidence of: 1. A current copy of a Certificate of Insurance from the insurer providing Commercial General Liability coverage at limits equal to or greater than the Personal Liability is provided at the time of application to the Company. Coverage cannot be bound and must be referred to underwriting for further review. 2. A current copy of the Florida Department of Children and Families "Family Child Care Home Certificate of License," or a copy of a current Child Care License for the covered premises issued by the county of jurisdiction is provided to the Company prior to issuance or renewal of each policy period. A single family dwelling or a duplex with the owner occupying one of the units is eligible. A three or four family unit dwelling is ineligible and may be eligible for the DP Program. SINGLE BUILDING DEFINITION All buildings or sections of buildings that communicate through unprotected openings shall be considered as a single building. Buildings that are separated by space shall be considered as separate buildings. Buildings or sections of buildings, which are separated by: o A 6-inch reinforced concrete or 8-inch masonry party wall that pierces or rises to the underside of the roof and pierces or extends to the inner side of the exterior wall shall be considered a separate building. Accessibility between buildings with independent walls or through masonry party walls described above shall be protected by at least a Class A Fire Door installed in a masonry wall section. POLICY TERM A policy may be written for a period of 12 months and may be extended for successive policy periods by renewal based upon the forms, premiums and endorsements in effect for the Company at the time of renewal. PRIOR CANCELLATIONS/NON-RENEWALS Risks previously cancelled for non-payment or underwriting reasons other than reduction of hurricane exposure, should be referred to the Company and are subject to underwriting approval. If the applicant has been cancelled for non-payment by AIIC, the policy may not be reinstated or rewritten without underwriting approval. If approved, the insured may be asked to provide a Statement of No Loss and a partial or full payment of the premium. AIIC Voluntary Homeowners Program December 2012 Page 14

15 PROPERTIES DEEDED IN AN LLC (LIMITED LIABILITY CORPORATION) OR TRUST Properties deeded to an LLC or Trust, may be eligible for coverage as an additional interest only. The risk may be eligible for the DP program if the LLC, Trust or Corporation requires Named Insured status. (Note: The DP program does not permit liability to be extended to an LLC, Trust or Corporation as the Named Insured.) RENEWAL PLAN If the company elects to offer a renewal, the policy may be renewed by the policyholder by paying the renewal premium prior to the expiration of the current policy. A renewal policy will be issued based on the premiums, forms and endorsements in effect at time of renewal. A new declarations page will be issued. A payment schedule will be mailed with each renewal offer, 60 days prior to the expiration date of the policy term, if the policyholder is the payee. If the account is escrow billed, then a billing statement will be mailed to the policyholder and the mortgage holder. The insured is responsible for ensuring the payment is received prior to the expiration of the policy term. The following risks are not eligible for offers of renewal coverage: Properties failing to be maintained in safe and serviceable condition or where repairs have not been completed or when the insured has failed to mitigate risk hazards. Properties no longer meeting minimum or maximum coverage limit requirements or failing to maintain proper insurance to value. Properties not meeting or continuing not to meet eligibility standards applicable to new business. Property claims that are a result of an act of God will not be used as a cause for cancellation or non-renewal unless the insured has failed to take action reasonably necessary to prevent recurrence of damage to the insured property. Risks determined by the Company to be unacceptable for renewal coverage due to: 1. Exposure management considerations, company financial performance, prospective business plans or objectives; 2. The availability and pricing of reinsurance; 3. Factors relating to the risk that would have adversely affected the Company s overall risk assessment if those factors had existed or been known at the time of initial underwriting. ROOF (NEW AND RENEWAL BUSINESS) A roof must be in good condition and not be worn, with patched areas, multi-layers or have unrepaired damage. A patched roof is evident when several sections of a roof have been repaired/replaced with either the same/similar shingles or have been tarred, etc. Asphalt/Composition shingle roofs must have been replaced within 20 years. Prior to renewal, AIIC may request policyholders with homes over 20 years old to provide validation (color photos and/or other evidence) of roof life expectancy. Homes with roofs less than 3 years life expectancy will be non-renewed the following year. If the entire roof has been replaced the policy will be noted with the date of the roof replacement. Tile or metal roofs more than 40 years old. Prior to renewal, AIIC may request policyholders with roofs over 40 years old to provide validation (color photos and/or other evidence) of roof life expectancy. Homes with roofs less than 3 years life expectancy will be non-renewed the following year. If entire roof has been replaced the policy will be noted with the date of roof replacement. AIIC Voluntary Homeowners Program December 2012 Page 15

16 Asbestos shingle, tin/aluminum, or wood shingle roofs are not eligible. A flat roof unless it is less than 20% of the total roof structure. (We will not consider roofs of porches or carports that are attached only to the fascia or wall of the host structure over unenclosed space in the determination of roof structure.) A dwelling with a flat roof may be eligible for the DP1 program. SECONDARY/SEASONAL RESIDENCES A dwelling unoccupied by the owner for more than 3 months annually is considered a Secondary/Seasonal residence. A Secondary/Seasonal residence with a rental exposure may be eligible for the DP program only. Secondary/Seasonal residences are not eligible for coverage in this program unless the residence is owner occupied for a minimum of 4 months per policy year, AND: residence is located within a limited access community or building (requires security guard or passkey gates), OR residence has a functioning central station fire and burglar alarm system. SWIMMING POOLS (NEW AND RENEWAL BUSINESS) A swimming pool must have a fence or wall of a material that provides a reasonable barrier to entry (e.g. chain link, wood, steel or aluminum), be at least 4 high, permanently installed, comply with local ordinances, and have a self-locking gate or door. Child gates/fences that are not permanently installed with a locking gate are unacceptable. Above ground pools must have steps that can be locked in the up position. No diving boards or slides are permitted. TOTAL RENOVATIONS If acceptable documentation demonstrates that a residence has been a total renovation*, the year in which the renovation began may be used as the date of construction. A total renovation (will require a new certificate of occupancy or certificate of completion) is defined as a home with updates to include new electrical wiring at the panel and in all walls, new plumbing (above the slab) and in all walls, heating and A/C to include the duct work, roof and window systems, and must be verified by a certified inspector based on an on-site inspection. *Complete documentation should be submitted to underwriting prior to binding. TOWN OR ROW HOUSE Town or Row house dwelling is eligible for coverage if it can be determined that it is a separate unit. Each unit must be separated by parapet* walls or adequate masonry firewalls. There may be a maximum of 8 units per building if a firewall is between each unit. See Single Building Definition *A parapet or firewall that pierces the roof and extends above the roof line at least 15 or higher shall be considered a separate dwelling. AIIC Voluntary Homeowners Program December 2012 Page 16

17 TRAMPOLINES (NEW AND RENEWAL BUSINESS) A trampoline must be enclosed in a yard that has a fence or wall of a material that provides a reasonable barrier to entry (e.g. chain link, wood, steel or aluminum), be at least 4 high, permanently installed, comply with local ordinances, and have a self-locking gate or door. AIIC HO 09 TL - TRAMPOLINE LIABILITY EXCLUSION is attached to the policy. TRANSFER OR ASSIGNMENT No transfers or assignments are permitted. Each insured and/or property will require submission of a new application and will be subject to the underwriting requirements at the time of application. WAIVER OF PREMIUM When a policy is first issued or endorsed after the inception date, additional or return premium of less than $5 is waived. However, the company shall grant any return premium due if requested by the insured. WHOLE DOLLAR PREMIUM RULE When calculating premium, adjusted base rates and premiums for optional coverages are rounded to the nearest whole dollar before summing. A premium of fifty cents ($.50) or more shall be rounded to the next higher whole dollar. In the event of cancellation by AIIC, the return premium may be carried to the next higher whole dollar. INSURANCE TO VALUE Risks must be insured for 100% of replacement cost as determined by an acceptable cost estimator done at the time of application, endorsement or renewal of policy (a replacement cost estimator must be maintained in the Agent s Office and is subject to audit at the request of the Company). BINDING AUTHORITY LIMITS/PROGRAM DESCRIPTION The following coverage limits are available for the HO Homeowners Special Form: Coverage Limits Coverage A- Dwelling $150,000* to $750,000 Coverage B- Other Structures 1% up to 20% of Coverage A Coverage C- Personal Property Minimum 25% up to 75% of Coverage A Coverage D- Loss of Use 10% of Coverage A 100,0000 included; $200,000/$300,000 Coverage E- Personal Liability also available Coverage F-Medical Payments to Others $1, 000 included; up to $5,000 available * Dwellings with replacement cost below $150,000 and above $750,000 must be referred to underwriting with a completed replacement cost estimator and color photos. AIIC Voluntary Homeowners Program December 2012 Page 17

18 CONSTRUCTION DEFINITIONS Frame - exterior wall of wood or other combustible construction, including wood-iron clad, stucco on wood or plaster on combustible supports, and aluminum or plastic siding over frame. o HardiPlank Siding Frame homes with HardiPlank Siding will be classified as Frame. Masonry Veneer - exterior walls of frame construction veneered with brick, masonry or stone. Masonry Veneer can be rated as masonry only if all of the walls are veneered as indicated. 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. Superior Construction 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 above) and floors and roof of metal or other non-combustible materials Fire- Resistive - exterior walls, floors and roof constructed of masonry or other fire resistive materials. Note: Mixed (Masonry/Frame) - a combination of both frame and masonry construction shall be classified as Frame when the exterior walls of frame construction (including gables) exceed 33% of total exterior wall area; otherwise classify as Masonry. AIIC Voluntary Homeowners Program December 2012 Page 18

19 MANDATORY ENDORSEMENTS The following endorsements are attached to the HO Homeowners Special Form: AIIC HO 09 SP SPECIAL PROVISIONS FOR FLORIDA HO 03 This endorsement modifies the HO Special Form: Animal Liability Exclusion excludes the liability (coverage E only) for damages caused by any animal owned or kept by any insured. Endorsement does not affect medical payments coverage. Personal Watercraft Exclusion - excludes physical damage and liability coverage for any loss resulting from the ownership and operation of a personal watercraft (jet skis, wave runners, etc.) Additional Living Expense Loss Participation (hurricane loss only) - requires the policyholder to pay 20% of temporary living expenses for hurricane losses. Amends the basic coverage form to comply with Florida Law. AIIC CALENDAR YEAR HURRICANE DEDUCTIBLE (PERCENTAGE) WITH SUPPLEMENTAL RECORD KEEPING REQUIREMENT- FLORIDA Applied to all policies with a percentage selected for a hurricane deductible. AIIC CALENDAR YEAR HURRICANE DEDUCTIBLE (FIXED DOLLAR) WITH SUPPLEMENTAL RECORD KEEPING REQUIREMENT- FLORIDA Applied to all policies with a fixed dollar amount selected for a hurricane deductible. AIIC HO DO DEDUCTIBLE OPTIONS NOTICE Attached to all policies listing the various deductible options available. HO NO SECTION II LIABILITY COVERAGES FOR HOME DAY CARE BUSINESS, LIMITED SECTION I PROPERTY COVERAGES FOR HOME DAY CARE BUSINESS This Endorsement excludes all Liability coverage for Home Day Care. AIIC HO 09 TL- TRAMPOLINE LIABILITY EXCLUSION This endorsement excludes personal liability for the use of a trampoline on the insured premises or supervision by an insured of trampoline usage off the insured premises. AIIC HO 09 MLD- LIMITED FUNGI, MOLD, WET OR DRY ROT, OR BACTERIA COVERAGE ENDORSEMENT This endorsement provides a maximum limit of Section I $10,000 for each covered loss/$10,000 policy aggregate with a Section II policy limit of $50,000. AIIC WINDSTORM EXTERIOR PAINT OR WATERPROOFING EXCLUSION- SEACOAST- FLORIDA is attached to all policies that include wind coverage in the following territories: 50, 70, 12*, 14*, 18*, 310, 320, 350, 360, 361, 380, 410, 420. This endorsement excludes damage from windstorm or hail to all paint or waterproofing material applied to the exterior of any dwelling or structure. * indicates any territory beginning with these numbers. AIIC Voluntary Homeowners Program December 2012 Page 19

