DWELLING AND FARM PROPERTIES MANUAL PENNSYLVANIA

Transcription

1 DWELLING AND FARM PROPERTIES MANUAL Version 4.0

2 INDEX Rules Page Additional Hazards...15 Additional Interests...9 Additional Living Costs Principal Coverage...6 Coverage Options...20 Additional Locations...11 Additional or Special State Provisions... Def-1 Additional Perils -- Livestock...23 Assignment...9 Broad Form...7 Business Activities...1 Business Property...20 Cancellation...10 Changes in Limits...14 Construction Definitions...4 Contributing Insurance...11 Coinsurance...9 Coverage Options...17 Credit Cards & Depositors Forgery...21 Deductibles...15 Deferred Premium Payment...9 Dwellings Under Construction...14 Farm Buildings Under Construction...23 Earthquake...17 Eligibility...1 Extended Coverage Dwelling Properties...7 Farm Properties...23 REV 4.0 Index - i MMI

3 INDEX Rules Page Fair Rental Value Principal Coverage...6 Coverage Options...22 Farm Extra Expense...23 Farm Machinery Glass Breakage in Cabs...24 Farm Operations Records...24 Farm Property Forms...5 Fire Resistive Construction...4 Heating in Farm Buildings...16 Inception Time...8 Incidental Business Activities...1 Individual Risk Premium Modification...16 Ineligible Risks...2 Inflation Guard...18 Interpolation...12 Loss Settlement...6 Merchandise in Storage...1 Minimum Premium...11 Mobile Homes Definition...4 Special Rating Instructions...13 Coverage Options...21 Multiple Locations...11 Perils Insured Against...7 Personal Property In Other Buildings...14 Principal Coverage...6 Farm -- Peak Season Inventory...24 Policy Forms...5 REV 4.0 Index - ii MMI

4 INDEX Rules Page Policy Term...8 Policywriting Instructions...8 Premium Determination...12 Premium Group Chart... Def-3 Premium Modifications...15 Premium Rounding...11 Principal Coverages...6 Program Description...5 Protective Devices Fire or Smoke...15 Burglary...15 Protection Definitions Dwellings... Def-1 Farm Properties...(Rates Page) 17 Related Private Structures Principal Coverage...6 Coverage Options...18 Rented or Borrowed Equipment...25 Replacement Cost Coverage A...6 Residence...3 Restriction of Coverage...10 Row or Townhouses...13 Seasonal Properties...13 Smoke Detectors...15 Special Form...5 Sprinkler Systems...15 Tenant's Improvements...21 Farm Tenant's Improvements...25 Tenant's Liability Insurance Credit...16 Territorial Definitions... Def-3 Theft of Livestock and Machinery...25 Transfer of Policy...9 REV 4.0 Index - iii MMI

5 INDEX Rules Page Vacancy or Unoccupancy...15 Vandalism Dwelling Properties...17 Farm Properties...23 Waiver of Premium...11 Weight of Ice and Snow (Farms)...25 Winter Perils Livestock...24 REV 4.0 Index - iv MMI

6 RULE 1 -- ELIGIBILITY 1.1 Eligible Risks A Dwelling or Farm Properties policy may be issued to cover: -- A one- to four-family dwelling, mobilehome or farm property consisting of residences, barns, outbuildings and other structures used for private residential or farm purposes and their contents, livestock, poultry, hay and grain, farm machinery and equipment; -- A private residential dwelling in a row house or townhouse built within the past 25 years that contains not more than four family units per fire division; -- Private structures related to dwellings; -- Personal property located in a one- to four-family dwelling, row house or townhouse built within the past 25 years, mobile home related private structure, apartment, or other structure. 1.2 Incidental Business Activities An insured or an occupant of the insured premises may engage in one of the following incidental business activities on the premises without affecting the eligibility status of the risk: -- a business or professional office, private school, studio, or day care facility where no more than two people work; -- a small service business, such as a barber shop, beauty parlor, dressmaker, tailor, or shoe repair where no more than two people work; or -- storage of merchandise up to $10,000 in value. Provided: - It is owned solely by the named insured; REV 4.01 Rules - 1 MMI

