Pennsylvania Homeowners Policy. Users Guide

Transcription

1 Pennsylvania Homeowners Policy Users Guide

2 UNDERWRITING GUIDELINES Merchants Preferred Insurance Company RISK CHARACTERISTICS HOMEOWNER PROGRAM PREMIER RESIDENCE PROGRAM Ineligible Risks The following risks are ineligible: Log construction, Mobile homes, Farms and Farm Exposures, EIFS Construction, Outdoor Wood-burning Furnaces and risks with Home Day Care exposures Coverage A Minimum $150,000 $175,000 Coverage A Maximum $1,000,000 $1,000,000 Coverage limits exceeding binding authority ($750,000; $375,000 in PC9) must be referred to your underwriter prior to binding coverage. HO4 Minimum Coverage C $40,000 N/A HO6 Minimum Coverage C $65,000 N/A Coverage E Minimum $200,000 $200,000 Forms Available HO3, HO4, HO5 & HO6 HO7 Minimum Deductible $500 all perils Age Of Dwelling Maximum 100 Years Old Maximum 35 Years Old Dwelling Update Requirements Location Protection Class Insurance To Value (ITV) If dwelling is over 25 years old, appropriate updates to the electrical, heating, plumbing and roof systems are required within the past 20 years. Heating Furnace and air-conditioning replacement, if applicable, or replacement of burners or heating systems for furnaces and compressors for central airconditioning systems Electrical minimum 100 amp circuit breaker box. No fuses, knob and tube wiring or aluminum wiring. Plumbing updated to copper and/or PVC water lines. Galvanized iron, cast iron, lead or terra cotta pipes are not acceptable. Roof Replacement of roofing materials within the past 20 years. Flat roofs or roofs covered with rolled roofing are unacceptable. RTC - Slate No building located in a known flood, wavewash, sinkhole, pollution, landslide, or cave-in area. RTC Locations within 1,000ft of Lake Erie. Protection Class 10: Ineligible 100% RCV Functional Replacement Cost Forms eligible: HO3 & HO5. Minimum age of dwelling 1950 or older. 100% Functional Replacement Cost Value Ineligible Prior Losses Two in the last 3 years None in last 3 years, excl one cat HOP 1 of 4 Effective Date: 06/18/12 NB

3 UNDERWRITING GUIDELINES Merchants Preferred Insurance Company RISK CHARACTERISTICS HOMEOWNER PROGRAM PREMIER RESIDENCE PROGRAM Townhouse Or Rowhouse Each unit in a masonry constructed multi-unit building must be separated by concrete block or masonry brick common wall. Each unit in a frame constructed multi-unit building must be separated by a common wall rated at no less than a 2-hour fire resistive rating. Common walls separating a unit located in a multi-unit building must extend through the attic space when present. Any unit built before 1950 is ineligible. Seasonal/Secondary Residence Seasonal eligible for forms HO2 or HO6 Secondary eligible for forms HO2, HO3 or HO6 Ineligible Prior Coverage Earthquake Coverage Occupancy Pets Pools Trampolines Propane Tanks Underground Oil Tanks Above Ground Oil Tanks Any prior cancellation or non-renewal - RTC Earthquake coverage may not be bound for 7 days following an earthquake One or Two Family One Family Any building which is listed in an historic register or used as student housing is ineligible. Exotic pets; pets which display vicious behavior; and dog breeds that are known to have aggressive natures, such as (but not limited to) Akitas, Chows, Dobermans, German Shepherds, Pit Bulls, Presa Canarios, Rottweilers, and Wolf Hybrids are ineligible. If there is a question on a specific breed of dog or an unusual pet, refer to your underwriter prior to binding coverage. Dogs that have previously bitten someone are ineligible. All pools must be fenced and have a self-closing, self-locking gate. Fence must be minimum 48 inches high and around the perimeter of the pool. Pools must meet all local building code requirements. Ineligible Tanks less than 500 gallons must be a minimum of 10 feet from any structure Tanks more than 500 gallons must be a minimum of 25 feet from any structure Double wall steel, modified steel (steel tank lined, coated or anodized), polyethylene or fiberglass-based units no older than 18 years are acceptable. Single wall steel units are unacceptable for underground installation. Abandoned tanks must be decommissioned by an EPA certified professional. Single wall steel tanks up to 10 years old are acceptable. Double wall steel, modified steel (steel tank lined, coated or anodized), polyethylene or fiberglass-based units up to 20 years old are acceptable. Abandoned tanks on the premises no longer in use are not acceptable. HOP 2 of 4 Effective Date: 06/18/12 NB

4 UNDERWRITING GUIDELINES Merchants Preferred Insurance Company SCHEDULED ITEMS HO AND HO (ATTACHMENT TO THE HOMEOWNERS POLICY) Maximum Binding Authority (by class) For Coverage amounts exceeding binding authority - RTC For Form HO4, Limits exceeding 20% of Coverage C - RTC Per Item Per Schedule *Cameras, *Musical Instruments, Coins and Stamps (*Professional Exposures are Ineligible) $2,500 $10,000 Silverware $5,000 $25,000 Furs $10,000 $25,000 Fine Arts (breakage not available) $10,000 $75,000 Jewelry $15,000 $75,000 All Classes Combined $200,000 Evidence of Value Requirements - HO Per Item Evidence Required All Classes Excluding Fine Arts Fine Arts Under $10,000 $10,000 and above Under $5,000 $5,000 and over Detailed Description Certified Appraisal or Bill of Sale Detailed Description Certified Appraisal or Bill of Sale Evidence of Value Requirements - HO Per Item Evidence Required All Classes with Agreed Value Settlement Clause (HO 04 60) Under $5,000 $5,000 and above Detailed Description Certified Appraisal or Bill of Sale HOP 3 of 4 Effective Date: 06/18/12 NB

5 UNDERWRITING GUIDELINES Merchants Preferred Insurance Company WATERCRAFT AND PLEASURECRAFT GUIDELINES (ATTACHMENT TO THE HOMEOWNERS POLICY) RISK CHARACTERISTICS HOMEOWNER PROGRAM PREMIER RESIDENCE PROGRAM Forms Available Maximum Speed Age HO3, HO5, HO6 and HO7 40 miles per hour 20 years or newer Maximum Value $30,000 Losses Operator Guidelines Ineligible Watercraft No watercraft losses in the past three years Operators must possess a valid driver's license; Related auto must be written through Merchants Flexible-Choice Auto in tiers a - h; No operator can be convicted of boating or driving while intoxicated Any watercraft used for racing, business, charter, rental or any other commercial use including being for sale. High performance, jet boats, houseboats, homemade or kit boats are ineligible Horsepower To Length Outboards 45 HP Up to 13'5' 60 HP 13'6' - 14'5" 80 HP 14'6" - 15'11" 100 HP 16' - 17'5" Inboard/Outboard 150 HP Up to 15'11' 175HP 16' - 17'11" 200HP 18' - 19'11" 250HP 20' - 26' HOP 4 of 4 Effective Date: 06/18/12 NB

6 MANUAL PAGES TABLE OF CONTENTS Rule 100 Introduction... 5 Rule 101 Limits of Liability and Coverage Relationships... 6 Rule 102 Description of Coverages... 7 Rule 103 Mandatory Coverages... 8 Rule 104 Eligibility... 8 Rule 105 Secondary Residence Premises Rule 106 Protection Classification Information Rule 107 Construction Definitions Rule 108 Seasonal Dwelling Definition Rule 109 Single And Separate Buildings Definition Rule 201 Policy Period Rule 202 Changes or Cancellations Rule 203 Manual Premium Revision Rule 204 Multiple Company Insurance Rule 205 Minimum Premium Rule 206 Transfer or Assignment Rule 207 Waiver of Premium Rule 208 Whole Dollar Premium Rule Rule 209 Restriction of Individual Policies Rule 210 Refer to Company Rule 211 Additional Interest Rule 301 Base Premium Computation Rule 302 Loss Settlement Options Rule 303 Ordinance or Law Coverage All Forms Rule 304 Special Personal Property Coverage HO Rule 401 Superior Construction Rule 402 Townhouse Or Row House All Forms Except HO And HO Rule 403 Personal Property (Coverage C) Replacement Cost Loss Settlement Rule 404 Protective Devices Rule 405 Inflation Guard Rule 406 Deductibles Rule 407 Additional Amounts Of Insurance Rule 408 Actual Cash Value Loss Settlement Windstorm Or Hail Losses To Roof Surfacing Rule 409 Replacement Cost Loss Settlement For Certain Non-Building Structures Rule 410 Building Code Effectiveness Grading Rule 501 Building Additions And Alterations At Other Residences Rule 502 Building Additions And Alterations Increased Limit HO Rule 503 Business Property Increased Limit Rule 504 Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery And Counterfeit Money.. 54 Rule 505 Earthquake Coverage... 55

7 MANUAL PAGES TABLE OF CONTENTS Rule 506 Fire Department Service Charge Rule 507 Form HO Coverage A Dwelling Basic And Increased Limits Rule 508 Form HO Units Regularly Rented To Others Rule 509 Home Day Care Coverage Rule 510 Permitted Incidental Occupancies Residence Premises Rule 511 Loss Assessment Coverage Rule 512 Loss Of Use Increased Limit Rule 513 Ordinance Or Law Increased Amount Of Coverage HO and HO Rule 514 Other Structures Rule 515 Personal Property Rule 516 Personal Property Scheduled Rule 517 Rental To Others Extended Theft Coverage All Forms Rule 518 Sinkhole Collapse Coverage All Forms Except HO and HO Rule 519 Special Computer Coverage All Forms Except HO 00 05, Premier Residence Rule 520 Livestock Collision Coverage Rule 521 Water Back Up And Sump Discharge Or Overflow Rule 522 Landlords Furnishings Rule 523 Assisted Living Care Coverage Rule 524 Other Members Of A Named Insured's Household Rule 525 Motorized Golf Cart Physical Loss Coverage Rule 526 Residence Held In Trust All Forms Except HO Rule 527 Student Away From Home Rule 528 Home Business Insurance Coverage Rule 529 Modified Other Insurance And Service Agreement Condition HO Only Rule 601 Residence Premises Basic And Increased Limits/Other Exposures Basic Limits Rule 602 Other Insured Location Occupied By Insured Rule 603 Residence Employees Rule 604 Additional Residence Rented To Others Rule 605 Other Structures Rented To Others Residence Premises Rule 606 Computer-Related Damage Or Injury Exclusion And Coverage Options Rule 607 Home Day Care Coverage Rule 608 Permitted Incidental Occupancies Residence Premises And Other Residences Rule 609 Business Pursuits Rule 610 Personal Injury Rule 611 Incidental Low Power Recreational Motor Vehicles Rule 612 Outboard Motors And Watercraft Rule 613 Owned Snowmobile Rule 614 Farmers Personal Liability Rule 615 Incidental Farming Personal Liability Rule 616 Optional Property Remediation For Escaped Liquid Fuel And Limited Lead... 98

8 MANUAL PAGES TABLE OF CONTENTS Rule 701 Other Exposures Personal Liability Increased Limits Rule 702 Other Exposures Medical Payments To Others Increased Limits Rule 801 Additional Coverage Extensions Rule 802 Account Policy Factor Rule 803 Construction Age Factor Rule 804 Maximum Credit Rule Rule 805 Identity Recovery And Expense Coverage Rule 806 Home Advantage Coverage Rule 807 Builders Risk Endorsement For Homeowners Rule 808 Loss History Rule 810 Premier Residence Rule 820 Home Advantage Plus Coverage Rule 821 Territory/Sub Territory Factor Additional Rules Rule A1 Special State Requirements Rule A2 Credit For Existing Insurance Rule A3 Limited Fungi, Wet Or Dry Rot Or Bacteria Coverage Rule A4 Community Mitigation Classification Manual Rule A5 Identity Fraud Expense Coverage Rule A6 Loss History Rating Plan All Forms

9 MANUAL PAGES RULE 100 INTRODUCTION A. About The Homeowners Manual The Homeowners Policy Program provides property and liability coverages, using the forms and endorsements specified in this Manual. This Manual contains the rules and classifications governing the writing of the Homeowners Policy. The rules, rates, forms and endorsements of the company for each coverage shall govern in all cases not specifically provided for in this Manual. B. Manual Structure 1. Contents The Manual includes both multi-state general rules and state rules and rates. 2. General Rules These rules are grouped into the following categories a. Part I Coverage And Definition Type Rules, b. Part II Servicing Type Rules, c. Part III Base Premium Computation Rules, d. Part IV Adjusted Base Premium Computation Rules, e. Part V Section I Property Additional Coverages And Increased Limits Rules, f. Part VI Section II Liability Additional Coverages And Increased Limits Rules, and g. Part VII Section II Liability Other Exposures Increased Limits Rules. 3. State Rules And Rates These rules are grouped into the following categories: a. Additional Rules (exceptions are incorporated into the specific rule), b. Special State Requirements, c. Territory Definitions, d. Base Class Premium e. Classification and Tier Factor f. Rates, Charges and Credits. Also, where ISO does not publish any state pages containing premiums, rates, charges and credits expressed in dollars and cents, Merchants has furnished its manual holders with the state rate pages containing this information. 4. Form References The Manual refers to Forms HO 00 02, HO 00 03, HO 00 04, HO 00 05, HO and Premier Residence, These Form references are identified as follows: a. Homeowners 2 Broad Form HO 00 02, b. Homeowners 3 Special Form HO 00 03, c. Homeowners 4 Contents Broad Form HO d. Homeowners 5 Comprehensive Form HO and Premier Residence e. Homeowners 6 Unit-Owners Form HO PA FCH 5 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

10 MANUAL PAGES RULE 101 LIMITS OF LIABILITY AND COVERAGE RELATIONSHIPS A. Limits The limits of liability required under the Homeowners policy are as follows: 1. Section I Property Damage Coverage A Dwelling HO 00 02, HO 00 03, HO or Premier Residence HO Coverage B Other Structures HO 00 02, HO 00 03, HO or Premier Residence Coverage C Personal Property HO 00 02, HO or HO Premier Residence HO and HO Coverage D Loss of Use HO 00 02, HO 00 03, HO or Premier Residence HO HO Table 101.A.1. Property Damage Limits Refer to Rule 301 in the state classification pages Refer to Rule 507.A. 10% of A (One and two family dwelling) 50% of A (One and two family dwelling) 70% of A (One family dwelling) Refer to Rule 301 in the state classification pages. 30% of A 30% of C 50% of C 2. Section II Liability (All Forms) Coverage E Personal Liability and Coverage F Medical Payments Refer to Rule 301 in the state classification pages. Unless otherwise stated, Coverage E limits apply on an "occurrence" basis; Coverage F limits apply on an "each person" basis. Table 101.A.2. Liability Limits B. All Forms The limit of liability for Coverages C or D of Section I and E or F of Section II may be increased. C. Form HO 00 02, HO 00 03, HO or Premier Residence Under Coverage B of Section I, an additional amount of insurance may be written on a specific structure. Under Coverage C of Section I, it is permissible to reduce the limit of liability to an amount not less than 40% of the limit of a one and two family dwelling. D. Form HO and HO The limit of liability for coverage A of Section I may be increased. PA FCH 6 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

11 MANUAL PAGES RULE 102 DESCRIPTION OF COVERAGES The following is a general description of the coverages provided by the individual Homeowners Policy forms. The policy should be consulted for exact contract conditions. A. Section I Property Perils Insured Against Perils Insured Against Perils HO HO Fire or Lightning Windstorm or Hail, Explosion, Riot or civil commotion, Aircraft, Vehicles or Smoke Vandalism or malicious mischief Theft Volcanic eruption Falling objects, Weight of ice, snow or sleet, Accidental discharge of water or steam, Sudden and accidental tearing apart of a heating system or appliance, Freezing, Sudden accidental damage from electrical current. Additional risks with certain exceptions (Special Coverage) Table 102.A. Perils Insured Against Yes Yes Yes Yes Yes Yes No Yes Cov. C Yes Cov. C Yes Cov. C Yes Cov. C Yes Cov. C Yes Cov. C Yes Cov. A, B and D HO and HO Yes Yes Yes Yes Yes Yes No HO & Premier Residence No No No No No No Yes Cov. A, B, C and D B. Section II Liability All Forms 1. Coverage E Personal Liability Covers payment on behalf of any insured for all sums which the insured shall become legally obligated to pay as damages because of bodily injury or property damage arising out of an insured s premises or personal activities. 2. Coverage F Medical Payments To Others Covers medical expenses incurred by persons, other than the insured, who sustain bodily injury caused by an accident arising out of an insured's premises or personal activities. PA FCH 7 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

12 MANUAL PAGES RULE 103 MANDATORY COVERAGES It is mandatory that insurance be written for all coverages provided under both Sections I and II of the Homeowners Policy. RULE 104 ELIGIBILITY PA FCH 8 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

13 MANUAL PAGES A. All Forms Except HO and HO A Homeowners Policy may be issued 1. To the owner-occupant(s) of a 1, 2, 3 or 4 family dwelling which is used exclusively for private residential purposes (except as provided in Paragraphs F. and H.). A 1 family dwelling may not be occupied by more than one additional family or two roomers or boarders. In a 2, 3 or 4 family dwelling, an individual family unit may not be occupied by more than two families or one family with two roomers or boarders; or 2. To the purchaser-occupant(s) who has entered into a long-term installment contract for the purchase of the dwelling and who occupies the dwelling but to whom title does not pass from the seller until all the terms of the installment contract have been satisfied. The seller retains title until completion of the payments and in no way acts as a mortgagee. The seller s interest in the building and premises liability may be covered using Additional Insured Endorsement HO 04 41; or 3. To the occupant of a dwelling under a life estate arrangement when the Coverage A amount is at least 80% of the dwelling s replacement cost. The owner s interest in the building and premises liability may be covered using Additional Insured Endorsement HO 04 41; or 4. To cover dwellings in the course of construction provided the policy is issued only in the name of the intended owner-occupant(s) of the dwelling. 5. When two or more apartment units in a 2, 3 or 4 family dwelling are occupied by co-owners, each occupying distinct living quarters with separate entrances. Given these circumstances, a Homeowners Policy providing building coverage may be issued to only one of the co-owner occupants of the dwelling. The policy may be endorsed to cover the interest of the other co-owner(s) in the building and for premises liability. Use Additional Insured Endorsement HO A separate Homeowners Policy HO may be issued to the co-owner(s) occupying the other apartment(s) in the dwelling. It is permissible to extend the Homeowners Policy, without additional premium charge, to cover the interest of a non-occupant joint owner in the building and for premises liability. Use Additional Insured Endorsement HO B. Form HO A Homeowners Policy may be issued to: 1. The tenant(s) (non-owner) of a dwelling or an apartment situated in any building; or 2. The owner-occupant(s) of a dwelling, cooperative unit or of a building containing an apartment not otherwise eligible for a Homeowners Policy under Paragraph A. provided the residence premises occupied by the insured is used exclusively for residential purposes (except as provided in Paragraph F. ). The dwelling or apartment unit may not be occupied by more than one additional family or two boarders or roomers. C. Form HO A Homeowners Policy may be issued to the owner(s) of a condominium or cooperative unit which is used exclusively for residential purposes (except as provided in Paragraphs F. and H.). The unit may not be occupied by more than one additional family or two boarders or roomers. D. Seasonal Dwelling Subject to all other sections of this rule, a Homeowners Policy may be issued to cover a seasonal dwelling. PA FCH 9 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

14 MANUAL PAGES E. Mobile Home, Trailer Home Or House Trailer A Homeowners Policy: 1. Shall not be issued to cover such structures under Coverage A Dwelling, but 2. May be issued to cover personal property in such structures as noted in Paragraph B. F. Permitted Business Occupancies Certain business occupancies are permitted provided: 1. The premises is occupied principally for private residential purposes, and 2. There is no other business occupancy on the premises. When the business is conducted on the residence premises, refer to Rules 509 and 510. for Section I Coverage and Rules 607 and 608. for Section II Coverage. When it is conducted from an Other Residence, only Section II Coverage is available. Refer to Rules 607 and 608. G. Farm Property A Homeowners Policy shall not be issued to cover any property to which farm forms or rates apply under the rules of the company, except as noted in following Paragraphs 1. and Section I Property Livestock Collision Coverage may be provided for loss due to collision which results in the death of covered livestock owned by an insured and kept either on or away from the residence premises as specified in Rule Section II Liability Coverage Certain farm liability exposures may be covered. Refer to Rules 614 and 615. H. Residence Held in Trust A Homeowners Policy may be issued in the name of a trust and trustee(s) when legal title to a 1 through 4 family dwelling or a condominium unit is held solely by the trust and 1. The trustee and/or beneficiary or grantor regularly reside in the residence held in trust; and 2. The residence held in trust is used exclusively for residential purposes, except as provided in Paragraph F. Refer to Rule 526 for the rule of application. I. Rating Plan A Homeowners Policy shall not be issued to cover any dwelling subject to the Pennsylvania Substandard Fire Insurance Rating Plan. PA FCH 10 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

15 MANUAL PAGES RULE 105 SECONDARY RESIDENCE PREMISES A. Application Homeowners coverage on a secondary residence premises shall be provided under a separate policy. The rules of this Manual apply except that Section II Coverage is not mandatory for the secondary residence policy when the same company insures the initial and secondary residence. B. Premium Adjustment When coverage is provided on the initial and secondary residence premises under separate policies in the same company, the following premium adjustments should be made: 1. Reduce the Base Premium for the policy covering the secondary residence by the company credit; 2. Refer to Rate Page for credit; and 3. Add the charge for Other Insured Location Occupied by Insured, developed from Rule 602 to the policy covering the initial residence. PA FCH 11 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

16 MANUAL PAGES RULE 106 PROTECTION CLASSIFICATION INFORMATION The Protection Class listings in the Public Protection Classification Manual apply to risks insured under Homeowners Program policies. A. The protection class indicated applies in a municipality or classified area where a single class of fire protection is available throughout (8, 7, 6, etc.). B. In a classified area where two or more classifications are shown (for example, 6/9), the classification is determined as follows: Distance to Fire Station Table 106.B. Two or More Classifications Class 1. 5 road miles or less with hydrant within 1,000 feet * 2. 5 road miles or less with hydrant beyond 1,000 feet 9 3. Over 5 road miles 10 *First protection class (for example, 6/9 use Class 6) C. A Protection Class 9 dwelling meeting all of the following criteria may be rated at a suburban class. a. The dwelling is within five road miles to the responding fire department. b. The dwelling is within 1,000 feet to a year round water source (hydrant or body of water) and the fire department responds with a pumper truck with a capacity of at least 1,500 gallons. c. The dwelling is within sight of three neighboring dwellings. d. The dwelling is accessible year round. The suburban class for a community with a split class would be the lower class. For example, a split class of 6/9 would be rated with the lower class, 6. A community with a single class 9 would be rated as a class 8. Note: A community with no hydrants might have a class of 9/10. In this case the class 10 always applies if the building is over 5 miles from the fire station. The suburban class would be a class 8. D. All other properties are Class 10. E. Protection Class Factors 1. A rating factor will be applied to each peril premium based on protection class factor. 2. The Protection Class Factor will be applied to the policy premium as described in Rule Refer to the Rate Pages in this manual for the applicable Protection Class Factor PA FCH 12 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

17 MANUAL PAGES RULE 107 CONSTRUCTION DEFINITIONS A. Frame Exterior wall of wood or other combustible construction, including wood iron-clad, stucco on wood or plaster on combustible supports, or aluminum or plastic siding over frame. B. Masonry Veneer Exterior walls of combustible construction veneered with brick or stone. C. Masonry Exterior walls constructed of masonry materials such as adobe, brick, concrete, gypsum block, hollow concrete block, stone, tile or similar materials and floors and roof of combustible construction (Disregarding floors resting directly on the ground). D. Superior Construction 1. Non-Combustible Exterior walls and floors and roof constructed of, and supported by metal, asbestos, gypsum, or other noncombustible materials. 2. Masonry Combustible Exterior walls constructed of masonry materials (as described in Paragraph C.) and floors and roof of metal or other non-combustible materials. 3. Fire Resistive Exterior walls and floors and roof constructed of masonry or other fire resistive materials. E. Mixed (Masonry/Frame) A combination of both frame and masonry construction shall be classed as frame when the exterior walls of frame construction (including gables) exceed 33 1/3% of the total exterior wall area; otherwise class as masonry. F. Construction Type Factor 1. A rating factor will be applied to each peril premium based on the construction type. For the purposes of this factor, construction type will be divided into two categories: a. Frame, which includes frame and masonry veneer b. Masonry, which includes masonry and superior construction For dwellings constructed of both frame and masonry construction, refer to E. above. 2. The factor applies to dwellings insured under forms HO , HO 00 03, HO 00 05, and Premier Residence and to Personal Property insured under forms HO and HO The factor will be applied to the policy premium as described in Rule 301. Refer to the Rate Pages in this manual for the applicable Construction Type Factor. PA FCH 13 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

18 MANUAL PAGES RULE 108 SEASONAL DWELLING DEFINITION A seasonal dwelling is a dwelling with continuous unoccupancy of three or more consecutive months during any oneyear period. PA FCH 14 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

19 MANUAL PAGES RULE 109 SINGLE AND SEPARATE BUILDINGS DEFINITION A. Single Building All buildings or sections of buildings which are accessible through unprotected openings shall be considered as a single building. B. Separate Building 1. Buildings which are separated by space shall be considered separate buildings. 2. Buildings or sections of buildings which are separated by: a. A 6 inch reinforced concrete or an 8 inch masonry party wall; or b. A documented minimum two-hour non-combustible wall which has been laboratory tested for independent structural integrity under fire conditions; which pierces or rises to the underside of the roof and which pierces or extends to the inner side of the exterior wall shall be considered separate buildings. Accessibility between buildings with independent walls or through masonry, party walls as described shall be protected by at least a Class A Fire Door installed in a masonry wall section. PA FCH 15 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

20 MANUAL PAGES RULE 201 POLICY PERIOD The policy may be written for a period of one year and may be extended for successive policy periods by extension certificate based upon the premiums, forms and endorsements then in effect for the company. PA FCH 16 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

21 MANUAL PAGES RULE 202 CHANGES OR CANCELLATIONS A. It shall not be permissible to cancel any of the mandatory coverages in the policy unless the entire policy is cancelled. B. If insurance is increased, cancelled or reduced, the additional or return premium shall be computed on a pro rata basis, subject to the minimum premium requirement. PA FCH 17 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

22 MANUAL PAGES RULE 203 MANUAL PREMIUM REVISION A manual premium revision shall be made in accordance with the following procedures: A. The effective date of such revision shall be as announced. B. The revision shall apply to any policy or endorsement in the manner outlined in the announcement of the revision. C. Unless otherwise provided at the time of the announcement of the premium revision, the revision shall not affect 1. In force policy forms, endorsements or premiums, until the policy is renewed, or 2. In the case of a Deferred Premium Payment Plan, in force policy premiums, until the anniversary following the effective date of the revision. PA FCH 18 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

23 MANUAL PAGES RULE 204 MULTIPLE COMPANY INSURANCE This rule does not apply. PA FCH 19 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

24 MANUAL PAGES RULE 205 MINIMUM PREMIUM A. For prepaid policies a minimum annual premium shall be charged for each policy. B. When policies are written under a premium payment plan, no payment shall be less than the minimum premium for each annual period. C. The minimum premium may include all chargeable endorsements or coverages if written at inception of the policy. D. Refer to Rate Pages for the minimum premium. PA FCH 20 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

25 MANUAL PAGES RULE 206 TRANSFER OR ASSIGNMENT Subject to the consent of the company, all the rules of this Manual and any necessary adjustment of premium, a policy may be endorsed to effect: A. Transfer to another location within the same state; or B. Assignment from one insured to another in the event of transfer of title of the dwelling. PA FCH 21 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

26 MANUAL PAGES RULE 207 WAIVER OF PREMIUM A. When a policy is endorsed after the inception date, an amount of additional or return premium may be waived. B. Refer to Rate Pages for premium. PA FCH 22 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

27 MANUAL PAGES RULE 208 WHOLE DOLLAR PREMIUM RULE Each premium shown on the policy and endorsements shall be rounded to the nearest whole dollar. A premium of fifty cents ($.50) or more shall be rounded to the next higher whole dollar. In the event of cancellation by the company, the return premium may be carried to the next higher whole dollar. PA FCH 23 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

28 MANUAL PAGES RULE 209 RESTRICTION OF INDIVIDUAL POLICIES If a policy would not be issued because of unusual circumstances or exposures, the named insured may request a restriction of the policy provided no reduction in the premium is allowed. Such requests shall be referred to the company. PA FCH 24 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

29 MANUAL PAGES RULE 210 REFER TO COMPANY Whenever a risk is rated on a refer-to-company basis, Merchants is responsible for complying with regulatory or statutory rate filing requirements. PA FCH 25 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

30 MANUAL PAGES RULE 211 ADDITIONAL INTEREST A. In addition to the mortgagee(s) shown in the Declarations or elsewhere in the policy, other persons or organizations may have an insurable interest in the residence premises. When coverage is not provided to such persons or organizations under Additional Insured Endorsement HO or its equivalent, their interest in the residence premises may be acknowledged by naming them in the endorsement referenced in Paragraph D. B. Such persons or organizations are entitled to receive notification if the policy is canceled or nonrenewed by the insurer. C. No additional charge is made for use of this endorsement. D. Use Additional Interest Residence Premises Endorsement HO PA FCH 26 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

31 MANUAL PAGES RULE 301 BASE PREMIUM COMPUTATION The Base Premium is developed separately. A. All Forms Except HO and HO One And Two Family Dwelling a) Step 1 Base Class Premium (1) Refer to the Base Class Rate table in the Rate Pages to determine the Base Class Rate for each peril (2) Determine the Tier factor by peril in accordance with Rule 817 (3) Refer to the Rate Pages to obtain the Territory/Sub Territory factors. (4) Multiple the Base Class Rate by the Tier factor, then by the Territory/Sub Territory factors to obtain the Base Class Premium. Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) b) Step 2 Policy Form Adjusted Premium (1) Multiply the Base Class Premium obtained in Step 1 by the Policy Form factor located in the Rate Pages in the manual to determine each peril s Policy Form Adjusted Premium (2) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) c) Step 3 Protection Class and Construction Type Adjusted Premium (1) Refer to the Rate Pages in the manual to obtain the Protection Class and Construction Type factors for each peril (2) Multiply the Policy Form Adjusted Premium obtained in Step 2 by the Protection Class and Construction type factors to determine each peril s Protection Class and Construction Type Adjusted Premium (3) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) d) Step 4 Coverage A Adjusted Premium (1) Apply the appropriate Coverage A Amount factor (refer to Rate Pages in this manual) by peril to the Protection Class and Construction Type Adjusted Premium obtained in Step 3 to determine the Coverage A Adjusted Premium (2) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) e) Step 5 Rating Factors Adjusted Premium (1) Refer to the Rate Pages in the manual to obtain the appropriate factors by peril for each of the following: i. Number of Families Factor ii. Coverage A ACV or Coverage A Special Factor iii. Increased Limits of Ordinance or Law Coverage Factor iv. Renovation Factor v. Account Policy Factor vi. Construction Age Factor vii. Pool Factor viii. Solid Fuel Heating Source Factor ix. Number of Stories Factor x. Number of Bathrooms Factor xi. Oil Tank Factor PA FCH 27 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

32 MANUAL PAGES xii. Dog Factor xiii. Loss History Factor (2) Multiply the Coverage A Adjusted Premium obtained in Step 3 by each of the factors noted in item A.1.e.1.ixiii in the order noted, to determine the Rating Factors Adjusted Premium (3) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) f) Step 6 Miscellaneous Factors Adjusted Premium (1) Refer to the Rate Pages in the manual to obtain the appropriate factors by peril for each of the following, if applicable: i. Superior Construction Factor ii. Town or Row House Factor iii. Coverage C Replacement Cost Factor iv. Protective Devices Factor v. Deductibles Factor vi. Additional Amounts of Insurance Factor vii. Actual Cost Value Wind/Hail on Roof Factor viii. Coverage B Replacement Cost Value Factor (2) Multiply the Rating Factors Adjusted Premium obtained in Step 5 by each the factors noted in item A.1.f.1.iviii (if applicable), in the order noted, to determine each Miscellaneous Factors Adjusted Premium (3) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) g) Step 7 - Building Code Effectiveness Grading Schedule Premium (1) Determine the applicable BCEGS factor from the Rate Pages in this manual and multiply by the Coverage A Amount Factor, then multiply by the Base Class Premium obtained in Step 1. (2) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) (3) Subtract the BCEGS Credit Premium from the Miscellaneous Factors Adjusted Premium obtained in Step 6 to determine the BCEGS Adjusted Premium. PA FCH 28 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

33 MANUAL PAGES h) Step 8 Catastrophe Adjusted Premium (1) Determine the applicable Catastrophe factor from the Rate Pages in this manual and multiply the BCEGS Adjusted Premium obtained in Step 7 by the Catastrophe factor to determine the Catastrophe Premium (Note the Catastrophe Premium is not subject to commission.) (2) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) (3) Add the Catastrophe Premium to the BCEGS Adjusted Premium obtained in Step 7 to determine the Catastrophe Adjusted Premium i) Step 9 Miscellaneous Coverages/Scheduled Property Adjusted Premium (1) Add any appropriate charges for miscellaneous coverages/scheduled property to the Miscellaneous Factors Adjusted Premium (except for the wind/hail peril premium using the Catastrophe factor premium from Step 8) obtained in Step 6. (2) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) j) Step 10 Final Premium (1) Add the expense fee according to the expense fee rule noted in item D. below to the Miscellaneous Coverages/Scheduled Property Adjusted Premium obtained in Step 9 to determine the Final Premium B. Forms HO a) Step 1 Base Class Premium (1) Refer to the Base Class Rate table in the Rate Pages to determine the Base Class Rate for each peril (2) Determine the Tier factor by peril in accordance with Rule 817 (3) Refer to the Rate Pages to obtain the Territory/Sub Territory factors by peril (4) Multiple the Base Class Rate by the Tier factor and Territory/Sub Territory factors to obtain the Base Class Premium. Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) b) Step 2 Protection Class and Construction Type Adjusted Premium (1) Refer to the Rate Pages in the manual to obtain the Protection Class and Construction Type factors for each peril (2) Multiply the Base Class Premium obtained in Step 1 by the Protection Class and Construction type factors to determine each peril s Protection Class and Construction Type Adjusted Premium (3) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) c) Step 3 Coverage C Adjusted Premium (1) Apply the appropriate Coverage C Amount factor (refer to Rate Pages in this manual) by peril to the Protection Class and Construction Type Adjusted Premium obtained in Step 2 to determine the Coverage C Adjusted Premium (2) If the limit of liability is not shown in the tables, interpolate as illustrated in Paragraph E. of this rule. (3) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) d) Step 4 Rating Factors Adjusted Premium (1) Refer to the Rate Pages in the manual to obtain the appropriate factors by peril for each of the following: i.account Policy Factor ii.solid Fuel Heating Source Factor iii.dog Factor iv.loss History Factor PA FCH 29 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