20 AIIC HO 09 WD WATER DAMAGE EXCLUSION ENDORSEMENT This endorsement is attached to all policies over 40 years of age. This form excludes water damage subject to the limits, exclusions and conditions listed in the policy from: a. Accidental or intentional discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system or from within a household appliance. b. Water penetration through the roof system or exterior walls or windows whether/or not driven by wind unless water penetration is a direct result of wind or hail. MANUAL PREMIUM REVISION A manual premium revision shall be made in accordance with the following procedures: 1. The effective date of such revision shall be announced. 2. The revision shall apply to any policy or endorsement in the manner outlined in the announcement of the revision. 3. Unless otherwise specified at the time of the announcement of the premium revision, the revision shall not effect: a. in-force policy forms, endorsements or premiums, until the policy is renewed; or b. in the case of the Premium Payment Plan, in-force policy premiums, until the anniversary following the effective date of the revision. MINIMUM AND MAXIMUM VALUE Agent may not bind coverage for less than $150,000 or more than $750,000. Risks may be submitted to Underwriting for possible binding approval. Minimum Coverage A amount is $150,000 Maximum Coverage A amount is $750,000 AIIC Voluntary Homeowners Program December 2012 Page 20

21 MULTIPLE LOCATIONS This program does not permit coverage for multiple locations on the same policy. PROPERTIES LOCATED ON MORE THAN 5 ACRES IN A PC 9/10 OR A PC 10 PROPERTY A dwelling located in a Protection Class (PC) 9/10 on more than 5 acres or a Protection Class 10 is subject to review to determine eligibility. PC 10 risks must have central station reporting fire alarm or be located in a limited access/gated community. The following information will be required to be submitted to the Company to be able to review the risk: Name of the responding fire department Response time Is the station voluntary or manned 24 hours? Water source? Distance to the hydrant or water source, if there is one. The number and carrying capacity of the pumper and tanker trucks. PROPERTIES WITH FARM ANIMALS OR HORSES (NOT ON A FARM) A risk with farm animals or up to 5 horses can be considered subject to underwriting approval. An acre per animal is desired or a risk with a small number of animals typically found on a farm. Further underwriting may be required to determine it is not a commercial exposure or a farm. PROTECTED SUBDIVISION RULE A dwelling located in a qualifying subdivision (new community/development), which is currently a Protection class 9 or 10 community, may receive the rating of the lower Protection Class from the responding fire department if all of the following are met: The subdivision is under development with recorded plat and paved roads where dwellings are built by licensed contractors subject to building restrictions as to type and square footage. The subdivision contains at least 10 houses. The subdivision is within 5 miles travel distance of a responding fire department. The home is located within: o 1,000 feet of a standard fire hydrant, or o responding fire department is equipped to transport an adequate water supply for fighting fire or o responding fire department is equipped to pump water from swimming pools or other sources within 1,000 feet of the home. *The lower protection class will be available for 5 years from when the home was constructed. Note: If a dwelling is located in a Protection class 9 or 10 community and qualifies for the protected subdivision rule, the application must be documented accordingly. AIIC Voluntary Homeowners Program December 2012 Page 21

22 PROTECTION CLASS The Protection Class listings in the Public Protection Classification Manual apply. Use PC 10 for unclassified areas, in a classified area where two or more classifications are shown (e.g. 6/9), the classification is determined as follows: Distance to Fire Station Class 5 road miles or less with hydrant* within a 1000 feet, use the first protection class (e.g. 6/9 would use Class 6) 6 5 road miles or less with hydrant* beyond a 1000 feet, use the second protection class (e.g. 6/9 would use Class 9) 9 Over 5 road miles 10 *Hydrant distance requirement does not apply when an alternative credible water supply is available. Refer to notes under specific communities in Public Protection Classification Manual for applicability. COVERAGE OPTIONS ADDITIONAL INSURED In addition to the Named Insured listed in the Declarations, additional persons or organizations may be listed which are an insured of the residence premises. If the policy is cancelled or nonrenewed, the parties named will be notified in writing. This endorsement is not available for the LLC or Trust. Refer to Endorsement- HO ADDITIONAL INSURED (RESIDENCE PREMISES) ADDITIONAL INTERESTS In addition to the Mortgagee(s) shown in the Declarations or elsewhere on the policy, additional persons or organizations may be listed which have an interest in the residence premises. If the policy is cancelled or non- renewed, the parties named will be notified in writing. This endorsement is available for the LLC or Trust which requires notification when the policy is cancelled or non-renewed. Refer to Endorsement- AIIC 01 VA AIN ADDITIONAL INTERESTS (RESIDENCE PREMISES) ANIMAL LIABILITY SPECIAL LIMITS ENDORSEMENT No coverage is included in this program for any bodily injury or property damage caused by any animal owned or kept by the insured whether or not the bodily injury or property damage occurs on the residence premises or any other location. The policy may be endorsed to provide Coverage E Personal Liability coverage for bodily injury or property damage for which the insured is legally liable resulting from any one occurrence and caused by an animal owned or kept by an insured subject to the limits, exclusions and conditions listed in the policy. The following sub limits represent the only option available: AIIC Voluntary Homeowners Program December 2012 Page 22

23 Coverage Limit Personal Liability (each occurrence/annual aggregate) $50,000 Medical Payments $5,000 Premium Amount $50 This coverage does not apply to any ineligible animal owned by any insured at the time of, but not disclosed on, the application, or to any animal that has previously bitten, attacked, has aggressive tendencies or has been trained to be an attack animal owned by the insured or kept on the premises. This includes non-domesticated and/or exotic animals. A pit bull, pit bull terrier or Staffordshire terrier, wolf, wolf hybrid or any mix are ineligible animals. Refer to Endorsement- AIIC HO 09 AL ANIMAL LIABILITY SPECIAL LIMITS ENDORSEMENT. BUSINESS PURSUITS - NO COVERAGE This program does not offer coverage for liability arising out of business activities. Applicants who conduct business from a residence that includes client traffic or contact are not eligible for this program. COVERAGE B - OTHER STRUCTURES Applicant(s) may select a desired coverage limit for other structures located on the residence premises. Other structures may not be rented to others, or used by non-related persons for residence purposes. Coverage equal to 2% of coverage A is included in the basic policy. The following additional coverage options are available (apply to NHR and HUR): % of Coverage A Factor 1% % % % % 1.14 CARPORT(S), POOL CAGE(S) AND SCREEN ENCLOSURE(S) (NOT AVAILABLE FOR POLICIES EXCLUDING WIND COVERAGE) Coverage for a loss caused by hurricane to aluminum framing for carports, pool cages and screen enclosures permanently attached to the dwelling may be purchased for an additional premium. This endorsement does not increase the limit of liability for coverage A. The available limits of liability and factors are listed below: Screen Enclosure Limit Factor 10,000 10% 20,000 20% 30,000 30% 40,000 40% 50,000 50% Additional premium: HUR Base x 2.5 x Year Built Factor x Hurricane Deductible Factor x Percentage Surcharge from the table above. For Years Built 2002 and newer, the Year Built Factor = AIIC Voluntary Homeowners Program December 2012 Page 23

24 Refer to Endorsement- AIIC HO 09 PC CARPORT(S), POOL CAGE(S) AND SCREEN ENCLOSURE(S) COVERAGE C PERSONAL PROPERTY The base standard limit of liability for Coverage C is 50% of the Coverage A limit. This limit may be increased in 5% increments, to a maximum of 75% of the Coverage A. The limit of liability for Coverage C may be reduced, in 5% increments, to a minimum of 25% of the Coverage A limit. A selection of less than 40% of Coverage C is ineligible for Personal Property Replacement Cost as well as burglar alarm credit. Coverage C may also be excluded completely. When Coverage C Personal Property is excluded use AIIC HO PERSONAL PROPERTY EXCLUSION FLORIDA. The insured must provide the necessary written statement(s) as required by Florida Statutes. Use Form AIIC HO XC REQUEST TO EXCLUDE CONTENTS COVERAGE for the insureds statement. This exclusion may only be added or removed effective at policy inception or renewal. When Coverage C is excluded, the following rules do not apply and endorsements are not available: PERSONAL PROPERTY REPLACEMENT COST- AIIC HO SPECIAL PERSONAL PROPERTY COVERAGE- HO SCHEDULED PERSONAL PROPERTY ENDORSEMENT- AIIC HOME COMPUTER COVERAGE- AIIC HO 09 GOLD RESERVE ENDORSEMENT- AIIC GR 21 GOLF CAR COVERAGE ENDORSEMENT/GOLF CART COVERAGE ENDORSEMENT- INCREASED LIMITS- AIIC HO 09 GC1 AND AIIC HO 09 GC2 Base rates include personal property coverage equal to 50% of Coverage A. Factor % of Coverage A HUR NHR 0% % % % Factors for amounts between 25% and 50% or 75% are proportional. DEDUCTIBLES All policies are subject to a deductible that is applied to a Section I- Property loss. The two deductibles are an All Other Perils Deductible and a Hurricane Deductible. When Wind coverage is included in the policy, the base deductibles are: $500 All Other Perils deductible $500 Hurricane deductible When a loss occurs from a peril other than Hurricane, the all other Perils deductible will be applied to the reported occurrence. If a reported loss is due to a Hurricane then the deductible will be applied as outlined in the following section. AIIC Voluntary Homeowners Program December 2012 Page 24

25 Optional deductibles are also available and are outlined below. For all perils except hurricane (apply to NHR) Amount Factor $ , , , Hurricane Deductibles (Not available for policies excluding wind) A hurricane deductible subjects the policy to a percentage deductible amount that applies to any Section I- Property loss due to damage from the perils of Hurricane. During a hurricane, the deductible will be applied beginning at the time a hurricane watch or warning is issued for any part of Florida by the National Hurricane Center of the National Weather Service and will end 72 hours following the termination of the last hurricane watch or hurricane warning issued by the National Weather Service. The deductible will also be applied to any windstorm or hail loss. A Hurricane means a storm system that has been declared to be a hurricane by the National Hurricane Center of the National Weather Service. The National Weather Service currently uses the Saffir/Simpson Hurricane scales to categorize hurricanes. This scale specifies that a hurricane is a storm that originates in the tropics and results in either a sustained wind speed of at least 74 miles per hour or a storm surge of at least 4 feet above normal. A hurricane deductible shall apply on an annual basis to all covered hurricane losses that occur during a calendar year, regardless of the policy term. If there was a hurricane loss for prior hurricane(s) during a calendar year, the deductible applying to a subsequent hurricane loss is the greater of the remaining amount of the hurricane deductible or the amount of the deductible that applies to perils other than a hurricane. Hurricane deductibles may only be changed at time of renewal. Note: Hurricane deductible options may only be amended at renewal of the policy. A policy may not be cancelled and rewritten to circumvent this rule. The hurricane deductible must be greater than or equal to the all other peril deductible. Refer to Endorsements- AIIC CALENDAR YEAR HURRICANE DEDUCTIBLE (PERCENTAGE) WITH SUPPLEMENTAL RECORD KEEPING REQUIREMENT FLORIDA AND/OR AIIC CALENDAR YEAR HURRICANE DEDUCTIBLE (FIXED DOLLAR) WITH SUPPLEMENTAL RECORD KEEPING REQUIREMENT FLORIDA For losses due to Hurricane (apply to HUR) Deductible Cov A $500 2% 5% 10% $75K - $100K $100K - $200K $200K - $250K $250K + N/A Note: At inception, a $500 Hurricane Deductible is not available for a home over $250K. AIIC Voluntary Homeowners Program December 2012 Page 25