7 - Does not exceed 750 sq. Feet; - Does not employ any paid employees - Does not exceed annual receipts of $15, Submit to Company The following must be submitted to the company for determination of eligibility: -- Vacant or unoccupied properties. -- A farm where business pursuits other than farming are conducted. -- A farm where the risk includes the raising, boarding/maintaining of horses, or riding arenas. -- Farms which are operated to supply agricultural commodities for manufacturing or processing by the insured for sale to others: such as creameries and dairies (but not dairy farms), farms operating freezing or dehydrating plants or poultry factories. The word "processing" does not apply to the slaughtering and dressing of livestock or to such operations as bunching of vegetables or crating of berries if such processing is for the insured's own use or on a limited basis. 1.4 Ineligible Risks A Dwelling Properties policy may not be issued to cover: -- Buildings and contents thereof used for commercial purposes such as, but not limited to (1) crop drying, grain grinding, seed grain drying and alfalfa or hay chopping for others; (2) sales barns, barns used for dance purposes and green houses. -- Buildings used for other than conventional farming purposes. -- Dwellings in row houses or townhouses containing more than four family units per fire division; or are over 25 years old. -- Dwellings, mobile homes, related private structures, or condominium units with business occupancies not approved by the company. REV 4.01 Rules - 2 MMI

8 -- Self propelled mobile homes and mobile homes not permanently situated at a fixed location; -- Dwellings, mobilehomes, or related private structures with business occupancies other than the incidental business activities described in this manual Refer to the company for additional guidelines. 1.5 Photographs and Certification -- Photographs are required for each building covered. A diagram or plat may also be required showing all buildings on a farm whether insured or not, and with the location, size and the distance between all buildings clearly indicated. The photographs shall be dated to show when they were taken, which should not be more than 90 days prior to the date submitted. -- At the option of the company, certification by the agent that there have been no changes affecting the rating requirements may be submitted on renewal in lieu of the above requirements. RULE 2 -- DEFINITIONS 2.1 CLASSIFICATIONS DWELLING - A building constructed and used for occupancy by not more than four families. Accommodations for up to five roomers or boarders are permitted. If accommodations for over five roomers or boarders exist, the building is not eligible to rating under this manual. REV 4.0 Rules - 3 MMI

9 2.1.2 Mobilehome - A portable unit, not self-propelled, constructed and used for residential purposes, designed for occupancy by one or two families, and permanently situated at a fixed location. Determine premium as specified for mobilehomes in the State Rate Pages Seasonal Properties - Premiums for seasonal properties shall be determined as specified in the State Rate Pages. A dwelling normally unoccupied for three or more consecutive months a year is considered a seasonal dwelling Owner Occupied - Occupied in whole or in part for residential purposes by the insured who owns the property, is a contract purchaser, or is an occupant under life tenancy. (Buyer /Seller agreements subject to company approval) Fire Resistive Construction (1-4 Family Dwellings) 2.2 Construction -- Dwellings of fire resistive construction - Coverage A - To determine premium for Fire and Extended Coverage use factor located in State Rate Pages and apply to Fire and Extended Coverage premiums for masonry construction. Applicable to forms FL-501, 502 & Household Personal Property - Coverage C - Determine premiums the same as for masonry construction Building or Fire Division - That part or section of an enclosed structure separated from other parts or sections by space or by masonry walls at least eight inches thick through or to the underside of the roof. Any openings through such masonry walls must be protected by fire doors approved for installation on fire by space or by masonry walls at least eight inches thick through the underside of the roof. Any openings through such masonry walls must be protected by fire doors approved for installation on firewalls Frame - Exterior walls constructed of combustible materials such as wood, or constructed of incombustible materials on combustible supports. REV 4.0 Rules - 4 MMI

10 2.2.3 Masonry - Exterior walls constructed of brick, concrete block, concrete, tile or other masonry materials or constructed of incombustible materials on incombustible supports. Mixed frame and masonry construction shall be classed as frame for rating purposes if walls of frame construction exceed 33.3% of total exterior wall area Masonry Veneered - Exterior walls constructed of combustible material covered with masonry. Dwellings of masonry veneered construction shall be classed as masonry for rating purposes. Farm buildings of masonry veneered construction shall be classed as frame Fire Resistive - Exterior walls, floors and roof constructed entirely of masonry or incombustible materials on incombustible supports and having a Fire Resistive Rating of at least one hour. RULE 3 -- PROGRAM DESCRIPTION The following is a general description of the coverage provided by the Dwelling Properties forms. The policy forms state the complete conditions. 3.1 Policy Forms A Dwelling Properties policy may be issued by using the MMI FL-520 and one of the following perils policy forms: MMI FL Basic Form MMI FL Broad Form MMI FL Special Form Farm Forms (Add to FL-520 and selected peril form) AAIS FL-6 -- Property Schedule REV 4.0 Rules - 5 MMI