34 MANUAL PAGES (2) Multiply the Rating Factors Adjusted Premium obtained in Step 4 by each of the factors noted in item A.1.e.1.i-iv. in the order noted, to determine the Rating Factors Adjusted Premium (3) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) e) Step 5 Miscellaneous Factors Adjusted Premium (1) Refer to the Rate Pages in the manual to obtain the appropriate factors by peril for each of the following, if applicable: i.superior Construction Factor ii.coverage C Replacement Cost Factor iii.protective Devices Factor iv.inflation Guard v.deductibles Factor (2) Multiply the Rating Factors Adjusted Premium obtained in Step 4 by each the factors noted in item A.1.f.1.iv. (if applicable), in the order noted, to determine each Miscellaneous Factors Adjusted Premium (3) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) f) Step 6 Miscellaneous Coverages/Scheduled Property Adjusted Premium (1) Add any appropriate charges for miscellaneous coverages/scheduled property to the Miscellaneous Factors Adjusted Premium obtained in Step 5. (2) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) g) Step 7 Final Premium (1) Add the expense fee according to the expense fee rule noted in item D. below to the Miscellaneous Coverages/Scheduled Property Adjusted Premium obtained in Step 6 to determine the Final Premium (2) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) PA FCH 30 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

35 MANUAL PAGES C. Form HO a) Step 1 Base Class Premium (1) Refer to the Base Class Rate table in the Rate Pages to determine the Base Class Rate for each peril (2) Determine the Tier factor by peril in accordance with Rule 817 (3) Refer to the Rate Pages to obtain the Territory/Sub Territory factors by peril (4) Multiple the Base Class Rate by the Tier factor and Territory/Sub Territory factors to obtain the Base Class Premium. Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) b) Step 2 Protection Class and Construction Type Adjusted Premium (1) Refer to the Rate Pages in the manual to obtain the Protection Class and Construction Type factors for each peril (2) Multiply the Base Class Premium obtained in Step 1 by the Protection Class and Construction type factors to determine each peril s Protection Class and Construction Type Adjusted Premium (3) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) c) Step 3 Coverage C Adjusted Premium (1) Apply the appropriate Coverage C Amount factor (refer to Rate Pages in this manual) by peril to the Protection Class and Construction Type Adjusted Premium obtained in Step 2 to determine the Coverage C Adjusted Premium (2) If the limit of liability is not shown in the tables, interpolate as illustrated in Paragraph E. of this rule. (3) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) d) Step 4 Rating Factors Adjusted Premium (1) Refer to the Rate Pages in the manual to obtain the appropriate factors by peril for each of the following: i. Account Policy Factor ii. Solid Fuel Heating Source Factor iii. Dog Factor iv. Loss History Factor (2) Multiply the Coverage C Adjusted Premium obtained in Step 3 by each of the factors noted in item A.1.e.1.iiv. in the order noted, to determine the Rating Factors Adjusted Premium (3) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) e) Step 5 Miscellaneous Factors Adjusted Premium (1) Refer to the Rate Pages in the manual to obtain the appropriate factors by peril for each of the following, if applicable: i. Superior Construction Factor ii. Coverage C Replacement Cost Factor iii. Protective Devices Factor iv. Inflation Guard v. Deductibles Factor vi. Actual Cost Value Wind/Hail on Roof Factor vii. Modified Other Insurance Factor PA FCH 31 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

36 MANUAL PAGES (2) Multiply the Rating Factors Adjusted Premium obtained in Step 4 by each the factors noted in item A.1.f.1.ivii. (if applicable), in the order noted, to determine each Miscellaneous Factors Adjusted Premium (3) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) f) Step 6 Miscellaneous Coverages/Scheduled Property Adjusted Premium (1) Add any appropriate charges for miscellaneous coverages/scheduled property to the Miscellaneous Factors Adjusted Premium obtained in Step 5. (2) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) g) Step 7 Final Premium (1) Add the expense fee according to the expense fee rule noted in item D. below to the Miscellaneous Coverages/Scheduled Property Adjusted Premium obtained in Step 6 to determine the Final Premium (2) Round to the nearest whole dollar ($0.50 or more rounded to the next highest whole dollar) D. Expense Fee Rule 1. Expense Fees are added separately to the premium. Please refer to the Rate Pages in this manual for the Expense Fee amount. 2. The Expense Fee is applied to all policy forms to obtain the final premium. 3. Expense fees are not subject to modification by the provisions of any rating rules (e.g. Tiering Factor, Territory Factor, Account Policy Discount Factor, etc.) E. Interpolation Example 1. When the desired limit of liability is less than the highest limit shown, interpolate the Coverage A Amount Factors using the nearest limit above and below the desired limit, for example: a. $203,000 desired limit; the nearest limits are $200,000 and $205,000. b. For $200,000 the Coverage A Amount Factor is 2.837; for $205,000 the Coverage A Amount Factor is Figure the difference between the two Coverage A Amount Factors and divide by 5. This provides a factor per $1, (divided by) 5 =.02 c. Multiply the factor per $1,000 times 3, and add 2.837; the Coverage A Amount Factor for $200, X = d. The result, 2.897, is the Coverage A Amount Factor for this example. 2. The factors shown in the above interpolation example are for illustration only and are not necessarily the factors shown in the Coverage A Amount Factor Table of this Manual. PA FCH 32 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

37 MANUAL PAGES RULE 302 LOSS SETTLEMENT OPTIONS A. Functional Replacement Cost Loss Settlement HO 00 02, HO and HO Only 1. Introduction The policy provides building loss settlement on a replacement cost basis if, at the time of loss, the amount of insurance on the damaged building represents at least 80% of the full replacement cost of the building immediately before the loss. 2. Coverage Description The policy may be endorsed to provide building loss settlement exclusively on a functional replacement cost basis if, at the time of loss, the amount of insurance on the damaged building is 80% or more of the functional replacement cost of the building immediately before the loss. Functional Replacement Cost means the amount which it would cost to repair or replace the damaged building with less costly common construction materials and methods which are functionally equivalent to obsolete, antique or custom construction materials and methods. 3. Premium Computation Develop the Base Premium in accordance with Rule 301 for the amount of insurance selected for this option 4. Endorsement Use Modified Functional Replacement Cost Loss Settlement Endorsement HO B. Actual Cash Value Loss Settlement HO 00 02, HO and HO Only 1. Introduction The policy provides building loss settlement on a replacement cost basis if, at the time of loss, the amount of insurance on the damaged building represents at least 80% of the full replacement cost of the building immediately before the loss. 2. Coverage Description The policy may be endorsed to provide building loss settlement exclusively on an actual cash value basis if, on the inception date of the policy, the Coverage A limit of liability selected by the insured is less than 80% of the full replacement cost of the dwelling. 3. Premium Computation The premium is computed by multiplying the Base Premium by the appropriate factor from the following table: Coverage A Limit of Liability Equals Less Than % of Replacement Value Factor 80%, but not less than 50% 1.05 Less than 50% 1.10 Table 302.B.3. Factors 4. Endorsement Use Actual Cash Value Loss Settlement Endorsement HO PA FCH 33 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

38 MANUAL PAGES C. Special Loss Settlement HO 00 02, HO and HO Only 1. Introduction The policy provides building loss settlement on a replacement cost basis if, at the time of loss, the amount of insurance on the damaged building represents at least 80% of the full replacement cost of the building immediately before the loss. 2. Coverage Description This percentage amount may be modified to 50%, 60% or 70% of replacement value without affecting the loss settlement provisions. If this option is selected, the Coverage A limit of liability representing 50%, 60% or 70% of replacement value is to be shown in the policy declarations. 3. Premium Computation To develop the Base Premium for the Coverage A limit of liability shown in the policy declarations: a. Multiply the Coverage A limit of liability by the appropriate factor from the following table and round to the nearest $1,000: % of Replacement Value Factor 50% % 1.33 Table 302.C.3.a. Factors 70% 1.14 b. Develop a Base Premium in accordance with Rule 301 for the amount of insurance computed in preceding Paragraph a. c. Multiply the premium determined in preceding Paragraph b. by the appropriate factor from the following table: Table 302.C.3.c. Factors % of Replacement Value Factor 50%.96 60%.97 70% Endorsement Use Special Loss Settlement Endorsement HO PA FCH 34 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

39 MANUAL PAGES RULE 303 ORDINANCE OR LAW COVERAGE ALL FORMS A. Basic Limit The policy automatically provides up to 10% of the Coverage A limit of liability (or for Form HO 00 04, the Building Additions and Alterations limit) to pay for the increased costs necessary to comply with the enforcement of an ordinance or law. B. Increased Amount Of Coverage 1. Description The policy may be endorsed to increase the basic Ordinance or Law Coverage amount, as noted in Paragraph 2. to accommodate the increased costs known or estimated by the insured for materials and labor to repair or replace the damaged property and to demolish the undamaged portion of damaged property and clear the site of resulting debris according to the ordinance or law. 2. Premium Determination a. Forms HO 00 02, HO 00 03, HO and Premier Residence The premium is computed by applying the Increased Limits of Ordinance or Law Coverage Factor shown in the Rate Pages in this manual to each peril premium in accordance with Rule 301.A.1.e. for the amount of increased limits selected for this option. b. Form HO See Rule 513 for rating instructions. c. Endorsement Use Ordinance or Law Increased Amount of Coverage Endorsement HO PA FCH 35 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

40 MANUAL PAGES RULE 304 SPECIAL PERSONAL PROPERTY COVERAGE HO A. Coverage Description 1. Coverage C Personal Property under Form HO is insured against perils named in the form. The policy may be endorsed to insure Coverage C against additional risks of physical loss subject to certain exclusions. 2. This option may only be used when the condominium or cooperative unit is owner occupied and not rented to others. B. Premium Computation Multiply the applicable Special Personal Property Coverage factor from the Rate Pages in this manual in accordance with Rule 301.A.1.e. C. Endorsement Use Unit-Owners Coverage C Special Coverage Endorsement HO for use with HO only. PA FCH 36 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

41 MANUAL PAGES RULE 401 SUPERIOR CONSTRUCTION The premium for a dwelling or apartment unit in a building of superior construction is computed by applying the Superior Construction factor shown in the Rate Pages in this manual to each peril premium in accordance with Rule 301. PA FCH 37 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

42 MANUAL PAGES RULE 402 TOWNHOUSE OR ROW HOUSE ALL FORMS EXCEPT HO AND HO The premium for an eligible 1or 2 family dwelling in a town or row house structure is computed by applying the applicable rating factor as described in Rule 301.A.1.f. The rating factor will be applied to each peril premium based on the total number of individual family units within the fire division and the applicable protection class. For the purposes of this rule, an eligible two family owner-occupied dwelling attached to a one family dwelling but not separated by a fire wall would be considered 3 individual family units within a fire division. An eligible four family dwelling attached to a three family dwelling but not separated by a fire wall would be considered 7 individual family units within a fire division. Four 2 family dwellings not separated by a fire wall would be considered 8 individual family units. Refer to the Rate Pages in this manual for the applicable Townhouse or Row House factor. PA FCH 38 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

43 MANUAL PAGES RULE 403 PERSONAL PROPERTY (COVERAGE C) REPLACEMENT COST LOSS SETTLEMENT A. Introduction The policy provides loss settlement on an Actual Cash Value basis for certain types of property. B. Loss Settlement Option The policy may be endorsed to provide loss settlement on a Replacement Cost basis for such property whether insured on a blanket or scheduled basis. C. Endorsement Use Personal Property Replacement Cost Pennsylvania Endorsement HO D. Scheduled Personal Property 1. When the Scheduled Personal Property Endorsement HO is attached to a policy with Endorsement HO 23 63, the following property, if scheduled, will also be subject to repair or replacement cost loss settlement up to the scheduled limit of liability: a. Jewelry; b. Furs and garments trimmed with fur or consisting principally of fur; c. Cameras, projection machines, films and related articles of equipment; d. Musical equipment and related articles of equipment; e. Silverware, silver-plated ware, goldware, gold-plated ware and pewterware, but excluding pens, pencils, flasks, smoking implements or jewelry; and f. Golfer's equipment meaning golf clubs, golf clothing and golf equipment. 2. Since the loss settlement condition in Endorsement HO will pay the insured the least of the: a. Actual cash value of the property sustaining loss; b. The amount for which the property could be repaired or replaced; or c. The amount of insurance of the property sustaining loss; the limit of liability that applies to each scheduled item should be carefully evaluated to ensure that the limit selected by the insured represents the cost to replace the item if lost or damaged beyond repair. E. Scheduled Personal Property (With Agreed Value Loss Settlement) When Scheduled Personal Property (With Agreed Value Loss Settlement) Endorsement HO is attached to a policy with Endorsement HO 23 63, the property subject to agreed value loss settlement will not be subject to repair or replacement cost loss settlement. F. Premium Determination 1. For all forms except HO and HO 00 06: The premium is computed by applying the applicable Coverage C Replacement Cost factor shown in the Rate Pages in this manual to each peril premium in accordance with Rule 301.A.1.e. Note When Personal Property Replacement Coverage is added, the Coverage C limit is automatically increased to 70% of the Coverage A limit at no additional charge. This increased limit for Coverage C may not be reduced. 2. For form HO 00 04: The premium is computed by applying the applicable Coverage C Replacement Cost factor shown in the Rate Pages in this manual to each peril premium in accordance with Rule 301.B.e. PA FCH 39 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

44 MANUAL PAGES 3. For form HO 00 06: The premium is computed by applying the applicable Coverage C Replacement Cost factor shown in the Rate Pages in this manual to each peril premium in accordance with Rule 301.C.e. PA FCH 40 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

45 MANUAL PAGES RULE 404 PROTECTIVE DEVICES A. Approved and properly maintained installations of burglar alarms, fire alarms and automatic sprinklers in the dwelling may be recognized for a reduced premium. B. Use Endorsement HO Premises Alarm Or Fire Protection System C. Protection Device Factors 1. The Protective Device rating factor will be applied to each peril premium based on the existence of one of the following in the insured dwelling: a. Central Burglar Alarm b. Central Fire Alarm c. Police Burglar Alarm d. Fire Department Fire Alarm e. Local Burglar/Fire Alarm f. Automatic Sprinklers in all areas except attic, bathroom(s), closet(s) and attached structure areas that are protected by a fire detector g. Automatic Sprinklers in all areas including attic, bathroom(s), closet(s) and attached structures 2. The Protection Device Factor will be applied to the policy premium as described in Rule Refer to the Rate Pages in this manual for the applicable Protection Device Factor. PA FCH 41 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

46 MANUAL PAGES RULE 405 INFLATION GUARD I. All Forms Except HO and HO A. Coverage Description The policy is endorsed to provide annual increases of the Section I Limits of Liability as selected by the insured. B. Premium Computation The premium is computed by multiplying the Base Premium by the appropriate factor selected from the following table: Table 405 I.B. Inflation Guard Factors C. Endorsement Use Inflation Guard Endorsement HO II. Form HO Amount of Annual Increase Factor 6% No Charge A. Coverage Description The policy may be endorsed to provide annual increases to Coverages C and D Limits of Liability as selected by the insured. B. Premium Computation The premium is computed by applying the Inflation Guard factor shown in the Rate Pages in this manual to each peril premium in accordance with Rule 301.B.e. (for form HO 00 04) and Rule 301.C.e. (for form HO 00 06) for the amount of annual increase selected for this option. C. Endorsement Use Inflation Guard Endorsement for HO MU PA FCH 42 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

47 MANUAL PAGES RULE 406 DEDUCTIBLES All policies are subject to a deductible that applies to loss from all Section I Perils, except Earthquake. A separate deductible provision applies to Earthquake Coverage as described in Rule 505. A. Base Deductible $500 Deductible B. Optional Deductibles 1. $100 Deductible To compute the premium for this option, obtain the appropriate factor from the All Perils Deductible table in the Rate Pages of this manual. The Deductible factor will be applied to each peril premium as described in Rule 301.A.1.f.v. 2. $250 Theft Deductible All forms except HO 00 05, Premier Residence, HO with Special Personal Property Coverage Endorsement HO and HO with Unit-Owners Coverage C (Special Coverage) Endorsement HO a. The theft deductible applies to Coverage C Personal Property and is available only when: 1) A $100 deductible applies to All Other Perils; or 2) A higher deductible applies to the peril of Windstorm or Hail, as described in Paragraph C.3., and a $100 deductible applies to All Other Perils. b. When the $100 deductible applies to All Other Perils, compute the premium for this option by: 1) For all forms except HO and HO obtain the appropriate factor from the All Perils Deductible table for all forms except HO and HO in the Rate Pages of this manual. The Deductible factor will be applied to each peril premium as described in Rule 301.A.1.f. 2) For Forms HO obtain the appropriate factor from the All Perils Deductible Table for form HO in the Rate Pages of this manual. The Deductible factor will be applied to each peril premium as described in Rule e. 3) For Form HO obtain the appropriate factor from the All Perils Deductible table for form HO in the Rate Pages of this manual. The Deductible factor will be applied to each peril premium as described in Rule 301.C.e. C. Optional Higher Deductibles 1. All Perils Deductible To compute the premium for this deductible type, obtain the appropriate All Perils Deductible factor from the All Perils Deductible table in the Rate Pages of this manual. The Deductible factor will be applied to each peril premium as described in Rule 301.A.1.f. for all forms except HO and HO For form HO 00 04, refer to Rule 301.B.e. And for form HO 00 06, refer to Rule 301.C.e. 2. Theft Deductible (Forms HO and HO Only) a. Deductible Amounts This option provides for higher Theft deductible amounts of $1,000 and $2,500 to be used in conjunction with the deductible that applies to All Other Section I Perils. b. Declarations Instructions Separately enter, on the policy declaration, the deductible amounts that apply to Theft and All Other Section I Perils. c. Deductible Factors PA FCH 43 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

48 MANUAL PAGES (1) Form HO Obtain the appropriate factor from the Theft Deductibles table for form HO in the Rate Pages of this manual. The Deductible factor will be applied to each peril premium as described in Rule 301.B.e. (2) Form HO Obtain the appropriate factor from the Theft Deductibles table for form HO in the Rate Pages of this manual. The Deductible factor will be applied to each peril premium as described in Rule 301.C.e. 3. Windstorm Or Hail Deductibles (All Forms Except HO 00 06) The following deductible options are used in conjunction with the deductible applicable to All Other Section I Perils. a. Percentage Deductibles 1) Deductible Amounts This option provides for higher Windstorm or Hail percentage deductibles of 1%, 2% or 5% of the Coverage A limit of liability when the dollar amount of the percentage deductible selected exceeds the amount of the deductible applicable to All Other Section I Perils. 2) Endorsement Use Windstorm or Hail Percentage Deductible Endorsement HO ) Declarations Instructions Enter, on the policy declarations, the percentage amount that applies to Windstorm or Hail and the dollar amount that applies to All Other Section I Perils. For example: Deductible Windstorm or Hail 1% of Coverage A limit and $250 for All Other Perils Deductible Windstorm or Hail 2% of the Coverage A limit, $250 for Theft of Personal Property and $100 for All Other 4) Deductible Application In the event of a Windstorm or Hail loss to covered property, the dollar amount is deducted from the total of the loss for all coverages. For example: Amount Of Loss Coverage Limit Of Liability 1% Deductible Before Deductible After Deductible A $100,000 $1,000 $7,500 B 50,000 3,000 C 10,000 1,350 D 20, $12,510 $11,510 Table 406.C.3.a. 4) Example 5) Use Of Factors The factors displayed in the Rate Pages in this manual incorporate the factors for the All Peril Deductibles described in Paragraphs B.2. and C. Do not use the factors for the All Perils Deductibles when rating a policy with a higher Windstorm or Hail deductible. 6) Deductible Factors To compute the premium for this provision, obtain the appropriate Wind Deductible factor from the Wind Deductible table in the Rate Pages of this manual. The Wind Deductible factor will be applied to each peril premium as described in Rule 301.A.1.f. PA FCH 44 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

49 MANUAL PAGES Higher Fixed-Dollar Deductibles 1) Deductible Amounts This option provides for higher fixed-dollar deductible amounts of $1,000, $2,000 and $5,000 when the dollar amount of the higher fixed-dollar deductible selected exceeds the amount of the deductible applicable to All Other Section I Perils. 2) Endorsement An endorsement is not required. 3) Declarations Instruction Separately enter, on the policy declarations, the deductible amounts that apply to Windstorm Or Hail and All Other Section I Perils. For example: $1,000 for Windstorm Or Hail and $250 for All Other Perils. 4) Use Of Factors The factors displayed in Paragraph 5) incorporate the factors for the All Perils Deductibles shown in Paragraphs B.2. and C.1. Do not use the factors for the All Perils Deductibles when rating a policy with a higher Windstorm Or Hail deductible. 5) Deductible Factors To compute the premium for this provision, obtain the appropriate Wind Deductible factor from the Wind Deductible table in the Rate Pages of this manual. The Wind Deductible factor will be applied to each peril premium as described in Rule 301.A.1.f. PA FCH 45 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

50 MANUAL PAGES RULE 407 ADDITIONAL AMOUNTS OF INSURANCE FORMS HO 00 02, HO 00 03, HO AND PREMIER RESIDENCE A. Introduction 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 80% or more of the replacement cost of the building immediately before the loss. B. Coverage Description The policy may be endorsed to provide additional insurance for Coverage A only or for Coverages A, B, C and D when loss, to property insured under Coverage A Dwelling, exceeds the limit of liability shown in the policy declarations. C. Options Available When either of the following options is selected, the Coverage A limit of liability shall be at least 100% of the full replacement cost of the property insured under Coverage A at policy inception or at the time the endorsement is added to the policy: 1. Specified Additional Amount Of Insurance For Coverage A Only a. An additional amount of insurance equal to 25% or 50% of the Coverage A limit of liability may be selected. This additional amount is available when loss to property insured under Coverage A Dwelling exceeds the Coverage A limit of liability shown in the Declarations. The additional amount cannot be applied to any other coverage nor does it increase the Coverage A limit. b. The premium for this option is computed by obtaining the appropriate factor from the Additional Amounts of Insurance table in the Rate Pages of this manual. The Additional Amounts of Insurance factor will be applied to each peril premium as described in Rule 301.A.1.f. c. Use Specified Additional Amount of Insurance for Coverage A Endorsement HO Additional Limits Of Liability For Coverages A, B, C And D a. Starting 6/18/2012, this endorsement will no longer be available for purchase on new business, or to newly purchase on in-force business. 3. Replacement Value Methods Enter on the Declarations Page, the sources/methods used in determining the replacement value of the property for which these options apply. D. Endorsement Exception Do not use either endorsement when the Special Loss Settlement Endorsement or any other endorsement which modifies the required percentage of replacement value is attached to the policy. PA FCH 46 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

51 MANUAL PAGES RULE 408 ACTUAL CASH VALUE LOSS SETTLEMENT WINDSTORM OR HAIL LOSSES TO ROOF SURFACING ALL FORMS EXCEPT HO A. Introduction The policy provides settlement for building losses on a repair or replacement cost basis, subject to certain conditions. B. Coverage Description The policy may be endorsed to provide loss settlement exclusively on an Actual Cash Value basis for roof surfacing when damage is caused by the peril of Windstorm Or Hail. C. Premium Determination To develop a premium for this option, obtain the appropriate factor from the ACV for Wind/Hail Losses to Roof table in the Rate Pages of this manual. The ACV for Wind/Hail Losses factor will be applied to each peril premium as described in Rule 301. D. Endorsement Use Actual Cash Value Loss Settlement Windstorm Or Hail Losses To Roof Surfacing (All Forms Except HO ) Endorsement HO PA FCH 47 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

52 MANUAL PAGES RULE 409 REPLACEMENT COST LOSS SETTLEMENT FOR CERTAIN NON-BUILDING STRUCTURES FORMS HO 00 02, HO 00 03, HO AND PREMIER RESIDENCE A. Introduction The policy provides actual cash value loss settlement for non-building structures covered under Coverage B, or specifically scheduled under this policy. B. Coverage Description The policy may be endorsed to provide repair or replacement cost loss settlement for the following types of nonbuilding structures only if they are located on the residence premises: 1. Reinforced masonry walls; 2. Metal or fiberglass fences; 3. Fences made of plastic/resin materials such as polyvinylchloride; 4. Patios, walks (not made of wood or wood products); and 5. Driveways. C. Premium Computation The premium is computed by obtaining the appropriate factor from the Coverage B Replacement Cost table in the Rate Pages of this manual. The Replacement Cost Loss Settlement for Certain Non-building Structures factor will be applied to each peril premium as described in Rule 301.A.1.f. D. Endorsement Use Replacement Cost Loss Settlement For Certain Non-Building Structures On The Resident Premises Endorsement HO E. Endorsement Exception This loss settlement condition does not apply to covered property insured under Coverage B Other Structures Away From The Residence Premises Endorsement HO and Specific Structures Away From The Residence Premises Endorsement HO PA FCH 48 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

53 MANUAL PAGES RULE 410 BUILDING CODE EFFECTIVENESS GRADING This rule does not apply to Mobile or Trailer homes. A. General Information 1. 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 which cover the perils of Windstorm or Hail or Earthquake may be eligible for special rating treatment, subject to the criteria in the following paragraphs. The Building Code Effectiveness Grading factor applies, where applicable, in addition to the Public Protection Classification factors. 2. In some communities, two Building Code Effectiveness Grades may be assigned. One grade will apply to 1 and 2 family dwelling buildings and/or personal property contained in such buildings. The other grade will apply to all other buildings occupied for residential, commercial and/or manufacturing purposes including personal and business property contained therein. The Public Protection Classification Manual will indicate the application of each grade. 3. The Building Code Effectiveness Grades for a community, and their effective dates, are provided in the Public Protection Classification Manual published by Insurance Services Office, Inc. B. Community Grading 1. The Building Code Effectiveness Grade applies to any building that has an original certificate of occupancy dated the year of the effective date of the community grading, or later. A rating factor has been developed for each community grade. 2. If a community is regraded 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. 3. Where certificates of occupancy are not issued, equivalent documentation acceptable to the company may be used. 4. If, due to an addition or alteration, the original building is changed to comply with the latest building code, the factor for the community grading applicable at the time the reconstruction is completed will apply to such building. 5. The Building Code Effectiveness Grade may apply to Windstorm/Hail or Earthquake, or to both. Specific information is provided in the Public Protection Classification Manual. If the grade in the manual does not apply to one of the perils, the factor should not be applied for that peril. C. 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, exception rating procedures may apply. 1. Any building may be classified as Grade 1 for Windstorm/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 or hail hazard. This classification is effective only from the date of the certification. 2. Any building may be classified as Grade 1 for Earthquake upon certification by a registered or licensed design professional, based on an on-site inspection that such building is in compliance with the earthquake mitigation elements of one of the three nationally recognized building codes. This classification is effective only from the date of the certification. PA FCH 49 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

54 MANUAL PAGES D. Ungraded Risks Buildings which do not meet the criteria in Paragraph B. or C. for Grade assignment are rated and coded as ungraded risks. Do not classify as Grade 10. E. Premium Credit Computation 1. Community Grading a. Windstorm Or Hail Compute the premium credit as follows: 1) Obtain the appropriate factor from the Building Code Effectiveness Grading table in the Rate Pages of this manual. The Building Code Effectiveness Grading factor will be applied to each peril premium as described in Rule 301.A.1.f. b. Earthquake When Earthquake Endorsement HO is attached to the policy, multiply the Earthquake Base Premium by the appropriate factor in Paragraph E.1.b.1) located in the table below. 1) Earthquake Factors Grade Ungraded EQ Terr. Statewide Table 410.E.1.b.1) Earthquake Factors PA FCH 50 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

55 MANUAL PAGES RULE 501 BUILDING ADDITIONS AND ALTERATIONS AT OTHER RESIDENCES A. Coverage Description The policy may be endorsed to provide this coverage at residences, other than the residence premises, rented to an insured. B. Premium Computation To develop the premium per $1,000 of insurance, multiply the HO Coverage C Factor for "Each Add'l $1,000" by the HO Base Premium noted in Rule 301. C. Endorsement Use Building Additions And Alterations Other Residence Endorsement HO PA FCH 51 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

56 MANUAL PAGES RULE 502 BUILDING ADDITIONS AND ALTERATIONS INCREASED LIMIT HO A. Coverage C Increase The limit of liability of 10% of Coverage C may be increased. B. Premium Computation To develop the premium per $1,000 of insurance, multiply the HO Coverage C Factor for "Each Add'l $1,000" by the HO Base Premium noted in Rule 301. C. Endorsement Use Building Additions And Alterations Increased Limit Form HO Endorsement HO PA FCH 52 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

57 MANUAL PAGES RULE 503 BUSINESS PROPERTY INCREASED LIMIT A. On-Premises 1. The $5,000 limit of liability for business property on the residence premises may be increased to $10,000 in increments of $2,500. Note Refer to Rule 801 for coverage with the ACE,ACE Xtreme, or ACE Ultra Endorsement. 2. Refer to Rate Pages for each $2,500 increase. 3. The limit of liability in excess of $2,500 does not apply to: a. Business property in storage or held as a sample or for sale or delivery after sale. b. Business property pertaining to a business actually conducted on the residence premises. 4. The Property described in Paragraphs 3.a. and 3.b. are covered under the following optional endorsement: Permitted Incidental Occupancies B. Off Premises When the on-premises limit is increased, the off-premises limit of $2,000 is automatically increased, at no additional charge, to an amount that is 10 percent of the total on-premises limit of liability. C. Endorsement Use Increased Limits On Business Property Endorsement HO PA FCH 53 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

58 MANUAL PAGES RULE 504 CREDIT CARD, ELECTRONIC FUND TRANSFER CARD OR ACCESS DEVICE, FORGERY AND COUNTERFEIT MONEY A. Coverage Increase The limit of $500 may be increased. An additional rate is to be charged. Note Refer to Rule 801. for coverage with the ACE, ACE Xtreme, or ACE Ultra Endorsement. B. Premium Refer to the Rate Pages in this manual for an additional charge. C. Endorsement Use Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery And Counterfeit Money Coverage Increased Limit Endorsement HO PA FCH 54 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

59 MANUAL PAGES RULE 505 EARTHQUAKE COVERAGE A. Coverage Description The policy may be endorsed to provide coverage against a loss resulting from the peril of Earthquake. This peril shall apply to all Section I Coverages for the same limits provided in the policy. Use Earthquake Endorsement HO B. Deductible Deductible percentage amounts of 5%, 10%, 15%, 20%, and 25% of the limit of liability are included in this rule. In the event of an Earthquake loss to covered property, the dollar amount is deducted from the total of the loss for Coverages A, B and C. Earthquake rates are displayed for the 5% and 10% deductible in the state company rates. Credit factors for deductible percentage amounts of 15%, 20%, and 25% are provided in Paragraph E. Premium for Higher Deductibles of this rule. C. Loss Assessment Coverage Does not apply. D. Base Premium Develop the base premium as follows: 1. From the state company rates determine whether Construction Table A, B, and/or C applies for the appropriate deductible. 2. Determine the Earthquake territory according to the ZIP code of the residence premises from the State Territory Definitions pages in this Manual. 3. For Forms HO 00 02, HO and HO 00 05, add the results of the following three steps: a. Multiply the Coverage A limit by the rate found in Column A of the table; b. If the Coverage D limit is increased, multiply the rate found in Column F by the amount of the increase. 4. For Form HO 00 06, add the results of the following three steps: a. Multiply the Coverage C limit by the rate found in Column C of the table; b. Multiply the Coverage A limit by the rate found in Column E of the table; and c. If the Coverage D limit is increased, multiply the rate found in Column F by the amount of the increase. PA FCH 55 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

60 MANUAL PAGES 5. Building Or Non-Building Structure Items All Forms: Multiply the rate in Column F of the table by the appropriate limit of liability for Other Building or Structure options. (for example Other Structures Structures Rented To Others Residence Premises Endorsement HO 04 40, Other Structures On The Residence Premises Increased Limits Endorsement HO and Specific Structures Away From The Residence Premises Endorsement HO 04 92; Building Additions And Alterations - Other Residence Endorsement HO and Building Additions And Alterations Increased Limit Form HO Endorsement HO 04 51). 6. Ordinance Or Law Basic And Increased Limit All Forms: Multiply the rate determined in Paragraphs D.3.a., D.4.b., D.5.b., and/or D.6. by the Ordinance or Law total amount of insurance. This includes basic and, if applicable, increased amounts. E. Premium For Higher Deductibles Multiply the Earthquake base premium determined in Paragraph D. for the 10% deductible by the appropriate factor from the following table: Deductible Percentage Table 505.E. Higher Deductibles Factor Factor Frame Masonry Superior 15% % % F. Building Code Effectiveness Grading Refer to Rule 410 for information which may affect Earthquake rating. PA FCH 56 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

61 MANUAL PAGES RULE 506 FIRE DEPARTMENT SERVICE CHARGE Refer to Rule 801 for ACE, ACE Xtreme, and ACE Ultra coverage limits. PA FCH 57 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

62 MANUAL PAGES RULE 507 FORM HO COVERAGE A DWELLING BASIC AND INCREASED LIMITS AND SPECIAL COVERAGE HO A. Basic Limits The policy automatically provides a basic Coverage A limit of $5,000 on a named perils basis. If increased limits are not desired, enter "$5,000" under Coverage A Dwelling in the Policy Declarations. B. Increased Limits The basic limit may be increased. The premium is developed based on the additional limit of insurance. To develop the premium for each additional $1,000 of insurance, multiply the HO Coverage C Factor for "Each Add'l $1,000" by the HO Base Premium noted in Rule 301. C. Special Coverage The Section I Perils Insured Against may be broadened to cover additional risks of loss. The additional premium is developed as shown in the Rate Pages. D. Endorsement Use Unit-Owners Coverage A Special Coverage Endorsement HO PA FCH 58 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

63 MANUAL PAGES RULE 508 FORM HO UNITS REGULARLY RENTED TO OTHERS A. Coverage C And Section II Liability 1. There is no coverage for Coverage C Personal Property and Section II Liability when the residence premises is regularly rented or held for rental to others. The policy may be endorsed, however, to provide such coverage, including Theft. 2. The Coverage C minimum limit of liability may be waived when the value of the insured's personal property in the rented unit is less than $10,000. B. Premium Computation Multiply the Coverage C Base Premium (reflecting the credit or surcharge for optional deductibles) by a factor of.25. C. Endorsement Use Unit Owners Rental To Others Endorsement HO PA FCH 59 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