26 GOLD RESERVE ENDORSEMENT (NOT AVAILABLE FOR POLICIES EXCLUDING CONTENTS) This policy may be endorsed to provide a bundled package of additional protection, including higher limits on selected coverage. Proof of updates may be required for dwellings over 30 years of age. Deductibles on the endorsement may vary between coverages. The Gold Reserve Endorsement may only be added at issuance or renewal. Refer to Endorsement- AIIC GR 21 GOLD RESERVE ENDORSMENT Develop the premium by multiplying the Adjusted Non-Hurricane Base Premium and the Adjusted Hurricane Base Premium by the appropriate Gold Reserve factor shown in the table below. Coverage A Gold Reserve $75,000 $299, $300,000 - $399, $400,000 - $499, $500,000 - $599, $600,000 - $699, $700,000 - $799, $800,000 - $899, $900,000 - $999, $1,000, $1,000,000 AIIC Voluntary Homeowners Program December 2012 Page 26

27 Coverage Base Policy Gold Reserve Animal Liability Not Included $50,000 Business Property on Premises $2,500 $10,000 Business Property off Premises $250 $1,000 Home Computer Coverage Not Included $10,000 Carport(s), Pool Cage(s) and Screened Enclosure(s)* Not Included $20,000 Credit Card $500 $10,000 Damage to Property of Others $500 $1,000 Fire Department Service Charge $500 $1,000 Identity Fraud Expense Not Included $15,000 Increased Coverage C 50% 70% Jewelry and Furs ** $1,000 $5,000** Firearms ** $2,000 $5,000** Silverware $2,500 $5,000 Lock Replacement Not Included $500 Loss of Use - Coverage D 10% 20% Loss of Use Due to Power Shortage Not Included Included Money $200 $1,000 Personal Injury Not Included $300,000 Personal Liability Coverage E $100,000 $300,000 Medical Payment Coverage F $1,000 $5,000 Refrigerated Property Not Included $500 Replacement Cost Contents Not Included Included Securities $1,000 $5,000 Special Personal Property (changes Personal Property to All Risk) Not Included Included Trailers $1,000 $5,000 Water Back Up Not Included $5,000 Watercraft $1,000 $5,000 Watercraft Liability 25 HP 50 HP *Applicable only if wind coverage applies **Maximum limit of $1,000 for any one article AIIC Voluntary Homeowners Program December 2012 Page 27

28 GOLF CART COVERAGE ENDORSEMENT/GOLF CART COVERAGE ENDORSEMENT - INCREASED LIMITS (NOT AVAILABLE FOR POLICIES EXCLUDING CONTENTS) Extends Section I and II coverage to losses arising from the ownership and operation of a golf cart. Coverage does not apply when golf cart is: used to carry persons for a charge, used for business purposes, rented to others, used outside the boundaries of a retirement community or limited access community unless being used for golfing purposes or traveling to or from a golf course. Option 1: For an additional premium of $75, Endorsement AIIC HO 09 GC1 GOLF CART COVERAGE ENDORSEMENT includes special limits of liability as follows: Coverage C - Personal Property: $ 5,000 Coverage E - Personal Liability: $ 50,000* Coverage F - Medical Payment to Others: $ 5,000 * The Coverage E limit is increased to meet the underlying limit required by umbrella policy covering the insured subject to a maximum limit of $100,000. Option 2: For an additional premium of $100, Endorsement AIIC HO 09 GC2 - GOLF CART COVERAGE ENDORSEMENT- INCREASED LIMITS includes special limits of liability as follows: Coverage C - Personal Property: $ 5,000 Coverage E - Personal Liability: $ 100,000/300,000/100,000 Coverage F - Medical Payment to Others: $ 5,000 The limits of liability shown above replace the limits of liability shown on the declarations page for any and all covered losses resulting from the operation of the insured s golf cart. HOME COMPUTER COVERAGE ENDORSEMENT (NOT AVAILABLE POLICIES FOR EXCLUDING CONTENTS) When the optional Home Computer Coverage is attached to the policy it provides coverage for computers and related equipment against additional risks of physical loss subject to certain exclusions. In addition, this endorsement permits business use of a personal computer. This coverage is available to a maximum limit of $20,000. Refer to Endorsement- AIIC HO 09 HC HOME COMPUTER COVERAGE Additional premium: $6 for each $1,000 AIIC Voluntary Homeowners Program December 2012 Page 28

29 IDENTITY FRAUD EXPENSE COVERAGE When the optional Identity Fraud Expense Coverage is attached to the policy, $15,000 of coverage is available to pay expenses incurred by the insured as a direct result of any one identity fraud first discovered during the policy period. A Special deductible of $250 is applied to a reported loss. Such expenses include: the cost of notarizing fraud affidavits or similar documents; certified mail sent to law enforcement, financial institutions and credit agencies; lost income resulting from time taken off from work to meet with or talk to law enforcement or credit agencies; loan application fees for re-applying for a loan when the loan is rejected solely because the lender received incorrect credit information; and reasonable attorney s fees incurred to defend lawsuits brought against the insured and to remove criminal or civil judgments. Refer to Endorsement- HO IDENTITY FRAUD EXPENSE COVERAGE Annual Premium: $25.00 INCIDENTAL OCCUPANCIES NO COVERAGE This program does not permit incidental occupancies. Applicants may be eligible for the coverage on the DP program. INCREASED REPLACEMENT COST COVERAGE The policy provides loss settlement for buildings insured under Coverage A or B on a replacement cost basis without deduction for depreciation, if, at the time of loss, the amount of insurance on the damaged building is 100% or more of the replacement cost of the building immediately before the loss. However, in no case shall the payment under the replacement cost provision exceed the limits of liability stated for coverage A in the declarations. The policy may be endorsed to provide additional insurance for Coverage A only when loss to the dwelling building exceeds the limit of liability shown in the policy declarations. When the following option is selected, the Coverage A limit of liability shall be at least 100% of the full replacement cost of the dwelling building at policy inception or at the time the endorsement is added to the policy. The additional amount cannot be applied to any other coverage. When the optional Increased Replacement Cost Coverage is attached to the policy, it is intended to cover additional costs of construction that are incurred due to increases in the cost of construction that occur during the policy period. Increased construction cost is normally the result of increased demand relative to supply of labor and materials that can occur subsequent to a catastrophic loss that impacts a substantial number of properties in a region. Additional coverage provided by this endorsement is limited to a maximum of 20% of Coverage A. Dwellings insured for less than 80% of Replacement at the time of loss, Coverage A- Dwelling and Coverage B- Other Structures may be settled at Actual Cash Value or 80% of replacement cost, whichever is greater. AIIC Voluntary Homeowners Program December 2012 Page 29

30 This endorsement does not cover increased construction costs attributable to laws or ordinances governing construction. Refer to Endorsement- AIIC HO 09 IRC INCREASED REPLACEMENT COST COVERAGE Additional premium: (5% of NH Base X Amt of Ins Factor X PC Factor X Age Factor)+ (5% of HUR Base X Amt of Ins Factor X Const Factor X YB Factor) *For Years Built 2002 and newer, the Year Built Factor =.50 in the hurricane calculation. INCREASED SECTION II- LIABILITY COVERAGE LIMITS The policy form provides basic limits of $100,000 per occurrence for Coverage E - Personal Liability and $1,000 per person for Coverage F - Medical Payments to Others. Additional premium for increased limits in Broward, Dade, Indian River, Martin, Palm Beach and St. Lucie: Coverage E - Liability Coverage F - Medical Payments Limit Additional Premium Limit Additional Premium $200,000 $20 $2,500 $6 $300,000 $30 $5,000 $10 Additional premium for increased limits in all other counties not listed above: Coverage E - Liability Coverage F - Medical Payments Limit Additional Premium Limit Additional Premium $200,000 $10 $2,500 $6 $300,000 $15 $5,000 $10 INFLATION GUARD An inflation guard factor is automatically applied to HO Homeowners Special Form - Section I limits of liability at each renewal. The inflation factor is determined by an industry approved replacement cost estimator index to maintain insurance to an approximate replacement cost of the home. AIIC Voluntary Homeowners Program December 2012 Page 30

31 LIMITED FUNGI, MOLD, WET OR DRY ROT, OR BACTERIA COVERAGE ENDORSEMENT The basic policy includes $10,000 each covered loss/$10,000 aggregate property damage coverage and $50,000 Liability for Fungi, Mold, Wet or Dry Rot or Bacteria Coverage and can be increased by updating AIIC HO 09 MLD LIMITED FUNGI, MOLD, WET OR DRY ROT, OR BACTERIA COVERAGE ENDORSEMENT Additional premium: Amount Premium $25,000 each covered loss/ $50,000 Policy aggregate $60 $50,000 each covered loss/ $50,000 Policy aggregate $90 If the applicant or insured elects the option of $50,000 increased limits, a moisture/mold inspection of the home must be completed prior to adding the coverage. AIIC will perform a physical inspection of the home and the increased limits will be added to the policy upon underwriting approval. If the request is made at the time of issuance, the policy must be submitted within 30 days of the effective date. Risks that do not pass the inspection will not be allowed to add any increased AIIC HO 09 MLD LIMITED FUNGI, MOLD, WET OR DRY ROT, OR BACTERIA COVERAGE ENDORSEMENT. Once Underwriting approval has been provided the coverage will only be applied at inception or renewal of the policy term. LIMITED WATER DAMAGE ENDORSEMENT Homes older than 40 years of age are written with the AIIC HO 09 WD WATER DAMAGE EXCLUSION ENDORSEMENT. For an additional premium, the policy may be endorsed to provide coverage for sudden and accidental discharge or overflow of water or steam from within a plumbing, heating, A/C, automatic sprinkler system or from within a household appliance. The limit of liability for all covered property under this option is $10,000. This endorsement is only available at inception or upon renewal. Refer to Endorsement- AIIC HO 09 LWD LIMITED WATER DAMAGE ENDORSEMENT. Additional Premium: NHR: 8% surcharge (1.08 factor) Evidence of acceptable condition and proof of updates in the past 20 years is required to the following systems: o Plumbing (supply/drain lines have been updated with acceptable materials for all of the sinks, commodes and washer/dryer connections, including the hot water heater), preferred materials for the supply/drain lines are copper, PVC, etc. o Electric (electrical main and sub panels), o HVAC (both heat and A/C units) and o Roof (including primary and secondary roof systems) A 4 point inspection with accompanying color photos, receipts or work orders which include photos showing the updates are accepted as evidence of eligibility. Inspections must be performed by a licensed/qualified inspector or inspection company and the license number and contact number must appear on the report. AIIC accepts any 4 point inspection form if all the required information is indicated. Refer to the Forms section of the Homeowners Program Manual for an acceptable 4 point inspection form. AIIC HO 09 WBU WATER BACK UP AND SUMP OVERFLOW is not available on homes without the Limited Water Damage endorsement. AIIC Voluntary Homeowners Program December 2012 Page 31