11 3.2 Principal Coverages Four principal coverages are available under a Dwelling Properties policy Coverage A -- Residence Coverage A covers the dwelling, additions, built-in components, attached fixtures, and detachable building items. Coverage also applies to appliances, carpets, and window coverings in rental portions of the dwelling. Tools and equipment used to service the premises are covered under Coverage A when the policy does not otherwise include coverage for personal property Coverage B -- Related Private Structures Coverage B covers unattached structures related to the dwelling, including their additions, built-in components, fixtures, and detachable building items. Coverage also applies to fences, driveways, sidewalks, and other permanently installed outdoor fixtures. You may apply up to 10% of the Coverage A limit to Coverage B. Any payment under this option reduces the Coverage A limit of liability for the same loss Coverage C -- Personal Property Coverage C covers household contents and personal property usual to the occupancy of the dwelling as a residence Coverage D -- Additional Living Costs and Fair Rental Value Coverage D covers increased living costs and/or loss of rental value that occurs when an insured loss makes a covered location unfit for use. You may apply up to 10% of the Coverage A limit to Coverage D. Any payment under this option reduces the Coverage A limit of liability for the same loss. 3.3 Loss Settlement Provisions Form MMI FL-501 and Mobile Homes (All Forms) Covered losses are settled on an actual cash value basis. REV 4.0 Rules - 6 MMI

12 Contingent upon dwelling eligibility, endorsement MMI FL-547 may be added to non-mobilehome dwellings to allow for settlement of covered losses on a Replacement Cost basis Forms MMI FL-502 and MMI FL-503 Covered building losses are settled on a replacement cost basis. Other covered losses are settled on an actual cash value basis Form FL-6 Covered losses are settled on an actual cash value basis. 3.4 Perils Insured Against Forms MMI FL-501 and MMI FL Form MMI FL-501 (Basic Form Fire and Basic Form Fire and Extended Coverage) and form MMI FL-502 (Broad Form) provide coverage for loss caused by the perils indicated below. Form Used: FL-501 FL-501 FL-502 Fire and Fire Extended Broad Perils Covered Coverage Fire or Lightning X X X Explosion X X X Windstorm or Hail X X Riot or Civil Commotion X X Aircraft X X Vehicles X X Smoke X X Volcanic Action X X Sinkhole Collapse X X Vandalism Optional X Burglary Damage X Falling Objects X Weight of Ice, Snow, or Sleet X Accidental Tearing Apart, Burning, or Bulging X Accidental Discharge of Liquids or Steam X Freezing of Plumbing or Heating System X Sudden and Accidental Electrical Damage X REV 4.0 Rules - 7 MMI

13 3.4.2 Form MMI FL Form MMI FL-503 (Special Form) covers the residence and related private structures against all risks of physical loss, with certain exceptions. When personal property is covered under form FL-503, the Broad perils apply Farm Property Forms FL-6 Covers perils of fire, lightning and explosion. Optionally covers extended coverage perils of: Coverages E, F & G Windstorm or Hail X Riot or Civil Commotion X Aircraft X Vehicles X Smoke X Electrocution of Livestock X Collision X Theft X See additional optional coverages under Rule 8 in this manual. RULE 4 -- POLICYWRITING INSTRUCTIONS 4.1 Inception Time Dwelling policies are issued to take effect at 12 noon on the inception date. 4.2 Policy Term Annual Rating information for annual policies is shown in this manual. An annual policy can be extended for successive terms by using an extension certificate. The premium for each successive term is based on the rating information, rules, forms, and endorsements in effect on the renewal date. REV 4.0 Rules - 8 MMI

14 4.2.2 Three-Year Prepaid A policy may also be written for a period of three years. An annual premium will be billed at inception and subsequent premiums paid at each anniversary determined by rates then in effect. Endorsement FL Premium Installments Monthly, quarterly, and semi-annual premium payment plans are available at a charge of $3 per billing. 4.3 Additional Interests Endorsements M-12, M-4 or M-2 An additional owner's interest in a covered building may be covered without additional charge. Endorsement FL Transfer or Assignment The policy may be endorsed to effect: -- transfer to another location within the same state; or -- assignment from one insured to another in the event of transfer of title of the dwelling. Endorsement FL Coinsurance A coinsurance clause is not required in any non-farm policy written under the provisions of this manual. REV 4.0 Rules - 9 MMI

15 4.5.1 Farm Property Coverages E & F An 80% coinsurance clause applies to coverage on the following items: Farm produce and supplies Mobile machinery and equipment Poultry Livestock Farm Personal Property Coverage G An 80% coinsurance clause applies to all coverage provided by this form. 4.6 Restriction of Coverage If a policy would not be issued because of unusual exposures, the applicant may request a restriction of coverage at no reduction in premium. When the company grants such a request and the policy is so restricted, the Restriction of Individual Policies Endorsement ML-304 must be attached specifying the restriction(s) made and bearing the signature of the named insured. Restrictions under this rule must be filed with and approved by the Pennsylvania Insurance Department. 4.7 Cancellation or Reductions in Limits of Liability or Coverages Mandatory coverages may not be canceled unless the entire policy is canceled. If the policy or non-mandatory coverages are canceled or the amount of insurance is reduced: By the company or in the event of foreclosure of the mortgage on the insured real property, compute return premium pro rata By the insured: For policy terms of one year or less -- Compute return premium at 90% of the pro rate unearned premium. For three year policies -- - If canceled during the first year, the return premium is 90% of the pro rata unearned premium for the first year and the full annual premium for the second and third years. REV 4.0 Rules - 10 MMI