64 MANUAL PAGES RULE 509 HOME DAY CARE COVERAGE This rule does not apply. PA FCH 60 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

65 MANUAL PAGES RULE 510 PERMITTED INCIDENTAL OCCUPANCIES RESIDENCE PREMISES A. Coverage Description Coverage for a permitted incidental occupancy is limited under Section I and excluded under Section II. The policy may be endorsed to provide expanded Section I Coverage and Section II Coverage on a permitted incidental occupancy in the dwelling or in another structure on the residence premises. Use Permitted Incidental Occupancies (Residence Premises) Endorsement HO for Sections I and II Coverage. B. Permitted Incidental Occupancies Examples of such occupancies are Offices, Schools, or Studios meaning offices for business or professional purposes, and private schools or studios for music, dance, photography, and other instructional purposes. C. Other Structures If the permitted incidental occupancy is located in another structure, Coverage B does not apply to that structure. See Paragraph E. for charge for specific insurance on the structure. D. Personal Property The permitted incidental occupancies endorsement also covers personal property pertaining to the permitted incidental occupancy within the Coverage C limits stated in the declarations. If increased Coverage C limits are desired, see Rule 515.A. E. Premium Computation 1. Section I a. If the permitted incidental occupancy is located in the dwelling, no additional charge is made. b. If the permitted incidental occupancy is located in another structure, charge the amount per $1,000 of specific insurance on the structure. c. Refer to Rate Pages for rate to be charged. 2. Section II Refer to Rule 608 in the state company rates to develop the premium for the increased Coverages E and F exposure. PA FCH 61 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

66 MANUAL PAGES RULE 511 LOSS ASSESSMENT COVERAGE A. Residence Premises 1. Coverage Description The policy automatically provides, under Section I Additional Coverage and Section II Additional Coverage, a limit of $1,000 each for assessments relating to the residence premises, excluding assessments resulting from the peril of earthquake. (Refer to Rule 505 Earthquake Coverage for the Earthquake rule of application.) Note Refer to Rule 801 for coverage with the ACE, ACE Xtreme, or ACE Ultra Endorsement. 2. Higher Limits The policy may be endorsed to provide a single additional amount of insurance to be applied to one or more assessments arising out of a single loss covered under: a. Either Section I Additional Coverage or Section II Additional Coverage; or b. Both Section I and Section II Additional Coverages. 3. Premium Refer to the state company rates for the additional charge. B. Additional Locations 1. Coverage Description a. The policy may be endorsed to provide loss assessment coverage pertaining to additional locations for the insured s share of loss assessments arising out of a single loss covered as noted in Paragraph A.2. b. No more than 2 additional locations can be written in addition to the residence premises. 2. Premium Refer to the Rate Pages for the additional rates which apply to each location covered. C. Endorsement Use Loss Assessment Coverage Endorsement HO (Note: This Endorsement does not cover loss to property under Section I caused by Earthquake.) PA FCH 62 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

67 MANUAL PAGES RULE 512 LOSS OF USE INCREASED LIMIT A. When the limit of liability for Coverage D is increased, charge the rate per $1,000 of additional insurance. B. Refer to Rate Pages for rate to be charged. PA FCH 63 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

68 MANUAL PAGES RULE 513 ORDINANCE OR LAW INCREASED AMOUNT OF COVERAGE HO AND HO A. Coverage Increase The basic amount of coverage may be initially increased to 50% of the Form HO Building Additions and Alterations limit or 50% of the Form HO Coverage A limit. B. Premium Determination 1. The premium for this additional coverage is determined based on the dollar amount of increase, represented by the increased percentage amount selected above the basic limit. 2. The premium for each additional $1,000 of insurance is developed by multiplying the HO or HO 00 06, whichever is appropriate, Coverage C Factor for "Each Add'l $1,000" by.30 and then multiplying that amount by the appropriate Base Premium noted in Rule 301. PA FCH 64 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

69 MANUAL PAGES RULE 514 OTHER STRUCTURES A. On-Premises Structures When insurance is written on a specific structure on the residence premises the rates per $1,000 of insurance shall apply separately to each structure. 1. Specific Structure Increased Limits a. Premium Refer to state company rates. b. Endorsement Use Other Structures On The Residence Premises Increased Limits Endorsement HO Structure On The Residence Premises Rented To Others a. Premium Use the sum of: 1) The rate per $1,000 of insurance shown in the Rate Pages, and 2) The premium for the increased Coverages E and F exposure, as developed from the Section II rules of this Manual. b. Use Structures Rented to Others Residence Premises Endorsement HO B. Structures Off The Residence Premises 1. Forms HO 00 02, HO 00 03, HO and Premier Residence a. Coverage Description 1) The policy automatically provides Coverage B Other Structures on a blanket basis to structures located on the residence premises. 2) This blanket coverage may be endorsed to expand coverage to include structures located away from the residence premises if used in connection with the residence premises. b. Premium Refer to state company rates for rate to be charged. c. Endorsement Use Other Structures Away From The Residence Premises HO All Forms a. Premium 1) When insurance is written on a specific structure located away from the residence premises, the rate per $1,000 of insurance shall apply separately to each location. 2) Refer to Rate Pages for rate to be charged. b. Endorsement Use Specific Structures Away From Residence Premises Endorsement HO PA FCH 65 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

70 MANUAL PAGES RULE 515 PERSONAL PROPERTY A. Increased Limit 1. The limit of liability for Coverage C may be increased. 2. Charge the additional company rate per $1,000 of insurance. 3. Refer to Rate Pages for additional charge. B. Increased Limits Other Residences 1. Coverage for personal property usually located at other residences is limited in the policy form to 10% of Coverage C or $1,000, whichever is greater. This limit may be increased. Note Refer to Rule 801 for coverage limits with the ACE, ACE Xtreme, or ACE Ultra Endorsement. 2. Charge the additional company rate per $1, Refer to Rate Pages for additional charge 4. Use Increased Limits for Personal Property in Other Residences Endorsement HO C. Reduction in Limit 1. The limit of liability for Coverage C may be reduced in accordance with Rule 101.D. 2. Refer to Rate Pages for credit. D. Increased Special Limits of Liability 1. The Special Limits of Liability in the policy form for the categories of property noted in the following table may be increased to the maximum limit shown. Special Limits Personal Property Limit In Form* Maximum Limit Allowed 1. Jewelry, Watches and Furs *$ 7500 *$ 7, Money 500 1, Securities 5,000 5, Silverware, Goldware and Pewterware 7,500 **10, Firearms 7,500 7, Electronic Apparatus a. In or upon a motor vehicle or motorized land conveyance b. Not in or upon a motor vehicle that is away from the residence premises and used for business. * Not exceeding $2,500 for any one article ** Increase must be in increments of $500 Table 515 D.1. Special Limits Refer to Rule 801 for limits with ACE Xtreme or ACE Ultra 2,500 **6,000 2,500 **6,000 PA FCH 66 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

71 MANUAL PAGES 2. Refer to Rates Pages for additional charges. 3. Use Coverage C Increased Special Limits Of Liability Endorsement HO for all forms except as noted in Paragraph Use Coverage C Increased Special Limits Of Liability Endorsement HO for Form HO 00 05, Premier Residence or HO with HO E. Refrigerated Personal Property 1. The policy may be endorsed to provide $500 of coverage for covered property stored in freezers or refrigerators on the residence premises for loss caused by power service interruption or mechanical failure. Note Refer to Rule 801 for limits with ACE Xtreme or ACE Ultra. 2. A deductible of $50 applies. 3. Refer Rate Pages for the additional charge. PA FCH 67 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

72 MANUAL PAGES RULE 516 PERSONAL PROPERTY SCHEDULED A. Introduction Coverage may be provided on scheduled personal property subject to the Inland Marine rules and rates of the Company. B. Loss Settlement 1. Endorsement HO provides for standard loss settlement for all classes of property except Fine Arts; and agreed value loss settlement for Fine Arts. 2. Endorsement HO 0460 provides for agreed value loss settlement. a. Agreed Value Loss Settlement is the basic method of loss settlement for scheduled Fine Arts. All rates displayed for Fine Arts contemplate this method of loss settlement. b. The following classes may be insured subject to Agreed Value Loss Settlement: Cameras Coin Collections Furs Golfer's Equipment Table 301 B. Classes Eligible For Agreed Value Classes Of Property Jewelry Musical Instruments Silverware Stamp Collections 1) To identify an article or property item to which the agreed value loss settlement condition applies, place a double-asterisk ( ) next to the article or item in the first column in the Schedule of the class-specific form. 2) To determine the premium, multiply the annual premium for the article or property item by the following factor(s): Classes Of Property Factor Jewelry and Stamp or Coin Collections 1.20 Cameras, Furs, Golfer's Equipment, Musical Instruments and Silverware Table 301 B.2. Agreed Value Rating Factors C. Endorsements 1. Use Scheduled Personal Property Endorsement HO for standard loss settlement or agreed value loss settlement for fine arts. 2. Use Scheduled Personal Property (with Agreed Value Loss Settlement) Endorsement HO for agreed value loss settlement PA FCH 68 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

73 MANUAL PAGES RULE 517 RENTAL TO OTHERS EXTENDED THEFT COVERAGE ALL FORMS EXCEPT HO 00 05, PREMIER RESIDENCE OR HO WITH HO This rule does not apply. PA FCH 69 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

74 MANUAL PAGES RULE 518 SINKHOLE COLLAPSE COVERAGE ALL FORMS EXCEPT HO AND HO A. Coverage Description The policy may be endorsed to provide Sinkhole Collapse Coverage. B. Premium Determination 1. Refer to Rate Pages and 2. Multiply the rate per $1,000 by: a. Coverage A amount of insurance; b. Increased Limits for Coverages C and D; c. Loss Assessment Coverage, increased limits and additional locations; d. Ordinance Or Law Coverage, basic amount and, if applicable, increased amount of coverage; e. Other Building or Structure options for example: Other Structures Rented To Others (Residence Premises) Endorsement HO 04 40; Other Structures (Increased Limits) Endorsement HO 04 48; Specific Structures Away From The Residence Premises Endorsement HO 04 92; Building Additions And Alterations (Other Residence) Endorsement HO 04 49; and Building Additions And Alterations (Increased Limit Form HO 00 04) Endorsement HO C. Endorsement Use Sinkhole Collapse Endorsement HO PA FCH 70 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

75 MANUAL PAGES RULE 519 SPECIAL COMPUTER COVERAGE ALL FORMS EXCEPT HO 00 05, PREMIER RESIDENCE OR HO WITH HO A. Coverage Description The policy may be endorsed to insure computers and related equipment against additional risks of physical loss subject to certain exclusions. B. Premium Refer to Rate Pages for additional charge. C. Endorsement Use Special Computer Coverage Endorsement HO PA FCH 71 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

76 MANUAL PAGES RULE 520 LIVESTOCK COLLISION COVERAGE This rule does not apply. PA FCH 72 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

77 MANUAL PAGES RULE 521 WATER BACK UP AND SUMP DISCHARGE OR OVERFLOW A. Coverage Description The policy forms exclude coverage for loss resulting from water or water-borne material which backs up through sewers or drains or which overflows or is discharged from a sump, sump pump or related equipment. B. Coverage Option 1. The policy may be endorsed to provide coverage for loss resulting from water which backs up through sewer or drains or which overflows from a sump. The following limits are available: a. $2,500 b. $5,000 c. $10,000 d. $20,000 e. $30,000 f. $40, A deductible of $250 applies. No other deductible option is available. 3. When ACE Xtreme or ACE Ultra applies, $2,500 coverage is included with no premium charge. When Premier Residence applies, $5,000 coverage is included with no premium charge. C. Premium Refer to Rate Pages for the additional charge. D. Endorsement Use Water Back Up And Sump Overflow Endorsement MU PA FCH 73 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

78 MANUAL PAGES RULE 522 LANDLORDS FURNISHINGS This rule does not apply. PA FCH 74 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

79 MANUAL PAGES RULE 523 ASSISTED LIVING CARE COVERAGE A. Introduction The policy provides coverage to named insureds and resident relatives who are members of the insured's household. B. Coverage Description 1. The policy may be endorsed to provide personal property, additional living expense and personal liability coverage to a person regularly residing in an Assisted Living Care facility, provided such person: a. Is related to an insured by blood, marriage or adoption; and b. Is not a member of that insured's household. 2. An assisted living care facility is a facility that provides assisted living services such as dining, therapy, medical supervision, housekeeping and social activities. It is not a hospice, prison or rehabilitation facility. 3. The endorsement provides the following basic limits of coverage: a. $10,000 for Coverage C Personal Property with limitations ranging from $100 to $500 for certain items of property; b. $6,000, at $500 per month, for Additional Living Expenses; and c. $200,000 for Coverage E Personal Liability. C. Premium Refer to Rate Pages for additional charge. D. Endorsement Use Assisted Living Care Coverage Endorsement HO PA FCH 75 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

80 MANUAL PAGES RULE 524 OTHER MEMBERS OF A NAMED INSURED'S HOUSEHOLD A. Introduction The policy provides coverage to named insureds, resident relatives who are members of the insured's household and persons under the age of 21 who are in the care of an insured. B. Coverage Description 1. The policy may be endorsed to provide coverage to a person who is a member of the named insured's household but does not fall under the definition of insured in the policy. It does not cover a guest, residence employee, roomer, boarder or tenant. Coverage extends to the person named in the endorsement, and a person under the age of 21 who is in the legal custody of that person. 2. All coverages and provisions under Sections I and II of the policy that apply to insureds also apply to the persons described in Paragraph 1. except Coverages A, B and D (Fair Rental Value only). C. Premium Refer to Rate Pages for additional charge. D. Endorsement Use Other Members Of Your Household Endorsement HO PA FCH 76 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

81 MANUAL PAGES RULE 525 MOTORIZED GOLF CART PHYSICAL LOSS COVERAGE A. Coverage Description The policy may be endorsed to provide coverage for physical loss to a motorized golf cart, including permanently installed accessories, equipment and parts, owned by an insured. Also covered, for an amount equal to 10% of the limit of the highest scheduled cart, are accessories, equipment or parts designed or made solely for the cart that are not permanently installed provided such property is at an insured's residence or in or upon the cart off the insured's residence at the time of loss. Coverage for loss caused by collision is optional and only applies if declared on the schedule of the endorsement. B. Eligibility To be eligible for coverage, the motorized golf cart shall be of the type designed to carry up to four people on a golf course for the purpose of playing golf and shall not have been built, or modified after manufacture, to exceed a speed of 25 m.p.h. on level ground. Read the endorsement for all conditions of coverage. C. Limit Of Liability The limit of liability shall be selected by the insured. However, that limit should be representative of the actual cash value of the motorized golf cart including any permanently installed accessories, etc. D. Deductible A deductible amount of $500 applies separately to each involved golf cart and, separately to Section I Property Coverages if not in or upon a golf cart at the time of loss. The $500 deductible replaces any other deductible in the policy with respect to property covered under the endorsement. E. Premium Rate each cart separately using the premium per $500 of insurance. Refer to the Rate Pages for additional charge. F. Endorsement Use Owned Motorized Golf Cart Physical Loss Coverage Endorsement HO PA FCH 77 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

82 MANUAL PAGES RULE 526 RESIDENCE HELD IN TRUST ALL FORMS EXCEPT HO A. Trust And Trustee Named Insured A Homeowners policy may be issued in the name of both the trust and trustee when: 1. The residence held in trust is a 1, 2, 3, or 4 family dwelling or a condominium unit used exclusively for residential purposes, except as provided in Rule 104.F. ; 2. Legal title to the dwelling or condominium unit is held solely by the trust; 3. The resident of the residence held in trust include at least one of the following: the trustee, the grantor of the trust, or the beneficiary of the trust; and 4. The trust and trustee are both shown as the named insured on the policy declarations, regardless of who resides in the residence held in trust. B. Endorsement Use Residence Held In Trust Endorsement HO C. Other Persons Insured Grantor And/Or Beneficiary Regularly Resides In The Residence Held In Trust 1. If the trustee regularly resides in the residence held in trust along with the grantor or beneficiary and the grantor and/or beneficiary: a. Is related to the trustee and is a member of the trustee's household, the grantor and/or beneficiary is an insured as defined in the policy form and should not be named in Endorsement HO 05 43; or b. Is not related to the trustee, or is related but not a member of the trustee's household, the grantor and/or beneficiary must be named in Endorsement HO to be covered for personal property, additional living expenses, personal liability and medical payments to others. If the grantor and beneficiary are related to each other and members of the same household, only one of the two should be named on the endorsement. 2. If the trustee does not regularly reside in the residence held in trust, the grantor and/or beneficiary must be named in Endorsement HO whether or not they are related to the trustee. This is necessary to provide the grantor or beneficiary with coverage for personal property, additional living expenses, personal liability and medical payments to others. If the grantor and beneficiary are related to each other and members of the same household, only one of the two should be named on the endorsement. D. Liability Coverage Explained 1. Coverage E Personal Liability and Coverage F Medical Payments To Others is provided to the trust and trustee named insured who regularly resides on the residence premises. However, if the trustee named insured does not regularly reside on the residence premises, coverage for the trust and trustee is only provided for bodily injury or property damage arising out of the ownership, maintenance or use of the residence premises (premises liability). 2. Endorsement HO excludes: a. Liability coverage for claims or suits for bodily injury or property damage arising out of any act or decision or failure to act or decide by the trustee named insured in administering the trust except as provided in Paragraph 1.; and b. Liability coverage for bodily injury to all insureds covered under this policy, for example, the trustee named insured, the grantor or beneficiary of the trust who is named on the endorsement or any person acting on their behalf. PA FCH 78 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

83 MANUAL PAGES E. Additional Conditions The policy may not be endorsed or extended to insure: 1. Under Section I, any other dwelling on the residence premises, or any other structure, on or away from the residence premises, unless legal title to that other dwelling or structure is held solely by the trust; or 2. Under Section II, any location away from the residence premises unless legal title to that other location is held solely by the trust. F. Premium Additional charges are provided for the trustee and any beneficiary and/or grantor. These charges reflect Section II Liability basic limits. 1. Trustee The charge for the trustee applies whether or not the trustee resides on the residence premises. Refer to Rate Pages for this additional charge. 2. Beneficiary And/Or Grantor a. Refer to Rate Pages for additional charge when either the beneficiary or grantor is named in the endorsement. b. Refer to Rate Pages for additional charge when both the beneficiary and grantor are named in the endorsement. PA FCH 79 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

84 MANUAL PAGES RULE 527 STUDENT AWAY FROM HOME A. Introduction The policy provides coverage for a full-time student, who was a resident of the named insured's household before moving out to attend school and is under the age of: and a relative of the named insured; or and in the care of the named insured or a resident relative. B. Coverage Description The policy may be endorsed to provide coverage for other types of students who were residents of the named insured's household before moving out to attend school. For example, part time students or students older than 24. C. Premium Determination Refer to Rate Pages for additional charge. D. Endorsement Use Additional Insured Student Living Away From The Residence Premises Endorsement HO PA FCH 80 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

85 MANUAL PAGES RULE 528 HOME BUSINESS INSURANCE COVERAGE This rule does not apply. PA FCH 81 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

86 MANUAL PAGES RULE 529 MODIFIED OTHER INSURANCE AND SERVICE AGREEMENT CONDITION HO ONLY A. Introduction Form HO provides that if there is other insurance in the name of a corporation or association of property owners covering the same property covered by HO 00 06, payment for a covered loss under HO will be excess over the amount recoverable under such insurance. If the Association does not recover under its policy, for any reason, there is no payment to the insured unit-owner under Form HO B. Coverage Description The policy may be endorsed to alter the Other Insurance and Service Agreement Condition to provide for payment of a covered loss in excess of the amount due from the other insurance whether the corporation or association of property owners can collect on it or not. C. Premium The premium is computed by multiplying the appropriate factor from the Modified Other Insurance and Service Agreement Condition table in the Rate Pages of this manual in accordance with Rule 301.c.e. D. Endorsement Use Unit-Owners Modified Other Insurance And Service Agreement Condition Endorsement HO with HO only. PA FCH 82 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

87 MANUAL PAGES RULE 601 RESIDENCE PREMISES BASIC AND INCREASED LIMITS/OTHER EXPOSURES BASIC LIMITS A. Residence Premises 1. Minimum limits of liability for Coverage E (Personal Liability) and Coverage F (Medical Payments to Others) are shown in Rule 301 in the state classification section. The premium for these limits is included in the Base Premium. 2. Refer to the Rate Pages Rule 601 for increased limits rates. 3. If increased limits are written, then the same limits must apply to any Other Exposures covered under the policy, unless otherwise stated. B. Other Exposures 1. There is an additional charge for Other Exposures listed in the following rules. 2. The minimum limits for Other Exposures are the same as the limits for the Residence Premises, unless otherwise stated. 3. For increased limits for Other Exposures, refer to Rules 701 and If increased limits are written, then the same limits must apply to the Residence Premises, unless otherwise stated. C. Rates And Factors Not Shown 1. Rates and factors for limits between the lowest and highest limits shown in this Manual may be developed by interpolation. 2. For rates and factors for limits above the highest shown, refer to company. PA FCH 83 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

88 MANUAL PAGES RULE 602 OTHER INSURED LOCATION OCCUPIED BY INSURED A. Introduction 1. Section II Coverage may be provided on locations, other than the residence premises, where an insured resides, but which are insured for Section I Coverage under another insurance program or by another company. 2. Make the appropriate charge for each other insured location shown in the Declarations of this policy. If the insured location is in another state, refer to the Manual for that state. B. Premium Refer to the Rate Pages. PA FCH 84 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

89 MANUAL PAGES RULE 603 RESIDENCE EMPLOYEES A. There is no additional charge for up to two residence employees. B. Refer to the Rate Pages to determine the premium when there are more than two residence employees. C. Charges do not apply to employees working less than half of the customary full time or to whom workers' compensation exclusion applies as stated in Section II of the policy. PA FCH 85 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

90 MANUAL PAGES RULE 604 ADDITIONAL RESIDENCE RENTED TO OTHERS A. Introduction 1. The policy may be endorsed to provide coverage when an additional residence is rented to others. 2. If the additional residence rented to others is in another state, refer to the Manual for that state. B. Premium Refer to Rate Pages. C. Endorsement Use Additional Residence Rented To Others Endorsement HO PA FCH 86 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

91 MANUAL PAGES RULE 605 OTHER STRUCTURES RENTED TO OTHERS RESIDENCE PREMISES A. Coverage Description 1. The policy may be endorsed to provide coverage when a structure on the residence premises is rented to others for dwelling purposes. 2. Refer to Rule 514.C for rating Section I Coverage. B. Premium Refer to Rate Pages. C. Endorsement Use Structures Rented To Others Residence Premises Endorsement HO PA FCH 87 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

92 MANUAL PAGES RULE 606 COMPUTER-RELATED DAMAGE OR INJURY EXCLUSION AND COVERAGE OPTIONS This rule does not apply. PA FCH 88 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

93 MANUAL PAGES RULE 607 HOME DAY CARE COVERAGE This rule does not apply. PA FCH 89 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

94 MANUAL PAGES RULE 608 PERMITTED INCIDENTAL OCCUPANCIES RESIDENCE PREMISES AND OTHER RESIDENCES A. Coverage Description The policy may be endorsed to provide coverage for the increased exposure arising from a permitted incidental occupancy on the residence premises or in an other residence occupied by the insured. 1. Residence Premises Use Permitted Incidental Occupancies Residence Premises Endorsement HO Other Residence Use Permitted Incidental Occupancies Other Residence Endorsement HO B. Premium Refer to Rate Pages. PA FCH 90 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

95 MANUAL PAGES RULE 609 BUSINESS PURSUITS A. Coverage Description The policy may be endorsed to provide coverage for the liability of the insured arising out of business activities. Coverage is excluded if the insured owns the business, is a partner or maintains financial control in the business. B. Premium 1. Refer to the Rate Pages for eligible business activities and rates. 2. Refer to company for eligibility and rates for business activities not listed. C. Endorsement Use Business Pursuits Endorsement HO PA FCH 91 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

96 MANUAL PAGES RULE 610 PERSONAL INJURY A. Introduction Liability coverage for personal injury to others, such as false arrest, malicious prosecution, wrongful eviction, slander, libel or violations of right of privacy, may be added to the policy. Note: Refer Rule 801 for coverage with the ACE, ACE Xtreme, or ACE Ultra Endorsement. B. Premium Refer to the Rate Pages in this manual for the appropriate rate. C. Endorsement Use Personal Injury Endorsement HO PA FCH 92 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

97 MANUAL PAGES RULE 611 INCIDENTAL LOW POWER RECREATIONAL MOTOR VEHICLES This rule does not apply. PA FCH 93 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

98 MANUAL PAGES RULE 612 OUTBOARD MOTORS AND WATERCRAFT A. Introduction Coverage is included in the policy form, at no additional charge, for certain watercraft powered by an outboard engine or motor or combination of outboard engines or motors of up to 25 horsepower, and sailboats less than 26 feet in overall length with or without auxiliary power. Coverage is also included for watercraft powered by inboard or inboard-outdrive engines or motors, including those that power a water jet pump, of 50 horse power or less when not owned by an insured or more than 50 horse power when not owned by or rented to an insured. Note Refer to Rule 801 for coverage with the ACE, ACE Xtreme, or ACE Ultra Endorsement. B. Coverage Description 1. The policy may be endorsed to provide coverage for the following types of craft: a. Watercraft, up to 26 feet in length powered by outboard engines or motors exceeding 25 horsepower; or powered by inboard or inboard-outdrive engines or motors, including those that power a water jet pump. Accumulate total horsepower if two or more engines or motors are regularly used together with any single watercraft owned by insured. b. Sailboats 26 feet or more in overall length, with or without auxiliary power. 2. Coverage must be written to expiration of the policy. It is permissible, however, to stipulate for all watercraft eligible in this rule, the navigational period of each year. Premium shall be adjusted on a pro rata basis. 3. For watercraft not described in preceding Paragraphs A. and B.1 coverage is not permitted under the Homeowners Policy. 4. The premium in the state where the Insured's residence premises is located shall apply. However, if the insured owns another residence premises in a different state and principally operates the watercraft from that residence, apply the premium for that state. C. Premium Refer to the Rate Pages. D. Endorsement Use Watercraft Endorsement HO PA FCH 94 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

99 MANUAL PAGES RULE 613 OWNED SNOWMOBILE This rule does not apply. PA FCH 95 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

100 MANUAL PAGES RULE 614 FARMERS PERSONAL LIABILITY This rule does not apply. PA FCH 96 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

101 MANUAL PAGES RULE 615 INCIDENTAL FARMING PERSONAL LIABILITY A. On The Residence Premises 1. Coverage Description a. The policy may be endorsed to provide coverage for the liability of the insured when farming is conducted on the residence premises and is incidental to the use of the premises as a dwelling, and the income derived from the farming operations is not the insured's primary source of income. However, coverage is not available if the location specified in the endorsement is used for racing purposes. b. The policy may also be endorsed to provide coverage when the residence premises is used for the sheltering and grazing of animals. However, coverage is not available if the residence premises is used for racing purposes. 2. Premium Refer to Rate Pages. B. Away From The Residence Premises 1. Coverage Description The policy may be endorsed to provide coverage for the liability of the insured whose incidental farming activities are conducted at the locations specified in the endorsement which are away from the residence premises. Such incidental farming activities may include the boarding or grazing of the insured's animals, or use of the land as garden space if the income derived from such activities is not the insured's primary source of income. However, coverage is not available if the locations specified in the endorsement are used for racing purposes. 2. Premium Refer to Rate Pages. C. Endorsement Use Incidental Farming Personal Liability Endorsement HO PA FCH 97 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

102 MANUAL PAGES RULE 616 OPTIONAL PROPERTY REMEDIATION FOR ESCAPED LIQUID FUEL AND LIMITED LEAD AND ESCAPED LIQUID FUEL LIABILITY COVERAGES This rule does not apply. PA FCH 98 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

103 MANUAL PAGES RULE 701 OTHER EXPOSURES PERSONAL LIABILITY INCREASED LIMITS Apply the appropriate factor shown in the following table to the basic limits premium for each exposure. Limit Factor 200, , , , Table 701 Personal Liability Increased Limits PA FCH 99 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

104 MANUAL PAGES RULE 702 OTHER EXPOSURES MEDICAL PAYMENTS TO OTHERS INCREASED LIMITS Refer to the Rate Pages for increased limit rates. PA FCH 100 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

105 MANUAL PAGES RULE 801 ADDITIONAL COVERAGE EXTENSIONS FORMS HO 00 02, HO 00 03, HO 00 05, PREMIER RESIDENCE AND HO A. Coverage description Three packaged coverage extensions are available. Coverages are described in Table 801.A.- Coverages and Limits. ACE Xtreme includes all of the coverages included in ACE plus more. ACE Ultra includes all of the coverages included in ACE Xtreme plus Service Line Coverage. Additional Coverage Extensions Special Limits Base Policy ACE ACE Xtreme Money $200 $500 $1,000 Securities $1,500 $5,000 $5,000; $50,000 in vault Watercraft $1,500 $3,000 $3,000 Trailers not used with watercraft $1,500 $3,000 $3,000 Loss by theft of jewelry, watches, furs, precious & semiprecious stones. $1,500 $7,500; $2,500 per item $10,000; $2,500 per item; include misplacing; $50,000 in vault Loss by theft of firearms. $2,500 $7,500 $10,000 Loss by theft of silverware, silver-plated ware, goldware, gold plated ware & pewterware. $2,500 $7,500 $10,000; includes misplacing; $50,000 in vault Business Property on Premises $2,500 $5,000 $10,000 Business Property Away from Premises Electronic apparatus, in or upon a motor vehicle Electronic apparatus, while not in or upon a motor vehicle Other Coverages $500 $2,000 $2,500 $1,500 $2,500 $2,500 $1,500 $2,500 $2,500 Additional Limits of Liability Not Included Not Included 25% Coverage A only Animal, birds and fish Not Included $250 $500 Claim Expenses (per day) $250 $300 $350 Computer Equipment ("all risk Not Included Not Included "All risk" type coverage is type") included Coverage C Limit Off Premises 10% or $1,000 10% or $1,000 20% or $2,000 Coverage C Off Premises - coverage for flood earthquake or landslide; or collision or upset of transporting land vehicle or watercraft Coverage D expansion for Power Outages Off Premises Not Included $1,000 $5,000 Not Included Coverage applies after 48 hrs; 7 days max Credit Card $500 $10,000 $10,000 Coverage applies after 48 hrs.; 7 days max PA FCH 101 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

106 MANUAL PAGES Special Limits Base Policy ACE ACE Xtreme Damage to the Property of $1,000 $2,000 $2,000 Others - Sec II Additional Coverage Fire Department Service $500 $1,000 Pays all reasonable fees Charge Fire Extinguisher Recharge Not Included $250 $250 Land Stability Not Included Not Included $10,000 Lock Replacement Not Included $500 $750 Loss Assessment $1,000 Sec I $1,000 Sec II $5,000 Section I and II $10,000 Section I and II Mortgage Expense Not Included Not Included $250/mo up to 4 years for a total loss occurrence No Other Structures Not Included Coverage B is added to Coverage A if there are no other structures over $1,000 in value. Coverage B is added to Coverage A if there are no other structures over $1,000 in value. Personal Injury Not Included Included Included Refrigerated Products (Food Not Included $1,000; $2,500; Spoilage) $50 deductible $50 deductible Reward Not Included $250 $500 Trees - Debris Removal Trees, Shrubs, and Plants Additional Coverage (per item limit) Waiver of Deductible for Property Losses Coverage only if the tree damages a building or blocks a road. Coverage only if the tree damages a building or blocks a road. Coverage provided if there is no damage to structures if the loss is due to wind, hail, weight of ice and snow. $500 $1,000 $1,000 Not Included Waive deductible for total losses (except hurricane deductible) Waive deductible for total losses (except hurricane deductible) Water Backup Not Included Not Included $2,500 Watercraft Liability for Covers outboards Outboards up to 25 hp Table 801 A Coverages and Limits Covers outboards up to 50 hp Covers outboards up to 50 hp PA FCH 102 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

107 MANUAL PAGES B. Premium Computation Refer to the Rate Pages in this manual for the additional charge for ACE, ACE Xtreme, and ACE Ultra. C. Endorsements 1. For ACE, use ACE - Additional Coverage Extensions MU The following forms are included in ACE and must not be attached separately when ACE applies: a. HO Credit Card, (Etc) Increased Limit b. HO Refrigerated Property Coverage c. HO Personal Injury 2. For ACE Xtreme, use ACE Xtreme - Additional Coverage Extensions (Pennsylvania) MU The following forms are included in ACE Xtreme and must not be attached separately when ACE Xtreme applies: a. MU ACE b. HO Credit Card, (Etc) Increased Limit c. HO Specified Additional Amount of Insurance for Coverage A Dwelling (25% limit) d. HO Refrigerated Property Coverage e. HO Special Computer Coverage f. MU Water Back Up and Sump Discharge or Overflow (with $2,500 limit) g. HO Personal Injury 3. For ACE Ultra, use ACE Ultra Additional Coverage Extensions (Pennsylvania) MU a. ACE Ultra includes all ACE Xtreme coverages plus Service Line Coverage. b. Forms HO and HO 00 06, and Premier Residence are not eligible for ACE Ultra coverage. PA FCH 103 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

108 MANUAL PAGES RULE 802 ACCOUNT POLICY FACTOR A. This rule applies to All Homeowners Forms B. Where the named insured is also a named insured under a personal auto policy voluntarily written through Merchants Preferred Insurance Company, the Account Policy Factor applies. This Account Policy Factor will continue to apply as long as the personal auto policy remains in force. Termination of the personal auto policy will result in a change to the Account Policy Factor as of the next Homeowners renewal date. C. An Account Policy Factor may be applied mid-term. D. The account policy factor is applied to the policy premium as described in Rule 301. Refer to the Rate Pages in this manual for the applicable Account Policy Factor. PA FCH 104 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