32 LOSS ASSESSMENT COVERAGE The policy automatically provides, at no additional charge, $1,000 of loss assessment coverage for assessments relating to the residence premises. This limit may be increased to a higher optional amount of $2,000, $5,000, or $10,000. Higher optional limits may only be purchased at policy inception or upon renewal (mid-term increases are not available). Refer to Endorsement- AIIC HO LOSS ASSESSMENT COVERAGE Additional premium: Limit Premium $ 2,000 $4 $ 5,000 $15 $ 10,000 $25 ORDINANCE OR LAW COVERAGE All Florida communities have laws or building codes that affect the reconstruction of damaged buildings. The basic limit the policy automatically provides is up to 10% of Coverage A limit of liability. Ordinance or Law Coverage is an additional coverage that applies to the increased construction cost resulting from enforcement of building codes in repairing or replacing your Dwelling (Coverage A) after a covered loss. The additional coverage provided by this endorsement is limited to 25% or 50% of the Coverage A policy limit. Per Florida Statute (b), the 25% endorsement will automatically be provided to any policy issued unless the insured signs a rejection. Refer to Endorsement- AIIC HO 09 OL1 ORDINANCE OR LAW COVERAGE -25% Additional premium: 25% Limit: (10% of NH Base X Amt of Ins Factor X PC Factor X age factor) + (10% of HUR Base X Amt of Ins Factor X Const Factor X Year Built (YB*) factor) Refer to Endorsement- AIIC HO 09 OL2 Ordinance or Law Coverage -50% Additional premium: 50% Limit: (15% of NH Base X Amt of Ins Factor X PC Factor) +(15% of HUR Base X Amt of Ins Factor X Const Factor X YB factor) *For Years Built 2002 and newer, the Year Built Factor =.50 in the hurricane calculation. OTHER INSURED LOCATION - NO COVERAGE This program does not permit liability coverage for other residences owned by the insured regardless of occupancy. Both property and liability coverage for secondary residences rented to others or used on a Secondary/Seasonal basis may be provided by issuing a separate Homeowner or Dwelling policy. PERSONAL INJURY -FLORIDA When optional Personal Injury- Florida endorsement is attached to the policy it provides liability coverage for personal injury to others for offenses such as false arrest, detention or imprisonment, libel, slander, defamation of character, invasion of privacy, and wrongful eviction or wrongful entry. This endorsement is available for an additional premium of $15 annually. Refer to Endorsement- AIIC HO 09 PNJ PERSONAL INJURY -FLORIDA AIIC Voluntary Homeowners Program December 2012 Page 32

33 PERSONAL PROPERTY REPLACEMENT COST (NOT AVAILABLE FOR POLICIES EXCLUDING CONTENTS) When the optional Personal Property Replacement Cost is attached to the policy it provides for settlement of losses for Coverage C- Personal Property on a replacement cost basis. Refer to Endorsement- AIIC HO PERSONAL PROPERTY REPLACEMENT COST Additional premium: (10% of NH Base X Amt of Ins Factor X PC Factor X Age Factor)+ (10% of HUR Base X Amt of Ins Factor X Const Factor X YB Factor) *For Years Built 2002 and newer, the Year Built Factor =.50 in the hurricane calculation. SCHEDULED PERSONAL PROPERTY ENDORSEMENT (NOT AVAILABLE FOR POLICIES EXCLUDING CONTENTS) Coverage for schedules of personal property items may be provided, up to a maximum limit of $100,000. Total schedules over $20,000 must have evidence of burglary/theft protection with a central station burglar alarm required. INELIGIBLE RISKS DO NOT SUBMIT personal property where the following general characteristics exist: Fur of animals on an endangered or threatened species list, or fine arts made from ivory are ineligible for coverage. Counterfeit money or counterfeit stamps are ineligible for coverage. Collectibles or other figurines (i.e. Lladro s, Hummel s, etc.), collection of baseball cards, etc. are not eligible Property on public display, or used in trade or business are ineligible. Property located in a dwelling identified in the Citizens High Risk Area, within 1,500 feet of tidal water or located in ISO protection class 10 is ineligible. Additional risks coverage may be purchased for the following classes of property: Property Rate per $100 Antiques $.90 Cameras & Projection Equipment (non-professional) 1.52 Coins 1.80 Fine Arts.50 Furs.40 Golfer's Equipment 1.40 Guns: Collectible 1.50 Fired 3.00 Jewelry 2.00 Musical Instruments (non- professional).60 Silverware.45 Stamps.80 AIIC Voluntary Homeowners Program December 2012 Page 33

34 Additional requirements for scheduled personal property are as follows: Minimum values of $500 for any one item, pair (jewelry), or set (silverware). Each item must be individually described, including: age, condition, country of origin, manufacturer, model or pattern and serial # (if applicable), and replacement value. Based on the value and class of property, specific, more detailed descriptions may be required. Covers property of an individual or spouse who reside together, or members of the insured s family in the same household. o Exception: Engagement rings. A fiancé of the insured who does not reside in the same household, and has an engagement ring given to them by the insured, is acceptable. A bill of sale and/or appraisal no older than three (3) years, must accompany the application or endorsement request for each item worth $2,500 or more. A copy is acceptable. A color photo is required for jewelry items worth $5,000 or more and for all fine art items, regardless of value. A Gemological Institute of America (GIA) certificate is required for any single diamond that is 2ct. or larger. Any one jewelry item valued at $10,000 or more must have an appraisal completed by a certified gemologist. Any single item exceeding $5,000 or total schedule exceeding $20,000 or if the total schedule is more than fifteen (15) percent of Coverage C- Personal Property limit, must be submitted along with dated color photos and appraisals to the Company, unbound, for approval. Refer to Endorsement- AIIC SCHEDULED PERSONAL PROPERTY ENDORSEMENT SINKHOLE LOSS COVERAGE- FLORIDA The base policy covers Catastrophic Ground Cover Collapse as defined by Florida Statute The premium is included in the base premium and it cannot be excluded. Sinkhole Loss Coverage is excluded in the base policy, but may be purchased for an additional premium. A 10% Sinkhole Deductible will apply to all policies that include Sinkhole Loss Coverage. For all territories, new policies may be bound only with the Catastrophic Ground Cover Collapse. If the policyholder elects the option for Sinkhole Loss Coverage, an approved structural inspection of the home must be completed prior to adding the coverage. An approved inspection service is one that has been designated by us as competent to perform the evaluation, and whose report format meets our informational requirements. The insured will contract directly with the approved inspection service, and pay an arranged fee, which will be half of the amount we have negotiated with the inspection service. We will pay the other half and both parties will receive a copy of the inspection. The fee will not be refundable no matter the underwriting decision reached. The inspection will document existing damage, evaluate the structural integrity of the dwelling (such as cracking, shifting or settlement of the house, doors that will not close properly, etc.) for any visible depressions or voids in the ground and verify that there is no current or proximate sinkhole activity that has not been disclosed. For risks that do not pass inspection, the insured may request a policy without Sinkhole Loss Coverage (the policy will continue to include Catastrophic Ground Cover Collapse Coverage). Besides new business, the only other time Sinkhole Loss Coverage may be added is at renewal. A sinkhole inspection must be performed prior to adding Sinkhole Loss Coverage as outlined above. Optional Sinkhole Loss Coverage will be approved for the dwellings that do not display characteristics of existing damage or proximity to sinkhole activity. Risks that do not pass the sinkhole inspection will not be allowed to add the Sinkhole Loss Coverage. AIIC Voluntary Homeowners Program December 2012 Page 34

35 A completed AIIC SKS SINKHOLE LOSS COVERAGE SELECTION/REJECTION FORM must be submitted on all requests for a comparable policy without Sinkhole Loss Coverage. The insured must select the statement I want to REJECT Sinkhole Loss Coverage. Additional Premium: (NH Base X Amt. Of Ins Factor X Territory Surcharge in chart below) Territory Surcharge Territory Surcharge % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % ,8% % % % % % % % % % All Other 1.8% Refer to Endorsement -AIIC HO 09 SK SINKHOLE LOSS COVERAGE FLORIDA SPECIAL PERSONAL PROPERTY COVERAGE (NOT AVAILABLE FOR POLICIES EXCLUDING CONTENTS OR EX-WIND POLICIES) When the Special Personal Property Coverage is attached to the policy it provides coverage for direct loss to personal property unless otherwise excluded and subject to policy limits. The endorsement also modifies special limits of liability for jewelry, furs, watches, firearms and silverware, goldware and pewterware. Refer to Endorsement- HO SPECIAL PERSONAL PROPERTY COVERAGE Additional premium: (10% of NH Base X Amt of Ins Factor X PC Factor X Age Factor)+ (10% of HUR Base X Amt of Ins Factor X Const Factor X YB Factor) *For Years Built 2002 and newer, the Year Built Factor =.50 in the hurricane calculation. AIIC Voluntary Homeowners Program December 2012 Page 35

36 WATER BACK UP AND SUMP OVERFLOW The policy may be endorsed to provide coverage for loss resulting from water which backs up through sewers or drains or which overflows from the sump. The limit of liability under this option is $5,000 for an additional premium of $25 annually. The endorsement will pay only that part of the loss which exceeds your policy deductible stated on the Declaration Page or $1,000, whichever is greater. This endorsement is only available at inception or upon renewal. Refer to Endorsement- AIIC HO 09 WBU WATER BACK UP AND SUMP OVERFLOW Evidence of acceptable condition and proof of updates in the past 20 years is required to the following systems for homes older than 30 years: o Plumbing (supply/drain lines have been updated with acceptable materials for all of the sinks, commodes and washer/dryer connections, including the hot water heater), preferred materials for the supply/drain lines are copper, PVC, etc. o Electric (electrical main and sub panels), o HVAC (both heat and A/C units) and o Roof (including primary and secondary roof systems) A 4 point inspection with accompanying color photos, receipts or work orders which include photos showing the updates are accepted as evidence of eligibility. Inspections must be performed by a licensed/qualified inspector or inspection company and the license number and contact number must appear on the report. AIIC accepts any 4 point inspection form if all the required information is indicated. Refer to the Forms section of the Homeowners Program Manual for an acceptable 4 point inspection form. When a home is older than 40 years, Water Back Up and Sump Overflow is only available if Limited Water Damage Coverage has been purchased. WATER DAMAGE EXCLUSION ENDORSEMENT The peril of Water Damage may be excluded from the policy resulting in a lower premium. In addition to what is automatically excluded in the policy, this endorsement will exclude discharge or overflow of water or steam from within a plumbing, heating, A/C, automatic sprinkler system or from within a household appliance; as well as water penetrating through the roof or exterior walls or windows whether or not driven by wind unless water penetration is a direct result of damage caused by wind or hail. When water damage is excluded, apply the following factors: NHR:.90 HUR: 1.00 Refer to Endorsement- AIIC HO 09 WD WATER DAMAGE EXCLUSION ENDORSEMENT AIIC Voluntary Homeowners Program December 2012 Page 36

37 WINDSTORM OR HAIL EXCLUSION- FLORIDA The peril of Windstorm or Hail may also be excluded for all coverages, including Coverage D Loss of Use, anywhere in the state upon written request of the insured(s) named on the policy and written authorization from any mortgage holder or lien holder with an interest in the insured location, per Florida Statutes. If Windstorm or Hail coverage is excluded and the insured property is not eligible for wind-only coverage from CPIC, the insured must use form AIIC HO XW REQUEST TO EXCLUDE WINDSTORM OR HAIL COVERAGE and personally write and provide to the Company in his or her own handwriting, signing his or her name (and signed by any other named insured on the policy) the following statement (the statement must also be dated): I do not want the insurance on my home/mobile home/condominium unit to pay for damage from windstorms or hurricanes. I will pay those costs. My insurance will not. A written statement from any mortgage holder or lien holder must also be sent to the Company approving of the policyholder electing to exclude windstorm or hurricane coverage from the policy. All necessary documents must be received and approved by the Company prior to the attachment of the exclusion to the policy. The Exclusion will apply to all subsequent renewals until removed. This exclusion may only be added or removed effective at policy inception or renewal. Further, we will require this endorsement in some territories based on capacity. When wind and hail are excluded, apply the following premium factors: NHR:.95 HUR:.00 Refer to Endorsement- HO WINDSTORM OR HAIL EXCLUSION- FLORIDA AIIC Voluntary Homeowners Program December 2012 Page 37