16 - If canceled after the first year, return the pro rata unearned premium for the remaining policy term. 4.8 Contributing Insurance Coverage may be divided between two or more companies. All policies must contain the same deductible. All additional limits and coverages must be divided between the companies. Endorsement FL Multiple Locations A single policy can be issued to cover property at different locations in the same state if the same form and same deductible option apply at each location. Describe each location and show the limits that apply Minimum Premium A premium of at least $40 shall be charged for any policy or for any annual installment Computation / Waiver of Premium Additional or return premium due when a policy is endorsed after its inception shall be determined on a pro rata basis. Premiums for increased amounts of insurance or added coverages shall be premiums in effect at the date of change. Manual rate reductions may be applied only at the next policy anniversary date except that premiums for policies effective within 45 days prior to the effective date of reduction may be adjusted pro rata. Additional premiums of $3 or less may be waived at the option of the company Premium Rounding Each policy premium shown shall be rounded to the nearest dollar with $.50 or more rounded upwards. Return premium computations should be rounded in the same manner. REV 4.0 Rules - 11 MMI

17 4.13 Interpolation Rating information for a limit that is between two limits shown in this manual can be developed by interpolation. RULE 5 -- PREMIUM DETERMINATION 5.1 Calculation of Premium Step 1 Determine which of the following apply: -- Form of Coverage: FL-501, FL-502, or FL FL-501 Only: Extended Coverage and Vandalism Perils -- Coverage A -- Coverage C -- Special Rating Instructions (Rule 5.2) -- Deductibles (Rule 6.1) -- Premium Modifications (Rule 6) -- Coverage Options (Rule 7) Step 2 Step 3 Select the Premium Group from the Territorial Definitions Page that reflects the territory, protection, and construction classifications that apply and determine the occupancy classification. If Coverage A applies, use the following steps to determine the premium. (Also follow any special rating instructions described in Rule 5.2.) A. Select the Coverage A FIRE premium for the policy limit, apply the factor for the deductible option selected, and apply any special rating factors from Rule 5.2. B. Form FL-501 only: If the extended coverage and vandalism perils apply, select the Coverage A OTHER PERILS premium for the territory and policy limit, apply the factor for the deductible option selected, and apply any special rating factors from Rule 5.2. REV 4.0 Rules - 12 MMI

18 Form FL-501 only: If the extended coverage perils apply but vandalism does not, do not include the premium for vandalism. Forms FL-502 and FL-503: Select the Coverage A OTHER PERILS premium for the territory and policy limit, apply the factor for the deductible option selected, and apply any special rating factors from Rule 5.2. C. The Coverage A premium is the sum of the FIRE and OTHER PERILS premiums determined by following Steps 3A and 3B. Step 4 Step 5 Step 6 Step 7 If Coverage C applies, use the Coverage C FIRE and OTHER PERILS premiums and follow the process described in Step 3. If any premium modifications apply, adjust the Coverage A and/or Coverage C premiums determined in Steps 3 and 4. If any coverage options apply, add the additional charges to the Coverage A and/or Coverage C premiums determined in Step 5. If both Coverage A and Coverage C apply, the total policy premium is the sum of the premiums determined in Step Special Rating Instructions Row Houses and Townhouses The occupancy classification for eligible row houses and townhouses is determined by the number of family units in the fire division Mobile Homes Use the rating information for a frame dwelling of the appropriate number of families and apply the mobile home factors shown in this manual Seasonal Properties A dwelling normally unoccupied for three or more consecutive months during the year is considered seasonal. Apply the seasonal dwelling rates shown in this manual. REV 4.0 Rules - 13 MMI