109 MANUAL PAGES RULE 803 CONSTRUCTION AGE FACTOR A. Introduction A rating factor will be applied to each peril premium based on the dwelling s age of construction B. Definition 1. The Construction Age factor is based on the year the dwelling was originally built. 2. For dwellings that have been completely razed and re-built, the construction age factor will be based on the year the dwelling was re-built. C. Eligibility 1. The Construction Age factor applies to dwellings insured under forms HO 00 02, HO 00 03, HO 00 05, and Premier Residence. 2. The factor will be applied at the time of inception and preparation of the renewal. The Construction Age factor will adjust at renewal as the dwelling ages. For example, a policy that is rated at inception with a Construction Age factor of 10 years, the construction age factor will advance to 11 years at the first renewal. D. Premium Computation 1. The Construction Age factor will be applied to the policy premium as described in Rule 301.A.1.e. 2. Refer to the Rate Pages in this manual for the applicable Construction Age Factor. PA FCH 105 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

110 MANUAL PAGES RULE 804 MAXIMUM CREDIT RULE This rule does not apply. PA FCH 106 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

111 MANUAL PAGES RULE 805 IDENTITY RECOVERY AND EXPENSE COVERAGE A. Coverage Description The policy may be endorsed to provide coverage for expenses and Identity Recovery Services the insured incurs as a result of the fraudulent use of the insured s identity by a third party. Covered expenses include notary and certified mailing fees, long distance telephone charges, lost wages, loan re-application fees, and attorney fees. Expense reimbursement coverage is subject to a limit of $15,000 annual aggregate per insured. Case Management Service expenses do not reduce the amount of limit available for expense reimbursement coverage. B. Deductible A deductible of $100 applies. There is no deductible applying to Case Management Services. No other deductible option is available. C. Premium Charge the rate shown in the Rate Pages. D. Endorsement Use Endorsement MU Identity Recovery Coverage. PA FCH 107 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

112 MANUAL PAGES RULE 806 HOME ADVANTAGE COVERAGE A. Coverage Description Home Advantage coverage provides equipment breakdown insurance to cover equipment attached to and made a part of the dwelling or other structure when perils for such equipment would have been excluded under the homeowners policy. B. Endorsement Use Home Advantage coverage form MU C. Eligibility Any risk eligible for and carrying a Homeowners policy is eligible for Home Advantage coverage. D. Rules This coverage will be written as a separate endorsement in a homeowners policy. E. Premium Determination The premium charge is per policy where coverage applies. 1. Base Rates Select the applicable Base Rate from the Table 806 E.1 in the state rate section of the manual based on the stated Homeowners Coverage A Building Value. 2. Deductible The base rates contemplate a deductible of $500. If the Homeowners policy uses a higher deductible then select the applicable deductible factor from Table 806 E.2. Deductible Level Table 806 E.2 $250 $500 $750 $1,000 $2,500 $5, PA FCH 108 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

113 MANUAL PAGES RULE 807 BUILDERS RISK ENDORSEMENT FOR HOMEOWNERS A. The Builder s Risk Endorsement for Homeowners includes the following coverages; 1. Theft of materials and supplies is covered up to $5,000 until the dwelling is completed and occupied. 2. The full Coverage C limit applies while the insured is residing in a temporary residence waiting for completion of the dwelling. 3. Coverage C is extended to all risk of covered property while being transported from the residence or warehouse to the new building. 4. Coverage up to 5% of Coverage A as an additional amount of insurance to cover tools, equipment, materials, and supplies owned by others and intended for use in the construction of the dwelling & other structures. The coverage only applies while these items are used by, rented to, or in the care of the insured. B. Eligibility Rules 1. The inception must be the date the construction begins above the basement floor, or if there is no basement, the date construction begins. 2. The policy should carry Coverage A at the full value once completed. 3. The dwelling must be built by a licensed contractor other than the insured. 4. This coverage may not remain on a policy for longer than 1 year. 5. Specified Additional Amount of Insurance for Coverage A only or Additional Limits of Liability for Coverages A, B, C and D may not be added to the policy until construction is completed and dwelling is occupied. 6. ACE, ACE Xtreme, or ACE Ultra may not be added to the policy until construction is completed and the dwelling is occupied. 7. This may be applied to totally new construction. The endorsement is not available for additions, renovations, or conversions. 8. Dwelling must be owner occupied at completion. 9. Additional insureds are not permitted 10. The named insured is limited to an individual or spouse, if residents of the same household. C. Premium The premium is the premium for the dwelling with no discounts or credits applied. D. Endorsement Attach Endorsement MU Builder s Risk Endorsement for Homeowners. PA FCH 109 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

114 MANUAL PAGES RULE 808 LOSS HISTORY A. Introduction The loss history of an insured(s) or applicant(s), for both property and liability coverages is recognized in determining the appropriate premium for a new or renewal policy. B. Eligibility 1. A loss shall be considered eligible for rating if: i. The loss occurred during the three years immediately preceding the date of application for a new policy or the preparation of the renewal policy ii. The claim payout was greater than $1 iii. Catastrophe claims will be excluded for the purposes of this factor 2. The Loss History Factor will be applied at the time of inception or preparation of the renewal. 3. The Loss History Factor will be adjusted only at the time of renewal when losses fall below the claim criteria noted in B.1. No mid-term adjustments will be made except as noted in item C. below. C. Refund Of Increased Premium If, after an increased premium is generated based on the requirements of this rule, it is determined that a loss does not meet the eligibility requirements of this rule, Merchants shall refund the increased portion of the premium attributable to such loss as generated by the rule. D. Administration Of Loss History Factor Information necessary to determine the loss history of the named insured or applicant shall be obtained from any one or combination of the following: 1. An application signed by the applicant. 2. A loss history or claims history database. 3. Merchants internal records. E. Premium Computation 1. The Loss History factor applies to all policy forms. 2. The Loss History factor will be applied to the policy premium as described in Rule Refer to the Rate Pages in this manual for the applicable Loss History Factor. RULE 809 SWIMMING POOL FACTOR A. Introduction A rating factor will be applied to each peril premium based on the presence or absence of a swimming pool on the covered property B. Definition PA FCH 110 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

115 MANUAL PAGES Swimming pool means: Above-Ground pools In-Ground pools Portable pools Inflatable pools Natural pools With the capacity of at least 500 gallons of water, constructed of natural or man-made materials and designed for the purpose of recreational swimming and water sport C. Eligibility The factor applies to dwellings insured under forms HO 00 02, HO 00 03, HO 00 03, HO 00 05, and Premier Residence when a swimming pool is on the premises. The factor will be applied at the time of inception, preparation of the renewal, or mid-term as described in the Swimming Pool Factor in the Rate Pages of this Manual. D. Administration of the Rule Information necessary to determine the presence of a swimming pool shall be obtained from any one or combination of the following: 1. An application signed by the applicant 2. Physical Inspection of the covered property, including aerial photo technology, such as Google Earth E. Premium Computation 3. Merchants internal records The Swimming Pool factor will be applied to the policy premium as described in Rule 301.A.1.e. Refer to the Rate Pages in this manual for the applicable Swimming Pool Factor. PA FCH 111 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

116 MANUAL PAGES RULE 810 PREMIER RESIDENCE A. Coverage Description The Premier Residence Form provides all risk-type property and contents coverage along with, Additional Limits of Liability for Coverages A, B, C and D, $5,000 of water backup coverage, along with the ACE Endorsement. HO Premier Residence Additional Limits of Liability Coverage A, B, C and D Coverage C Special Coverage ("all risk type") Coverage C Personal Property Replacement Cost Loss Settlement Water Backup Table 810 A - Coverages and Limits Not Included 50% Included Not Included $2,500 with ACE Xtreme Included Included $5,000 B. Endorsements Use Premier Residence coverage form HO 07 PA. The following forms are included in Premier Residence and must not be attached separately when Premier Residence applies: a. HO Special Coverage Form b. HO Additional Limits of Liability for Coverages A, B, C and D. c. HO Specified Additional Amount of Insurance for Coverage A Dwelling d. HO Personal Property Replacement Cost Loss Settlement Pennsylvania e. HO Special Computer Coverage f. MU Water Back Up and Sump Discharge or Overflow ($5,000 limit) g. MU ACE Additional Coverage Extensions h. HO Personal Injury Note: Replacement Cost on Personal Property is afforded using Option 1 including the automatic increase in Coverage C to 70%. C. Optional Endorsements The following forms are available with Premier Residence and must be attached separately when purchased: a. MU Service Line Coverage for Premier Residence Policy Only Premium Charge the rate shown in the state rate pages PA FCH 112 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

117 MANUAL PAGES RULE 811 SOLID FUEL HEATING SOURCE FACTOR A. Introduction A rating factor will be applied to each peril premium based on the presence or absence of a Solid Fuel Heating Source. B. Definition Solid Fuel Heating Source means any appliance capable of burning solid fuel such as: Wood burning stoves, including free-standing units, central or add-on furnaces or boilers, and cook stoves Free-standing Fireplaces or Fireplace Inserts Pellet Stoves Grain Stoves, including those that burn rye or corn Solid fuel heat is any heating system that is not electric, gas, or fuel oil, and includes units burning palletized fuel, biomass or agricultural products such as shelled corn and grain. C. Eligibility The factor applies to dwellings insured under forms HO 00 02, HO 00 03, HO 00 03, HO 00 05, and Premier Residence and to Personal Property insured under Forms HO and HO when a solid fuel heating source is on the premises. The factor will be applied at the time of inception, preparation of the renewal, or mid-term as described in the Solid Fuel Heating Source Factor in the Rate Pages of this manual. D. Administration of the Rule Information necessary to determine the presence of a Solid Fuel Heating Source shall be obtained from any one or combination of the following: 1. An application signed by the applicant 2. Physical Inspection of the covered property 3. Merchants internal records E. Premium Computation 1. The Solid Fuel Heating Source factor will be applied to the policy premium as described in Rule Refer to the Rate Pages in this manual for the applicable Solid Fuel Heating Source Factor. PA FCH 113 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

118 MANUAL PAGES RULE 812 DOG FACTOR A. Introduction A rating factor will be applied to each peril premium based on the ownership, custody or care of one or more dogs on the covered property B. Definition The factor applies for dogs of a non-vicious nature and has no prior history of biting. * * Dogs with aggressive tendencies and/or dogs with a prior bite history are not eligible under the homeowners program. C. Eligibility The factor applies to dwellings insured under forms HO 00 02, HO 00 03, HO 00 05, and Premier Residence and to Personal Property insured under Forms HO and HO when an insured owns, or has custody/care of, one or more dogs. The factor will be applied at the time of inception, preparation of the renewal, or mid-term as described in the Dog Factor in the Rate Pages of this Manual. D. Administration of the Rule Information necessary to determine the presence of a dog shall be obtained from any one or combination of the following: 1. An application signed by the applicant 2. Physical Inspection of the covered property 3. Merchants internal records E. Premium Computation 1. The Dog factor will be applied to the policy premium as described in Rule Refer to the Rate Pages in this manual for the applicable Dog Factor. PA FCH 114 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

119 MANUAL PAGES RULE 813 OIL TANK FACTOR A. Introduction A rating factor will be applied to each peril premium based on the presence of an Oil Storage Tank on the covered property B. Definition Oil Storage Tanks are defined as an active or inactive petroleum fuel storage tank located at the address stated on the Policy Declarations page, constructed of steel, modified steel (steel tank that has been lined, coated or anodized), polyethylene or fiberglass-based composites and situated either above ground, underground, inside or outside the residence premises, of any capacity or age. C. Eligibility The factor applies to dwellings insured under forms HO 00 02, HO 00 03, HO 00 05, and Premier Residence when an Oil Storage Tank is present on the insured premises. The factor will be applied at the time of inception, preparation of the renewal, or mid-term as described in the Oil Tank Factor in the Rate Pages of this Manual. D. Administration of the Rule Information necessary to determine the presence of an Oil Storage Tank shall be obtained from any one or combination of the following: 1. An application signed by the applicant 2. Physical Inspection of the covered property 3. Merchants internal records E. Premium Computation 1. The Oil Tank factor will be applied to the policy premium as described in Rule 301.A.1.e. 2. Refer to the Rate Pages in this manual for the applicable Oil Tank Factor. PA FCH 115 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

120 MANUAL PAGES RULE 814 NUMBER OF STORIES FACTOR A. Introduction A rating factor will be applied to each peril premium based on the dwelling s number of stories. B. Definition For the purposes of this rating factor the number of stories will be divided into three groups: 1. One story 2. Two stories 3. Three or more stories Bi-level and split-level dwellings will be considered as two-story structures. Dwellings comprised of a half story will be rounded up to the nearest full story. For example, a dwelling that has 1-½ stories will be counted as having two stories for the purposes of the factor. Finished basements will not be considered a story for the purposes of this factor. C. Eligibility The factor applies to dwellings insured under forms HO 00 02, HO 00 03, HO 00 05, and Premier Residence based on the dwelling s number of stories. The factor will be applied at the time of inception as described in the Number of Stories Factor in the Rate Pages of this Manual. If the dwelling construction is subsequently altered after inception, the rating factor will be amended mid-term. D. Administration of the Rule Information necessary to determine the number of stories shall be obtained from any one or combination of the following: 1. An application signed by the applicant 2. Physical Inspection of the covered property, including aerial photo technology, such as Google Earth 3. Merchants internal records E. Premium Computation 1. The Number of Stories factor will be applied to the policy premium as described in Rule 301.A.1.e. 2. Refer to the Rate Pages in this manual for the applicable Number of Stories Factor. PA FCH 116 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

121 MANUAL PAGES RULE 815 NUMBER OF BATHROOMS FACTOR A. Introduction A rating factor will be applied to each peril premium based on the number of bathrooms located at the insured residence. B. Definition A bathroom is defined as the following: ½ Bath: Wash basin and toilet ¾ Bath: Wash basin, toilet and shower Full Bath: Wash basin, toilet and bathtub 1 ½ Bath: Wash basin, toilet, bathtub and separate shower The number of bathrooms will be calculated by adding the number of each type of bathrooms. For example, a dwelling that has two ½ baths and 2 full baths will be rated as having 3 baths. For the purposes of the factor, each risk will be divided into one of two categories: 1. Risks having one to two bathrooms 2. Risks having more than two bathrooms C. Eligibility The factor applies to dwellings insured under forms HO 00 02, HO 00 03, HO 00 05, and Premier Residence based on the number of bathrooms present. The factor will be applied at the time of inception as described in the Number of Bathrooms Factor in the Rate Pages of this Manual. If the dwelling construction is subsequently altered after inception, the rating factor can be amended mid-term. D. Administration of the Rule Information necessary to determine the number of bathrooms shall be obtained from any one or combination of the following: 1. An application signed by the applicant 2. Physical Inspection of the covered property 3. Merchants internal records E. Premium Computation 1. The Number of Bathrooms factor will be applied to the policy premium as described in Rule 301.A.1.e. 2. Refer to the Rate Pages in this manual for the applicable Number of Bathrooms Factor. PA FCH 117 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

122 MANUAL PAGES RULE 816 RENOVATION FACTOR A. Introduction Peril specific rating factors will be applied to each peril premium based on the time since each of the four major systems in the dwelling have been completely replaced: heating, plumbing and electrical systems within the last 30 years and roofing within the last 20 years. B. Definition For the purposes of this factor renovations must have been completed by a licensed contractor in compliance with the local building codes. Complete renovations are defined for each system as: 1. Heating and Cooling Complete renovation includes furnace and air-conditioning replacement, if applicable, or replacement of burners or heating elements for furnaces and compressors for central air-conditioning systems within the past 30 years. 2. Plumbing Must be updated to include copper and/or PVC water lines within the past 30 years. A plumbing system with the existence of galvanized iron, cast iron, lead, or terra cotta pipes will be considered as not renovated for the purposes of this factor. 3. Electrical Service Must be updated to a circuit breaker box with 100 amps service or greater within the past 30 years. Electrical service with the existence of fuses, knob and tube wiring, aluminum wiring, Federal Pacific Electric Panel Box, or a main service panel amp rating of less than 100 amps will not be considered as renovated for the purposes of this factor. 4. Roof Complete replacement of roofing materials within the past 20 years. For asphalt shingles, either completely covering the existing layer of shingles with a new layer of asphalt shingles, up to a maximum of 2 layers, or completely replacing the current layer of shingles is required. Replacing portions of shingles only will not be considered as renovated for the purposes of this factor. Metal, wood, tile, or slate roofs must be completely removed and replaced The above descriptions are not exhaustive. Merchants may apply additional underwriting judgment as needed. C. Eligibility This factor applies to dwellings insured under forms HO 00 02, HO 00 03, HO Premier Residence The factor will be applied at the time of inception, preparation of the renewal or mid-term and based on the degree of renovations. D. Administration of the Rule Information necessary to determine whether the dwellings renovations are complete shall be obtained from any one or combination of the following: 1. An application signed by the applicant 2. Physical Inspection of the covered property 3. Merchants internal records E. Premium Computation 1. The renovation factor is applied to the policy premium as described in Rule 301.A.1.e. 2. Refer to the Rate Pages in this manual for the applicable Account Policy factor PA FCH 118 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

123 MANUAL PAGES RULE 817 TIERING FACTOR A. Initial Tier Assignment 1. Each policy is assigned a Tier based on objective, mutually exclusive underwriting criteria 2. A rating factor will be applied to each peril premium based on the assigned tier 3. The Tier rating factor applies to all policy forms 4. The factor will be applied to the policy premium as described in Rule Refer to the Rate Pages in this manual for the applicable Tier Factor PA FCH 119 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

124 MANUAL PAGES RULE 818 NUMBER OF FAMILIES FACTOR A. Introduction A rating factor will be applied to each peril premium based on the number of families residing in the single building covered dwelling. B. Definition For the purposes of this rating factor a single building is defined in Rule 109. Risks will be divided into one of two categories: 1. One family 2. Two or more families C. Eligibility The factor applies to dwellings insured under forms HO 00 02, HO 00 03, HO 00 05, and Premier Residence based on the number of families residing in the single building dwelling. The factor will be applied at the time of inception. If the dwelling construction is subsequently altered after inception, the rating factor will be amended mid-term. D. Administration of the Rule Information necessary to determine the number of families shall be obtained from any one or combination of the following: 1. An application signed by the applicant 2. Physical Inspection of the covered property 3. Local, County, and/or State property assessment records 4. Merchants internal records E. Premium Computation 1. The Number of Families factor will be applied to the policy premium as described in Rule 301.A.1.e. 2. Refer to the Rate Pages in this manual for the applicable Number of Families Factor. PA FCH 120 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

125 MANUAL PAGES RULE 819 CATASTROPHE TERRITORY FACTOR A. Introduction A rating factor will be applied to the perils of Wind/Hail based on the insured dwelling s Catastrophe Territory. B. Definition The Catastrophe Territory Factor is based on the county of the insured dwelling. Counties are grouped into one of the following two Catastrophe Territories: C. Eligibility 1. Catastrophe Territory 001 (South East PA) Counties include: Adams, Berks, Bucks, Carbon, Chester, Cumberland, Dauphin, Delaware, Lancaster, Lebanon, Lehigh, Monroe, Montgomery, Northampton, Philadelphia, Pike, Schuylkill, and York 2. Catastrophe Territory 999 (Rest of State) Counties include: All other counties 1. The factor applies to all policy forms. 2. The factor will be applied at the time of inception and preparation of the renewal. D. Premium Computation 1. The Catastrophe Territory factor will be applied to the policy premium as described in Rule Refer to the Rate Pages in this manual for the applicable Catastrophe Territory factor. 3. Note: No commissions are paid on premium generated from the Catastrophe Territory Factor PA FCH 121 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

126 MANUAL PAGES RULE 820 HOME ADVANTAGE PLUS COVERAGE A. Coverage Description Home Advantage Plus Coverage provides equipment breakdown insurance to cover equipment attached to and made a part of the dwelling or other structure when perils for such equipment would have been excluded under the homeowners policy. Home Advantage Plus Coverage also provides Service Line Insurance, which covers physical damage to a covered service line that is the direct result of a service line failure. Coverage includes firstparty costs for outdoor property, such as trees, shrubs, plants, lawns, walkways or driveways that is damaged as a result of a covered service line failure or that is damaged during the excavation of a covered service line following a service line failure. Reasonable expediting expenses are also included. B. Endorsement Use Home Advantage Plus Coverage form MU C. Eligibility Homeowners forms HO and HO D. Rules This coverage will be written as a separate endorsement for all homeowners policies except those being written on the Premier Residence policy. Service line coverage is an optional endorsement for Premier Residence Policies (see Rule 810, form # MU 86 86). E. Premium Determination The premium charge is per residence where coverage applies. 1. Base Rates Select the applicable Base Rate from the Table 820 E.1 in the state rate section of the manual based on the stated Homeowners Coverage A Building Value. 2. Deductible The base rate applies a deductible of $500. PA FCH 122 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

127 MANUAL PAGES RULE 821 TERRITORY/SUB TERRITORY FACTOR A. All Forms Except HO and HO Introduction An individual Territory/Sub Territory rating factor will be applied to all perils based on the Territory/Sub Territory of the insured dwelling. 2. Definition The Territory/Sub Territory Factor is based on the zip code of the insured dwelling that is recognized by the United States Postal Service 3. Eligibility a. The factor applies to all policy forms. b. The factor will be applied at the time of inception and preparation of the renewal. 4. Premium Computation a. Refer to the Rate Pages in this manual for the applicable Territory Zip Code Factors. b. If a new zip code is assigned to an insured dwelling location, the characteristics shall be retained from the prior zip code territory that were assigned previously. c. If more than one zip code is applicable to an insured dwelling, the zip code that will be used for the purpose of rating will be the one that contains the larger population according to the United States Census Bureau B. Forms HO 0004 and HO Introduction A Territory Code rating factor will be applied to all perils based on the county or city of the insured dwelling. 2. Definition The Territory Codes are based off of ISO Territory Codes. 3. Eligibility a. The factor applies to forms HO and HO b. The factor will be applied at the time of inception and preparation of the renewal. 4. Premium Computation a. Refer to the Rate Pages in this manual for the applicable Territory Code Factors. b. Refer to the Territory Pages to determine the applicable Territory Code. PA FCH 123 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

128 MANUAL PAGES ADDITIONAL RULES RULE A1 SPECIAL STATE REQUIREMENTS A. Special Provisions Endorsement HO Use this endorsement with all Homeowners policies. B. No Coverage For Home Day Care Business HO This endorsement details the exclusions and restrictions of the policy with respect to a home day care exposure. Use this endorsement with all Homeowners policies. C. Pennsylvania Notice IL Use this endorsement with all new and renewal policies, including renewal certificates, insuring risks in Pennsylvania, to notify insureds of the provisions of the Pennsylvania Consultation Services Exemption Act. D. Water Exclusion Endorsement Use Endorsement HO with all HO and HO Use Endorsement HO with all HO 00 03, HO and Premier Residence policies. PA FCH 124 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

129 MANUAL PAGES RULE A2 CREDIT FOR EXISTING INSURANCE This rule does not apply. PA FCH 125 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

130 MANUAL PAGES RULE A3 LIMITED FUNGI, WET OR DRY ROT OR BACTERIA COVERAGE A. Coverage Description 1. Basic Limits The Limited Fungi, Wet, or Dry Rot or Bacteria Coverage Endorsement is attached to all policies. Limited amounts of insurance are provided as follows: a. Section I - Fungi, Wet Or Dry Rot, Or Bacteria $10,000 to pay for loss to covered real or personal property, owned by an insured, that is damaged by fungi or wet or dry rot, or bacteria on the "residence premises" as defined in the coverage endorsements. This Coverage applies only for the policy period in which the loss or costs occur. b. Section II - Fungi, Wet Or Dry Rot, Or Bacteria $50,000 to pay for damages because of bodily injury or property damage involving the inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any fungi, wet or dry rot, or bacteria. B. Application of Limits of Liability 1. For Property Coverage, the $10,000 or the limit selected is the most coverage that will be provided during the policy period regardless of the number of locations insured for Limited Fungi, Wet Or Dry Rot, Or Bacteria Coverage or the number of claims made during the policy period. 2. For Liability Coverage, $50,000 or the limit selected is an aggregate limit and is the most coverage that will be provided during the policy period regardless of the number of persons injured, the number of persons whose property is damaged, the number of insureds, the number of locations insured under this policy or the number of bodily injury or property damage claims made. C. Endorsements 1. Use Limited Fungi, Wet or Dry Rot or Bacteria Coverage Endorsement: a. MU For use with all Forms except HO 00 03, HO and Premier Residence. b. MU For use with Forms HO 00 03, HO and Premier Residence c. MU For use with Form HO with HO or HO These endorsements provide complete details on coverages, limitations, definitions and additional policy conditions applicable to this coverage. Enter the applicable Section I - Property Coverage Limit Of Liability for the Additional Coverage Fungi, Wet Or Dry Rot, Or Bacteria and the Section II - Coverage E Aggregate Sublimit Of Liability For Fungi, Wet Or Dry Rot, Or Bacteria Coverage PA FCH 126 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

131 MANUAL PAGES RULE A4 COMMUNITY MITIGATION CLASSIFICATION MANUAL With the renaming of the Public Protection Classification (PPC) Manual all references to the PPC Manual shall be understood to be references to the Community Mitigation Classification Manual. PA FCH 127 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

132 MANUAL PAGES RULE A5 IDENTITY FRAUD EXPENSE COVERAGE This rule does not apply. Refer to Rule 805. PA FCH 128 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

133 MANUAL PAGES RULE A6 LOSS HISTORY RATING PLAN ALL FORMS This rule does not apply. Refer to Rule 808 PA FCH 129 of 129 Effective Date: 06/18/12 NB 08/18/12 REN

134 TERRITORIES Merchants Preferred Insurance Company A. CITIES City County Code Allentown... Lehigh Bethlehem... Lehigh and Northampton Erie... Erie Philadelphia... Philadelphia Pittsburgh... Allegheny B. OTHER THAN CITIES County Code Adams Allegheny Armstrong Beaver Bedford Berks Blair Bradford Bucks Butler Cambria Cameron Carbon Centre Chester Clarion Clearfield Clinton Columbia Crawford Cumberland Dauphin County Code Delaware Elk Erie Fayette Forest Franklin Fulton Greene Huntingdon Indiana Jefferson Juniata Lackawanna Lancaster Lawrence Lebanon Lehigh Luzerne Lycoming McKean Mercer Mifflin County Code Monroe Montgomery Montour Northampton Northumberland Perry Philadelphia Pike Potter Schuylkill Snyder Somerset Sullivan Susquehanna Tioga Union Venango Warren Washington Wayne Westmoreland Wyoming York HOP 1 of 16

135 TERRITORIES Merchants Preferred Insurance Company EQ Territory Zip USPS Zip EQ Zip USPS Zip EQ Zip USPS Zip EQ Code Code Name Territory Code Code Name Territory Code Code Name Territory Aliquippa Ambridge Atlasburg Baden Bairdford Bakerstown Beaver Beaver Falls Belle Vernon Brackenridge Bradfordwoods Bridgeville Buena Vista Bulger Bunola Burgettstown Charleroi Cheswick Clairton Clinton Conway Coulters Creighton Cuddy Curtisville Donora Dravosburg East Mc Keesport Eldersville Elizabeth Elrama Freedom Georgetown Gibsonia Glassport Glenwillard Greenock Harwick Hookstown Indianola Industry Joffre Langeloth Lawrence Leetsdale Mc Donald Midland Midway Monaca Monessen Monongahela Morgan Natrona Heights New Brighton New Eagle New Kensington New Kensington Oakdale Pricedale Rochester Rural Ridge Russellton Shippingport Slovan South Heights Sturgeon Sutersville Tarentum Trafford Warrendale Webster West Elizabeth West Newton Wexford Wildwood Warrendale Warrendale Allison Park Bethel Park Braddock Carnegie Coraopolis Duquesne East Pittsburgh Glenshaw Homestead West Mifflin West Mifflin Imperial Ingomar Library Mc Keesport Mc Keesport Mc Keesport Mc Keesport Mc Keesport Mc Keesport Mc Kees Rocks North Versailles Oakmont Pitcairn Presto Sewickley Springdale Turtle Creek Monroeville Verona Wilmerding Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh... 4 HOP 2 of 16

136 TERRITORIES Merchants Preferred Insurance Company Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Washington Aleppo Amity Avella Beallsville Bentleyville Bobtown Brave Canonsburg Carmichaels Cecil Clarksville Claysville Cokeburg Crucible Dilliner Prosperity Eighty Four Ellsworth Finleyville Garards Fort Gastonville Graysville Greensboro Hendersonville Hickory Holbrook Houston Jefferson Marianna Mather Meadow Lands Millsboro Mount Morris Muse Nemacolin New Freeport Nineveh Pine Bank Rices Landing Richeyville Rogersville Scenery Hill Southview Spraggs Strabane Sycamore Taylorstown Van Voorhis Venetia Vestaburg Waynesburg West Alexander West Finley Westland West Middletown Wind Ridge Uniontown Adah Addison Allenport Allison Brier Hill Brownfield Brownsville California Cardale Chalkhill Chestnut Ridge Coal Center Confluence Connellsville Daisytown Dawson Denbo Dickerson Run Dunbar Dunlevy East Millsboro Elco Fairbank Fairchance Farmington Fayette City Gans Gibbon Glade Grindstone Hibbs Hiller Hopwood Indian Head Isabella Jacobs Creek Keisterville La Belle Lake Lynn Leckrone Leisenring Lemont Furnace Mc Clellandtown Markleysburg Martin Masontown Melcroft Merrittstown... 4 HOP 3 of 16

137 TERRITORIES Merchants Preferred Insurance Company Mill Run Mount Braddock Newell New Geneva New Salem Normalville Ohiopyle Oliver Perryopolis Point Marion Republic Ronco Roscoe Smithfield Smithton Smock Star Junction Stockdale Uledi Ursina Vanderbilt Waltersburg West Leisenring White Wickhaven Somerset Hidden Valley Somerset Acosta Alum Bank Bedford Berlin Boswell Boynton Breezewood Buffalo Mills Clearville Crystal Spring Everett Fairhope Fishertown Fort Hill Friedens Garrett Gray Hyndman Jenners Jennerstown Kantner Listie Manns Choice Markleton Meyersdale New Baltimore New Paris Quecreek Rockwood Salisbury Schellsburg Shanksville Sipesville Springs Stoystown Wellersburg West Salisbury Greensburg Greensburg Greensburg Acme Adamsburg Alverton Apollo Ardara Armbrust Arona Avonmore Bovard Bradenville Calumet Champion Claridge Crabtree Darragh Delmont Derry Donegal East Vandergrift Edmon Everson Export Forbes Road Grapeville Hannastown Harrison City Herminie Hostetter Hunker Hutchinson Hyde Park Irwin Jeannette Jones Mills Larimer Latrobe Laughlintown Leechburg Ligonier Lowber Loyalhanna Luxor Madison Mammoth Manor Mount Pleasant Murrysville New Alexandria New Derry New Stanton North Apollo Norvelt Penn Pleasant Unity Rector Rillton Ruffs Dale Salina Saltsburg Schenley Schenley Scottdale Slickville Southwest Spring Church Stahlstown Tarrs United Vandergrift Wendel Westmoreland City Whitney Wyano Youngstown Youngwood Yukon Indiana Indiana Alverda Anita Arcadia Aultman... 4 HOP 4 of 16

138 TERRITORIES Merchants Preferred Insurance Company Barnesboro Big Run Black Lick Blairsville Brush Valley Burnside Carrolltown Chambersville Cherry Tree Clarksburg Clune Clymer Commodore Coolspring Coral Creekside De Lancey Dixonville Elderton Elmora Emeigh Ernest Gipsy Glen Campbell Hamilton Heilwood Hillsdale Home Homer City Josephine Juneau Kent La Jose Lucernemines Mc Intyre Mahaffey Marchand Marion Center Marsteller Mentcle Nicktown Northpoint Oliveburg Penn Run Punxsutawney Ringgold Rochester Mills Rossiter Saint Benedict Shelocta Spangler Sprankle Mills Starford Timblin Torrance Valier Walston West Lebanon Worthville Du Bois Benezett Brandy Camp Brockport Brockway Brookville Byrnedale Clarington Corsica Dagus Mines Driftwood Emporium Falls Creek Force Johnsonburg Kersey Knox Dale Luthersburg Penfield Reynoldsville Ridgway Rockton Saint Marys Sigel Sinnamahoning Stump Creek Summerville Sykesville Troutville Weedville Wilcox Johnstown Johnstown Johnstown Johnstown Johnstown Johnstown Johnstown Armagh Beaverdale Belsano Bolivar Cairnbrook Cassandra Central City Colver Davidsville Dilltown Dunlo Ebensburg Elton Hollsopple Hooversville Jerome Lilly Loretto Mineral Point Nanty Glo New Florence Parkhill Portage Revloc Robinson Saint Michael Salix Seanor Seward Sidman South Fork Strongstown Summerhill Tire Hill Twin Rocks Vintondale Wilmore Windber Butler Butler Butler Boyers Boyers Boyers Boyers Branchton Bruin Cabot Callery Chicora Connoquenessing East Brady East Butler... 4 HOP 5 of 16

139 TERRITORIES Merchants Preferred Insurance Company Eau Claire Evans City Fenelton Forestville Foxburg Harmony Harrisville Herman Hilliards Karns City Lyndora Mars North Washington Parker Petrolia Portersville Prospect Renfrew Saint Petersburg Sarver Saxonburg Slippery Rock Turkey City Valencia West Sunbury Zelienople Cranberry Twp New Castle New Castle New Castle New Castle New Castle New Castle Adamsville Atlantic Bessemer Clark Clarks Mills Darlington Edinburg Ellwood City Enon Valley Farrell Fombell Fredonia Greenville Grove City Hadley Hartstown Hillsville Jackson Center Jamestown Koppel Mercer New Bedford New Galilee New Wilmington Pulaski Sandy Lake Sharon Hermitage Sharpsville Sheakleyville Stoneboro Transfer Villa Maria Volant Wampum West Middlesex West Pittsburg Wheatland New Wilmington Kittanning Adrian Beyer Cadogan Callensburg Clarion Kittanning Climax Cooksburg Cowansville Crown Curllsville Dayton Distant Fairmount City Fisher Ford City Ford Cliff Freeport Hawthorn Knox Leeper Limestone Lucinda Mc Grann Manorville Marienville Mayport New Bethlehem Nu Mine Oak Ridge Plumville Rimersburg Rural Valley Sagamore Seminole Shippenville Sligo Smicksburg Snydersburg Strattanville Templeton Vowinckel Widnoon Worthington Yatesboro Oil City Carlton Chandlers Valley Clarendon Cochranton Conneaut Lake Cooperstown Cranberry East Hickory Endeavor Franklin Fryburg Guys Mills Hydetown Irvine Kossuth Lickingville Ludlow Marble Meadville Pittsfield Pleasantville Polk Reno Rouseville Russell Seneca Sheffield Sugar Grove Tidioute Tiona Tionesta... 4 HOP 6 of 16