38 PREMIUM CALCULATIONS This section provides explanation of how premiums are determined and what adjustments are applied to price each risk. Rates for optional coverage follow premium adjustments. Two base rates apply to each territory: "Hurricane" and "Non Hurricane". Premium adjustments apply to the Hurricane Base Rate (HUR), the Non Hurricane Base Rate (NHR), or both Base Rates. Premium adjustments are calculated by multiplying the factors provided below by the appropriate base rate (HUR, NHR, or both) to calculate adjusted base rates. Optional coverages that result in additional premium are presented throughout the Homeowners Program Manual. Additional premiums are presented as a dollar amount, or a percentage of the unadjusted base rates. AMOUNT OF INSURANCE HO 3 Cov A Factor $75, The factor for Coverage amounts greater than $75,000 for HO 3 is determined by dividing the desired coverage amount by $75,000. For example, the factor for $125,000 (HO3) equals 125/75 or AIIC Voluntary Homeowners Program December 2012 Page 38

39 AGE OF DWELLING Age is determined by subtracting the year in which construction of the residence was completed from the year in which the policy is effective. The maximum age of a dwelling written on an HO3 form is 75 years. NHR HUR Form Age Factor Form Age Factor HO HO Newer * * * * *All homes built in 2002 or later receive a minimum additional 68% FBC 2001 new home credit (.32 factor) on the hurricane premium. New homes built in wind speed design zones greater than 110 mph receive a higher discount. AIIC Voluntary Homeowners Program December 2012 Page 39

40 BUILDING CODE EFFECTIVENESS GRADING The Building Code Effectiveness Grading Schedule develops a grade of 1 to 10 for a community based on the adequacy of its building code and the effectiveness of its enforcement of that code. Policies may be eligible for special rating adjustments subject to the criteria in this section. In some communities, two Building Code Effectiveness Grades may be assigned. One grade will apply to 1 and 2 family dwellings and the other to multiple unit dwellings. The Public Protection Classification Manual will indicate the application of each grade. The Building Code Effectiveness Grades for a community, and their effective dates, are provided in the Public Protection Classification Manual published by ISO Commercial Risk Services, Inc. Community Grading The Building Code Effectiveness Grade applies to any building that has an original certificate of occupancy dated in the year of the effective date of the community grading, or later. If a community is re-graded subsequent to its initial grading, the factor for the revised grade applies to buildings that have an original certificate of occupancy dated the year of the effective date of the revised grading, or later. Where certificates of occupancy are not issued, reasonable evidence of year of construction will be accepted. If, due to an addition or alteration, the original building is changed to comply with the latest building code, the factor for the community applicable at the time the reconstruction is completed will apply. The Building Code Effectiveness Grade applies to Windstorm/Hail. Specific information is provided in the Public Protection Classification Manual. If the grade in the manual does not apply to Windstorm/Hail, the factor should not be applied. Communities that decline to participate in the Building Code Effectiveness Grading Program will be identified in the Public Protection Classification manual as not participating. Buildings in these communities will receive a premium surcharge, unless they qualify for individual grading under Individual Grading below. This surcharge will only apply to buildings that have an original certificate of occupancy dated in or after the year of the effective date of the community evaluation that identifies the community as not participating. Individual Grading Where buildings have been built in full conformance with the natural hazard mitigation elements of one of the nationally recognized building codes even though the community grade is greater than 1, or the community is not participating in the program, exception rating procedures may apply. Any building may be classified as Grade 1 for Windstorm or Hail upon certification by a registered or licensed design professional based on an on-site inspection that such building is in compliance with one of the three nationally recognized building codes with respect to mitigation of the windstorm and/or hail hazard. This classification is effective only from the date of the certification. AIIC Voluntary Homeowners Program December 2012 Page 40

41 Ungraded and Nonparticipating Risks Buildings that do not meet any of the above criteria for community or individual grading criteria should be rated and coded as either ungraded or non-participating risks. Do not classify as Grade 10. Grade PROTECTION CLASS/CONSTRUCTION Apply to Non Hurricane Base Rate (NHR): Factor HUR NHR Ungraded PC Frame Masonry Superior 1 to Apply to Hurricane Base Rate (HUR): Construction Factor Frame 1.00 Masonry.80 Superior.75 AIIC Voluntary Homeowners Program December 2012 Page 41

42 DISCOUNTS/SURCHARGES PREMIUM FACTORS - NON HURRICANE BASE RATE The product of applicable premium factors in this section, subject to a minimum of 0.60, is applied to the Non-Hurricane Base Rate (NHR). The high value ($350,001 to $750,000) minimum factor for the discounts and surcharges is The Sprinkler system discount is not subject to the minimum factor cap. ACCREDITED BUILDER DISCOUNT An accredited builder discount of 5% is available to homes located in newly developing communities. The discount is applied to new construction for the initial 5 years. The builder must meet the following requirements to qualify as an accredited builder: Have at least 12 new home starts per year; Provide a Home Warranty Be a member of a Home Builder Association; Provide Quality Control Inspections in written form Adhere to more stringent construction specifications than required by code. Acceptable evidence should be retained with the application in the agent's file and is subject to periodic audits to ensure compliance with all rules and guidelines. HARDIPLANK SIDING DISCOUNT A HardiPlank* siding discount is available to a home of frame construction that has this siding material on all exterior sides. *HardiPlank and HardiPanel are brand names for fiber cement siding manufactured by James Hardie Building Products. The fiber cement siding is made from Portland cement mixed with ground sand, cellulose fiber, and other additives. Fiber cement siding can resemble stucco, wood clapboards, or cedar shingles, depending on how the panels are textured. Fiber cement siding is more durable than wood or stucco, and is also fire resistant. Although more expensive than vinyl, fiber cement siding is considerably less expensive than wood. Fiber cement siding has become popular because it requires little maintenance and can have a natural, wood-like appearance. Apply NHR factor:.95 LAPSE IN COVERAGE/ NO PRIOR INSURANCE SURCHARGE Risks with a lapse in coverage that exceed 30 days from the effective date of the last active policy or no prior insurance coverage will have a 10% surcharge applied. At the discretion of the Company, a Statement of No loss and payment will be required. Any lapse in coverage or lack of evidence of prior insurance greater than 90 days will not be accepted and may be eligible for the DP1 Program only. The 10% surcharge will be applied for one (1) year from date of issuance. The surcharge does not apply to first time home buyers or renewals. Force placed insurance is not considered acceptable proof of prior insurance. Apply NHR factor: 1.10 AIIC Voluntary Homeowners Program December 2012 Page 42

43 PROOF OF UPDATES DISCOUNT (New Business and Renewal) A 10% discount will be provided for homes 15 years and older if evidence of acceptable condition and proof of updates is received. A 4 point inspection with accompanying color photos, receipts or work orders which include photos can be considered. Evidence of acceptable condition and proof of updates must be dated within the last 5 years and also include the following: o Plumbing (supply/drain lines have been updated with acceptable materials for all of the sinks, commodes and washer/dryer connections, including the hot water heater), preferred materials for the supply/drain lines are copper, PVC, etc. o Electric (electrical main and sub panels), o HVAC (both heat and A/C units) and o Roof ( including any primary and secondary roof systems) If agent is applying discount at the time of policy inception a 4PT inspection with accompanying color photos or other acceptable evidence should be retained with the application in the agent's file and is subject to periodic audits to ensure compliance with all rules and guidelines. The discount can only be applied for that period in which updates have been completed within the last five years. Apply NHR factor:.90 PROTECTIVE DEVICES DISCOUNT Approved and properly maintained installations of burglar alarms, fire alarms, and automatic sprinklers in the dwelling may be recognized for a reduced premium. All devices must be professionally installed (not do it yourself ), and a copy of the installation certificate submitted with the application should be retained in the agent's file and is subject to periodic audits to ensure compliance with all rules and guidelines. NHR FACTOR Fire alarm reporting to fire or central station.90 Complete home sprinkler system*.85 *A credit factor applies to all functioning automatic sprinkler systems professionally installed in accordance with nationally accepted fire sprinkler design standards. The automatic sprinklers must be in all areas except attics, bathrooms, closets and attached structure areas which may be protected by fire detectors in lieu of sprinklers. Complete local burglar alarm (covers all exterior doors & windows).95 Complete burglar alarm reporting to police or central station.90 Note: Burglar alarm credits are not available when coverage C limit is less than 40% of Coverage A. Refer to Endorsement- AIIC PREMISES ALARM OR FIRE PROTECTION SYSTEM SECURED COMMUNITY/BUILDING DISCOUNT Secondary/Seasonal residences are not eligible for this discount. Limit access no more than three (3) entries into the sub-division or the community is protected by 24-hour security patrol hour-manned gates protect all entrances to community Or passkey gates protect all entrances to the community..85 AIIC Voluntary Homeowners Program December 2012 Page 43

44 SENIOR/RETIREE DISCOUNT An applicant(s) may be eligible for a 10% discount if they have: Attained the age of 60 or Attained the age of 55 and are retired.90 PREMIUM FACTORS - HURRICANE BASE RATE WINDSTORM LOSS MITIGATION FEATURES A. ELIGIBLITY When the policy covers the peril of Windstorm or Hail, a risk may be eligible for a premium credit up to a maximum of 90%, including the Construction credit and BCEG credit, if one or more loss mitigation features or construction techniques exist. Supporting documentation that substantiates the existence of loss mitigation features is required in order to receive the credits. A dwelling must have been built or retrofitted in conformance with the windstorm mitigation elements of the 2001 Florida Building Code (effective ) with respect to: a. Type of roof covering b. How the roof deck is attached to the structure c. The technique and materials used in connecting the roof to the walls of the structure d. The type and extent of materials used in protecting all openings to the dwelling structure e. The geometry (or shape) of the roof f. The extent of water resistance techniques employed in the roof construction Other factors impacting the level of credit are: a. The version of the Florida Building Code to which the construction of the dwelling was subject. The program differentiates construction between existing construction and new construction. These terms are defined in paragraph D. of this rule. b. The location of the dwelling; proximity to the coast and terrain being the most significant factors. B. MITIGATION CREDIT TABLES Mitigation Credit Tables have been developed for implementation of this rule that apply to either new construction or existing construction by building type. C. VERIFICATION The Company will require proof that substantiates the existence of wind loss mitigation features. This proof will be in the form of verification by a registered or licensed design professional certified building inspector or licensed General Contractor. A Florida Building Code Mitigation Verification Affidavit is available for use in satisfying this requirement. However, other signed and dated documentation from a duly qualified professional may be acceptable subject to underwriting review. The insured is responsible for the expense associated with substantiating the existence of the mitigation features. No verification documentation beyond shutter documentation, appropriate pictures and permit documents are required for dwellings constructed on or after January 1, Dwellings with a construction permit dated prior to must submit a Florida Building Code Mitigation Verification Affidavit. For homes that qualify for the hip roof credit only, a Wind Loss Mitigation Form will not be required. In lieu of a Wind Loss Mitigation form, color photographs substantiating the existence of the hip roof wind loss mitigation feature may be acceptable. AIIC Voluntary Homeowners Program December 2012 Page 44