19 A mobile home is also considered seasonal if it is normally unoccupied for three or more consecutive months during the year. Apply the seasonal mobile home rates Dwellings Under Construction Use the rating information for nonowner-occupied dwellings Fire Resistive Construction Use the rating information for masonry construction and apply the fire resistive construction factors shown in this manual Personal Property in Buildings Other Than One- to Four-Family Dwellings, Related Private Structures, or Mobile Homes Use the rating information for five-plus family buildings of the appropriate construction type. If the building is of fire resistive construction and contains only apartments, use the rating information for five-plus family buildings of masonry construction and apply the factors shown in this manual for personal property in fire resistive apartment buildings. If the building contains a business occupancy other than apartments and is subject to Commercial Properties rating, use the rating information for five-plus family buildings of the appropriate construction type and apply the factors shown in this manual for personal property in other commercially rated buildings. 5.3 Changes in Limits or Addition of Coverages Policy limits may be increased or coverages added during the policy term. Compute the additional premium on a pro rata basis using the same forms, endorsements, and rating information in effect when the current policy premiums were calculated. REV 4.0 Rules - 14 MMI

20 RULE 6 -- PREMIUM MODIFICATIONS 6.1 Flat Deductibles -- All Perils The policy may be issued with one of the deductible options shown below. Apply the deductible factors shown in this manual. Deductible Amount $ ,000 2,500 The deductible amount is shown on the declarations; no endorsement is needed. Use the factors shown in this manual to adjust the OTHER PERILS premium. These factors are to be used in lieu of the factors shown in Rule Protective Devices The protective device factors shown in this manual may be applied for the installation of the following approved and properly maintained alarm and/or sprinkler systems: -- Central Station Fire and/or Smoke Alarm Systems -- Fire Department and/or Police Department Alarms -- Local Fire or Smoke Alarms (Excludes battery operated smoke detectors) -- Fire Suppression Sprinkler Systems Endorsement FL Additional Hazards When the following conditions exist, the fire premium should be increased by the amount indicated. The risk must be submitted to the company for review prior to policy issuance. -- If the dwelling or farm premises is vacant or unoccupied and is expected to remain so for an extended period of time, fire premiums for the dwelling should be increased 40%. REV 4.0 Rules - 15 MMI

21 -- If exposed urethane or styrene insulation is installed in any building the fire premium of the containing buildings should be increased 100%. 6.4 Farm Barns and Outbuildings - Heating Apply premium increases or reductions for heating equipment features as directed in the State Rate Pages. 6.5 Individual Risk Premium Modification Supplement The following modifications may be applied to recognize special characteristics of the risk that are not fully reflected in the basic premium or rates. The total amount of credit or surcharge developed using the following table may not exceed 25%. The credit or surcharge developed by the use of this Supplemental is applied after the application of all other rating procedures of the Dwelling and Farm Properties Manual. Risk Variation Range of Modification Credit Surcharge 1.) Care and condition of equipment and premises. 10% to 10% 2.) Classification Variation. 10% to 10% 3.) Cooperation of owners or operators with insurer s recommendations with respect to control of hazards and maintenance of protective equipment. 10% to 10% 4.) Damage susceptibility. 10% to 10% 5.) Dispersion or concentration. 5% to 5% 6.) Employees: selection, training, supervision, and experience. 5% to 5% 7.) Location: accessibility, congestion and exposures. 10% to 10% 8.) Miscellaneous protective features or hazards. 10% to 10% 9.) Roof condition and other windstorm exposures. 10% to 10% 10.) Storage practices and hazardous operations. 5% to 5% 11.) Superior or inferior structural features. 10% to 10% 12.) Past losses relative to number of exposure units and subsequent preventive measures. 10% to 10% THESE MODIFICATIONS ARE TO BE USED ON AN INDIVIDUAL BASIS WITH PRIOR HOME OFFICE APPROVAL ONLY. 6.6 Tenant Liability Insurance Credit The premium credit shown in the State Rate Pages shall be allowed for dwellings that meet the following criteria: REV 4.0 Rules - 16 MMI

22 Property is tenant occupied Proof of all tenants having current Fire/Legal Liability Insurance (min. $100,000) A signed Lease requiring all tenants to carry current Fire/Legal Liability Insurance No liability claims for any tenants within the last three years This credit is subject to prior company approval. RULE 7 -- COVERAGE OPTIONS 7.1 Vandalism -- Form FL-501 Only Vandalism is an optional coverage under policy form FL-501. Premium for this coverage can be determined from the Vandalism Premium Tables. If the dwelling or farm premises is vacant or unoccupied and is expected to remain so for an extended period of time, the vandalism rate is $.70 per $1,000 of insurance. 7.2 Extended Coverage The Extended Coverage perils may be included by charging premiums determined from the Extended Coverage Premium Tables. 7.3 Earthquake Earthquake coverage can be added to policies that insure against loss by Fire and the Extended Coverage perils. It must apply to the same coverages and for the same limits to which the Fire and Extended Coverage perils apply. The deductible is a percentage of the limit of liability for each coverage and is subject to a $250 minimum. Apply the rating information shown in this manual to the following coverages when they are provided by the policy: -- Coverages A and C; -- Private structures under Rule 7.5; REV 4.0 Rules - 17 MMI