140 TERRITORIES Merchants Preferred Insurance Company Titusville Townville Tylersburg Utica Venus Warren Warren Warren Irvine Irvine West Hickory Youngsville Clintonville Emlenton Kennerdell Lamartine Meadville Albion Bear Lake Cambridge Springs Centerville Columbus Conneautville Corry Cranesville East Springfield Edinboro Elgin Fairview Garland Girard Grand Valley Harborcreek Harmonsburg Lake City Linesville Mc Kean Mill Village North East North Springfield Riceville Saegertown Spartansburg Springboro Spring Creek Union City Venango Waterford Wattsburg West Springfield Edinboro Albion Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Erie Altoona Altoona Altoona Alexandria Ashville Bakers Summit Beccaria Bellwood Blandburg Brisbin Broad Top Calvin Cassville Chest Springs Claysburg Coalport Coupon Cresson Curryville Defiance Dudley Duncansville Dysart East Freedom Entriken Fallentimber Flinton Gallitzin Glasgow Glen Hope Hastings Hesston Hollidaysburg Hopewell Houtzdale Huntingdon Huntingdon Imler Irvona James Creek Loysburg Mc Connellstown Madera Martinsburg Morann New Enterprise Newry Osceola Mills Osterburg Patton Petersburg Queen Ramey Riddlesburg Roaring Spring Robertsdale Saint Boniface Sandy Ridge Saxton Six Mile Run Smithmill Smokerun Sproul Spruce Creek Tipton Todd Tyrone Waterfall... 3 HOP 7 of 16

141 TERRITORIES Merchants Preferred Insurance Company Wells Tannery Westover Williamsburg Wood Woodbury Houtzdale Cresson Bradford Austin Crosby Custer City Cyclone Derrick City De Young Duke Center East Smethport Eldred Gifford Hazel Hurst James City Kane Lewis Run Mount Jewett Port Allegany Rew Rixford Roulette Shinglehouse Smethport Turtlepoint Westline State College University Park State College State College State College Aaronsburg Allport Beech Creek Bellefonte Bigler Blanchard Boalsburg Centre Hall Clarence Clearfield Coburn Curwensville Drifting Fleming Frenchville Glen Richey Grampian Grassflat Hawk Run Howard Hyde Julian Karthaus Kylertown Lamar Lanse Lecontes Mills Lemont Madisonburg Milesburg Millheim Mineral Springs Mingoville Morrisdale Moshannon Munson New Millport Olanta Orviston Pennsylvania Furnace Philipsburg Pine Grove Mills Port Matilda Pottersdale Rebersburg Shawville Snow Shoe Spring Mills Wallaceton Warriors Mark West Decatur Winburne Woodland Woodward Wellsboro Alba Arnot Blossburg Columbia Cross Roads Coudersport Covington Cowanesque Elkland Gaines Galeton Genesee Gillett Granville Summit Harrison Valley Knoxville Lawrenceville Liberty Mainesburg Mansfield Middlebury Center Millerton Mills Morris Morris Run Nelson Genesee Osceola Sabinsville Sylvania Tioga Troy Ulysses Westfield Camp Hill Allensville Annville Belleville Berrysburg Blain Boiling Springs Bowmansdale Burnham Campbelltown Camp Hill Camp Hill Carlisle Cocolamus Colebrook Cornwall Dalmatia Dauphin Dillsburg Duncannon East Waterford Elizabethtown Elizabethville Elliottsburg Enola Fredericksburg... 3 HOP 8 of 16

142 TERRITORIES Merchants Preferred Insurance Company Grantham Grantville Granville Gratz Green Park Halifax Hershey Highspire Honey Grove Hummelstown Ickesburg Jonestown Kleinfeltersville Landisburg Lawn Lebanon Lemoyne Lewistown Liverpool Lebanon Loysville Lykens Mc Alisterville Mc Veytown Mapleton Depot Marysville Mattawana Mechanicsburg Mexico Middletown Mifflin Mifflintown Mill Creek Millersburg Millerstown Milroy Mount Gretna Mount Holly Springs Mount Union Myerstown New Bloomfield New Buffalo New Cumberland New Germantown New Kingstown Newmanstown Newport Newton Hamilton Oakland Mills Ono Palmyra Pillow Plainfield Port Royal Quentin Reedsville Rexmont Richfield Richland Schaefferstown Camp Hill Shermans Dale Summerdale Thompsontown Wiconisco Williamstown Yeagertown Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Harrisburg Chambersburg Amberson Artemas Big Cove Tannery Blairs Mills Blue Ridge Summit Burnt Cabins Concord Dickinson Doylesburg Dry Run Fannettsburg Fayetteville Fort Littleton Fort Loudon Greencastle Harrisonville Hustontown Lemasters Lurgan Mc Connellsburg Marion Mercersburg Mont Alto Needmore Neelyton Newburg Newville Orbisonia Orrstown Pleasant Hall Quincy Rockhill Furnace Rouzerville Roxbury Saint Thomas Saltillo Scotland Shade Gap Shady Grove Shippensburg Shirleysburg South Mountain Spring Run State Line Three Springs Upperstrasburg Walnut Bottom Warfordsburg Waynesboro Williamson Willow Hill Zullinger Blue Ridge Summit Abbottstown Airville Arendtsville... 2 HOP 9 of 16

143 TERRITORIES Merchants Preferred Insurance Company Aspers Bendersville Biglerville Brogue Cashtown Codorus Craley Dallastown Delta Dover East Berlin East Prospect Emigsville Etters Fairfield Fawn Grove Felton Franklintown Gardners Gettysburg Gettysburg Glen Rock Glenville Hanover Hanover Hanover Idaville Lewisberry Littlestown Loganville Mc Knightstown Mc Sherrystown Manchester Menges Mills Mount Wolf New Freedom New Oxford New Park Orrtanna Porters Sideling Railroad Red Lion Rossville Seven Valleys Shrewsbury Spring Grove Stewartstown Thomasville Wellsville Windsor Wrightsville York Haven York New Salem York Springs York York York York York York York York Akron Bainbridge Bart Bausman Bird In Hand Blue Ball Bowmansville Brownstown Christiana Columbia Conestoga Denver Drumore East Earl East Petersburg Elm Ephrata Gap Goodville Gordonville Holtwood Hopeland Intercourse Kinzers Kirkwood Lampeter Landisville Leola Lititz Manheim Marietta Martindale Maytown Millersville Mount Joy Mountville Narvon New Holland New Providence Paradise Peach Bottom Penryn Pequea Quarryville Reamstown Refton Reinholds Rheems Ronks Ronks Silver Spring Smoketown Stevens Strasburg Talmage Terre Hill Washington Boro West Willow Willow Street Witmer Lancaster Lancaster Lancaster Lancaster Lancaster Lancaster Lancaster Lancaster Williamsport Williamsport Williamsport Antes Fort Avis Jersey Shore Canton Castanea Cedar Run Cogan Station Cross Fork Dewart Eagles Mere Farrandsville Grover Hughesville Jersey Mills Jersey Shore Lairdsville Leroy... 4 HOP 10 of 16

144 TERRITORIES Merchants Preferred Insurance Company Linden Lock Haven Loganton Mc Elhattan Mc Ewensville Mackeyville Mill Hall Montgomery Montoursville Muncy Muncy Valley Nisbet North Bend Picture Rocks Ralston Renovo Roaring Branch Salona Shunk Slate Run Sonestown Trout Run Turbotville Tylersville Unityville Waterville Watsontown Westport Woolrich Sunbury Allenwood Beaver Springs Beavertown Benton Bloomsburg Catawissa Danville Danville Dornsife Elysburg Excelsior Freeburg Gowen City Hartleton Herndon Hummels Wharf Marion Heights Kreamer Kulpmont Laurelton Leck Kill Lewisburg Light Street Locust Gap Mc Clure Middleburg Beaver Springs Mifflinburg Millmont Millville Milton Montandon Mount Carmel Mount Pleasant Mills New Berlin New Columbia Northumberland Numidia Orangeville Paxinos Paxtonville Penns Creek Port Trevorton Potts Grove Coal Township Rebuck Riverside Selinsgrove Shamokin Shamokin Dam Snydertown Stillwater Swengel Trevorton Troxelville Vicksburg Washingtonville Weikert West Milton White Deer Wilburton Winfield Pottsville Aristes Ashland Auburn Branchdale Brockton Centralia Cressona Cumbola Frackville Frackville Friedensburg Gilberton Girardville Gordon Hegins Klingerstown Landingville Lavelle Llewellyn Locustdale Lost Creek Mahanoy City Mahanoy Plane Mar Lin Mary D Middleport Minersville Muir New Philadelphia New Ringgold Orwigsburg Pine Grove Pitman Port Carbon Ravine Ringtown Sacramento Saint Clair Schuylkill Haven Seltzer Shenandoah Spring Glen Summit Station Tower City Tremont Tuscarora Valley View Zion Grove Lehigh Valley Lehigh Valley Lehigh Valley Ackermanville Alburtis Aquashicola Bangor Bath Bethlehem... 1 HOP 11 of 16

145 TERRITORIES Merchants Preferred Insurance Company Bethlehem Bethlehem Bethlehem Bethlehem Bowmanstown Breinigsville Catasauqua Center Valley Cherryville Coopersburg Coplay Danielsville Durham Easton East Greenville Easton Easton Easton Easton East Texas Emmaus Flicksville Fogelsville Whitehall Germansville Green Lane Hellertown Hereford Kunkletown Laurys Station Limeport Macungie Martins Creek Nazareth Neffs New Tripoli Northampton Old Zionsville Orefield Palm Palmerton Pen Argyl Pennsburg Perkiomenville Red Hill Riegelsville Schnecksville Slatedale Slatington Springtown Stockertown Sumneytown Tatamy Treichlers Trexlertown Walnutport Wind Gap Zionsville Emmaus Emmaus Allentown Allentown Allentown Allentown Allentown Allentown Allentown Allentown Allentown Hazleton Albrightsville Andreas Ashfield Barnesville Beaver Meadows Coaldale Conyngham Delano Drifton Drums Ebervale Freeland Harleigh Jim Thorpe Junedale Kelayres Lansford Lattimer Mines Lehighton Mcadoo Milnesville Nesquehoning Nuremberg Oneida Pardeesville Parryville Quakake Rock Glen Saint Johns Sheppton Sugarloaf Summit Hill Sybertsville Tamaqua Tresckow Weatherly Weston East Stroudsburg Analomink Bartonsville Brodheadsville Buck Hill Falls Bushkill Canadensis Cresco Delaware Water Gap Dingmans Ferry Effort Gilbert Henryville Kresgeville Long Pond Marshalls Creek Matamoras Milford Millrift Minisink Hills Mountainhome Mount Bethel Mount Pocono Pocono Summit Pocono Lake Pocono Lake Preserve Pocono Manor Pocono Pines Portland Reeders Saylorsburg Sciota Scotrun Shawnee on Delaware Skytop Stroudsburg Swiftwater Tamiment Tannersville Unity House Aldenville Archbald Beach Lake... 4 HOP 12 of 16

146 TERRITORIES Merchants Preferred Insurance Company Carbondale Chinchilla Clarks Summit Clifford Dalton Damascus Elmhurst Equinunk Factoryville Fleetville Forest City Gouldsboro Greeley Greentown Hamlin Hawley Herrick Center Honesdale Jermyn Jessup Lackawaxen Lake Ariel Lake Como Lakeville Lakewood La Plume Lenoxville Milanville Moscow Newfoundland Nicholson Olyphant Olyphant Orson Paupack Peckville Pleasant Mount Poyntelle Preston Park Prompton Rowland Shohola South Canaan South Sterling Starlight Starrucca Sterling Tafton Thompson Tobyhanna Tyler Hill Union Dale Waverly Waymart White Mills Scranton Scranton Scranton Scranton Scranton Moosic Scranton Scranton Scranton Scranton Scranton Scranton Taylor Old Forge Dickson City Scranton Scranton Scranton Beach Haven Bear Creek Berwick Blakeslee Cambra Dallas Dushore Falls Forksville Glen Lyon Harveys Lake Hillsgrove Hunlock Creek Huntington Mills Laceyville Lake Harmony Lake Winola Laporte Lehman Lopez Mehoopany Meshoppen Mifflinville Mildred Nanticoke Nescopeck Noxen Nuangola Pittston Pittston Pittston Pittston Pittston Plymouth Ransom Shawanese Shickshinny Sweet Valley Tunkhannock Wapwallopen White Haven Dallas Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Mountain Top Shavertown Luzerne Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Wilkes Barre Montrose Athens Brackney Brooklyn Burlington Camptown Dimock East Smithfield Friendsville Gibson Great Bend Hallstead Harford... 4 HOP 13 of 16

147 TERRITORIES Merchants Preferred Insurance Company Hop Bottom Jackson Kingsley Lanesboro Lawton Le Raysville Little Meadows Milan Monroeton New Albany New Milford Rome Rushville Sayre South Gibson South Montrose Springville Stevensville Sugar Run Susquehanna Towanda Ulster Warren Center Wyalusing Wysox Doylestown Bedminster Blooming Glen Buckingham Carversville Chalfont Colmar Danboro Dublin Earlington Erwinna Ferndale Forest Grove Fountainville Franconia Furlong Gardenville Hilltown Holicong Jamison Kintnersville Lahaska Line Lexington Lumberville Mechanicsville Milford Square Montgomeryville New Hope Newtown Ottsville Penns Park Perkasie Pineville Pipersville Plumsteadville Point Pleasant Quakertown Revere Richboro Richlandtown Rushland Salford Salfordville Sellersville Silverdale Solebury Souderton Southampton Spinnerstown Telford Trumbauersville Tylersport Upper Black Eddy Warminster Warrington Washington Crossing Woxall Wycombe Zionhill Warminster Abington Ambler Ardmore Bala Cynwyd Huntingdon Valley Bristol Broomall Bryn Athyn Bryn Mawr Cheltenham Chester Aston Brookhaven Chester Chester Heights Clifton Heights Philadelphia Bensalem Croydon Crum Lynne Darby Dresher Drexel Hill Elkins Park Edgemont Essington Fairless Hills Flourtown Folcroft Folsom Fort Washington Gladwyne Glenolden Glen Riddle Lima Glenside Gradyville Hatboro Haverford Holmes Horsham Jenkintown Langhorne Langhorne Langhorne Lansdowne Lenni Feasterville Trevose Levittown Levittown Levittown Levittown Levittown Levittown Marcus Hook Media Springfield Media Merion Station Morrisville Morton Narberth Newtown Square Norwood Oreland Prospect Park... 2 HOP 14 of 16

148 TERRITORIES Merchants Preferred Insurance Company Ridley Park Sharon Hill Wayne Swarthmore Upper Darby Havertown Villanova Wallingford Wayne Wayne Wayne Willow Grove Media Philadelphia Woodlyn Wyncote Wynnewood Holmes Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Philadelphia Paoli Atglen Avondale Berwyn Brandamore Chadds Ford Chatham Cheyney Coatesville Cochranville Concordville Devon Downingtown Concordville Exton Glen Mills Glenmoore Honey Brook Immaculata Kelton Kemblesville Kennett Square Landenberg Lewisville Lincoln University Lionville Lyndell Malvern Mendenhall Modena New London Nottingham Oxford Parkesburg Pocopson Pomeroy Sadsburyville Steelville Suplee Thorndale Thornton Toughkenamon Unionville Wagontown West Chester West Chester West Chester West Chester West Grove Westtown Southeastern Southeastern Southeastern... 2 HOP 15 of 16

149 TERRITORIES Merchants Preferred Insurance Company Norristown Norristown Norristown Bridgeport King of Prussia Audubon Eagleville Fairview Village Arcola Birchrunville Blue Bell Cedars Blue Bell Chester Springs Collegeville Conshohocken Conshohocken Creamery Devault Frederick Gwynedd Gwynedd Valley Harleysville Hatfield Harleysville Kimberton Kulpsville Lafayette Hill Lansdale Lederach Mainland Miquon Mont Clare North Wales North Wales Oaks Parker Ford Phoenixville Plymouth Meeting Pottstown Pottstown Royersford Saint Peters Sassamansville Schwenksville Skippack Spring City Spring House Spring Mount Uwchland Valley Forge Valley Forge Valley Forge Valley Forge Valley Forge West Point King of Prussia Norristown Worcester Zieglerville Valley Forge Valley Forge Valley Forge Adamstown Bally Barto Bechtelsville Bernville Bethel Birdsboro Blandon Bowers Boyertown Centerport Dauberville Douglassville Earlville Elverson Fleetwood Geigertown Gilbertsville Hamburg Kempton Kutztown Leesport Lenhartsville Limekiln Lyon Station Maxatawny Mertztown Mohnton Mohrsville Monocacy Station Morgantown Mount Aetna New Berlinville Oley Pine Forge Port Clinton Rehrersburg Robesonia Shartlesville Shoemakersville Stony Run Strausstown Temple Topton Virginville Wernersville Womelsdorf Reading Reading Reading Reading Reading Reading Reading Reading Reading Reading Reading Reading Reading... 2 HOP 16 of 16

150 RATE PAGES TABLE OF CONTENTS Rule 105 Secondary Residence Premises... 2 Rule 205 Minimum Premium... 2 Rule 207 Waiver of Premium... 2 Rule 301 Base Rates... 2 Rule 304 Special Personal Property Coverage HO Rule 410 Building Code Effectiveness Grading Rule 503 Business Property Increased Limits Rule 504 Credit Card, Electronic Fund Transfer Card or Access Device, Forgery and Counterfeit Money Rule 505 Earthquake Rule 507 Form HO Coverage A Dwelling Basic and Increased Limits and Special Coverage Rule 510 Permitted Incidental Occupancies Residence Premises Rule 512 Loss Of Use - Increased Limit Rule 514 Other Structures Rule 515 Personal Property Rule 518 Sinkhole Collapse Coverage Rule 519 Special Computer Coverage Rule 521 Water Back Up and Sump Discharge or Overflow Rule 523 Assisted Living Care Coverage C Rule 524 Other Members Of A Named Insured s Household Rule 525 Motorized Golf Cart-Physical Loss Coverage Rule 526 Residence Held In Trust All Forms Except HO Rule 527 Student Away From Home Rule 601 Residence Premises Basic and Increased Limits Rule 602 Other Insured Location Occupied By Insured Rule 603 Residence Employees Rule 604 Additional Residence Rented to Others Rule 605 Other Structures Rented to Others Residence Premises Rule 608 Permitted Incidental Occupancies Residence Premises and Other Residences Rule 609 Business Pursuits Rule 610 Personal Injury Rule 612 Outboard Motors and Watercraft Rule 615 Incidental Farming Personal Liability Rule 702 Other Exposures Medical Payments to Others Increased Limits Rule 801 Ace Endorsement Rule 805 Identity Recovery and Expense Coverage Rule 806 Home Advantage Rule 810 Premier Residence Rule 820 Home Advantage Plus Rule 822 Territory/Sub Territory Factor Table of Contents

151 RATE PAGES RULE 105 SECONDARY RESIDENCE PREMISES B. Premium Adjustment 1. Credit... $ 13 RULE 205 MINIMUM PREMIUM D. Minimum Premium... $ 100 RULE 207 WAIVER OF PREMIUM B. Amount that may be waived... $ 5 RULE 301 BASE RATES A. All Forms Except HO and HO Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other a.(1) Base Class Premium Form Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other HO HO HO Premier Residence b.(1) Form Factor HOP 2 of 67 Effective Date: 6/18/12 NB

152 RATE PAGES Protection Class and Construction Type Protection Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Class B c.(1) #1 Protection Class Construction Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Frame Masonry c.(1) #2 Construction Type Coverage A Limit Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other HOP 3 of 67 Effective Date: 6/18/12 NB

153 RATE PAGES Coverage A Limit Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other HOP 4 of 67 Effective Date: 6/18/12 NB

154 RATE PAGES Coverage A Limit Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Ea Addl $ d.(1) Coverage A Amount Rating Factors by Peril Families Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other e.(1)i. Number of Families Coverage A % of RCV Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other NA < 50% >= 50%, < 80% e.(1)ii. #1 Coverage A Actual Cash Value Loss Settlement HOP 5 of 67 Effective Date: 6/18/12 NB

155 RATE PAGES Coverage A % of RCV Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other NA % % % e.(1)ii. #2 Coverage A Special Loss Settlement Amount of Insurance Computation Coverage A % of RCV Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other NA % % % e.(1)ii. #3 Coverage A Special Loss Settlement Premium Computation % of Coverage A Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other 10% % % e.(1)iii. Increased Limits of Ordinance or Law Coverage Factor No. Updates Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other e.(1)iv. Renovation Factor Account Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y e.(1)v. Account Policy Factor HOP 6 of 67 Effective Date: 6/18/12 NB

156 RATE PAGES Age Years Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other >= 31, < >= 36, < >= 41, < HOP 7 of 67 Effective Date: 6/18/12 NB

157 RATE PAGES Age Years Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other >= 46, < >= 51, < >= 56, < >= 61, < >= 66, < >= 71, < >= 76, < >= 81, < >= 86, < >= 91, < >= 96, < >= e.(1)vi. Construction Age Factor Pool Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y e.(1)vii. Pool Factor Woodstove Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y e.(1)viii. Solid Fuel Heating Source Factor Stories Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other e.(1)ix. Number of Stories Factor HOP 8 of 67 Effective Date: 6/18/12 NB

158 RATE PAGES Bathrooms Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other 1 to > e.(1)x. Number of Bathrooms Factor Oil Tank Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y e.(1)xi. Oil Tank Factor Dog Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y e.(1)xii. Dog Factor 3 Yr Clms Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other e.(1)xiii. Loss History Factor Superior Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y f.(1)i. Superior Construction Factor HOP 9 of 67 Effective Date: 6/18/12 NB

159 RATE PAGES Families Units in Fire Division Prot Cls Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other NA NA NA & 2 1 & 2 1 to & 2 3 & 4 1 to & 2 5 to 8 1 to & 2 1 & 2 8B to & 2 3 & 4 8B to & 2 5 to 8 8B to & 4 5 to 8 1 to & 4 5 to 8 8B to f.(1)ii. Town or Row House Factor RCV on Coverage C Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y f.(1)iii. Coverage C Replacemant Cost Factor Device Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other None Central Burglar Alarm Central Fire Alarm Police Burglar Alarm Fire Dept Fire Alarm Local Burglar/Fire Alarm Automatic Sprinkler All Incl Automatic Sprinkler All Except f.(1)iv. Protective Devices Factor HOP 10 of 67 Effective Date: 6/18/12 NB

160 RATE PAGES Deductible Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Theft f.(1)v. #1 All Perils Deductibles Wind Ded Coverage A All Perils Ded Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other 1% <=99, % <=99, % <=99, % 100, , % 100, , % 100, , % 100, , % 200, , % 200, , % 200, , % 200, , % 200, , % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % <=99, HOP 11 of 67 Effective Date: 6/18/12 NB

161 RATE PAGES Wind Ded Coverage A All Perils Ded Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other 2% <=99, % <=99, % <=99, % 100, , % 100, , % 100, , % 100, , % 100, , % 200, , % 200, , % 200, , % 200, , % 200, , % 200, , % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % <=99, % <=99, % <=99, % <=99, % <=99, % 100, , % 100, , % 100, , % 100, , % 100, , % 100, , HOP 12 of 67 Effective Date: 6/18/12 NB

162 RATE PAGES Wind Ded Coverage A All Perils Ded Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other 5% 100, , % 200, , % 200, , % 200, , % 200, , % 200, , % 200, , % 200, , % 200, , % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % <=99, % <=99, % <=99, % <=99, % <=99, % <=99, % 100, , % 100, , % 100, , % 100, , % 100, , % 100, , % 100, , % 100, , % 200, , % 200, , HOP 13 of 67 Effective Date: 6/18/12 NB

163 RATE PAGES Wind Ded Coverage A All Perils Ded Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other 7.5% 200, , % 200, , % 200, , % 200, , % 200, , % 200, , % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % <=99, % <=99, % <=99, % <=99, % <=99, % <=99, % <=99, % 100, , % 100, , % 100, , % 100, , % 100, , % 100, , % 100, , % 100, , % 200, , % 200, , % 200, , % 200, , HOP 14 of 67 Effective Date: 6/18/12 NB

164 RATE PAGES Wind Ded Coverage A All Perils Ded Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other 10% 200, , % 200, , % 200, , % 200, , % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, % >=300, <=99, <=99, <=99, , , , , , , , , , , , , >=300, >=300, >=300, <=99, <=99, <=99, <=99, , , , , , , , , , , HOP 15 of 67 Effective Date: 6/18/12 NB

165 RATE PAGES Wind Ded Coverage A All Perils Ded Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other , , , , , , >=300, >=300, >=300, >=300, <=99, <=99, <=99, <=99, <=99, , , , , , , , , , , , , , , , , , , , , >=300, >=300, >=300, >=300, >=300, <=99, <=99, <=99, <=99, <=99, <=99, HOP 16 of 67 Effective Date: 6/18/12 NB

166 RATE PAGES Wind Ded Coverage A All Perils Ded Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other , , , , , , , , , , , , , , , , , , , , , , , , >=300, >=300, >=300, >=300, >=300, >=300, <=99, <=99, <=99, <=99, <=99, <=99, <=99, , , , , , , , , , , , , , , , , HOP 17 of 67 Effective Date: 6/18/12 NB

167 RATE PAGES Wind Ded Coverage A All Perils Ded Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other , , , , , , , , , , , , >=300, >=300, >=300, >=300, >=300, >=300, >=300, f.(1)v. #2 Windstorm Deductibles Wind Ded Coverage A All Perils Ded Theft Ded Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other 1% <=99, % 100, , % 200, , % >=300, % <=99, % 100, , % 200, , % >=300, % <=99, % 100, , % 200, , % >=300, % <=99, % 100, , % 200, , % >=300, % <=99, HOP 18 of 67 Effective Date: 6/18/12 NB

168 RATE PAGES Wind Ded Coverage A All Perils Ded Theft Ded Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other 10% 100, , % 200, , % >=300, <=99, , , , , >=300, <=99, , , , , >=300, <=99, , , , , >=300, <=99, , , , , >=300, <=99, , , , , >=300, f.(1)v. #3 Windstorm Deductibles for $100 All Perils $250 Theft (subtract.01 from standard wind deductibles) Addl Amt Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other None Cov A 25% Cov A 50% Unlimited f.(1)vi. Additional Amounts of Insurance Factor HOP 19 of 67 Effective Date: 6/18/12 NB

169 RATE PAGES ACV Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y f.(1)vii. Actual Cash Value Wind/Hail on Roof Factor RCV on B Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y f.(1)viii. Coverage B Replacement Cost Value Factor Grade Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Ungraded g.(1) Building Code Effectiveness Grading Factor Cat Terr Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other 001 (SE) (ROS) h.(1) Catastrophe Factor Form HO Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other a.(1) Base Class Premium HOP 20 of 67 Effective Date: 6/18/12 NB

170 RATE PAGES Protection Class Protection Class and Construction Type Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other B b.(1)#1 Protection Class Construction Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Frame Masonry b.(1)#2 Construction Type Coverage C Limit Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other HOP 21 of 67 Effective Date: 6/18/12 NB

171 RATE PAGES Coverage C Limit Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other HOP 22 of 67 Effective Date: 6/18/12 NB

172 RATE PAGES Coverage C Limit Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other HOP 23 of 67 Effective Date: 6/18/12 NB

173 RATE PAGES Coverage C Limit Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Ea Addl $ c.(1) Coverage C Amount Account Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y d.(1)i. Account Policy Factor Woodstove Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y d.(1)ii. Solid Fuel Heating Source Factor Dog Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y d.(1)iii. Dog Factor 3 Yr Clms Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other d.(1)iv. Loss History Factor HOP 24 of 67 Effective Date: 6/18/12 NB

174 RATE PAGES Superior Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y e.(1)i. Superior Construction Factor RCV on C Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y e.(1)ii. Coverage C Replacement Cost Factor Device Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other None Central Burglar Alarm Central Fire Alarm Police Burglar Alarm Fire Dept Fire Alarm Local Burglar/Fire Alarm Automatic Sprinkler All Incl Automatic Sprinkler All Except e.(1)iii. Protective Devices Factor Ann Increase Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other None % % % Ea Addl 4% e.(1)iv. Inflation Guard HOP 25 of 67 Effective Date: 6/18/12 NB

175 RATE PAGES Deductible Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Coverage C <= $25K Cov C > $25K Theft e.(1)v. #1 All Perils Deductibles HOP 26 of 67 Effective Date: 6/18/12 NB

176 RATE PAGES Theft Terr Theft Ded All Perils Ded Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Cov C <= $25K City City City City City City City Non-City Non-City Non-City Non-City Non-City Non-City Non-City Cov C > $25K City City City City City City City Non-City Non-City Non-City Non-City Non-City Non-City Non-City e.(1)v. #2 Theft Deductibles HOP 27 of 67 Effective Date: 6/18/12 NB

177 RATE PAGES Form HO Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other a.(1) Base Class Premium Protection Class and Construction Type Protection Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Class B b.(1)#1 Protection Class Construction Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Frame Masonry b.(1)#2 Construction Type Coverage C Limit Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other HOP 28 of 67 Effective Date: 6/18/12 NB

178 RATE PAGES Coverage C Limit Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other HOP 29 of 67 Effective Date: 6/18/12 NB

179 RATE PAGES Coverage C Limit Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other HOP 30 of 67 Effective Date: 6/18/12 NB

180 RATE PAGES Coverage C Limit Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Ea Addl $ c.(1) Coverage C Amount Account Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y d.(1)i. Account Policy Factor Woodstove Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y d.(1)ii. Solid Fuel Heating Source Factor Dog Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y d.(1)iii. Dog Factor HOP 31 of 67 Effective Date: 6/18/12 NB

181 RATE PAGES 3 Yr Clms Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other d.(1)iv. Loss History Factor Superior Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y e.(1)i. Superior Construction Factor RCV on C Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y e.(1)ii. Coverage C Replacement Cost Factor Device Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other None Central Burglar Alarm Central Fire Alarm Police Burglar Alarm Fire Dept Fire Alarm Local Burglar/Fire Alarm Automatic Sprinkler All Incl Automatic Sprinkler All Except e.(1)iii. Protective Devices Factor HOP 32 of 67 Effective Date: 6/18/12 NB

182 RATE PAGES Ann Increase Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other None % % % Ea Addl 4% e.(1)iv. Inflation Guard Deductible Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Cov C <= $40K Cov C > $40K Theft e.(1)v. #1 All Perils Deductibles HOP 33 of 67 Effective Date: 6/18/12 NB

183 RATE PAGES Theft Ded All Perils Ded Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Cov C <= $40K Cov C > $40K e.(1)v. #2 Theft Deductibles ACV Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y e.(1)vi. Actual Cash Value Loss Settlement for Windstorm or Hail Losses to Roof Mod Other Ins Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y e.(1)vii. Modified Other Insurance and Service Agreement Condition D. Expense Fee All Forms Except HO and HO Per policy... $44 Forms HO and HO Per policy... $33 HOP 34 of 67 Effective Date: 6/18/12 NB

184 RATE PAGES RULE 304 SPECIAL PERSONAL PROPERTY COVERAGE HO Spec Cov C Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other N Y RULE 410 BUILDING CODE EFFECTIVENESS GRADING Grade Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Ungraded E.1.a.1 RULE 503 BUSINESS PROPERTY INCREASED LIMITS A. On-Premises 2. Rate per $2, $22 HOP 35 of 67 Effective Date: 6/18/12 NB

185 RATE PAGES RULE 504 CREDIT CARD, ELECTRONIC FUND TRANSFER CARD OR ACCESS DEVICE, FORGERY AND COUNTERFEIT MONEY B. Premium Limit With ACE or ACE Xtreme W/O ACE $1,000 N/A $1 2,500 N/A 3 5,000 N/A 4 7,500 N/A 5 10,000 N/A 6 HOP 36 of 67 Effective Date: 6/18/12 NB

186 RATE PAGES RULE 505 EARTHQUAKE B. 5% DEDUCTIBLE - Rate per $1,000 Territory (A) (B) (C) (D) (E) (F) (G) HO HO HO HO HO HO Increased Cov C Table A FRAME + HO Basic and Increased Cov A Increased Cov D and Other Structure Options HO and Premier Residence 1 $ Table B MASONRY + 1 $ Table C SUPERIOR 1 $ If exterior Masonry Veneer is covered, rate as Masonry; if not covered, rate as Frame. HOP 37 of 67 Effective Date: 6/18/12 NB

187 RATE PAGES B. 10% DEDUCTIBLE - Rate per $1,000 Territory (A) (B) (C) (D) (E) (F) (G) HO HO HO HO HO HO Increased Cov C Table A FRAME + HO Basic and Increased Cov A Increased Cov D and Other Structure Options HO and Premier Residence 1 $ Table B MASONRY + 1 $ Table C SUPERIOR 1 $ If exterior Masonry Veneer is covered, rate as Masonry; if not covered, rate as Frame. RULE 507 FORM HO COVERAGE A DWELLING BASIC AND INCREASED LIMITS AND SPECIAL COVERAGE C. Special Coverage 1. Charge per policy for $5,000 in basic form... $2 2. Rate for each additional $1,000 of Coverage A... $1 HOP 38 of 67 Effective Date: 6/18/12 NB

188 RATE PAGES RULE 510 PERMITTED INCIDENTAL OCCUPANCIES RESIDENCE PREMISES E. Premium Computation 1. Section I c. Rate per $1,000 for business in other structure... $4 RULE 511 LOSS ASSESSMENT COVERAGE A. Residence Premises 3. Premium New Amount of Coverage Without ACE or ACE Xtreme With ACE With ACE Xtreme HO HO HO Without HO HO HO HO With HO HO HO HO Without HO HO HO HO With HO HO HO HO Without HO HO HO HO With HO , , Each add l $5,000 up to $50, B. Additional Locations All Forms Except HO 00 03, HO and HO with HO New Amount of Coverage $ 1, $ 4 $ 5, $ 10, Each add l $5,000 up to $50, Forms HO 00 03, HO and HO with HO New Amount of Coverage $ 1, $ 5 $ 5, $ 10, Each add l $5,000 up to $50, RULE 512 LOSS OF USE - INCREASED LIMIT B. Rate per $1, $ 2 HOP 39 of 67 Effective Date: 6/18/12 NB