45 D. DEFINITIONS OF TERMS New Construction - Risks constructed subject to the 2001 version of the Florida Building Code. Existing Construction - Risks constructed prior to January 1, High Velocity Hurricane Zone (HVHZ) Miami-Dade and Broward Counties. Terrain Terrain C - Miami-Dade and Broward counties, all barrier islands and all risks within 1500' of the coastline. Terrain B - All areas not included in Terrain C. FBC Wind Speed - Design wind speed (3 second gusts) for the site location as determined by the wind speed map in figure 1606 of the Florida Building Code. FBC Wind Design Speed - Wind speed (3 second gusts) for which the structure is designed to withstand according to the FBC Basic (minimum) Wind Design Speeds (SDS) are established for each FBC Wind Speed Zone. When the WDS of the structure (1-4 unit building built on or after January 1, 2002) exceeds the basic speed design, certification is required for premium credit. Use a Florida Building Code Mitigation Verification Affidavit. AIIC Voluntary Homeowners Program December 2012 Page 45

46 AIIC Voluntary Homeowners Program December 2012 Page 46

47 Roof Cover - The covering applied to the roof deck for weather resistance, fire classification or appearance. The most common roof covering materials in Florida are composition shingles and tiles. A key factor in roof covering performance is the method of attachment of the roof covering to the roof deck. The Florida Building Code 2001 (Section 1504) has material requirements and attachment specifications that are superior to common roof covering building practices in the past. For composition shingles, these requirements include self-seal strips and compliance with ASTM D-3161 (Modified for 110 mph). This requirement is commonly referred to as the "110 mph" rated shingle. FBC Equivalent - The roof covering specifications of the 1994 SFBC also require improved attachment methods and testing to a similar protocol. Therefore, these roof coverings are considered to be sufficiently similar to FBC roof coverings to be classified in the "FBC Equivalent" category. The rating of roof covering for existing construction can be achieved by requiring the roofing contractor to certify that a prior installation met the 1994 SFBC or the FBC 2001 requirements. Otherwise the current roof covering should be rated as Non-FBC equivalent. Insurers should remind owners of existing houses that when the re-cover their roofs, they need to have their contractor certify that the installation meets the FBC 2001 Chapter 15 requirements in order to receive the new roof covering credit. Non-FBC Equivalent - Roof coverings that do not meet the 1994 SFBC or the FBC 2001 requirements. (see above) Roof Deck Attachment - The performance of the roof deck is of critical importance in keeping hurricane loses to a minimum. It usually only takes the loss of a small portion of the roof deck before the losses for the building become substantial. Rain enters into the building and produces water damage to the interior and contents. The most common roof deck types are plywood and Oriented Strand Board (OSB) decks. Prior to the availability of plywood, the most common roof decking was dimensional lumber or tongue and groove boards. Dimensional lumber or tongue and groove boards are nominally thick and are laid in a fashion that is parallel to the ridge or diagonal to the ridge. These roof decks are fastened by at least two nails per truss/rafter connection. Because of the inherently large number of nails in dimensional lumber or tongue and groove, the uplift capacity is generally far greater than typical plywood/osb decks. By far the most important feature of roof decks is the attachment to the framing, which is usually achieved by nail fasteners. Nail size, type, spacing and penetration depth into the truss or rafters determines the uplift resistance of the deck. The difference in uplift capacity of 8d (2 1/2 inch) nails at typical nail spacing and 6d (2") nails at the same spacing is a factor of about two times stronger, which makes a significant difference in deck performance in hurricanes. The thickness of the deck material is also important primarily in the determination of the penetration depth on the nail into the truss/rafter. Prescriptive building codes specify longer nails for thicker decks. Level A - Plywood/OSB nailed with 6 penny common nails at 6" spacing on the edge and 12" in the field on 24" truss spacing. This provides for a mean uplift resistance of 55 lbs per sq ft. Level B - Plywood/OSB nailed with 8 penny common nails at 6" spacing on the edge and 12" in the field on 24" truss spacing. This provides for a mean uplift resistance of 103 lbs per sq ft. AIIC Voluntary Homeowners Program December 2012 Page 47

48 Level C - Plywood/OSB nailed with 8 penny common nails at 6" spacing on the edge and 6" spacing in the field on 24" truss spacing. Within 4'of a gable end the nail spacing is 4". This provides for a mean uplift resistance of 182 lbs per sq ft. for non-gable end locations and 219 lbs per sq ft for gable end locations. Level D - Dimensional lumber and tongue and groove decks. Over 90% of the RCMP inspected dimensional lumber decks have 8d or greater nails. The case of two 8d nails per board produces a mean uplift resistance of 338 lbs per sq ft. There are many technical issues that affect the proper rating of the roof deck including a variety of available nail sizes, nail penetration depths, the consideration of missed nails, etc. Proper inspection guidelines and training are essential to determining the deck attachment of existing residences. Roof-Wall Connection - The roof to wall connection is another critical connection that keeps the roof on the building and acts to transfer the uplift loads into the vertical walls. This connection is key to the performance of the building due to the large negative pressures acting on the roof. Verification of the type of roof to wall connection requires access to the attic to inspect for accurate house rating. There are several manufacturers of the metal connectors for hurricane uplift connectors and each company has a fairly wide line of products. For practical purposes, a classification is used to distinguish the uplift capacity of these connections based on connector type. The most important feature of any of these connectors - other than toe nails, is that the fasteners used to transfer the loads from rafter/truss to strap to top plate or side wall are always loaded in shear (perpendicular to the nail direction) or the strap is embedded into the bond beam of the masonry wall. Proper installation is critical to connector performance. Toe Nails - A common connection detail in non-hurricane prone areas is the toe-nail, where approximately 3 nails are driven at an oblique angle through the rafter and into the top plate. Clips - Clips are defined as pieces of metal that are nailed into the side if the rafter/truss and into the side of the top plate or wall stud. The metal does not wrap around the top of the rafter/truss and the clip is only located on one side of the connection. Single wraps - The wrap style straps are attached to the side and/or bottom of the top plate and are nailed to the rafter/truss. Double wraps - Straps that are wrapped on both sides of the top plate. Double wraps have twice the capacity of a single wrap. Reinforced Concrete Roof Deck - Although not very common in residential roof construction in Florida, there are homes constructed with concrete roof decks. When these homes are equipped with wind-borne debris impact resistant opening protection, they are extremely resistant to building failures. To qualify for this type of construction, the roof deck must be designed and constructed in accordance with ACI (American Concrete Institute) 318, including integral construction with a masonry wall system. AIIC Voluntary Homeowners Program December 2012 Page 48

49 Opening Protection Openings in the wall and roof include windows, doors, sliding glass doors, skylights and garage doors. Gable end vents and other roof vents are not considered openings for purposes of this program. Openings are vulnerable to wind-borne debris impacts in hurricanes and other windstorms. Typical single and double strength glazing are easily broken by impact from lightweight debris that is generated from roof covering failures during high winds. In addition, heavier debris such as roof tiles, 2X4 wood members and plywood will easily penetrate openings that are not protected by impact resistant products. The protection of openings is perhaps the greatest single loss mitigation strategy for a building. The reason for this is that once a window or door fails the pressure inside the structure increases due to the breach in the building envelope. The positive pressure inside the building produces an additive load on the building envelope which can be up to twice the load the building would experience without the breach. Hurricane Impact (Class A) All exterior openings or all glazed exterior openings in buildings (doors, windows, skylights and vents, other than roof ridge, gable, soffit and plumbing vents) must be fully protected with impact resistant coverings (e.g. shutters), impact resistant doors, and/or impact resistant window units that are listed as wind borne debris protection devices in the product approval system of the State of Florida or Miami-Dade County. Miami-Dade County Notice of Acceptance (NOA) 201, 202 and 203. (Large Missile - 9 lb.) Florida Building Code Testing Application Standard (TAS) 201, 202 and 203. (Large Missile 9 lb.) American Society for Testing and Materials (ASTM) E 1886 and ASTM E (Large Missile 9 lb.) Southern Standards Technical Document (SSTD) 12. (Large Missile 9 lb.) For Skylights Only: ASTM E 1886/E (Large Missile lb.) For Garage Doors Only: ANSI/DASMA 115. (Large Missile 9 lb.) Basic Impact (Class B) All exterior openings or All glazed exterior openings in buildings (doors, windows, skylights and vents, other than roof ridge, gable, soffit and plumbing vents) must be fully protected with impact resistant coverings (e.g. shutters), impact resistant doors, and/or impact resistant window units that are listed as wind borne debris protection devices in the product approval system of the State of Florida or Miami-Dade County. All opening protection devices must meet the following Cyclic Pressure and Large Missile Impact standards as appropriate: ASTM E 1886 and ASTM E (Large Missile 4.5 lb.) SSTD 12. (Large Missile 4 lb. to 8 lb.) For Skylights Only: ASTM E 1886/E 1996 (Large Missile - 2 to 4.5 lb.) All other cases, including unprotected glazed openings. Roof Shape - Roof shape refers to the geometry of the roof and not the type of roof covering. There are many common roof shapes in residential construction. Gable and hip are the most common although flat, Dutch hip, gambrel, mono slope and many shape combinations are possible. Gable roofs have vertical walls that extend all the way to the top of the inverted V and are very common throughout Florida. A hip roof has sloping ends and sloping sides down to the roof eaves line. AIIC Voluntary Homeowners Program December 2012 Page 49

50 Roof shape determines the aerodynamic pressure loads experienced by the roof due to wind flow and wind direction. Gable and hip shapes and their combinations comprise more than 80% of the residential buildings. Secondary Water Resistance (SWR) - Secondary water resistance is a layer of protection that protects the building if the roof covering fails. This mitigation technique is aimed at keeping rainwater out of the house once the roof covering fails. Generally, roof coverings begin to peel off in peak wind gusts ranging from about 70 to 100 mph. The underlayment (felt) also is easily torn and becomes separated from the roof deck, exposing the house interior to water damage. Water enters through the space between the pieces of the roof deck. SWR covers these seams and provides for redundant water proofing of the house. The most economical way to achieve SWR is to apply Self-Adhering Modified Bitumen Tape to the plywood joints. This self adhering tape is generally known as Ice & Water Shield or Peel N Seal and is a rubber like product applied directly to a roof deck to prevent damage from ice dams in northern climates. Here, the product is applied to the outside of a clean plywood/osb deck prior to the application of regular underlayments and roof covering. The application of SWR is done when a new roof covering is being put on the house. Another way to achieve SWR is a foamed polyurethane structural adhesive applied from inside the attic to cover the joints between all plywood sheets. Note that this product is also used to reinforce the connection between the trusses and roof sheathing, qualifying for improved roof deck attachment. Structural adhesives that meet standard AFG-01 should not be confused with foamed insulating products. The verification of SWR must be done at the time of application since, once covered, it is difficult to verify. The foamed structural adhesive applied from inside the attic however, is readily verified with an attic inspection. Roofing contractors should complete a form to provide certification for the owner in order to receive this credit. Note: underlayments or hot-mopped felts are not SWR. FBC 2001 Construction - Dwellings built to the standards of Florida Building Code 2001 which became effective 3/1/2001. Enclosed Building - An enclosed structure is designed assuming that all openings are closed and, therefore, the wind loads are determined using a small internal pressure inside the building. Partially Enclosed - A partially enclosed building is designed assuming that one or more areas of the building are open to allow wind to enter the building and pressurize the interior. This pressurization means that individual parts of the building must be designed to withstand greater wind loads than an "enclosed" building and thus are stronger than the similar features of an "enclosed" house. However, the openings (windows, doors, etc) in partially enclosed designs are vulnerable to wind-borne debris impact failures and the resulting wind and rain water damage to the building interior and contents. AIIC Voluntary Homeowners Program December 2012 Page 50