23 -- Increased limits of Coverage D; -- Increased limits of Tenant's Improvements; and -- Increased limits of Condominium Fixtures, Additions, and Alterations. Endorsement FL Inflation Guard Coverage -- Coverages A and B The Coverage A and B limits can be automatically increased on a quarterly basis. Apply the rating information shown in this manual to all Coverage A and B premiums, including premiums developed under Rule 7.5. Endorsement FL Private Structures Specific Structures Coverage for loss of rents is available in form FL-520 under the Coverage B optional amount which reduces coverage A. Coverage for loss of rents that does not reduce Coverage A is also available under Coverage B as a specific item. Appropriate entries must be made on the Declarations indicating the amount of insurance as Loss of Rent limit of liability. To be eligible for coverage under this rule, a private structure cannot be: -- used for business purposes; or -- rented or held for rental to anyone other than a tenant of the residence, except for use solely as a private garage. REV 4.0 Rules - 18 MMI

24 The premium is determined by using the coverage A - Dwelling buildings rates "for each additional $10,000" at the bottom of the rate column to which the dwelling premium applies. The perils and deductible option must be the same for all Coverage A and Coverage B structures insured under the same policy. For Greenhouses, use the specified Extended Coverage premiums in the State Rate Pages. Describe the structure (Coverage B) on the declarations and show the limit that applies. When the FL-6 is used, specific private structures on the insured premises can be covered under Coverage E. Use the rating information for barns shown in the State Rate Pages Residential Rental to Others Private structures rented to others, or held for rental, for residential purposes can be insured under Coverage A. Use the Coverage A rating information for a nonowner-occupied dwelling in the applicable territory, construction, protection, and occupancy classification and apply the deductible factors. The perils and deductible option must be the same for all Coverage A structures covered by the same policy. Describe the structure (Coverage A) on the declarations and show the limit that applies With Permitted Incidental Business Occupancies A private structure on the premises with a permitted incidental occupancy can be covered by endorsement. Use the Coverage A rating information for a onefamily, owner-occupied dwelling in the applicable territory, construction, and protection classification and apply the deductible factors. The perils and deductible option must be the same for all Coverage A and Coverage B structures covered by the same policy. Endorsement FL At Other Locations A private structure that is not adjacent to a covered dwelling can be covered if it is not: REV 4.0 Rules - 19 MMI

25 7.6 Increased Limits -- used for business purposes; or -- rented or held for rental to anyone other than a tenant of the residence, except for use solely as a private garage. Use the Coverage A rating information for a one-family, owner-occupied dwelling in the applicable territory, construction, and protection classification and apply the deductible factors. The perils and deductible option must be the same for all Coverage A and Coverage B structures covered by the same policy. Describe the structure (Coverage B) and location on the declarations and show the limit that applies. Special limits of liability are specified for certain types of property in form FL-520. The limits on certain property may be increased. Use the rating information shown in this manual. Endorsement FL Business Property The limit for business property on the premises can be increased. The limit for business property away from the premises is automatically increased to 10% of the total limit for business property on the premises. Use the rating information shown in the State Rate Pages. Endorsement FL Coverage D - Additional Living Costs and Fair Rental Value Loss of Rent -- Coverage for loss of rents is available in form FL-520 under the Coverage D optional amount which reduces coverage A. Coverage for loss of rents that does not reduce Coverage A is also available under Coverage D as a specific item. Appropriate entries must be made on the Declarations indicating the amount of insurance as Loss of Rent limit of liability. REV 4.0 Rules - 20 MMI

26 The premium shall be a certain percentage of the premium for a like amount of insurance on the dwelling building for the perils covered. See the rating information in this manual. When the policy includes Coverage A, the Coverage D perils must be the same as the Coverage A perils. If Coverage A does not apply, the Coverage D perils must be the same as the Coverage C perils. 7.9 Tenant's Improvements -- Forms FL-520 When form FL-520 is issued to cover a tenant's personal property, incidental coverage for the tenant's interest in permanent fixtures, alterations, decorations, and additions is automatically extended for up to 10% of the Coverage C limit. Loss settlement is on an actual cash value basis. No additional charge applies and no endorsement is needed. Coverage in excess of the 10% optionally available in form FL-520 may be provided by entering the coverage description, limit of liability and premium on the declarations. The premium is determined by using the Coverage C - Household Personal Property Rates "for each additional $1,000". Endorsement FL Credit Cards and Depositors Forgery Coverage can be added for loss by forgery or alteration of credit cards, checks or drafts, or acceptance of counterfeit money. No deductible applies to this coverage. Use the rating information shown in this manual. Endorsement FL Mobile-Home Options Consent to Move Mobile Home Coverage can be provided for the perils insured against in the policy when the mobile home is moved from the described premises. Use the rating information shown in this manual. This option does not include coverage for loss caused by Collision or Upset. Endorsement FL-25 REV 4.0 Rules - 21 MMI