189 RATE PAGES RULE 514 OTHER STRUCTURES A. On Premises Structures 1. Specific Structure-Increased Limits a. Premium Rate per $1, $ 2 2. Structure on the Residence Premises Rented to Others b. Premium Rate per $1, $ 3 B. Structures Off the Residence Premises 1. Forms HO 00 02, HO 00 03, HO and Premier Residence b. Premium Off premises structures charge per policy... $ All Forms a. Premium Specific structures-off-premises Rate per $1, $ 3 RULE 515 PERSONAL PROPERTY A. Increased Limit 3. Rate per $1,000 HO or HO $ 2 HO or Premier Residence... $ 3 B. Increased Limit Other Residences 3. Rate per $1, $ 6 C. Reduction in Limit 2. Credit per $1, $ 1 D. Increased Special Limits of Liability 1. Jewelry, Watches and Furs - Rate per $1, $ Money Rate Per $ $ 5 3. Securities Rate per $ Silverware Rate per $ Firearms - Rate per $ Electronic Apparatus Rate per $ E. Refrigerated Personal Property Charge per policy... $ 9 HOP 40 of 67 Effective Date: 6/18/12 NB

190 RATE PAGES RULE 518 SINKHOLE COLLAPSE COVERAGE B. Premium 1. Rate per $1, $ 0.30 RULE 519 SPECIAL COMPUTER COVERAGE B. Premium Charge per policy... $ 13 RULE 521 WATER BACK UP AND SUMP DISCHARGE OR OVERFLOW C. Premium Charge per Policy 1. Charge per policy for $2,500 limit... $ Charge per policy for $5,000 limit... $ Charge per policy for $10,000 limit... $ Charge per policy for $20,000 limit... $ Charge per policy for $30,000 limit... $ Charge per policy for $40,000 limit... $ 65 RULE 523 ASSISTED LIVING CARE COVERAGE C Premium 1. Section I and Section II Basic Limits Rate per unit... $ Increased Limits Add to the basic limit rate in Paragraph 1. above: a. Coverage C- Rate per $1, $ 6 b. Coverage E (Coverage F does not apply to this option) Limit Rates 300, , ,000 6 HOP 41 of 67 Effective Date: 6/18/12 NB

191 RATE PAGES RULE 524 OTHER MEMBERS OF A NAMED INSURED S HOUSEHOLD C. Premium 1. Section I and Section II Basic Limits Rate per person named in the Schedule... $ Section II Increased Limits Add to the basic limit rates in Paragraph 1. above: a. Coverage E Limit Rates 300, , , b. Coverage F Refer to Rule 702 for rates for limits above $2,000 RULE 525 MOTORIZED GOLF CART-PHYSICAL LOSS COVERAGE E. Premium The following charge is the minimum annual premium for each motorized golf cart for any period within a policy year. Motorized golf cart without collision Rate per $ $ 6 Motorized golf cart with collision Rate per $ $ 11 RULE 526 RESIDENCE HELD IN TRUST ALL FORMS EXCEPT HO F. Premium Basic Limits Rates 1. Trust/Trustee Applies whether or not the trustee resides on the residence premises... $ Beneficiary or Grantor a. Beneficiary OR grantor named in the endorsement: and 1) Trustee resides on the residence premises... $ 23 2) Trustee does not reside on the residence premises... No Add l Charge b. Beneficiary AND grantor named in the endorsement; and 1) Trustee resides on the residence premises... $ 45 2) Trustee does not reside on the residence premises... $ 23 Increased Limits 1. Coverage E Refer to Rule 701 for increased limits factors. 2. Coverage F Refer to Rule 702 for increased limits charges. HOP 42 of 67 Effective Date: 6/18/12 NB

192 RATE PAGES RULE 527 STUDENT AWAY FROM HOME C. Premium 1. Section I and Section II Basic Limits Rate per location... $ Section II Increased Limits Add to the basic limit rate in Paragraph 1. above: a. Coverage E Limit Rates 300, , , b. Coverage F Refer to Rule 702 for rates for limits above $2,000. RULE 601 RESIDENCE PREMISES BASIC AND INCREASED LIMITS A.2. Residence Premises Coverage E. Liability 1 Family Premium Limit Rates 300, , , Family Premium Limit Rates 300, , , Coverage F. Medical Payment Limit Rates 3, , , HOP 43 of 67 Effective Date: 6/18/12 NB

193 RATE PAGES RULE 602 OTHER INSURED LOCATION OCCUPIED BY INSURED C. Premium Rate per Residence One Family $ 6 Two Family 12 Three Family 24 Four Family 26 RULE 603 RESIDENCE EMPLOYEES B. Rate per Person In Excess of Two... $ 4 RULE 604 ADDITIONAL RESIDENCE RENTED TO OTHERS B. Premium Rate per Residence One Family $ 38 Two Family 59 Three Family 128 Four Family 158 RULE 605 OTHER STRUCTURES RENTED TO OTHERS RESIDENCE PREMISES B. Premium Rate per Structure... $ 38 RULE 608 PERMITTED INCIDENTAL OCCUPANCIES RESIDENCE PREMISES AND OTHER RESIDENCES B. Premium Rate per Residence 1. Rate per Residence Premises... $ Other Residence HOP 44 of 67 Effective Date: 6/18/12 NB

194 RATE PAGES RULE 609 BUSINESS PURSUITS B. Premium Rate per Insured Person 1. Clerical Employees... $ 4 2. Sales person, Collector, or Messenger Installation, Demonstration, or Servicing Operation: Included... $ 6 Excluded Teachers a. Laboratory, Athletic, Manual, or Physical Training... $ 11 b. not otherwise classified... 5 c. Corporal Punishment (add to 3.a. or b.)... 4 RULE 610 PERSONAL INJURY B. Premium Rate per Policy... $ 11 RULE 612 OUTBOARD MOTORS AND WATERCRAFT C. Premium 1. Outboard, Inboard, or Inboard Outdrive Engines or Motors Length Up to 15 ft. Length Over 15 to 26 ft. Horsepower Rate Rate Up to 50* to to to 200 Not Available 18 Over 200 Not Available Not Available 2. Sailboats With or Without Auxiliary Power Overall Length/Feet Rate 26 to 40 feet * 5 Over 40 feet * Not available *Outboard engines or motors of up to 25 horsepower (or 50 with an ACE Endorsement) or sailboats less than 26 feet in overall length with or without auxiliary power are covered in the policy form. RULE 615 INCIDENTAL FARMING PERSONAL LIABILITY A. 2. Farming Done on the Residence Premises... $ 35 B. 2. Farming Done Away From the Residence Premises... $ 52 HOP 45 of 67 Effective Date: 6/18/12 NB

195 RATE PAGES RULE 702 OTHER EXPOSURES MEDICAL PAYMENTS TO OTHERS INCREASED LIMITS Basic Limit Rule # Coverage F- Medical Payments $3,000 $4,000 $5, Other Members of an Insured s Household Residence Held in Trust All Forms Except HO Student Away From Home Other Insured Locations Occupied By Insured Residence Employees Add l Residence Rented to Others Other Structures Rented to Others-Residence Premises Permitted Incidental Occupancies 609 Business Pursuits Residence Premises Other Residence Clerical Employees Salesperson, Installation, etc. Included or Excluded Teachers Lab, etc Not otherwise classified Corporal Punishment Outboard Motors and Watercraft Outboard, Inboard, or Inboard-Outboard Engines or Motors Up to 15 feet: Not Available Up to 50 hp to 100 hp to 150 hp to 200 hp Not Available Over to 200 hp. Outboard, Inboard, or Inboard-Outboard Engines or Motors Engines or Motors Over 15 to 26 feet: Not Available Up to 50 hp to 100 hp to 150 hp to 200 hp Over to 200 hp. Not Available HOP 46 of 67 Effective Date: 6/18/12 NB

196 RATE PAGES Basic Limit Rule # Coverage F- Medical Payments Sailboats, with or without auxiliary power $3,000 $4,000 $5, to 40 feet Over 40 feet Not Available 615 Incidental Farming Personal Liability RULE 801 ACE ENDORSEMENT 1. ACE - Rate per Policy... $45 2. ACE Xtreme - Rate per Policy... $ ACE Ultra Rate per Policy... $125 RULE 805 IDENTITY RECOVERY AND EXPENSE COVERAGE Rate per Policy... $ 25 RULE 806 HOME ADVANTAGE B. Rates Table 806 E.1. Coverage A Rate Per Policy $250,000 or less $ 32 $250,001 - $500, $500,001 - $5,000, RULE 810 PREMIER RESIDENCE B.1. Service line coverage for premier residence policy only Rate per Policy... $ 25 HOP 47 of 67 Effective Date: 6/18/12 NB

197 RATE PAGES RULE 820 HOME ADVANTAGE PLUS B. Rates Table 820 E.1. Coverage A Rate Per Policy $250,000 or less $57 $250,001 - $500, $500,001 - $5,000, RULE 822 TERRITORY/SUB TERRITORY FACTOR All Forms Except HO and HO Territory Factor Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other HOP 48 of 67 Effective Date: 6/18/12 NB

198 RATE PAGES Sub Territory Factor Blank Zip Code Indicates All Zip Codes In City/County Zip City or County Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail Code All Other Adams County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Allegheny County Armstrong County Beaver County Bedford County Berks County Blair County Bradford County Bucks County Bucks County Bucks County HOP 49 of 67 Effective Date: 6/18/12 NB

199 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County HOP 50 of 67 Effective Date: 6/18/12 NB

200 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County HOP 51 of 67 Effective Date: 6/18/12 NB

201 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Bucks County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County HOP 52 of 67 Effective Date: 6/18/12 NB

202 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County Butler County HOP 53 of 67 Effective Date: 6/18/12 NB

203 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Butler County Butler County Butler County Butler County Butler County Cambria County Cameron County Carbon County Centre County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County HOP 54 of 67 Effective Date: 6/18/12 NB

204 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County HOP 55 of 67 Effective Date: 6/18/12 NB

205 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Chester County Clarion County Clearfield County Clinton County Columbia County Crawford County Cumberland County Dauphin County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County HOP 56 of 67 Effective Date: 6/18/12 NB

206 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County HOP 57 of 67 Effective Date: 6/18/12 NB

207 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Delaware County Elk County Erie County Fayette County Forest County Franklin County Fulton County Greene County Huntingdon County Indiana County Jefferson County Juniata County Lackawanna County Lancaster County Lawrence County Lebanon County Lehigh County Luzerne County Lycoming County McKean County Mercer County Mifflin County Monroe County Montgomery County HOP 58 of 67 Effective Date: 6/18/12 NB

208 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County HOP 59 of 67 Effective Date: 6/18/12 NB

209 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County HOP 60 of 67 Effective Date: 6/18/12 NB

210 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County HOP 61 of 67 Effective Date: 6/18/12 NB

211 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montgomery County Montour County Northampton County Northumberland County Perry County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County HOP 62 of 67 Effective Date: 6/18/12 NB

212 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County HOP 63 of 67 Effective Date: 6/18/12 NB

213 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County HOP 64 of 67 Effective Date: 6/18/12 NB

214 RATE PAGES City or County Zip Code Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Philadelphia County Pike County Potter County Schuylkill County Snyder County Somerset County Sullivan County Susquehanna County Tioga County Union County Venango County Warren County Washington County Wayne County Westmoreland County Wyoming County York County HOP 65 of 67 Effective Date: 6/18/12 NB

215 RATE PAGES Form HO Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Territory Factor HOP 66 of 67 Effective Date: 6/18/12 NB

216 RATE PAGES Form HO Territory Fire/Ltng Liab/Med Theft Wtr/Frzg Wind/Hail All Other Territory Factor HOP 67 of 67 Effective Date: 6/18/12 NB

217 Merchants Mutual Insurance Company Merchants Preferred Insurance Company SUBURBAN RATING REQUEST FORM A Protection Class 9 dwelling meeting all of the following criteria may be rated at a Suburban Rate : The dwelling is within five road miles to the responding fire department The dwelling is within1,000 fee to a year-round water source (hydrant or body of water), or the fire department responds with a pumper truck. The dwelling is within sight of three neighboring dwellings. The dwelling is accessible year-round. Please complete the following questions and submit this request with an ACORD application to apply the Suburban Rating Rule. 1. Name of the responding Fire District: Protection Class: 2. Road Miles from Responding Fire Department to Dwelling: 3. Year Round Water Source Hydrant Pumper Truck Capacity: Other* (Describe Below) None 4. Distance (in feet) from dwelling to the above water source: 5. Is the dwelling visible from three or more neighboring dwellings? Yes No 6. Dwelling is located in a sub-division or development: Yes No 7. Is the dwelling located on a paved road accessible to fire fighting equipment year round? Yes No Other Water Source* (from question 3) MU

218 Merchants Mutual Insurance Company Merchants Preferred Insurance Company WOODBURNING STOVE QUESTIONNAIRE (OR OTHER SOLID FUEL BURNING STOVE) Insured s Name Address Date of Survey Policy Number (Please complete one report for each unit on premises and attach one photo of each unit.) 1. Stove Manufacturer Model 2. Was Stove purchased New Used Year of Manufacture: 3. Is the Unit UL approved? Yes No 4. In which room is Stove located? Living Rm Rec Room Basement Bedroom Other 5. Is a Smoke Detector installed on the same floor level of the home as the Stove? Yes No 6. When was the chimney last cleaned? By whom? 7. Is chimney used for Stove only? Yes No 8. Who installed the Stove? The Chimney? 9. Stove clearance from Wall behind Stove In. Wall Left/Right of Stove In. Ceiling In Between Floor and Stove In. 10. Type of Protection on Walls? 11. Type of Protection on Floor? 12. Type of Fuel Used (i.e. wood, pellets, etc.)? 13. Is there a Fire Extinguisher in the room where the Stove located? Yes No 14. Is the Stove used primarily for cooking? Yes No 15. Is there another Source of heating in the house? Yes No 16. Style of the Stove: Franklin Boxwood Parlor Pot Belly Other MU

219 Policy Number Policy Period ACE ADDITIONAL COVERAGE EXTENSIONS NO OTHER STRUCTURE - COVERAGE B (Section I) Other structures are defined under Coverage B as structures on the residence premises separated from your dwelling by clear space. If you do not have over $1,000 Replacement Cost Value of such other structures, the amount of insurance shown on the declarations page for Coverage B is added to the amount of insurance shown for your dwelling in Coverage A. The total amount of Coverage A and B will be the amount that applies to Coverage A in the event of a loss. This coverage applies only to forms HO 00 02, HO 00 03, HO 00 05, and Premier Residence. INCREASED SPECIAL LIMITS - COVERAGE C (Section I) The entire Special Limits of Liability section under Coverage C - Personal Property, is replaced by the following: Special Limits of Liability. The special limit for each category shown below is the total limit for each loss for all property in that category. These special limits do not increase the Coverage C limit of liability. a. b. c. d. e. f. g. h. i. j. k. $500 on money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum other than platinumware, coins, medals, script, stored value cards and smart cards. $5,000 on securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, personal records, passports, tickets and stamps. This dollar limit applies to these categories regardless of the medium (such as paper or computer software) on which the material exists. This limit includes the cost to research, replace or restore the information from the lost or damaged material. $3,000 on watercraft of all types, including their trailers, furnishings, equipment and outboard engines or motors. $3,000 on trailers or semi-trailers not used with watercraft of all types. $7,500 for loss by theft of jewelry, watches, furs, precious and semi-precious stones, but not exceeding $2,500 for any one article. $7,500 for loss by theft of firearms and related equipment. $7,500 for loss by theft of silverware, silver-plated ware, goldware, gold-plated ware, platinumware, platinum-plated ware, and pewterware. This includes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter. $5,000 on property, on the "residence premises," used primarily for "business" purposes. $2,000 on property, away from the "residence premises," primarily for "business" purposes. However, this limit does not apply to loss to adaptable electronic apparatus as described in Special Limits j. and k. below. $2,500 on electronic apparatus and accessories, while in or upon a motor vehicle, but only if the apparatus is equipped to be operated by power from the motor vehicle's electrical system while still capable of being operated by other power sources. Accessories include: a. b. antennas; tapes, wires, records, discs or other media; that can be used with any apparatus described in this item j. $2,500 on electronic apparatus and accessories used primarily for "business", while away from the residence premises and not in or upon a motor vehicle, the apparatus must be equipped to be operated by power from the "motor vehicle's electrical system while still capable of being operated by other power sources. Accessories include: a. b. antennas; tapes, wires, records, discs or other media; that can be used with any apparatus described in this item k. MU Includes copyrighted material of Insurance Services Office, Inc. Page 1 of 6 with its permission.

220 Policy Number Policy Period TREES, SHRUBS AND OTHER PLANTS - ADDITIONAL COVERAGES (Section I) The maximum limit of liability for any one tree, shrub, or plant under Additional Coverage 3 is increased from $500 to $1,000. FIRE DEPARTMENT SERVICE CHARGE - ADDITIONAL COVERAGES (Section I) The limit of coverage under Section I Additional Coverage 4 is increased from $500 to $1,000. CREDIT CARD - ADDITIONAL COVERAGES (Section I) The limit of coverage under Section I Additional Coverage 6 is increased from $500 to $10,000. LOSS ASSESSMENT - ADDITIONAL COVERAGES (Section I) The limit for Loss Assessment, Additional Coverage 7, is increased from $1,000 to $5,000. ADDITIONAL COVERAGES (Section I) are added as follows: 13.LOCK REPLACEMENT We will pay up to $500 for costs you incur in changing the locks on your residence premises when your keys have been stolen. The theft of your keys must be reported to the police for this additional coverage to apply. No deductible applies to this additional coverage. 14.ANIMALS, BIRDS, and FISH (Section I) We will pay up to $250 for pet animals, birds or fish when the loss is caused by fire, lightning, windstorm, hail, smoke, explosion, riot or falling aircraft. 15. PERSONAL PROPERTY AWAY FROM THE RESIDENCE PREMISES (Section I) We will pay up to $1,000 for damage to your personal property occurring while it is away from your residence premises caused by: a. b. c. Flood (meaning a general and temporary condition of partial or complete inundation of water of normally dry land from (1) overflow of inland or tidal water; (2) unusual and rapid accumulation or runoff of surface waters from any source; (3) mudflow) Earthquake; or Landslide. Section I - Exclusions - A.2. Earth Movement and A.3.Water Damage do not apply to this Additional Coverage. 16. FIRE EXTINGUISHER RECHARGE We will pay your reasonable expense up to $250 for recharge of your owned fire extinguishers used during the policy term to extinguish a fire on your residence premises. The $250 limit is the most we will pay in any policy term. No deductible applies to this coverage. 17. EMERGENCY LIVING EXPENSE (Section I) If the "residence premise" is made uninhabitable as the result of a power outage caused by an insured peril, we cover reasonable additional living expense loss. The additional coverages begin 48 hours after the residence premise is made uninhabitable and will continue for no longer than seven days. 18.REWARD COVERAGE We will pay you an amount that you have incurred in the payment of rewards for information leading to the: a. return of undamaged, stolen articles; or b. the arrest and conviction of any person(s) who have stolen articles and/or damaged any of your covered property. The most we will pay under this Additional Coverage is the actual cash value of the stolen article(s) or $250, whichever is less. 19.WAIVER OF DEDUCTIBLE Unless otherwise provided in an endorsement (such as a windstorm deductible endorsement), in the event of total loss to the residence premises from a covered peril, the deductible will not apply. MU Includes copyrighted material of Insurance Services Office, Inc. Page 2 of 6 with its permission.

221 Policy Number Policy Period 20.REFRIGERATED PROPERTY COVERAGE A. Definitions The following definition is added: "Loss of power" means the complete or partial interruption of electric power due to conditions beyond an "insured's" control. B. Coverage 1. We insure, for up to $1,000, covered property stored in freezers or refrigerators on the "residence premises" for direct loss caused by: a. "Loss of power" to the refrigeration unit. "Loss of power" must be caused by damage to: b. (1) Generating equipment; or (2) Transmitting equipment; or Mechanical failure of the unit which stores the property. 2. Coverage will apply only if you have maintained the refrigeration unit in proper working condition immediately prior to the loss. 3. This endorsement does not increase the limit of liability for Coverage C. C. Special Deductible The following will replace any other deductible provision in this policy with respect to loss covered under this endorsement: We will pay only that part of the total of all loss payable that exceeds $50. No other deductible applies to this coverage. D. Exception To Power Failure Exclusion The Power Failure exclusion does not apply to this coverage. WATERCRAFT LIABILITY - EXCLUSIONS (Section II) The total horsepower limit in exclusion B. 2. c. (2) (a) is increased from 25 horsepower to 50 horsepower. CLAIMS EXPENSES (Section II - Additional Coverages) The amount we will pay for reasonable expenses incurred by an insured at our request under Section II - Additional Coverage A.3. is increased from $250 to $300 per day. DAMAGE TO THE PROPERTY OF OTHERS - ADDITIONAL COVERAGES (Section II) The limit for damage to the property of others, Additional Coverage C.1. is increased from $1,000 to $2,000. LOSS ASSESSMENT - ADDITIONAL COVERAGES (Section II) The limit for Loss Assessment, Additional Coverage D, is increased from $1,000 to $5,000. PERSONAL INJURY (Section II) The following coverage is added. DEFINITIONS The following definitions are added: "Personal injury" means injury arising out of one or more of the following offenses, but only if the offense was committed during the policy period: 1. False arrest, detention or imprisonment; 2. Malicious prosecution; 3. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; 4. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; or 5. Oral or written publication of material that violates a person's right of privacy. MU Includes copyrighted material of Insurance Services Office, Inc. Page 3 of 6 with its permission.

222 Policy Number Policy Period "Fungi" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or released by fungi. However, this does not include any fungi that are, are on, or are contained in, a good or product intended for consumption. SECTION II - LIABILITY COVERAGES A. Coverage E - Personal Liability The following is added to Coverage E - Personal Liability: Personal Injury Coverage If a claim is made or suit is brought against an "insured" for damages resulting from an offense, defined under "personal injury", to which this coverage applies, we will: 1. Pay up to our limit of liability for the damages for which an "insured" is legally liable. Damages include prejudgment interest awarded against an "insured"; and 2. Provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when our limit of liability for the offense has been exhausted by payment of a judgment or settlement. SECTION II - EXCLUSIONS With respect to the coverage provided by this endorsement, Section II - Exclusions is deleted and replaced by the following: This insurance does not apply to Personal Injury: a. Caused by or at the direction of an "insured" with the knowledge that the act would violate the rights of another and would inflict "personal injury"; b. Arising out of oral or written publication of material, if done by or at the direction of an "insured" with knowledge of its falsity; c. Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period; d. Arising out of a criminal act committed by or at the direction of an "insured"; e. Arising out of liability assumed by an "insured" under any contract or agreement except any indemnity obligation assumed by an "insured" under a written contract directly relating to the ownership maintenance or use of the premises; f. Sustained by any person as a result of an offense directly or indirectly related to the employment of this person by an "insured"; g. Arising out of or in connection with a "business" conducted from an "insured location" or engaged in by an "insured", whether or not the "business" is owned or operated by an "insured" or employs an "insured". This exclusion applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised, owed, or implied to be provided because of the nature of the "business". This exclusion does not apply to: (1) The rental or holding for rental of an "insured location"; (a) On an occasional basis if used only as a residence; (b) In part for use only as a residence, unless a single family unit is intended for use by the occupying family to lodge more than two roomers or boarders; or (c) In part, as an office, school, studio or private garage; and (2) An "insured" under the age of 21 years involved in a part-time or occasional, self-employed "business" with no employees; or h. Arising out of civic or public activities performed for pay by an "insured"; MU Includes copyrighted material of Insurance Services Office, Inc. Page 4 of 6 with its permission.

223 Policy Number Policy Period i. To you or an "insured" as defined under Definition 5.a. or b. This exclusion also applies to any claim made or suit brought against you or any "insured": (1) To repay; or (2) Share damages with; or Another person who may be obligated to pay damages because of "personal injury" to an "insured"; or j. Arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at any time. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. k. Arising directly or indirectly, in whole or in part, out of the actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any "fungi", wet or dry rot, or bacteria. 2. Any loss, cost or expense arising out of any: a. Request, demand or order that an "insured" or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants, "fungi", wet or dry rot, or bacteria; or b. Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, clean up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of pollutants, "fungi", wet or dry rot, or bacteria. SECTION II - ADDITIONAL COVERAGES With respect to the coverage provided by this endorsement, Paragraph D. Loss Assessment is deleted and replaced by the following: D. Loss Assessment We will pay up to $1000 for your share of loss assessment charged against you, as an owner or tenant of the "residence premises", during the policy period by a corporation or association of property owners, when the assessment is made as a result of "personal injury" not excluded under this endorsement. We do not cover assessments charged against you or a corporation or association of property owners by any governmental body. Regardless of the number of assessments, the limit of $1000 is the most we will pay for loss arising out of "personal injury". SECTION II - CONDITIONS With respect to the coverage provided by this endorsement, Section II - Condition I. Policy Period does not apply and Conditions A. Limit Of Liability, B. Severability Of Insurance and C. Duties After "Occurrence" are deleted and replaced by the following: A. Limit Of Liability Our total liability under "Personal Injury" Coverage for all damages resulting from any one offense will not be more than the limit of liability shown in the Declarations for Coverage E. This limit is the same regardless of the number of "insureds", claims made or suits brought. B. Severability Of Insurance This insurance applies separately to each "insured". This condition will not increase our limit of liability for any one offense. C. Duties After Offense In the event of a covered offense, you or another "insured" will perform the following duties that apply. We have no duty to provide coverage under this policy if your failure to comply with the following duties is prejudicial to us. You will help us by seeing that these duties are performed: MU Includes copyrighted material of Insurance Services Office, Inc. Page 5 of 6 with its permission.

224 Policy Number Policy Period 1. Give written notice to us or our agent as soon as is practical, which sets forth: a. The identity of the policy and "named insured"; b. Reasonably available information on the time, place and circumstances of the offense; and c. Names and addresses of any claimants and witnesses; 2. Cooperate with us in the investigation, settlement or defense of any claim or suit; 3. Promptly forward to us every notice, demand, summons or other process relating to the offense; 4. At our request, help us: a. To make settlement; b. To enforce any right of contribution or indemnity against any person or organization who may be liable to an "insured"; c. With the conduct of suits and attend hearings and trials; and d. To secure and give evidence and obtain the attendance of witnesses; 5. No "insured" shall, except at such "insured's" own cost, voluntarily make payment, assume obligation or incur expense other than for first aid to others at the time of the "personal injury". All other provisions of this policy apply. MU Includes copyrighted material of Insurance Services Office, Inc. Page 6 of 6 with its permission.

225 Policy Number Policy Period NO OTHER STRUCTURE - COVERAGE B (Section I) ACE ULTRA ADDITIONAL COVERAGE EXTENSIONS PENNSYLVANIA Other structures are defined under Coverage B as structures on the residence premises separated from your dwelling by clear space. If you do not have over $1,000 Replacement Cost Value of such other structures, the amount of insurance shown on the declarations page for Coverage B is added to the amount of insurance shown for your dwelling in Coverage A. The total amount of Coverage A and B will be the amount that applies to Coverage A in the event of a loss. This coverage applies only to forms HO 00 02, HO 00 03, HO 00 05, and HO LIMIT FOR PROPERTY AT OTHER RESIDENCES The limit for personal property usually located at an insured's residence, other than the residence premises is increased from 10% to 20% of the limit of liability for Coverage C, or $2,000, whichever is greater. INCREASED SPECIAL LIMITS - COVERAGE C (Section I) The entire Special Limits of Liability section under Coverage C - Personal Property, is replaced by the following: Special Limits of Liability. The special limit for each category shown below is the total limit for each loss for all property in that category. These special limits do not increase the Coverage C limit of liability. a. b. c. d. i. j. $1,000 on money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum other than platinumware, coins, medals, script, stored value cards and smart cards. $5,000 on securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, personal records, passports, tickets and stamps. This dollar limit applies to these categories regardless of the medium (such as paper or computer software) on which the material exists. $3,000 on watercraft of all types, including their trailers, furnishings, equipment and outboard engines or motors. $3,000 on trailers or semi-trailers not used with watercraft of all types. e. $10,000 for loss by theft, misplacing or losing of jewelry, watches, furs, precious and semi-precious stones, but not exceeding $2,500 for any one article. f. $10,000 for loss by theft of firearms and related equipment. g. $10,000 for loss by theft, misplacing or losing of silverware, silver-plated ware, goldware, gold-plated ware, platinumware, platinum-plated ware, and pewterware. This includes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter. h. $10,000 on property, on the "residence premises," used primarily for "business" purposes. k. $2,500 on property, away from the "residence premises," used primarily for "business" purposes. However, this limit does not apply to loss to adaptable electronic apparatus as described in Special Limits j. and k. below. $2,500 on electronic apparatus and accessories, while in or upon a motor vehicle, but only if the apparatus is equipped to be operated by power from the motor vehicle's electrical system while still capable of being operated by other power sources. Accessories include antennas, tapes, wires, records, discs or other media; that can be used with any electronic apparatus described in this item j. $2,500 on electronic apparatus and accessories used primarily for business, while away from the residence premises and not in or upon a motor vehicle. The apparatus must be equipped to be operated by power from the motor vehicle's electrical system while still capable of being operated by other power sources. Accessories include antennas, tapes, wires, records, discs or other media that can be used with any apparatus described in this Category k. MU Includes copyrighted material of Insurance Services Office, Inc. Page 1 of 13 with its permission.

226 Policy Number Policy Period The special limits of liability for items b, e, and g. above are increased to a combined total limit of $50,000 when such property is in a safe deposit box or vault at a federal or state chartered bank, thrift institution, or savings and loan association. If there is other insurance in effect, this coverage shall be deemed excess. This coverage is void if the property has been removed from the premises of the band, thrift institution, or savings and loan association. DEBRIS REMOVAL - ADDITIONAL COVERAGES (Section I) Additional Coverage 1.b. is replaced by the following: b. We will also pay your reasonable expense, up to $1,000 for the removal from the residence premises of: (1) Your tree(s) felled by the peril of Windstorm or Hail or Weight of Ice, Snow, or Sleet; or (2) A neighbor's tree(s) felled by the peril Insured Against. The $1,000 limit is the most we will pay in any one loss regardless of the number of fallen trees. No more than $500 of this limit will be paid for the removal of any one tree. This coverage is additional insurance. TREES, SHRUBS AND OTHER PLANTS - ADDITIONAL COVERAGES (Section I) The maximum limit of liability for any one tree, shrub, or plant under Additional Coverage 3 is increased from $500 to $1,000. FIRE DEPARTMENT SERVICE CHARGE - ADDITIONAL COVERAGES (Section I) Section I Additional Coverage 4 is replaced by the following: We will pay all reasonable fire department service charges to save or protect insured property from a Peril Insured Against. We do not cover fire department service charges if the property is located within the limits of the city, municipality or protection district furnishing the fire department response. This coverage is additional insurance. No deductible applies to this coverage. CREDIT CARD - ADDITIONAL COVERAGES (Section I) The limit of coverage under Section I Additional Coverage 6 is increased from $500 to $10,000. LOSS ASSESSMENT - ADDITIONAL COVERAGES (Section I) The limit for Loss Assessment, Additional Coverage 7, is increased from $1,000 to $10,000. ADDITIONAL COVERAGES (Section I) are added as follows: 13. LOCK REPLACEMENT We will pay up to $750 for costs you incur in changing the locks on your residence premises when your keys have been stolen. The theft of your keys must be reported to the police for this additional coverage to apply. No deductible applies to this additional coverage. 14. ANIMALS, BIRDS, and FISH We will pay up to $500 for pet animals, birds or fish when the loss is caused by fire, lightning, windstorm, hail, smoke, explosion, riot or falling aircraft. 15. PERSONAL PROPERTY AWAY FROM THE RESIDENCE PREMISES We will pay up to $5,000 for damage to your personal property occurring while it is away from your residence premises caused by: a. b. c. Flood (meaning a general and temporary condition of partial or complete inundation of water of normally dry land from (1) overflow of inland or tidal water; (2) unusual and rapid accumulation or runoff of surface waters from any source; (3) mudflow) Earthquake; or Landslide. Section I - Exclusions - A.2. Earth Movement and A.3.Water Damage do not apply to this Additional Coverage. 16. FIRE EXTINGUISHER RECHARGE We will pay your reasonable expense up to $250 for recharge of your owned fire extinguishers used during the policy term to extinguish a fire on your residence premises. MU Includes copyrighted material of Insurance Services Office, Inc. Page 2 of 13 with its permission.

227 Policy Number Policy Period The $250 limit is the most we will pay in any policy term. No deductible applies to this coverage. 17. EMERGENCY LIVING EXPENSE If the residence premise is made uninhabitable as the result of a power outage caused by an insured peril, we cover reasonable additional living expense loss. The additional coverages begin 48 hours after the residence premise is made uninhabitable and will continue for no longer than seven days. 18. REWARD COVERAGE We will pay you an amount that you have incurred in the payment of rewards for information leading to the: a. return of undamaged, stolen articles; or b. the arrest and conviction of any person(s) who have stolen articles and/or damaged any of your covered property. The most we will pay under this Additional Coverage is the actual cash value of the stolen article(s) or $500, whichever is less. 19. WAIVER OF DEDUCTIBLE Unless otherwise provided in an endorsement (such as a windstorm deductible endorsement) or specifically provided under Additional Coverage 26. Service Line Coverage, in the event of total loss to the residence premises from a covered peril, the deductible will not apply. 20. REFRIGERATED PROPERTY COVERAGE A. Definitions The following definition is added: "Loss of power" means the complete or partial interruption of electric power due to conditions beyond an "insured's" control. B. Coverage 1. We insure, for up to $2,500, covered property stored in freezers or refrigerators on the "residence premises" for direct loss caused by: a. "Loss of power" to the refrigeration unit. "Loss of power" must be caused by damage to: b. (1) Generating equipment; or (2) Transmitting equipment; or Mechanical failure of the unit which stores the property. 2. Coverage will apply only if you have maintained the refrigeration unit in proper working condition immediately prior to the loss. 3. This endorsement does not increase the limit of liability for Coverage C. C. Special Deductible The following will replace any other deductible provision in this policy with respect to loss covered under this endorsement: We will pay only that part of the total of all loss payable that exceeds $50. No other deductible applies to this coverage. D. Exception To Power Failure Exclusion The Power Failure exclusion does not apply to this coverage. 21. LAND STABILITY If there is a covered loss to the residence premises, other than breakage of glass or safety glazing material, and a loss of land stability results, we will pay up to $10,000 for repair costs associated with the land. This includes the costs to replace, stabilize, or otherwise restore the land. This coverage only to the land necessary to support that part of the residence premises sustaining the covered loss. This coverage is additional insurance. MU Includes copyrighted material of Insurance Services Office, Inc. Page 3 of 13 with its permission.