51 For insurance rating purposes, clearly the design option chosen for a house in the Wind-Borne Debris Region of the FBC is a key factor in hurricane loss mitigation. Enclosed designs in the Wind-Borne Debris Region will have all glazed openings protected for debris impact. These buildings will perform better that partially enclosed designs and will have lower losses. E. WINDSTORM LOSS REDUCTION CREDITS FOR NEW CONSTRUCTION Dwellings Constructed to Florida Building Code 2001 and Later AIIC Voluntary Homeowners Program December 2012 Page 51

52 Non-FBC Rating Factors for Existing Construction TERRAIN C ROOF SHAPE HURRICANE PREMIUM CREDITS FOR EXISTING CONSTRUCTION OTHER HIP ROOF COVER NON - FBC EQUIVALENT NON - FBC EQUIVALENT NON - FBC EQUIVALENT ROOF DECK ATTACHMENT A 6" / 12") B 6" / 12") C 6" / 6") AND D 6" / 6") DIMENSIONAL LUMBER DECK ROOF-WALL CONNECTION TOE NAILS CLIPS SINGLE WRAPS DOUBLE WRAPS TOE NAILS CLIPS SINGLE WRAPS DOUBLE WRAPS TOE NAILS CLIPS SINGLE WRAPS DOUBLE WRAPS OPENING PROTECTION NO SWR SWR NO SWR SWR AIIC Voluntary Homeowners Program December 2012 Page 52

53 Non-FBC Rating Factors for Existing Construction (continued) TERRAIN B ROOF SHAPE HURRICANE PREMIUM CREDITS FOR EXISTING CONSTRUCTION OTHER HIP ROOF COVER NON - FBC EQUIVALENT NON - FBC EQUIVALENT NON - FBC EQUIVALENT ROOF DECK ATTACHMENT A 6" / 12") B 6" / 12") C 6" / 6") AND D 6" / 6") DIMENSIONAL LUMBER DECK ROOF-WALL CONNECTION TOE NAILS CLIPS SINGLE WRAPS DOUBLE WRAPS TOE NAILS CLIPS SINGLE WRAPS DOUBLE WRAPS TOE NAILS CLIPS SINGLE WRAPS DOUBLE WRAPS OPENING PROTECTION NO SWR SWR NO SWR SWR AIIC Voluntary Homeowners Program December 2012 Page 53

54 FBC Rating Factors for Existing Construction TERRAIN C ROOF SHAPE HURRICANE PREMIUM CREDITS FOR EXISTING CONSTRUCTION OTHER HIP ROOF COVER ROOF DECK ATTACHMENT ROOF-WALL CONNECTION OPENING PROTECTION NO SWR SWR NO SWR SWR TOE NAILS FBC EQUIVALENT FBC EQUIVALENT FBC EQUIVALENT A 6" / 12") B 6" / 12") C 6" / 6") AND D 6" / 6") DIMENSIONAL LUMBER DECK REINFORCED CONCRETE ROOF DECK CLIPS SINGLE WRAPS DOUBLE WRAPS TOE NAILS CLIPS SINGLE WRAPS DOUBLE WRAPS TOE NAILS CLIPS SINGLE WRAPS DOUBLE WRAPS AIIC Voluntary Homeowners Program December 2012 Page 54

55 FBC Rating Factors for Existing Construction (continued) TERRAIN B ROOF SHAPE HURRICANE PREMIUM CREDITS FOR EXISTING CONSTRUCTION OTHER HIP ROOF COVER ROOF DECK ATTACHMENT ROOF-WALL CONNECTION OPENING PROTECTION NO SWR SWR NO SWR SWR TOE NAILS FBC EQUIVALENT FBC EQUIVALENT FBC EQUIVALENT A 6" / 12") B 6" / 12") C 6" / 6") AND D 6" / 6") DIMENSIONAL LUMBER DECK REINFORCED CONCRETE ROOF DECK CLIPS SINGLE WRAPS DOUBLE WRAPS TOE NAILS CLIPS SINGLE WRAPS DOUBLE WRAPS TOE NAILS CLIPS SINGLE WRAPS DOUBLE WRAPS AIIC Voluntary Homeowners Program December 2012 Page 55

56 ADDITIONAL FEES EMERGENCY MANAGEMENT PREPAREDNESS AND ASSISTANCE TRUST FUND SURCHARGE (EMPATF) An Emergency Management Preparedness and Assistance Trust Fund (EMPATF) surcharge of two dollars ($2) shall be added to every policy on new or renewal business. The EMPATF surcharge is a flat charge and is fully earned. The EMPATF surcharge is non-commissionable. MANAGING GENERAL AGENCY (MGA) FEE On business written pursuant to the provisions of Section of the Florida Statutes a twenty-five dollar ($25) policy fee will be charged to every policy on new or renewal business. The policy fee is a flat charge and is fully earned. The policy fee is non-commissionable. AIIC Voluntary Homeowners Program December 2012 Page 56

57 PAYMENT PLAN OPTIONS AIIC will mail a payment schedule to the policyholder at the issuance of the policy or the renewal term. A revised payment schedule will be mailed to the insured each time a mid-term change results in a change in the premium. Billing statements will not be generated with the automatic bank withdrawal payment method. The policyholder is responsible for ensuring the payment is received by the due date provided on the payment schedule. The method of billing for any policy premium is based on due date and not equity billing. The Company does not accept premium financing. Per Florida Statute , AIIC will give the insured at least 15 days advanced written notice of any increase in policy premiums prior to any automatic bank withdrawal of an increased premium. A payment schedule will be mailed with each renewal offer, 60 days prior to the expiration date of the policy term, if the policyholder is the payee. If the account is escrow billed, then a billing statement will be mailed to the policyholder and the mortgage holder. The insured is responsible for ensuring the payment is received prior to the expiration of the policy term. Regardless of the payment plan selected (paper or electronic) there will be no fee or service charge applied to the initial renewal payment. Several optional payment plans are available in this program. GENERAL RULES The Premium Payment Plan applies to policy premium only. All policy fees are due at policy inception. The selected payment plan must be indicated on the application. All future renewals will be billed by the same plan unless otherwise instructed by the insured or agent. *Payments made to the Company by check or draft which that returned because of non-sufficient funds will be assessed $15.00 in accordance with FS AIIC Voluntary Homeowners Program December 2012 Page 57

58 PAYMENT PLANS The following Payment Plans are available and paper invoices will be mailed out: Full Payment Plan - 100% of the Total Policy premium is due by the effective date or the issued date of the policy, whichever is greater. Semi-Annual Payment Plan - Requires an initial down payment of 60% of the total premium plus $3 installment fee and a $10 one time service fee due by the effective date of the policy or the date of issuance, whichever is earlier, followed by the remaining 40% plus $3 installment fee of the total premium due on the 180 th day after policy inception. Quarterly Payment Plan - Requires an initial down payment of 40% plus $3 installment fee and a $10 one time service fee due by the effective date of the policy or the date of issuance, whichever is earlier, followed by 3 installments of 20% plus $3 installment fee of the total premium due on the 90 th, 180 th, and 270 th days after policy inception. 4 Pay Payment Plan Requires an initial down payment of 25% of the total premium plus $3 installment fee and a $10 one time service fee due by the effective date of the policy or the date of issuance, whichever is earlier, followed by 3 installments of 25% of the total premium plus $3 installment fee due on the 60 th, 120 th and 180 th days after policy inception. AIIC Voluntary Homeowners Program December 2012 Page 58

59 FORMS The following forms are required based on coverage option selections of the applicant/policyholder: 1. AIIC HO XW REQUEST TO EXCLUDE WINDSTORM AND HAIL COVERAGE 2. AIIC HO XC REQUEST TO EXCLUDE CONTENTS COVERAGE 3. AIIC SKS SINKHOLE LOSS COVERAGE SELECTION REJECTION FORM 4. AIIC HO 09 IMPORTANT INFORMATION REGARDING ORDINANCE OR LAW COVERAGE 5. 4 POINT INSPECTION FORM (AIIC VERSION) AIIC accepts any 4 point inspection form if all the required information is indicated on the form. Inspections must be performed by a licensed/qualified inspector or inspection company and the license number and contact number must appear on the report. 6. STATEMENT OF NO LOSS (ACORD 37 (1/96)) A statement of No loss is required when there has been a lapse in coverage. The statement certifies there have been no losses, accidents or circumstances which may give rise to a claim since the lapse of the policy. A policy will not be reinstated before the Statement of No Loss is approved. AIIC Voluntary Homeowners Program December 2012 Page 59

60 TERRITORY BASE RATES County Description Terr. Code NHR HURR Alachua Baker Bay Coastal Bay Inland Bradford Brevard Coastal South Brevard Coastal North Brevard Inland South Brevard Inland North Broward Remainder of County Broward Coastal Broward Inland West Broward Calhoun Charlotte Coastal Charlotte Inland Citrus Coastal Citrus Inland Clay Collier Coastal Collier Inland Columbia Dade Coastal Dade Remainder of County Dade Inland West Dade DeSoto Dixie Coastal Dixie Inland Duval Remainder Duval Inland West Duval Duval Coastal Escambia Coastal Escambia Inland Flagler Coastal Flagler Inland Franklin Gadsden Gilchrist AIIC Voluntary Homeowners Program December 2012 Page 60

61 Territory Base Rates - Continued County Description Terr. Code NHR HURR Glades Gulf Coastal Gulf Inland Hamilton Hardee Hendry Hernando Coastal Hernando Inland Highlands Hillsborough Tampa/Hillsborough Metro Hillsborough Tampa Suburban Hillsborough Southwest Hillsborough Hillsborough East Holmes Indian River Inland Indian River Coastal Jackson Jefferson Coastal Jefferson Inland Lafayette Lake Lee Coastal Lee Inland Leon Levy Coastal Levy Inland Liberty Madison Manatee Coastal Manatee Inland Marion Martin Inland Martin Coastal Monroe Remainder of County Monroe Key West Nassau Coastal Nassau Inland AIIC Voluntary Homeowners Program December 2012 Page 61

62 Territory Base Rates Continued County Description Terr Code NHR HURR Okaloosa Coastal Okaloosa Inland Okeechobee Orange Orlando Remainder of County Orange Osceola Palm Beach Coastal Palm Beach Remainder Inland W. Palm Beach City Palm Beach Pasco Coastal Pasco Inland Pinellas Coastal Pinellas Exterior zip codes Pinellas Inland Polk Putnam Santa Rosa Coastal Santa Rosa Inland Sarasota Coastal Sarasota Inland Seminole St. Johns Coastal St. Johns Inland St. Lucie Inland St. Lucie Coastal Sumter Suwannee Taylor Coastal Taylor Inland Union Volusia Coastal Volusia Inland Wakulla Coastal Wakulla Inland Walton Coastal Walton Inland Washington AIIC Voluntary Homeowners Program December 2012 Page 62