27 Trip Collision When coverage is provided under the Consent to Move option, coverage for loss caused by Collision or Upset can be added. Use the rating information shown in this manual. Endorsement FL Vendor's Single Interest (Optional at Lienholder's Request) Coverage can be provided for the interest of the lienholder. When provided, the additional premium must be paid for by the lienholder. Use the rating information shown in this manual. Regular Coverage: Collision, Upset, Conversion, Embezzlement, or Secretion. Comprehensive Coverage: Flood, Earthquake, Collision, Upset, Conversion, Embezzlement, or Secretion. Endorsement ML-27 (Note Coverage Requested) 7.12 Buildings Under Construction Dwellings and related private structures under construction may be insured by using the regular forms and charging the applicable not owner-occupied premiums Loss of Rent Coverage for loss of rents in excess of the optional amount available in form FL- 520 may be written under coverage D as a specific item of insurance. Appropriate entries must be made on the Declarations indicating the amount of insurance as Coverage D limit of liability. Use the rating information shown in this manual. RULE 8 OPTIONAL COVERAGES - FARM PROPERTY COVERAGES E, F REV 4.0 Rules - 22 MMI

28 8.1 Additional Perils -- Livestock Coverage for livestock covered under Coverage F can be extended to include loss resulting from death caused by accidental shooting, drowning, attack by dogs or wild animals, and collapse of a building. The limit for this coverage must be the same as the limit for the covered property. Include a description of the type of livestock covered. Make an entry to show whether coverage applies or does not apply to sheep. Rates. Endorsement ML Extended Coverage Extended Coverage perils may be included by charging premiums determined from the EC rates shown in the State Rate Pages. 8.3 Vandalism The peril of Vandalism may be included by charging premiums determined by the rates shown in the State Rate Pages. 8.4 Buildings Under Construction Farm buildings and structures under construction may be insured under the regular farm property forms at the premiums applicable to the completed building. 8.5 Farm Extra Expense Coverage can be added for the expenses incurred in order to resume or continue normal farming operations that were interrupted as the result of direct physical loss by a peril insured against to property covered under Coverages E, F or G. Rates. Endorsement ML-355. REV 4.0 Rules - 23 MMI

29 8.6 Farm Machinery Glass Breakage in Cabs Coverage may be provided to cover glass breakage in the cabs of mobile farm machinery. Use rates shown in the State Rate Pages. (No deductible applies) Endorsement ML Farm Operations Records Expense Coverage may be provided for expenses incurred to reproduce, replace, or restore farm operations records damaged by a peril insured against that applies to coverage F or G. This includes coverage for the research necessary to obtain data. Use rates shown in the State Rate Pages. Endorsement ML Farm Personal Property - Peak Season Inventory Increased amounts of coverage for farm personal property covered under a policy can be increased for specific monthly periods. The specific period of peak season coverage may not extend beyond the policy term. Prorate the increased amount of coverage. Include a description of the covered property, the amount of increase and the applicable time period. Use rates shown in the State Rate Pages. Endorsement ML Winter Perils - Livestock Coverage for livestock covered under Coverages F or G can be extended to include loss resulting from death caused by freezing or smothering in snowstorms or ice storms and falling through ice. This coverage is subject to a coinsurance provision. Describe the livestock covered and include the limit that applies. Use rates shown in the State Rate Pages. Endorsement ML-324. REV 4.0 Rules - 24 MMI

30 8.10 Weight of Ice, Snow or Sleet Coverage for direct physical loss caused by the weight of ice, snow or sleet can be added for property covered under Coverages E, F and G. The limit for this coverage must be the same as the policy limit for the covered property. Describe the covered property. Use rates shown in the State Rate Pages. Endorsement ML Theft of Livestock and Machinery When form FL-6 is used the policy may be extended to cover theft of livestock and specifically insured machinery. Describe the livestock and/or machinery. Use rates shown in the State Rate Pages Farm Tenant's Improvements and Betterments A tenant's interest in fixtures, alterations, decorations and additions to farm property may be insured by entering the limit of liability and describing the improvement on the schedule for farm personal property. The premium is calculated using the rate of the building or structure improved and the limit of liability specified Rented or Borrowed Equipment Coverage for direct physical loss to farm machinery and equipment that is rented or borrowed from others can be provided by the policy. Use the rating information shown in this manual for Described Machinery. Make an entry on the declarations or a schedule to show the limit for the rented or borrowed equipment coverage in Form FL-6. REV 4.0 Rules - 25 MMI