228 Policy Number Policy Period 22. MORTGAGE EXPENSE In the event of a total loss to the dwelling at the insured location by a covered peril. and 1. If within 120 days from the date of loss, the mortgagee requires that the current mortgage contract be altered; or 2. If within 120 days from the date of loss the insured elects to purchase a replacement premises ; and 3. If the insured has signed a formal purchase agreement for the replacement premises We agree to reimburse the named insured the: a. additional monthly mortgage expenses and b. acquisition costs incurred by the amendment or the replacement of the existing mortgage at the residence premises or the purchase of a replacement premises. Coverage under this provision is limited to the named insured on the primary mortgage for: 1. a maximum of $250 monthly, payable semi-annually for up to four years; or 2. a maximum of $250 monthly, payable semi-annually for up to one year when the insured no longer has coverage through Merchants Insurance Group; or 3. until the named insured no longer occupies the replacement premises if occupancy is less than four years. Exclusions: Under this provision no coverage will apply if: 1. after 120 days the named insured has not signed a formal purchase agreement for a replacement premises ; or 2. the named insured's a. occupancy b. ownership; or c. legal control of the replacement premises to which this coverage applies has been transferred or otherwise assigned. Definitions: "Monthly Mortgage Expense": The additional amount of interest payment created as a result of: 1. a higher interest rate on a replacement mortgage of the same principal amount; and 2. terms of a replacement premises "Covered Peril : A peril not specifically excluded for which coverage is provided by the policy to which this endorsement is attached. "Acquisition Costs : Means only the following direct monetary costs incurred by the replacement or amendment of the existing mortgage or the acquisition of a replacement premises : 1. title search fees; 2. appraisal Fees; and 3. application Fees. "Replacement Premises : means a dwelling to be purchased at a location other than the residence premises. 23. SPECIFIED ADDITIONAL LIMIT OF LIABILITY - COVERAGE A DWELLING (Section I) FORMS HO AND HO AND HO ONLY (APPLIES ONLY WHEN LOSS TO BUILDING INSURED UNDER COVERAGE A EXCEEDS THE COVERAGE A LIMIT OF LIABILITY SHOWN IN THE DECLARATIONS) The Additional Amount Of Insurance is determined by multiplying the Coverage A limit of liability shown in the Declarations by 25%. To the extent that coverage is provided, we agree to provide an additional amount of insurance in accordance with the following provisions: MU Includes copyrighted material of Insurance Services Office, Inc. Page 4 of 13 with its permission.

229 Policy Number Policy Period A. If you have: 1. Allowed us to adjust the Coverage A limit of liability and the premium in accordance with: a. The property evaluations we make; and b. Any increases in inflation; and 2. Notified us, within 30 days of completion, of any improvements, alterations or additions to the building insured under Coverage A which increase the replacement cost of the building by 5% or more; The provisions of this section will apply after a loss, provided you elect to repair or replace the damaged building. B. If there is a loss to the building insured under Coverage A that exceeds the Coverage A limit of liability shown in the Declarations, for the purpose of settling that loss only: 1. We will provide an additional amount of insurance, up to the amount described in the Schedule above; and 2. Section I - Condition C. Loss Settlement Paragraph 2. is deleted and replaced by Paragraphs 2., 3., and 4. as follows: 2. The building insured under Coverage A at replacement cost without deduction for depreciation. We will pay no more than the smallest of the following amounts: a. replacement cost of that part of the building damaged with material of like kind and quality and for like use; b. The necessary amount actually spent to repair or replace the damaged building; or c. The limit of liability under this policy that applies to the building, plus any additional amount provided by this endorsement. If the building is rebuilt at a new premises, the cost described in a. above is limited to the cost which would have been incurred if the building had been rebuilt at the original premises. 3. We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. 4. You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss to the building on an actual cash value basis. You may then make claim for any additional liability on a replacement cost basis, provided you notify us of your intent to do so within 180 days after the date of loss. 24. SPECIAL COMPUTER COVERAGE ALL FORMS EXCEPT HO 00 05, HO 00 07, AND HO WITH HO DEFINITIONS With respect to the coverage provided by this endorsement, "computer equipment" means: 1. Computer hardware, software, operating systems or networks; and 2. Other electronic parts, equipment or systems solely designed for use with or connected to equipment in 1. above. SECTION I - PERILS INSURED AGAINST With respect to "computer equipment" defined above, the Perils Insured Against which apply to Coverage C - Personal Property are deleted and replaced by the following: 1. We cover an "insured's" "computer equipment", as defined in this endorsement, against risk of direct physical loss. 2. We do not insure, however, for loss: a. Excluded under Section I - Exclusions. b. Caused by: (1) Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This provision does not apply if you have used reasonable care to: (a) Maintain heat in the building; or (b) Shut off the water supply and drain all systems and appliances of water; However, if the building is protected by an automatic fire protective sprinkler system, you must use reasonable care to continue the water supply and maintain heat in the building for coverage to apply. For purposes of this provision a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment. MU Includes copyrighted material of Insurance Services Office, Inc. Page 5 of 13 with its permission.

230 Policy Number Policy Period (2) Theft in or to a dwelling under construction, until the dwelling is finished and occupied; (3) Mold, fungus or wet rot; (4) Vandalism and malicious mischief, and any ensuing loss caused by any intentional and wrongful act committed in the course of the vandalism or malicious mischief, if the dwelling has been vacant for more than 60 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant; (5) Dampness of atmosphere or extremes of temperature unless the direct cause of loss is rain, snow, sleet or hail; (6) Refinishing, renovating or repairing property; (7) Collision, other than collision with a land vehicle, sinking, swamping or stranding of watercraft of all types, including their trailers, furnishings, equipment and outboard engines or motors; (8) Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body. However, any ensuing loss not excluded or excepted in this policy is covered; or (9) Any of the following: (a) Wear and tear, marring, deterioration; (b) Mechanical breakdown, latent defect, inherent vice, or any quality in property that causes it to damage or destroy itself; (c) Smog, rust or other corrosion, mold, wet or dry rot; (d) Smoke from agricultural smudging or industrial operations; (e) Discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by one or more of the Perils Insured Against that would apply under Coverage C of the policy form if this endorsement were not attached to the policy form. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed; (f) Settling, shrinking, bulging or expansion, including resultant cracking, of bulkheads, pavements, patios, footings, foundations, walls, floors, roofs or ceilings; (g) Birds, vermin, rodents or insects; or (h) Animals owned or kept by an "insured". Exception to b.(9) Unless the loss is otherwise excluded, we cover loss to "computer equipment" resulting from an accidental discharge or overflow of water or steam from within a: (i) Storm drain or water, steam or sewer pipe off the "residence premises"; or (ii) Plumbing, heating, air conditioning or automatic fire protective sprinkler system or household appliance on the "residence premises". We do not cover loss to the system or appliance from which this water or steam escaped. For the purposes of this provision, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, down spout or similar fixtures or equipment. SPECIAL CONDITIONS The coverage provided by this endorsement does not: 1. Increase the Coverage C limit of liability; 2. Modify the Coverage C Special Limits of Liability; or 3. Modify any provision that applies to Coverage C Property Not Covered. MU Includes copyrighted material of Insurance Services Office, Inc. Page 6 of 13 with its permission.

231 Policy Number Policy Period 25. WATER BACK UP AND SUMP DISCHARGE or OVERFLOW - Pennsylvania (Section I) A.Coverage We insure, up to $2,500, for direct physical loss to property covered under Section I caused by water, or waterborne material, which: 1. Backs up through sewers or drains; or 2. Overflows or is discharged from a: a. Sump, sump pump; or b. Related equipment; even if such overflow or discharge results from mechanical breakdown. This coverage does not apply to direct physical loss of the sump pump, or related equipment, which is caused by mechanical breakdown. This coverage does not increase the limits of liability for Coverages A, B, C or D stated in the Declarations. B. Section I - Perils Insured Against With respect to the coverage described in A. above, Paragraphs: A.2.c.(6)(b) in Form HO 00 03; A.2.e.(2) in Form HO 00 05; 2.j.(2) in Endorsement HO 05 24; 3.j.(2) in Endorsement HO 17 31; and 2.c.(6)(b) in Endorsement HO 17 32; are deleted and replaced by the following: Latent defect, inherent vice or any quality in property that causes it to damage or destroy itself; C. Special Deductible The following replaces any other deductible provision in this policy with respect to loss covered under this endorsement. We will pay only that part of the total of all loss payable under Section I that exceeds $250. No other deductible applies to this coverage. This deductible does not apply with respect to Coverage D - Loss Of Use. D. Exclusion The Water Damage Exclusion is replaced by the following: Water This means: 1. Flood, surface water, waves, including tidal wave and tsunami, tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind, including storm surge; 2. Water which: a. Backs up through sewers or drains; or b. Overflows or is otherwise discharged from a sump, sump pump or related equipment; as a direct or indirect result of flood; 3. Water below the surface of the ground, including water which exerts pressure on, or seeps, leaks or flows through a building, sidewalk, driveway, patio, foundation, swimming pool or other structure; or 4. Waterborne material carried or otherwise moved by any of the water referred to in D.1. through D.3. of this Exclusion. This Exclusion applies regardless of whether any of the above, in D.1. through D.4., is caused by an act of nature or is otherwise caused. This Exclusion applies to, but is not limited to, escape, overflow or discharge, for any reason, of water or waterborne material from a dam, levee, seawall or any other boundary or containment system. However, direct loss by fire, explosion or theft resulting from any of the above, in D.1. through D.4., is covered. All other provisions of this policy apply. MU Includes copyrighted material of Insurance Services Office, Inc. Page 7 of 13 with its permission.

232 Policy Number Policy Period 26. SERVICE LINE COVERAGE The following additional coverage is added to Section I of the Homeowners Form. AGREEMENT We will provide the insurance described in this endorsement in compliance with all applicable provisions of this policy. The most we will pay for loss, damage or expense under this endorsement arising from any one service line failure is $10,000. DEFINITIONS The following definitions are added: 1. "Covered service line" means underground piping and wiring, including permanent connections, valves or attached devices, as described and limited below. a. A "covered service line" must be one of the following: (1) water piping that connects from the dwelling to a public water supply system or private well system; (2) sewer piping that connects from the dwelling to a public sewer system or private septic system; (3) ground loop piping that connects to a heat pump; or (4) power line that provides electrical service to the dwelling or other structure. b. The covered service line must: (1) be located on the residence premises ; (2) provide a service to the dwelling or other structure, as covered under Coverage A or B; and (3) be owned by you or you must be legally liable for its repair or replacement. c. Covered service line does not include: (1) that part of piping that runs through or under a body of water, including but not limited to, a swimming pool, pond or lake; (2) that part of piping or wiring that runs through or under the dwelling or other structure; (3) piping that delivers water to outdoor property, including but not limited to, sprinklers, irrigation systems, swimming pools, hot tubs and decorative ponds. (4) wiring that provides electricity to outdoor property, including but not limited to, light fixtures and electric fencing; (5) piping or wiring that is not connected and ready for use; or (6) storm water drain piping. 2. Earth movement means: a. earthquake, including land shock waves or tremors before, during or after a volcanic eruption; b. landslide, mudslide or mudflow; c. subsidence or sinkhole collapse; d. tsunami or volcanic action; or e. any other naturally occurring earth movement including earth sinking, rising or shifting. This definition only applies to the Service Line Coverage provided within this endorsement. 3. One service line failure means: If an initial service line failure causes other service line failures, all will be considered one service line failure. All service line failures that are the result of the same event will be considered one service line failure. MU Includes copyrighted material of Insurance Services Office, Inc. Page 8 of 13 with its permission.

233 Policy Number Policy Period 4. Service line failure" means a leak, break, tear, rupture, collapse or arcing of a "covered service line." Service line failure does not include blockage or low pressure of a covered service line. COVERAGES The following coverages are added, subject to the limit provided under the Agreement section of this endorsement: 1. Damages to "Covered Service Line" We will pay for physical damage to your covered service line that is the direct result of a service line failure. 2. Excavation Costs With respect to your covered service line that is damaged as the result of a service line failure, we will pay the necessary and reasonable excavation costs that are required to repair or replace the damaged covered service line. 3. Expediting Expenses With respect to your covered service line that is damaged as the result of a service line failure, we will pay the reasonable extra cost to: a. make temporary repairs; and b. expedite permanent repairs or permanent replacement. 4. Loss of Use Coverage for Additional Living Expense and Fair Rental Value, as defined under Coverage D - Loss of Use, is extended to the coverage provided by this endorsement. 5. Outdoor Property We will pay for your outdoor property, including trees, shrubs, plants, lawns, walkways and driveways, that is damaged as a result of a service line failure or that is damaged during the excavation of your covered service line following a service line failure. EXCLUSIONS 1. If any of the following causes of loss are excluded by your policy, then those exclusions do not apply to this endorsement: a. wear and tear, marring, deterioration or hidden decay; b. rust or other corrosion; c. mechanical breakdown, latent defect or inherent vice; d. weight of equipment, animals or people; e. artificially generated electrical current; or f. freezing. 2. The following exclusions are added: a. We will not pay for loss or damage to: i. septic systems, including leach fields, septic tanks, pumps, motors or piping that runs from the septic tank to the leach fields; ii. water wells, including well pumps or motors; iii. heating and cooling systems, including heat pumps; or iv. irrigation or sprinkler systems. b. We will not pay for loss or damage to a covered service line that is damaged while it is being installed, dismantled or repaired. However, this exclusion shall not apply if a covered service line failure necessitated such installation, dismantling or repair. c. We will not pay for loss or damage caused by any of the following: i. flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not; or water that backs up or overflows from a sewer, drain or sump; or MU Includes copyrighted material of Insurance Services Office, Inc. Page 9 of 13 with its permission.

234 Policy Number Policy Period ii. earth movement, except for earth movement that results from the ground thawing after a freeze. d. We will not pay to clean up or remove pollutants, hazardous waste or sewage. DEDUCTIBLE Subject to the limit provided under the Agreement section of this endorsement, we will pay only that part of the loss that exceeds $500. No other deductible applies to this coverage. CONDITIONS The following conditions are added: 1. Environmental, Safety and Efficiency Improvements If a covered service line requires replacement due to a service line failure, we will pay your additional cost to replace with materials that are better for the environment, safer or more efficient than the materials being replaced. However, we will not pay more than 125% of what the cost would have been to replace with like kind and quality. This condition does not increase the Limit that applies to this endorsement. 2. Loss Settlement Losses under this endorsement will be settled as follows: a. Our payment for damaged covered property will be the smallest of: (1) The limit of liability that applies to this endorsement; (2) The cost to repair the damaged property; (3) The cost to replace the damaged property on the same premises; or (4) The necessary amount actually spent to repair or replace the damaged property. b. Except as described in Environmental, Safety and Efficiency Improvements above, you are responsible for the extra cost of replacing damaged property with property of a better kind or quality or of a different size or capacity. c. You are responsible for the extra cost to alter or relocate "covered service lines," unless such alteration or relocation is required by law or ordinance. WATERCRAFT LIABILITY - EXCLUSIONS (Section II) The total horsepower limit in exclusion B. 2. c. (2) (a) is increased for 25 horsepower to 50 horsepower. CLAIMS EXPENSES (Section II - Additional Coverages) The amount we will pay for reasonable expenses incurred by an insured at our request under Section II - Additional Coverage A.3. is increased from $250 to $350 per day. DAMAGE TO THE PROPERTY OF OTHERS - ADDITIONAL COVERAGES (Section II) The limit for damage to the property of others, Additional Coverage C.1. is increased from $1,000 to $2,000. LOSS ASSESSMENT - ADDITIONAL COVERAGES (Section II) The limit for Loss Assessment, Additional Coverage D, is increased from $1,000 to $10,000. PERSONAL INJURY - New York (Section II) The following coverage is added. DEFINITIONS The following definition is added: "Personal injury" means injury arising out of one or more of the following offenses, but only if the offense was committed during the policy period: 1. False arrest, detention or imprisonment, or; 2. Malicious prosecution; 3. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; MU Includes copyrighted material of Insurance Services Office, Inc. Page 10 of 13 with its permission.

235 Policy Number Policy Period 4. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; or 5. Oral or written publication of material that violates a person's right of privacy. "Fungi" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or released by fungi. However, this does not include any fungi that are, are on, or are contained in, a good or product intended for consumption. SECTION II - LIABILITY COVERAGES A. Coverage E - Personal Liability The following is added to Coverage E - Personal Liability: Personal Injury Coverage If a claim is made or suit is brought against an "insured" for damages resulting from an offense, defined under "personal injury", to which this coverage applies, we will: 1. Pay up to our limit of liability for the damages for which an "insured" is legally liable. Damages include prejudgment interest awarded against an "insured"; and 2. Provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when our limit of liability for the offense has been exhausted by payment of a judgment or settlement. SECTION II - EXCLUSIONS With respect to the coverage provided by this endorsement, Section II - Exclusions is deleted and replaced by the following: This insurance does not apply to: 1. "Personal Injury": a. Caused by or at the direction of an "insured" with the knowledge that the act would violate the rights of another and would inflict "personal injury"; b. Arising out of oral or written publication of material, if done by or at the direction of an "insured" with knowledge of its falsity; c. Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period; d. Arising out of a criminal act committed by or at the direction of an "insured"; e. Arising out of liability assumed by an "insured" under any contract or agreement except any indemnity obligation assumed by an "insured" under a written contract directly relating to the ownership maintenance or use of the premises; f. Sustained by any person as a result of an offense directly or indirectly related to the employment of this person by an "insured"; g. Arising out of or in connection with a "business" conducted from an "insured location" or engaged in by an "insured", whether or not the "business" is owned or operated by an "insured" or employs an "insured". This exclusion applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised, owed, or implied to be provided because of the nature of the "business". This exclusion does not apply to: (1) The rental or holding for rental of an "insured location"; (a) On an occasional basis if used only as a residence; (b) In part for use only as a residence, unless a single family unit is intended for use by the occupying family to lodge more than two roomers or boarders; or (c) In part, as an office, school, studio or private garage; and (2) An "insured" under the age of 21 years involved in a part-time or occasional, self-employed "business" with no employees; or MU Includes copyrighted material of Insurance Services Office, Inc. Page 11 of 13 with its permission.

236 Policy Number Policy Period h. Arising out of civic or public activities performed for pay by an "insured"; i. To you or an "insured" as defined under Definition 5.a. or b. This exclusion also applies to any claim made or suit brought against you or any "insured": (1) To repay; or (2) Share damages with; or Another person who may be obligated to pay damages because of "personal injury" to an "insured"; or j. Arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at any time. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. k. Arising directly or indirectly, in whole or in part, out of the actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any "fungi", wet or dry rot, or bacteria. 2. Any loss, cost or expense arising out of any: a. Request, demand or order that an "insured" or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants, "fungi", wet or dry rot, or bacteria; or b. Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, clean up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of pollutants, "fungi", wet or dry rot, or bacteria. SECTION II - ADDITIONAL COVERAGES With respect to the coverage provided by this endorsement, Paragraph D. Loss Assessment is deleted and replaced by the following: D. Loss Assessment We will pay up to $1000 for your share of loss assessment charged against you, as an owner or tenant of the "residence premises", during the policy period by a corporation or association of property owners, when the assessment is made as a result of "personal injury" not excluded under this endorsement. We do not cover assessments charged against you or a corporation or association of property owners by any governmental body. Regardless of the number of assessments, the limit of $1000 is the most we will pay for loss arising out of "personal injury". SECTION II - CONDITIONS With respect to the coverage provided by this endorsement, Section II - Condition I. Policy Period does not apply and Conditions A. Limit Of Liability, B. Severability Of Insurance and C. Duties After "Occurrence" are deleted and replaced by the following: A. Limit Of Liability Our total liability under "Personal Injury" Coverage for all damages resulting from any one offense will not be more than the limit of liability shown in the Declarations for Coverage E. This limit is the same regardless of the number of "insureds", claims made or suits brought. B. Severability Of Insurance This insurance applies separately to each "insured". This condition will not increase our limit of liability for any one offense. C. Duties After Offense In the event of a covered offense, you or another "insured" will perform the following duties that apply. We have no duty to provide coverage under this policy if your failure to comply with the following duties is prejudicial to us. You will help us by seeing that these duties are performed: 1. Give written notice to us or our agent as soon as is practical, which sets forth: a. The identity of the policy and "named insured"; b. Reasonably available information on the time, place and circumstances of the offense; and MU Includes copyrighted material of Insurance Services Office, Inc. Page 12 of 13 with its permission.

237 Policy Number Policy Period c. Names and addresses of any claimants and witnesses; 2. Cooperate with us in the investigation, settlement or defense of any claim or suit; 3. Promptly forward to us every notice, demand, summons or other process relating to the offense; 4. At our request, help us: a. To make settlement; b. To enforce any right of contribution or indemnity against any person or organization who may be liable to an "insured"; c. With the conduct of suits and attend hearings and trials; and d. To secure and give evidence and obtain the attendance of witnesses; 5. No "insured" shall, except at such "insured's" own cost, voluntarily make payment, assume obligation or incur expense other than for first aid to others at the time of the "personal injury". All other provisions of this policy apply. MU Includes copyrighted material of Insurance Services Office, Inc. Page 13 of 13 with its permission.

238 Policy Number Policy Period ACE Xtreme ADDITIONAL COVERAGE EXTENSIONS NO OTHER STRUCTURE - COVERAGE B (Section I) Other structures are defined under Coverage B as structures on the residence premises separated from your dwelling by clear space. If you do not have over $1,000 Replacement Cost Value of such other structures, the amount of insurance shown on the declarations page for Coverage B is added to the amount of insurance shown for your dwelling in Coverage A. The total amount of Coverage A and B will be the amount that applies to Coverage A in the event of a loss. This coverage applies only to forms HO 00 02, HO 00 03, HO 00 05, and HO LIMIT FOR PROPERTY AT OTHER RESIDENCES The limit for personal property usually located at an insured's residence, other than the residence premises is increased from 10% to 20% of the limit of liability for Coverage C, or $2,000, whichever is greater. INCREASED SPECIAL LIMITS - COVERAGE C (Section I) The entire Special Limits of Liability section under Coverage C - Personal Property, is replaced by the following: Special Limits of Liability. The special limit for each category shown below is the total limit for each loss for all property in that category. These special limits do not increase the Coverage C limit of liability. a. b. c. d. e. f. g. h. i. j. k. $1,000 on money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum other than platinumware, coins, medals, script, stored value cards and smart cards. $5,000 on securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, personal records, passports, tickets and stamps. This dollar limit applies to these categories regardless of the medium (such as paper or computer software) on which the material exists. $3,000 on watercraft of all types, including their trailers, furnishings, equipment and outboard engines or motors. $3,000 on trailers or semi-trailers not used with watercraft of all types. $10,000 for loss by theft, misplacing or losing of jewelry, watches, furs, precious and semi-precious stones, but not exceeding $2,500 for any one article. $10,000 for loss by theft of firearms and related equipment. $10,000 for loss by theft, misplacing or losing of silverware, silver-plated ware, goldware, gold-plated ware, platinumware, platinum-plated ware, and pewterware. This includes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter. $10,000 on property, on the "residence premises," used primarily for "business" purposes. $2,500 on property, away from the "residence premises," used primarily for "business" purposes. However, this limit does not apply to loss to adaptable electronic apparatus as described in Special Limits j. and k. below. $2,500 on electronic apparatus and accessories, while in or upon a motor vehicle, but only if the apparatus is equipped to be operated by power from the motor vehicle's electrical system while still capable of being operated by other power sources. Accessories include antennas, tapes, wires, records, discs or other media; that can be used with any electronic apparatus described in this item j. $2,500 on electronic apparatus and accessories used primarily for business, while away from the residence premises and not in or upon a motor vehicle. The apparatus must be equipped to be operated by power from the motor vehicle's electrical system while still capable of being operated by other power sources. Accessories include antennas, tapes, wires, records, discs or other media that can be used with any apparatus described in this Category k. MU Includes copyrighted material of Insurance Services Office, Inc. Page 1 of 10 with its permission.

239 Policy Number Policy Period The special limits of liability for items b, e, and g. above are increased to a combined total limit of $50,000 when such property is in a safe deposit box or vault at a federal or state chartered bank, thrift institution, or savings and loan association. If there is other insurance in effect, this coverage shall be deemed excess. This coverage is void if the property has been removed from the premises of the band, thrift institution, or savings and loan association. DEBRIS REMOVAL - ADDITIONAL COVERAGES (Section I) Additional Coverage 1.b. is replaced by the following: b. We will also pay your reasonable expense, up to $1,000 for the removal from the residence premises of: (1) Your tree(s) felled by the peril of Windstorm or Hail or Weight of Ice, Snow, or Sleet; or (2) A neighbor's tree(s) felled by the peril Insured Against. The $1,000 limit is the most we will pay in any one loss regardless of the number of fallen trees. No more than $500 of this limit will be paid for the removal of any one tree. This coverage is additional insurance. TREES, SHRUBS AND OTHER PLANTS - ADDITIONAL COVERAGES (Section I) The maximum limit of liability for any one tree, shrub, or plant under Additional Coverage 3 is increased from $500 to $1,000. FIRE DEPARTMENT SERVICE CHARGE - ADDITIONAL COVERAGES (Section I) Section I Additional Coverage 4 is replaced by the following: We will pay all reasonable fire department service charges to save or protect insured property from a Peril Insured Against. We do not cover fire department service charges if the property is located within the limits of the city, municipality or protection district furnishing the fire department response. This coverage is additional insurance. No deductible applies to this coverage. CREDIT CARD - ADDITIONAL COVERAGES (Section I) The limit of coverage under Section I Additional Coverage 6 is increased from $500 to $10,000. LOSS ASSESSMENT - ADDITIONAL COVERAGES (Section I) The limit for Loss Assessment, Additional Coverage 7, is increased from $1,000 to $10,000. ADDITIONAL COVERAGES (Section I) are added as follows: 13.LOCK REPLACEMENT We will pay up to $750 for costs you incur in changing the locks on your residence premises when your keys have been stolen. The theft of your keys must be reported to the police for this additional coverage to apply. No deductible applies to this additional coverage. 14.ANIMALS, BIRDS, and FISH We will pay up to $500 for pet animals, birds or fish when the loss is caused by fire, lightning, windstorm, hail, smoke, explosion, riot or falling aircraft. 15. PERSONAL PROPERTY AWAY FROM THE RESIDENCE PREMISES We will pay up to $5,000 for damage to your personal property occurring while it is away from your residence premises caused by: a. b. c. Flood (meaning a general and temporary condition of partial or complete inundation of water of normally dry land from (1) overflow of inland or tidal water; (2) unusual and rapid accumulation or runoff of surface waters from any source; (3) mudflow) Earthquake; or Landslide. Section I - Exclusions - A.2. Earth Movement and A.3.Water Damage do not apply to this Additional Coverage. 16. FIRE EXTINGUISHER RECHARGE We will pay your reasonable expense up to $250 for recharge of your owned fire extinguishers used during the policy term to extinguish a fire on your residence premises. MU Includes copyrighted material of Insurance Services Office, Inc. Page 2 of 10 with its permission.

240 Policy Number Policy Period The $250 limit is the most we will pay in any policy term. No deductible applies to this coverage. 17. EMERGENCY LIVING EXPENSE If the residence premise is made uninhabitable as the result of a power outage caused by an insured peril, we cover reasonable additional living expense loss. The additional coverages begin 48 hours after the residence premise is made uninhabitable and will continue for no longer than seven days. 18.REWARD COVERAGE We will pay you an amount that you have incurred in the payment of rewards for information leading to the: a. return of undamaged, stolen articles; or b. the arrest and conviction of any person(s) who have stolen articles and/or damaged any of your covered property. The most we will pay under this Additional Coverage is the actual cash value of the stolen article(s) or $500 whichever is less. 19.WAIVER OF DEDUCTIBLE Unless otherwise provided in an endorsement (such as a windstorm deductible endorsement), in the event of total loss to the residence premises from a covered peril, the deductible will not apply. 20.REFRIGERATED PROPERTY COVERAGE A. Definitions The following definition is added: "Loss of power" means the complete or partial interruption of electric power due to conditions beyond an "insured's" control. B. Coverage 1. We insure, for up to $2,500, covered property stored in freezers or refrigerators on the "residence premises" for direct loss caused by: a. "Loss of power" to the refrigeration unit. "Loss of power" must be caused by damage to b. (1) Generating equipment; or (2) Transmitting equipment; or Mechanical failure of the unit which stores the property. 2. Coverage will apply only if you have maintained the refrigeration unit in proper working condition immediately prior to the loss. 3. This endorsement does not increase the limit of liability for Coverage C. C. Special Deductible The following will replace any other deductible provision in this policy with respect to loss covered under this endorsement: We will pay only that part of the total of all loss payable that exceeds $50. No other deductible applies to this coverage. D. Exception To Power Failure Exclusion The Power Failure exclusion does not apply to this coverage. 21.LAND STABILITY If there is a covered loss to the residence premises, other than breakage of glass or safety glazing material, and a loss of land stability results, we will pay up to $10,000 for repair costs associated with the land. This includes the costs to replace, stabilize, or otherwise restore the land. This coverage only to the land necessary to support that part of the residence Premises sustaining the covered loss. This coverage is additional insurance. MU Includes copyrighted material of Insurance Services Office, Inc. Page 3 of 10 with its permission.

241 Policy Number Policy Period 22.MORTGAGE EXPENSE In the event of a total loss to the dwelling at the insured location by a covered peril. and 1. If within 120 days from the date of loss, the mortgagee requires that the current mortgage contract be altered; or 2. If within 120 days from the date of loss the insured elects to purchase a replacement premises ; and 3. If the insured has signed a formal purchase agreement for the replacement premises We agree to reimburse the named insured the: a. additional monthly mortgage expenses and b. acquisition costs incurred by the amendment or the replacement of the existing mortgage at the residence premises or the purchase of a replacement premises. Coverage under this provision is limited to the named insured on the primary mortgage for: 1. a maximum of $250 monthly, payable semi-annually for up to four years; or 2. a maximum of $250 monthly, payable semi-annually for up to one year when the insured no longer has coverage through Merchants Insurance Group; or 3. until the named insured no longer occupies the replacement premises if occupancy is less than four years. Exclusions: Under this provision no coverage will apply if: 1. after 120 days the named insured has not signed a formal purchase agreement for a replacement premises ; or 2. the named insured's a. occupancy b. ownership; or c. legal control of the replacement premises to which this coverage applies has been transferred or otherwise assigned. Definitions: "Monthly Mortgage Expense: The additional amount of interest payment created as a result of: 1. a higher interest rate on a replacement mortgage of the same principal amount; and 2. terms of a replacement premises "Covered Peril : A peril not specifically excluded for which coverage is provided by the policy to which this endorsement is attached. "Acquisition Costs : Means only the following direct monetary costs incurred by the replacement or amendment of the existing mortgage or the acquisition of a replacement premises : 1. title search fees; 2. appraisal Fees; and 3. application Fees. "Replacement Premises : means a dwelling to be purchased at a location other than the residence premises. 23.SPECIFIED ADDITIONAL LIMIT OF LIABILITY - COVERAGE A DWELLING (Section I) FORMS HO AND HO AND HO ONLY (APPLIES ONLY WHEN LOSS TO BUILDING INSURED UNDER COVERAGE A EXCEEDS THE COVERAGE A LIMIT OF LIABILITY SHOWN IN THE DECLARATIONS) The Additional Amount Of Insurance is determined by multiplying the Coverage A limit of liability shown in the Declarations by 25%. To the extent that coverage is provided, we agree to provide an additional amount of insurance in accordance with the following provisions: MU Includes copyrighted material of Insurance Services Office, Inc. Page 4 of 10 with its permission.

242 Policy Number Policy Period A. If you have: 1. Allowed us to adjust the Coverage A limit of liability and the premium in accordance with: a. The property evaluations we make; and b. Any increases in inflation; and 2. Notified us, within 30 days of completion, of any improvements, alterations or additions to the building insured under Coverage A which increase the replacement cost of the building by 5% or more; The provisions of this section will apply after a loss, provided you elect to repair or replace the damaged building. B. If there is a loss to the building insured under Coverage A that exceeds the Coverage A limit of liability shown in the Declarations, for the purpose of settling that loss only: 1. We will provide an additional amount of insurance, up to the amount described in the Schedule above; and 2. Section I - Condition C. Loss Settlement Paragraph 2. is deleted and replaced by Paragraphs 2., 3., and 4. as follows: 2. The building insured under Coverage A at replacement cost without deduction for depreciation. We will pay no more than the smallest of the following amounts: a. replacement cost of that part of the building damaged with material of like kind and quality and for like use; b. The necessary amount actually spent to repair or replace the damaged building; or c. The limit of liability under this policy that applies to the building, plus any additional amount provided by this endorsement. If the building is rebuilt at a new premises, the cost described in a. above is limited to the cost which would have been incurred if the building had been rebuilt at the original premises. 3. We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. 4. You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss to the building on an actual cash value basis. You may then make claim for any additional liability on a replacement cost basis, provided you notify us of your intent to do so within 180 days after the date of loss. 24.SPECIAL COMPUTER COVERAGE ALL FORMS EXCEPT HO 00 05, HO 00 07, AND HO WITH HO DEFINITIONS With respect to the coverage provided by this endorsement, "computer equipment" means: 1. Computer hardware, software, operating systems or networks; and 2. Other electronic parts, equipment or systems solely designed for use with or connected to equipment in 1. above. SECTION I - PERILS INSURED AGAINST With respect to "computer equipment" defined above, the Perils Insured Against which apply to Coverage C - Personal Property are deleted and replaced by the following: 1. We cover an "insured's" "computer equipment", as defined in this endorsement, against risk of direct physical loss. 2. We do not insure, however, for loss: a. Excluded under Section I - Exclusions. b. Caused by: (1) Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This provision does not apply if you have used reasonable care to: (a) Maintain heat in the building; or (b) Shut off the water supply and drain all systems and appliances of water; However, if the building is protected by an automatic fire protective sprinkler system, you must use reasonable care to continue the water supply and maintain heat in the building for coverage to apply. For purposes of this provision a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment. MU Includes copyrighted material of Insurance Services Office, Inc. Page 5 of 10 with its permission.