63 TERRITORY DEFINITIONS BY ZIP CODE County Territory Zip Codes Alachua , 32603, 32605, 32606, 32607, 32608, 32609, 32611, 32615, 32618, 32631, 32640, 32641, 32643, 32653, 32666, 32667, 32669, Baker , 32063, Bay , 32402, 32403, 32405, 32407, 32408, 32413, , 32409, Bradford , 32058, 32091, , 32796, 32927, Brevard Broward ,, 32904, 32907, 32922, 32934, 32953, , 32903, 32905, 32920, 32925, 32931, 32935, 32937, 32940, 32949, 32950, 32951, 32952, , 32909,, , 33322, 33323, 33325, 33326, 33327, 33330, 33331, 33332, 33351, 33388, 33027, 33029, 33065, , 33006, 33009, 33019, 33301, 33304, 33305, 33306, 33308, 33309, 33311, 33312, 33315, 33316, 33334, 33020, 33021, 33023, 33060, 33062, 33064, 33069, 33441, 33442, , 33314, 33317, 33319, 33324, 33328, 33024, 33025, 33026, 33028, 33063, 33066, 33067, 33068, 33073, Calhoun , , 32449, Charlotte Citrus , 33953, 33921, 33927, 33946, 33947, 33948, 33949, 33950, 33951, 33980, 33981, , 33982, 33983, , 34450, 34453, 34465, 34433, 34434, 34436, 34442, 34446, 34452, 34460, , 34447, Clay , 32043, 32050, 32065, 32068, 32073, 32079, Collier , 34139, 34146, 33942, 34102, 34103, 34104, 34105, 34108, 34109, 34110, 34112, 34113, 34114, 34138, 34140, , 34116, 34117, 34119, 34120, 34141, Columbia , 32061, 32025, 32038, , 33177, 33130, 33131, 33132, 33133, 33134, 33135, 33136, 33137, 33138, 33139, 33140, 33141, 33142, 33143, 33144, 33145, 33146, 33147, 33149, 33150, 33154, 33155, 33156, 33157, 33158, 33160, 33161, 33162, 33167, 33168, 33170, 33173, 33176, 33179, 33181, 33189, 33190, 33030, 33032, 33033, 33034, 33035, 33039, 33101, 33109, 33114, 33125, 33126, 33127, 33128, Dade , 33166, 33169, 33172, 33174, 33175, 33178, 33180, 33180, 33182, 33183, 33185, 33186, 33010, 33013, 33014, 33187, 33192, 33193, 33196, 33031, 33054, 33056, , 33012, 33015, 33016, 33018, 33194, DeSoto , 34269, Dixie Duval , , 32680, , 32211, 32212, 32217, 32218, 32246, 32258, 32277, 32202, 32204, 32207, 32208, 32209, 32213, 32216, 32223, 32224, 32225, 32226, 32256, , 32219, 32221, 32222, 32234, 32244, 32205, 32215, , 32233, 32250, Escambia Flagler , 32502, 32503, 32504, 32505, 32506, 32507, 32508, , 32533, 32534, 32535, 32568, , 32137, , AIIC Voluntary Homeowners Program December 2012 Page 63

64 County Territory Zip Codes Franklin , 32380, Gadsden , 32352, 32333, 32343, 32324, 32330, Gilchrist , Glades , 34944, Gulf Hamilton Hardee Hendry Hernando Highlands , 32053, , 33873, , , 34602, 34604, 34609, , 34607, 34608, , 33825, 33852, 33857, 33870, 33872, 33875, , 33566, 33567, 33563, 33564, 33565, 33584, 33592, 33594, 33647, 33510, 33511, Hillsborough Holmes Indian River Jackson , 33572, 33611,33534, 33606, 33608, 33609, 33616, 33619, , 33548, 33549, 33556, 33558, 33559, 33568, 33569, 33598, 33625, 33626, 33637, , 33602, 33603, 33604, 33605, 33607, 33612, 33613, 33614, 33615, 33617, 33618, 33620, 33624, 33634, 33635, , 32427, 32452, 32455, , 32966, , 32960, 32962, 32963, , 32423, 32426, 32431, 32432, 32440, 32442, 32443, 32445, 32446, 32448, Jefferson , 32361, Lafayette , Lake , 34736, 34737, 34762, 34788, 32757, 32767, 32776, 32778, 32784, 32158, 32159, 34705, 34711, 34714, 34715, 34731, 34748, 34753, 32702, 32726, 32735, 32736, 34756, Lee Leon , 33901, 33903, 33905, 33906, 33907, 33909, 33910, 33912, 33913,33916, 33917, 33920, 33971, 33972, , 33908, 33914, 33919, 33922, 33923, 33924, 33928, 33931, 33945, 33956, 33957, 33991, 33993, 34134, , 32303, 32305, 32306, 32308, 32309, 32310, 32311, 32312, 32304, Levy Liberty Madison , 34498, , 32626, 32668, , , 32059, 32350, Manatee , 34202, 34208, 34211, 34212, 34219, 34222, , 34216, 34203, 34205, 34207, 34209, 34210, 34217, 34221, 34228, 34243, Marion , 32195, 34470, 32113, 34476, 34479, 34480, 34481, 34482, 34488, 34489, 34491, 32134, 32192, 32617, 32664, 32686, 34420, 34421, 34431, 34432, 34471, 34472, 34473, 34474, Martin Monroe , 34997, 33455, 33469, 34957, 34992, , , 33036, 33037, 33042, 33043, 33044, 33050, 33051, 33052, AIIC Voluntary Homeowners Program December 2012 Page 64

65 County Territory Zip Codes Nassau Okaloosa Okeechobee Orange Osceola Palm Beach , 32011, 32046, , 32536, 32539, 32564, , 32542, 32547, 32548, 32569, 32579, , 32803, 32789, 32804, 32805, 32806, 32808, 32811, 32812, 32813, 32814, , 34760, 34761, 34787, 32768, 32798, 32807, 32809, 32810, 32817, 32818, 32819, 32820, 32821, 32822, 32824, 32825, 32826, 32827, 32828, 32829, 32830, 32831, 32832, 32833, 32834, 32835, 32836, 32837, 34786, 32703, 32704, 32709, , 34741, 34743, 34744, 34746, 34747, 34758, 34769, 34771, 34772, 34773, , 33462, 33401, 33403, 33404, 33405, 33406, 33407, 33408, 33409, 33410, 33426, 33431, 33432, 33435, 33436, 33444, 33445, 33460, 33461, 33477, 33480, 33483, 33484, 33486, , 33413, 33415, 33417, 33418, 33428, 33433, 33434, 33437, 33446, 33458, 33463, 33467, 33496, Pasco Pinellas , 33414, 33430, 33431, 33432, 33438, 33470, 33476, 33478, , 33545, 34654, 33526, 33540, 33541, 33542, 33544, 33574, 33576, 34610, 34637, 34638, 34639, 34655, 34669, 33523, 33524, , 34652, 34667, 34668, 34690, , 34688, 34689, 33504, 34664, 34619, 34622, 34624, 34644, 34646, 33709, 33710, 33761, 33762, 33770, 33771, 33772, 33773, , 33776, 33777, 33778, 33781, 33782, 34683, 34695, 34698, 33784, 33702, 33703, 33704, 33716, 33730, 33755, 33756, 33759, 33760, 34615, 34616, 34640, 33763, 33764, Polk 500 Putnam Santa Rosa Sarasota Seminole , 34620, 34621, 34623, 34625, 34643, 34647, 34648, 33713, 34666, 34677, 34684, 34685, 34641, , 34635, 34660, 33708, 33711, 33712, 34681, 33785, 33786, 34634, 33701, 33705, 33706, 33707, 33715, , , 33801, 33803, 33805, 33807, 33809, 33810, 33811, 33813, 33815, 33823, 33827, 33830, 33834, 33835, 33837, 33838, 33839, 33841, 33843, 33844, 33849, 33850, 33851, 33853, 33855, 33856, 33858, 33859, 33860, 33868, 33877, 33880, 33881, 33884, , 32139, 32140, 32177, 32181, 32187, 32189, 32193, 32131, 32147, , 32561, 32563, 32566, , 32570, , 34224, 34229, 34231, 34232, 34233, 34234, 34235, 34236, 34237, 34238, 34239, 34242, 34272, 34274, 34275, 34285, 34292, , 34241, 34286, 34287, 34288, , 32766, 32771, 32772, 32773, 32779, 32792, 32701, 32707, 32708, 32714, 32730, 32732, 32733, 32746, 32750, St Johns St Lucie Sumter Suwannee Taylor Union Volusia Wakulla Walton Washington , 32084, 32086, 32082, , 32092, 32145, , 34946, 34947, 34949, 34950, 34951, 34952, 34953, 34982, 34983, 34984, , 34987, , 33585, 33597, 34484, 32162, 34749, 34785, 33513, 33514, , 32008, 32062, 32071, 32060, 32064, , , 32083, , 32169, 32176, , 32124, 32128, 32129, 32141, 32168, 32174, 32180, 32114, 32117, 32763, 32764, 32127, 32130, 32132, 32190, 32713, 32720, 32724, 32725, 32738, , , , , 32459, 32550, , 32437, AIIC Voluntary Homeowners Program December 2012 Page 65

66 RATE CALCULATION WORKSHEET X X X X = + Non-Hurricane Base Rate (NHR) Amount of Insurance Factor Protection Class Factor Credit Factor Age of Dwelling Factor NHR Building Code Effectiveness Grade Factor NHR Base Premium NHR Wind Loss Mitigation Credit = NHR Base Premium x [1- NHR Wind/Hail Exclusion Factor x Capped Wind Mitigation Credit Where, Capped Wind Mitigation credit = Min [0.9 (1 Hurricane BCEG Factor), Wind Loss Mitigation credit] - Applicable NHR Premium Factors (max discount = 40%) X X X Deductible Factor Coverage B limit Factor Coverage C limit Factor X Windstorm and Hail Exclusion Factor (.95) X Water Damage Exclusion Factor (.90) = (1) Adjusted Non-Hurricane Base Premium Additional Coverages (NHR) + Ordinance or Law Coverage % (factor X NHR X Amt of Ins Factor X PC Factor X Age Factor) + Increased Replacement Cost Coverage (5% X NHR X Amt of Ins Factor X PC Factor X Age Factor) + Personal Property Replacement Cost Coverage (10% X NHR X Amt of Ins Factor X PC Factor X Age Factor) + Gold Reserve Endorsement ((1) X Gold Reserve factor) + Special Personal Property Coverage (10% X NHR X Amt of Ins Factor X PC Factor X Age Factor) + Scheduled Personal Property Endorsement + Increased Loss Assessment Coverage + Limited Fungi, Mold, Wet or Dry Rot, or Bacteria Coverage Endorsement + Home Computer Coverage + Increased Section II Limits + Personal Injury Coverage + Golf Cart Coverage Physical Damage and Liability + Identity Fraud Expense Coverage + Water Back Up and Sump Overflow + Animal Liability + Sinkhole Liability (Factor X NHR X Amt. of Ins. Factor x 0.90) (2) Non- Hurricane Additional Coverage Total AIIC Voluntary Homeowners Program December 2012 Page 66

67 Hurricane Base Rate (HUR) Amount of Insurance Factor X Construction Factor (Masonry = 0.80, Superior = 0.75} X X = X = X X X Age of Dwelling Factor Building Code Effectiveness Grade Factor Subtotal Loss Mitigation Credit x Subtotal above Subtotal Deductible Factor Coverage B limit Factor Coverage C limit Factor = (3) Adjusted Hurricane Base Premium Additional Coverages (HUR) + Ordinance or Law Coverage % (factor_ X HUR X Amt of Ins Factor X Construction Factor X Age Factor) + Increased Replacement Cost Coverage (5% X HUR X Amt of Ins Factor X Construction Factor X Age Factor) + Personal Property Replacement Cost Coverage (10% X HUR X Amt of Ins Factor X Construction Factor X Age Factor) + Gold Reserve Endorsement ((3) X Gold Reserve factor) + Special Personal Property Coverage (10% X HUR X Amt of Ins Factor X Construction Factor X Age Factor) + Carport (s), Pool Cage(s) and Screen Enclosure(s)(Factor X HUR X 2.5 X Age Factor X Hurr. Deductible Factor) = (4) Hurricane Additional Coverage Total + $25 Managing General Agent Fee + $2 Emergency Management Preparedness and Assistance Trust Fund TOTAL PREMIUM ( MGA Fee+ EMPA) AIIC Voluntary Homeowners Program December 2012 Page 67