31 FIRE PROTECTION DEFINITIONS Protected Building is located within five road miles of a responding fire department and: -- within 1,000 feet of a fire hydrant; or -- within 1,000 feet of a year-round water source of at least 3,500 gallons and the responding fire department is equipped to respond with pumper truck capabilities; or -- the responding fire department is equipped to respond with pumper/tanker truck capabilities of at least 3,500 gallons. Partially Protected Building is located within five road miles of a responding fire department, but does not otherwise qualify for Protected status. Unprotected All others. Additional or Special State Provisions Form ML-101, Required Fire Provisions, must be attached to every farm properties fire policy covering property located in Pennsylvania. CONSTRUCTION DEFINITIONS Building or Fire Division One part of an enclosed structure that is separated from other parts of the structure by space or by masonry walls that are at least eight inches thick and that go through or to the underside of the roof. Any openings through such masonry walls must be protected by fire doors that are approved for installation on firewalls. REV 4.0 Def - 1 MMI

32 Fire Resistive Frame Masonry Masonry Veneered Mixed A dwelling with exterior walls, floors, and roof constructed entirely of masonry or noncombustible materials on incombustible supports and having a Fire Resistance Rating of at least one hour. A dwelling with exterior walls constructed of combustible materials, such as wood, or constructed of incombustible materials on combustible supports. A dwelling with exterior walls constructed of brick, concrete block, concrete, tile, or other masonry materials or constructed of incombustible materials on incombustible supports. A dwelling with exterior walls constructed of a combustible material covered with masonry. Dwellings of masonry veneered construction will be classified as masonry for rating purposes. Dwellings of mixed frame and masonry construction will be classified as frame for rating purposes if walls of frame construction exceed 33-1/3% of total exterior wall area. REV 4.0 Def - 2 MMI

33 TERRITORY DEFINITIONS Territory Counties 1 Adams, Berks, Bucks, Chester, Cumberland, Dauphin, Delaware, Franklin, Lancaster, Lebanon, Lehigh, Montgomery, Northampton and York. 2 Bedford, Blair, Carbon, Centre, Clinton, Columbia, Fulton, Huntingdon, Juniata, Lycoming, Mifflin, Monroe, Montour, Northumberland, Perry, Pike, Schuylkill, Snyder and Union. 3 Armstrong, Beaver, Bradford, Butler, Cambria, Cameron, Clarion, Clearfield, Crawford, Elk, Erie, Fayette, Forest, Greene, Indiana, Jefferson, Lackawanna, Lawrence, Luzerne, McKean, Mercer, Potter, Somerset, Sullivan, Susquehanna, Tioga, Venango, Warren, Washington, Wayne, Westmoreland and Wyoming. 4 & 5 Remainder of the State. FIRE PREMIUM GROUP CHART Dwellings Farm Property Territory (Covgs A-D) Covgs E-F 1 A C 2 A C 3 A C 4 & 5 B C REV 4.0 Def - 3 MMI

34 Millville Mutual Insurance Company Dwellings $250 Deductible Frame Premium Group A Protected ** Fire & Lightning ** **Extended** **VMM** Building Contents **Coverage** Owner-Occupied Tenant-Occupied No. Of Families No. Of Families No. Of Families Bldng or Amount Bldng Cont Cont 1, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , EACH ADD 10, Rates 1

35 Millville Mutual Insurance Company Dwellings $250 Deductible Masonry Premium Group A Protected ** Fire & Lightning ** **Extended** **VMM** Building Contents **Coverage** Owner-Occupied Tenant-Occupied No. Of Families No. Of Families No. Of Families Bldng or Amount Bldng Cont Cont 1, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , EACH ADD 10, Rates 2

36 Millville Mutual Insurance Company Dwellings $250 Deductible Frame Premium Group A Partially Protected ** Fire & Lightning ** **Extended** **VMM** Building Contents **Coverage** Owner-Occupied Tenant-Occupied No. Of Families No. Of Families No. Of Families Bldng or Amount Bldng Cont Cont 1, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , EACH ADD 10, Rates 3

37 Millville Mutual Insurance Company Dwellings $250 Deductible Masonry Premium Group A Partially Protected ** Fire & Lightning ** **Extended** **VMM** Building Contents **Coverage** Owner-Occupied Tenant-Occupied No. Of Families No. Of Families No. Of Families Bldng or Amount Bldng Cont Cont 1, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , EACH ADD 10, Rates 4