243 Policy Number Policy Period (2) Theft in or to a dwelling under construction, until the dwelling is finished and occupied; (3) Mold, fungus or wet rot; (3) Vandalism and malicious mischief, and any ensuing loss caused by any intentional and wrongful act committed in the course of the vandalism or malicious mischief, if the dwelling has been vacant for more than 60 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant; (4) Dampness of atmosphere or extremes of temperature unless the direct cause of loss is rain, snow, sleet or hail; (5) Refinishing, renovating or repairing property; (6) Collision, other than collision with a land vehicle, sinking, swamping or stranding of watercraft of all types, including their trailers, furnishings, equipment and outboard engines or motors; (7) Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body. However, any ensuing loss not excluded or excepted in this policy is covered. (8) Any of the following: (a) Wear and tear, marring, deterioration; (b) Mechanical breakdown, latent defect, inherent vice, or any quality in property that causes it to damage or destroy itself; (c) Smog, rust or other corrosion, mold, wet or dry rot; (d) Smoke from agricultural smudging or industrial operations; (e) Discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by one or more of the Perils Insured Against that would apply under Coverage C of the policy form if this endorsement were not attached to the policy form. (f) Settling, shrinking, bulging or expansion, including resultant cracking, of bulkheads, pavements, patios, footings, foundations, walls, floors, roofs or ceilings; (g) Birds, vermin, rodents or insects; or (h) Animals owned or kept by an "insured". Exception to b.(9) Unless the loss is otherwise excluded, we cover loss to "computer equipment" resulting from an accidental discharge or overflow of water or steam from within a: (i) Storm drain or water, steam or sewer pipe off the "residence premises"; or (ii) Plumbing, heating, air conditioning or automatic fire protective sprinkler system or household appliance on the "residence premises". We do not cover loss to the system or appliance from which this water or steam escaped. For the purposes of this provision, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, down spout or similar fixtures or equipment. SPECIAL CONDITIONS Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed; The coverage provided by this endorsement does not: 1. Increase the Coverage C limit of liability; 2. Modify the Coverage C Special Limits of Liability; or 3. Modify any provision that applies to Coverage C Property Not Covered. All other provisions of this policy apply. MU Includes copyrighted material of Insurance Services Office, Inc. Page 6 of 10 with its permission.

244 Policy Number Policy Period 25.WATER BACK UP AND SUMP DISCHARGE or OVERFLOW - Pennsylvania (Section I) A. Coverage We insure, up to $2,500, for direct physical loss to property covered under Section I caused by water, or waterborne material, which: 1. Backs up through sewers or drains; or 2. Overflows or is discharged from a: a. Sump, sump pump; or b. Related equipment; even if such overflow or discharge results from mechanical breakdown. This coverage does not apply to direct physical loss of the sump pump, or related equipment, which is caused by mechanical breakdown. This coverage does not increase the limits of liability for Coverages A, B, C or D stated in the Declarations. B. Section I - Perils Insured Against With respect to the coverage described in A. above, Paragraphs: A.2.c.(6)(b) in Form HO 00 03; A.2.e.(2) in Form HO 00 05; 2.j.(2) in Endorsement HO 05 24; 3.j.(2) in Endorsement HO 17 31; and 2.c.(6)(b) in Endorsement HO 17 32; are deleted and replaced by the following: Latent defect, inherent vice or any quality in property that causes it to damage or destroy itself; C. Special Deductible The following replaces any other deductible provision in this policy with respect to loss covered under this endorsement. We will pay only that part of the total of all loss payable under Section I that exceeds $250. No other deductible applies to this coverage. This deductible does not apply with respect to Coverage D - Loss Of Use. D. Exclusion The Water Damage Exclusion is replaced by the following: Water This means: 1. Flood, surface water, waves, including tidal wave and tsunami, tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind, including storm surge; 2. Water which: a. Backs up through sewers or drains; or b. Overflows or is otherwise discharged from a sump, sump pump or related equipment; as a direct or indirect result of flood; 3. Water below the surface of the ground, including water which exerts pressure on, or seeps, leaks or flows through a building, sidewalk, driveway, patio, foundation, swimming pool or other structure; or 4. Waterborne material carried or otherwise moved by any of the water referred to in D.1. through D.3. of this Exclusion. This Exclusion applies regardless of whether any of the above, in D.1. through D.4., is caused by an act of nature or is otherwise caused. This Exclusion applies to, but is not limited to, escape, overflow or discharge, for any reason, of water or waterborne material from a dam, levee, seawall or any other boundary or containment system. However, direct loss by fire, explosion or theft resulting from any of the above, in D.1. through D.4., is covered. All other provisions of this policy apply. MU Includes copyrighted material of Insurance Services Office, Inc. Page 7 of 10 with its permission.

245 Policy Number Policy Period WATERCRAFT LIABILITY - EXCLUSIONS (Section II) The total horsepower limit in exclusion B. 2. c. (2) (a) is increased for 25 horsepower to 50 horsepower. CLAIMS EXPENSES (Section II - Additional Coverages) The amount we will pay for reasonable expenses incurred by an insured at our request under Section II - Additional Coverage A.3. is increased from $250 to $350 per day. DAMAGE TO THE PROPERTY OF OTHERS - ADDITIONAL COVERAGES (Section II) The limit for damage to the property of others, Additional Coverage C.1. is increased from $1,000 to $2,000. LOSS ASSESSMENT - ADDITIONAL COVERAGES (Section II) The limit for Loss Assessment, Additional Coverage D, is increased from $1,000 to $10,000. PERSONAL INJURY - New York (Section II) The following coverage is added. DEFINITIONS The following definition is added: "Personal injury" means injury arising out of one or more of the following offenses, but only if the offense was committed during the policy period: 1. False arrest, detention or imprisonment, or 2. Malicious prosecution; 3. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; 4. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; or 5. Oral or written publication of material that violates a person's right of privacy. "Fungi" means any type or form of fungus, including mold or mildew, and any mycotoxins, spores, scents or by-products produced or released by fungi. However, this does not include any fungi that are, are on, or are contained in, a good or product intended for consumption. SECTION II - LIABILITY COVERAGES A. Coverage E - Personal Liability The following is added to Coverage E - Personal Liability: Personal Injury Coverage If a claim is made or suit is brought against an "insured" for damages resulting from an offense, defined under "personal injury", to which this coverage applies, we will: 1. Pay up to our limit of liability for the damages for which an "insured" is legally liable. Damages include prejudgment interest awarded against an "insured"; and 2. Provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when our limit of liability for the offense has been exhausted by payment of a judgment or settlement. SECTION II - EXCLUSIONS With respect to the coverage provided by this endorsement, Section II - Exclusions is deleted and replaced by the following: This insurance does not apply to Personal Injury: 1. "Personal Injury": a. Caused by or at the direction of an "insured" with the knowledge that the act would violate the rights of another and would inflict "personal injury"; b. Arising out of oral or written publication of material, if done by or at the direction of an "insured" with knowledge of its falsity; MU Includes copyrighted material of Insurance Services Office, Inc. Page 8 of 10 with its permission.

246 Policy Number Policy Period c. Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period; d. Arising out of a criminal act committed by or at the direction of an "insured"; e. Arising out of liability assumed by an "insured" under any contract or agreement except any indemnity obligation assumed by an "insured" under a written contract directly relating to the ownership maintenance or use of the premises; f. Sustained by any person as a result of an offense directly or indirectly related to the employment of this person by an "insured"; g. Arising out of or in connection with a "business" conducted from an "insured location" or engaged in by an "insured", whether or not the "business" is owned or operated by an "insured" or employs an "insured". This exclusion applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised, owed, or implied to be provided because of the nature of the "business". This exclusion does not apply to: (1) The rental or holding for rental of an "insured location"; (a) On an occasional basis if used only as a residence; (b) In part for use only as a residence, unless a single family unit is intended for use by the occupying family to lodge more than two roomers or boarders; or (c) In part, as an office, school, studio or private garage; and (2) An "insured" under the age of 21 years involved in a part-time or occasional self-employed "business" with no employees; or h. Arising out of civic or public activities performed for pay by an "insured"; i. To you or an "insured" as defined under Definition 5.a. or b. This exclusion also applies to any claim made or suit brought against you or any "insured": (1) To repay; or (2) Share damages with; or Another person who may be obligated to pay damages because of "personal injury" to an "insured"; or j. Arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants at any time. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. k. Arising directly or indirectly, in whole or in part, out of the actual, alleged or threatened inhalation of, ingestion of, contact with, exposure to, existence of, or presence of any "fungi", wet or dry rot, or bacteria. 2. Any loss, cost or expense arising out of any: a. Request, demand or order that an "insured" or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants, "fungi", wet or dry rot, or bacteria; or b. Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, clean up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or assessing the effects of pollutants, "fungi", wet or dry rot, or bacteria. SECTION II - ADDITIONAL COVERAGES With respect to the coverage provided by this endorsement, Paragraph D. Loss Assessment is deleted and replaced by the following: D. Loss Assessment We will pay up to $1000 for your share of loss assessment charged against you, as an owner or tenant of the "residence premises", during the policy period by a corporation or association of property owners, when the assessment is made as a result of "personal injury" not excluded under this endorsement. MU Includes copyrighted material of Insurance Services Office, Inc. Page 9 of 10 with its permission.

247 Policy Number Policy Period We do not cover assessments charged against you or a corporation or association of property owners by any governmental body. Regardless of the number of assessments, the limit of $1000 is the most we will pay for loss arising out of "personal injury". SECTION II - CONDITIONS With respect to the coverage provided by this endorsement, Section II - Condition I. Policy Period does not apply and Conditions A. Limit Of Liability, B. Severability Of Insurance and C. Duties After "Occurrence" are deleted and replaced by the following: A. Limit Of Liability Our total liability under "Personal Injury" Coverage for all damages resulting from any one offense will not be more than the limit of liability shown in the Declarations for Coverage E. This limit is the same regardless of the number of "insureds", claims made or suits brought. B. Severability Of Insurance This insurance applies separately to each "insured". This condition will not increase our limit of liability for any one offense. C. Duties After Offense In the event of a covered offense, you or another "insured" will perform the following duties that apply. We have no duty to provide coverage under this policy if your failure to comply with the following duties is prejudicial to us. You will help us by seeing that these duties are performed: 1. Give written notice to us or our agent as soon as is practical, which sets forth: a. The identity of the policy and "named insured"; b. Reasonably available information on the time, place and circumstances of the offense; and c. Names and addresses of any claimants and witnesses; 2. Cooperate with us in the investigation, settlement or defense of any claim or suit; 3. Promptly forward to us every notice, demand, summons or other process relating to the offense; 4. At our request, help us: a. To make settlement; b. To enforce any right of contribution or indemnity against any person or organization who may be liable to an "insured"; c. With the conduct of suits and attend hearings and trials; and d. To secure and give evidence and obtain the attendance of witnesses; 5. No "insured" shall, except at such "insured's" own cost, voluntarily make payment, assume obligation or incur expense other than for first aid to others at the time of the "personal injury". All other provisions of this policy apply. MU Includes copyrighted material of Insurance Services Office, Inc. Page 10 of 10 with its permission.

248 Policy Number Policy Period THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. HOME ADVANTAGE The following additional coverage is added to Section I of the Homeowners or Unit-Owners Form. AGREEMENT We will provide the insurance described in this endorsement in compliance with all applicable provisions of this policy. The most we will pay for loss, damage or expense under this endorsement arising from any "one accident" is $50,000. Coverage provided under this endorsement does not increase any limit of liability under Section I. DEFINITIONS The following definitions are added: 1. "Accident" means sudden and accidental: 2. a. b. mechanical or electrical breakdown; or tearing apart, cracking, burning or bulging of a steam or hot water heating system, or an air conditioning system; that results in direct physical damage to "covered equipment." "Covered equipment" a. "Covered equipment" means property covered under Coverage A - Dwelling or Coverage B - Other Structures, and: b. (1) that generates, transmits or utilizes energy; or (2) which, during normal usage, operates under vacuum or pressure, other than the weight of its contents. None of the following is "covered equipment": (1) (2) supporting structure, cabinet or compartment; insulating material associated with "covered equipment"; (3) sewer piping, buried vessels or piping, or piping forming a part of a fire protective sprinkler system; (4) water piping other than boiler feedwater piping, boiler condensate return piping or water piping forming a part of a refrigerating or air conditioning system; (5) kitchen or laundry appliances, other than those permanently installed, including but not limited to, refrigerator, dishwasher, oven, stove, clothes washer or clothes dryer; or (6) electronic entertainment or computer equipment, including but not limited to, television or stereo equipment, or any electronic component used with such electronic entertainment or computer equipment. 3. "One accident" means: If an initial "accident" causes other "accidents," all will be considered "one accident." All "accidents" that are the result of the same event will be considered "one accident." MU Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 1 of 2

249 Policy Number Policy Period PROPERTY COVERAGES 1. We will pay for direct physical damage to "covered equipment" that is the result of an "accident." 2. Spoilage With respect to your refrigerated property, we will pay: a. for physical damage due to spoilage that is the result of an "accident"; b. any necessary expenses you incur to reduce the amount of loss under this coverage to the extent that they do not exceed the amount of loss that otherwise would have been payable under this coverage. We will pay up to $500 under this coverage. 3. Loss of Use Coverage for Additional Living Expense and Fair Rental Value, as defined under Coverage D Loss of Use, is extended to the coverage provided by this endorsement. We will pay up to $200 per day for no more than 5 consecutive days, up to a maximum of $1,000 per "accident," under this coverage. EXCLUSIONS The following exclusions are added: 1. We will not pay under this endorsement for loss, damage or expense caused by or resulting from: 2. a. electrical power surge or brown out; or b. wear and tear, deterioration, or rust or other corrosion. We do not cover under this endorsement any property that is not "covered equipment" except for refrigerated property to the extent it is covered under Spoilage. CONDITIONS The following conditions are added: 1. Environmental, Safety and Efficiency Improvements 2. If "covered equipment" requires replacement due to an "accident," we will pay your additional cost to replace with equipment that is better for the environment, safer or more efficient than the equipment being replaced. However, we will not pay more than 125% of what the cost would have been to replace with like kind and quality. This condition does not increase any of the applicable limits. Loss Settlement Losses under this endorsement will be settled as follows: a. Our payment for damaged covered property will be the smallest of: (1) The limit of liability that applies to this endorsement; (2) The cost to repair the damaged property; (3) The cost to replace the damaged property on the same premises; or (4) The necessary amount actually spent to repair or replace the damaged property. b. Except as described in Environmental, Safety and Efficiency Improvements above, you are responsible for the extra cost of replacing damaged property with property of a better kind or quality or of a different size or capacity. c. If you do not repair or replace the damaged property within 24 months, after the date of the "accident," then we will pay only the smaller of the: Cost it would have taken to repair at the time of the "accident"; or (1) (2) Actual cash value at the time of the "accident." MU Includes copyrighted material of Insurance Services Office, Inc., with its permission. Page 2 of 2

250 Policy Number Policy Period A. Equipment Breakdown AGREEMENT THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. We will provide the insurance described in this Equipment Breakdown Coverage Section A in compliance with all applicable provisions of this policy. The most we will pay for loss, damage or expense under this Equipment Breakdown Coverage arising from any one accident is $50,000. Coverage provided under this Equipment Breakdown Coverage does not increase any limit of liability under Section I. DEFINITIONS The following definitions are added: 1. "Accident" means sudden and accidental: a. mechanical or electrical breakdown; or b. tearing apart, cracking, burning, or bulging of a steam or hot water heating system, or an air conditioning system; 2. "Covered equipment a. "Covered equipment means property covered under Coverage A - Dwelling or Coverage B - Other Structures, and: (1) that generates, transmits or utilizes energy; or (2) which, during normal usage, operates under vacuum or pressure, other than the weight of its contents. b. None of the following is "covered equipment": (1) supporting structure, cabinet or compartment; HOME ADVANTAGE PLUS The following additional coverage is added to Section I of the Homeowners Form. that results in direct physical damage to covered equipment. (2) insulating material associated with "covered equipment"; (3) sewer piping, buried vessels or piping, or piping forming a part of a fire protective sprinkler system; (4) water piping other than boiler feedwater piping, boiler condensate return piping or water piping forming a part of a refrigerating or air conditioning system; (5) kitchen or laundry appliances, other than those permanently installed, including but not limited to, refrigerator, dishwasher, oven, stove, clothes washer or clothes dryer; or (6) electronic entertainment or computer equipment, including but not limited to, television or stereo equipment, or any electronic component used with such electronic entertainment or computer equipment. 3. "One accident" means: If an initial "accident" causes other "accidents," all will be considered "one accident." All "accidents" that are the result of the same event will be considered "one accident." PROPERTY COVERAGES 1. We will pay for direct physical damage to "covered equipment" that is the result of an "accident." 2. Spoilage With respect to your refrigerated property, we will pay: a. for physical damage due to spoilage that is the result of an "accident"; b. any necessary expenses you incur to reduce the amount of loss under this coverage to the extent that they do not exceed the amount of loss that otherwise would have been payable under this coverage. We will pay up to $500 under this coverage. MU ú 2009 The Hartford Steam Boiler Inspection and Insurance Company Page 1 of 5

251 Policy Number Policy Period 3. Loss of Use Coverage for Additional Living Expense and Fair Rental Value, as defined under Coverage D Loss of Use, is extended to this Equipment Breakdown Coverage. We will pay up to $1,000 per accident under this coverage. EXCLUSIONS The following exclusions are added: 1. We will not pay under this Equipment Breakdown Coverage for loss damage or expense caused by or resulting from: a. electrical power surge or brown out; or b. wear and tear, deterioration, or rust or other corrosion. 2. We do not cover under this Equipment Breakdown Coverage any property that is not covered equipment except for refrigerated property to the extent it is covered under Spoilage. 3. We will not pay under this Equipment Breakdown Coverage for loss, damage or expense caused by or resulting from wear and tear, deterioration, or rust or other corrosion. However, any ensuing loss to "covered equipment" is covered. 4. We will not pay under this Equipment Breakdown Coverage for loss, damage or expense caused by or resulting from any of the following: Fire; lightning; windstorm or hail; explosion; smoke; aircraft or vehicles; riot or civil commotion; vandalism; sprinkler leakage; falling objects; weight of snow, ice or sleet; freezing; collapse; flood or earth movement. DEDUCTIBLE Subject to the limit provided under the Agreement section of this Equipment Breakdown Coverage, we will pay only that part of the loss that exceeds $500. No other deductible applies to this coverage. CONDITIONS The following conditions are added: 1. Environmental, Safety, and Efficiency Improvements If covered equipment requires replacement due to an accident, we will pay your additional cost to replace with equipment that is better for the environment, safer, or more efficient than the equipment being replaced. However, we will not pay more than 125% of what the cost would have been to replace with like kind and quality. This condition does not increase any of the applicable limits. 2. Loss Settlement Losses under this Equipment Breakdown Coverage will be settled as follows: a. Our payment for damaged covered property will be the smallest of: (1) The limit of liability that applies to this Equipment Breakdown Coverage; (2) The cost to repair the damaged property; (3) The cost to replace the damaged property on the same premises; or (4) The necessary amount actually spent to repair or replace the damaged property. b. Except as described in Environmental, Safety and Efficiency Improvements above, you are responsible for the extra cost of replacing damaged property with property of a better kind or quality or of a different size or capacity. c. If you do not repair or replace the damaged property within 24 months, after the date of the "accident," then we will pay only the smaller of the: (1) Cost it would have taken to repair at the time of the "accident"; or (2) Actual cash value at the time of the "accident." MU ú 2009 The Hartford Steam Boiler Inspection and Insurance Company Page 2 of 5

252 Policy Number Policy Period B. Service Line Coverage The following additional coverage is added to Section I of the Homeowners Form. AGREEMENT We will provide the insurance described in this Service Line Coverage Section B in compliance with all applicable provisions of this policy. The most we will pay for loss, damage or expense under this Service Line Coverage arising from any one service line failure is $10,000. DEFINITIONS The following definitions are added: 1. "Covered service line" means underground piping and wiring, including permanent connections, valves or attached devices, as described and limited below. a. A "covered service line" must be one of the following: (1) water piping that connects from the dwelling to a public water supply system or private well system; (2) sewer piping that connects from the dwelling to a public sewer system or private septic system; (3) ground loop piping that connects to a heat pump; or (4) power line that provides electrical service to the dwelling or other structure. b. The covered service line must: (1) be located on the residence premises ; (2) provide a service to the dwelling or other structure, as covered under Coverage A or B; and (3) be owned by you or you must be legally liable for its repair or replacement. c. Covered service line does not include: (1) that part of piping that runs through or under a body of water, including but not limited to, a swimming pool, pond or lake; (2) that part of piping or wiring that runs through or under the dwelling or other structure; (3) piping that delivers water to outdoor property, including but not limited to, sprinklers, irrigation systems, swimming pools, hot tubs and decorative ponds. (4) wiring that provides electricity to outdoor property, including but not limited to, light fixtures and electric fencing; (5) piping or wiring that is not connected and ready for use; or (6) storm water drain piping. 2. Earth movement means: a. earthquake, including land shock waves or tremors before, during or after a volcanic eruption; b. landslide, mudslide or mudflow; c. subsidence or sinkhole collapse; d. tsunami or volcanic action; or e. any other naturally occurring earth movement including earth sinking, rising or shifting. that results in direct physical damage to covered equipment. 3. One service line failure means: If an initial service line failure causes other service line failures, all will be considered one service line failure. All service line failures that are the result of the same event will be considered one service line failure. 4. Service line failure" means a leak, break, tear, rupture, collapse or arcing of a "covered service line." Service line failure does not include blockage or low pressure of a covered service line. MU ú 2009 The Hartford Steam Boiler Inspection and Insurance Company Page 3 of 5

253 Policy Number Policy Period COVERAGES The following coverages are added, subject to the limit provided under the Agreement section of this Service Line Coverage: 1. Damages to "Covered Service Line" We will pay for physical damage to your covered service line that is the direct result of a service line failure. 2. Excavation Costs With respect to your covered service line that is damaged as the result of a service line failure, we will pay the necessary and reasonable excavation costs that are required to repair or replace the damaged covered service line. 3. Expediting Expenses With respect to your covered service line that is damaged as the result of a service line failure, we will pay the reasonable extra cost to: a. make temporary repairs; and b. expedite permanent repairs or permanent replacement. 4. Loss of Use Coverage for Additional Living Expense and Fair Rental Value, as defined under Coverage D - Loss of Use, is extended to this Service Line Coverage. 5. Outdoor Property We will pay for your outdoor property, including trees, shrubs, plants, lawns, walkways and driveways, that is damaged as a result of a service line failure or that is damaged during the excavation of your covered service line following a service line failure. EXCLUSIONS 1. If any of the following causes of loss are excluded by your policy, then those exclusions do not apply to this Service Line Coverage: a. wear and tear, marring, deterioration or hidden decay; b. rust or other corrosion; c. mechanical breakdown, latent defect or inherent vice; d. weight of equipment, animals or people; e. artificially generated electrical current; or f. freezing. 2. The following exclusions are added: a. We will not pay for loss or damage to: i. septic systems, including leach fields, septic tanks, pumps, motors or piping that runs from the septic tank to the leach fields; ii. water wells, including well pumps or motors; iii. heating and cooling systems, including heat pumps; or iv. irrigation or sprinkler systems. b. We will not pay for loss or damage to a covered service line that is damaged while it is being installed, dismantled or repaired. However, this exclusion shall not apply if a covered service line failure necessitated such installation, dismantling or repair. c. We will not pay for loss or damage caused by any of the following: i. flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not; or water that backs up or overflows from a sewer, drain or sump; or ii. earth movement, except for earth movement that results from the ground thawing after a freeze. MU ú 2009 The Hartford Steam Boiler Inspection and Insurance Company Page 4 of 5

254 Policy Number Policy Period d. We will not pay to clean up or remove pollutants, hazardous waste or sewage. e. We will not pay under this Service Line Coverage for loss or damage caused by or resulting from any of the following causes of loss: i. fire; or water or other means used to extinguish a fire; ii. explosion; or iii. lightning; windstorm or hail; smoke; aircraft; riot or civil commotion; theft; breakage of glass. DEDUCTIBLE Subject to the limit provided under the Agreement section of this Service Line Coverage, we will pay only that part of the loss that exceeds $500. No other deductible applies to this coverage. CONDITIONS The following conditions are added: 1. Environmental, Safety and Efficiency Improvements If a covered service line requires replacement due to a service line failure, we will pay your additional cost to replace with materials that are better for the environment, safer or more efficient than the materials being replaced. However, we will not pay more than 125% of what the cost would have been to replace with like kind and quality. This condition does not increase the Limit that applies to this Service Line Coverage. 2. Loss Settlement Losses under this Service Line Coverage will be settled as follows: a. Our payment for damaged covered property will be the smallest of: (1) The limit of liability that applies to this Service Line Coverage; (2) The cost to repair the damaged property; (3) The cost to replace the damaged property on the same premises; or (4) The necessary amount actually spent to repair or replace the damaged property. b. Except as described in Environmental, Safety and Efficiency Improvements above, you are responsible for the extra cost of replacing damaged property with property of a better kind or quality or of a different size or capacity. c. You are responsible for the extra cost to alter or relocate "covered service lines," unless such alteration or relocation is required by law or ordinance. MU ú 2009 The Hartford Steam Boiler Inspection and Insurance Company Page 5 of 5

255 Policy Number Policy Period THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. IDENTITY RECOVERY COVERAGE CASE MANAGEMENT SERVICE AND COSTS COVERAGE Service and coverage under this endorsement applies to any "insured" as defined in this policy. DEFINITIONS The following definitions are added with respect to this endorsement only "ID Recovery Case Manager" means a person assigned by us to help an "insured" to recover control over his or her personal identity. This help may include contacting authorities, credit bureaus, creditors and businesses. Such contacts will take place with the permission and cooperation of the "insured." "ID Theft" means the fraudulent use of the Social Security number or other method of identifying an "insured." This includes the fraudulent use of the personal identity of an "insured" to establish credit accounts, secure loans, enter into contracts or commit crimes. "ID theft" does not include the fraudulent use of a business name, d/b/a or any other method of identifying a business activity. "ID Theft Costs" means any of the following when they are reasonable and necessary expenses costs that are incurred as a direct result of an ID theft. a. Costs for re-filing applications for loans, grants or credit accounts. b. Costs for long distance telephone calls, postage, and notarizing documents. c. Costs for credit reports from established credit bureaus. d. Costs for an attorney approved by us for the following. (1) The defense of any civil suit brought against an insured ; (2) The removal of any civil judgment wrongfully entered against an "insured." (3) Legal assistance for an insured at an audit or hearing by a governmental agency; e. f. g. h. (4) Legal assistance in challenging the accuracy of the insured's consumer credit report; or (5) The defense of any criminal charges brought against an insured arising from the actions of a third party using the personal identity of the insured. Actual lost wages of the insured for time taken away from work and away from the work premises. Time away from work includes partial or whole work days. Actual lost wages may include payment for vacation days, discretionary days, floating holidays and paid personal days. Actual lost wages does not include sick days or any loss arising from time taken away from self-employment. Necessary time off does not include time off to do tasks that could reasonably have been done during non-working hours. Costs for supervision of children or elderly or infirm relatives or dependants of the insured during time taken away from such supervision. Such care must be provided by a professional care provider who is not a relative of the insured. Costs for counseling from a licensed mental health professional. Such care must be provided by a professional care provider who is not a relative of the insured. Any other reasonable costs necessarily incurred by an insured as a direct result of the ID theft. Such costs include: (1) Costs by the insured to recover control over his or her personal identity. (2) Deductibles or service fees from financial institutions. Such costs do not include: (3) Costs to avoid, prevent or detect ID theft or other loss. (4) Monies lost or stolen. (5) Costs that are restricted or excluded elsewhere in this endorsement or policy. MU Page 1 of 3

256 Policy Number Policy Period The following Additional Coverage is added under Section I: IDENTITY RECOVERY COVERAGE We will provide the Case Management Service and Costs Coverage indicated below if all of the following requirements are met. 1. There has been an "ID theft" involving the personal identity of an "insured" under this policy; and 2. LIMITS Such "ID theft" is first discovered by the "insured" during the policy period for which this Identity Recovery coverage is applicable; and 3. Such "ID theft" is reported to us within 60 days after it is first discovered by you. If all three of the requirements listed above have been met, then we will provide the following to the insured : 1. Case Management Service Services of an ID recovery case manager as needed to respond to the ID theft. 2. Costs Coverage Reimbursement of actual ID theft incurred as a direct result of the ID theft. This coverage is additional insurance. Case Management Service is available as needed for any one ID theft for up to 12 months in a row from the inception of the service. Costs we incur to provide Case Management Service do not reduce the amount of limit available for Costs Coverage. Costs Coverage is subject to a limit of $15,000 annual aggregate per insured. This limit is the most we will pay for the total of all loss or expense arising out of all ID thefts to any one insured which are first discovered by the insured during the present annual policy period. This limit applies regardless of the number of claims during that period. An ID theft may be first discovered by the insured in one policy period and continue into other policy periods. If so, all loss and expense arising from such ID theft will be subject to the aggregate limit applicable to the policy period when the ID theft was first discovered by the insured. Coverage for legal costs is found under item d. of the definition of ID theft costs. Such legal costs are part of, and not in addition to, the Costs Coverage limit. Item E. (Lost Wages) and item f. (Child and Elder Care Expenses) of the definition of ID theft expenses are jointly subject to a sublimit of $5,000. This sublimit is part of, and not in addition to, the Costs Coverage limit. Coverage is limited to wages lost and costs incurred within 12 months after the first discovery of the ID theft by the insured. Item G. (Mental Health Counseling) of the definition of expense ID theft costs is subject to a sublimit of $1,000. This sublimit is part of, and not in addition to, the Costs Coverage limit. Coverage is limited to costs incurred within 12 months after the first discovery of the ID theft by the insured. Item H. (Miscellaneous Unnamed Costs) of the definition of ID theft costs is subject to a sublimit of $1,000. This sublimit is part of, and not in addition to, the Costs Coverage limit. Coverage is limited to costs incurred within 12 months after the first discovery of the ID theft by the insured. DEDUCTIBLE Case Management Service is not subject to a deductible. Costs Coverage is subject to a deductible of $100. You shall be responsible for only one deductible under this endorsement during any one policy period. EXCLUSIONS The following additional exclusions apply to this coverage. These exclusions apply to both Case Management Service and Costs Coverage. We do not cover loss or expense arising from any of the following. 1. The theft of a professional or business identity. MU Page 2 of 3

257 Policy Number Policy Period 2. Any fraudulent, dishonest or criminal act by an "insured." This includes any such act by a person aiding or abetting an "insured." This also includes any such act by an authorized representative of an "insured." In all these cases, it does not matter whether the individual is acting alone or in collusion with others. However, this exclusion shall not apply to the interests of an insured who has no knowledge of or involvement in such fraud, dishonesty or criminal act. 3. An "ID theft" that is not reported in writing to the police. CONDITIONS The following additional Conditions apply to this coverage. A. Assistance and Claims If you have questions or need help, please call the ID Recovery Help Line at The ID Recovery Help Line is available to provide you with the following Information on how to respond to a possible "ID theft." Instructions for how to submit a service request for Case Management Service and/or a claim form for Costs Coverage. In some cases, we may provide Case Management services at our expense to an insured prior to a determination that a covered ID theft has occurred. Our provision of such services is not an admission of liability under the policy. We reserve the right to deny further coverage or service if, after investigation, we determine that a covered ID theft has not occurred. As respects Costs Coverage, you must send to us receipts, bills or other records that support your claim for "ID theft costs." Such records must be sent to us within 60 days after our request. B. Services The following conditions apply as respects any services provided by us or our designees to you or any "insured" under this endorsement. 1. Our ability to provide helpful services in the event of an "ID theft" depends on your cooperation, permission and assistance. 2. All services may not be available or applicable to all individuals. For example, insureds who are minors or foreign nationals may not have credit records that can be provided or monitored. Service in Canada will be different from service in the United States and Puerto Rico in accordance with local conditions. 3. We do not warrant that our services will end or solve all problems associated with an "ID theft." We do not warrant that our services will prevent future "ID thefts." All other provisions of this policy apply. MU Page 3 of 3

258 NOTICE OF PRIVACY POLICY MERCHANTS MUTUAL INSURANCE COMPANY MERCHANTS PREFERRED INSURANCE COMPANY OUR CUSTOMER PRIVACY POLICY We at Merchants Insurance Group value our customers. We know that you are concerned with the privacy of information that is provided to us in order to cover your personal insurance needs. This information must be and is maintained in a manner that protects your privacy rights. It is essential, however, that from time to time we disclose some information to parties outside of our own companies in order to process or service your account. This Privacy Notice provides information on the types of information we gather in the processing of your policies and also explains the types of disclosures that might be made. Please read this notice carefully to understand the types of information we collect and disclose, and the steps we take to protect that information. INFORMATION COLLECTION PRACTICES We collect nonpublic personal financial information about you from the following sources: Information we receive from you on applications or other forms, or verbally. This includes information you provide in writing, over the telephone, in person, or by any other means such as your name, address, social security number and date of birth. Information about your transactions with us, our affiliates, (companies controlled or owned by Merchants), or nonaffiliated third parties. This might include such things as your loss history, payment history, or account balances. Information we receive from consumer reporting agencies. This might include information on prior insurance claims or on creditworthiness. Information we secure from inspection vendors. This might include information from a property inspection service, a vendor who calls you directly in order to update policy information for renewal policies, or a geographic mapping service. We also secure information from public records. This might include such information as telephone number, motor vehicle records, government real estate records, and security interest filings. USE OF INFORMATION We use the information you provide in order to provide you with our products and services. For example, we may use such information to evaluate your application for coverage, to underwrite your policies, to process your claims, or to ensure proper billing. To the extent necessary to provide you with our products and services, we may share the information you provide with our third-party affiliates including, but not limited to, our agents. In addition, Merchants Mutual Insurance Company ("MMIC") may disclose your information to its affiliate, Merchants Preferred Insurance Company ("MPIC") and MPIC may disclose your information to MMIC. INFORMATION DISCLOSURE PRACTICES We do not disclose any nonpublic personal financial information about our customers or former customers to anyone, except as permitted or required by law. We will not disclose information to other companies who may want to sell their products or services to you. As an example, we will not sell your name or information to a direct marketing or telemarketing company that is not affiliated with us. Some examples of when we might disclose information, as permitted by law, are: Information may be provided with your consent or at your direction. For example, you might request that we provide your policy or payment information to a mortgagee or loss payee so that you may secure a loan. Information must be provided when subpoenaed or required by a court of law or by other regulatory or law enforcement agencies. We may have to report information to comply with state, federal, or local laws. Information may be provided to someone you have designated with a legal or beneficial interest, or who is acting in a fiduciary or representative capacity on your behalf. Information may be provided to a consumer reporting agency. MU Page 1 of 2

259 Information may be provided to fraud prevention personnel or agencies. Information may be provided to a service vendor in order to process your policy or service your account. Information may be sent to rate advisory organizations, guaranty funds or agencies, agencies that are rating our company, persons who are charged with assessing our company's compliance with industry standards, and our attorneys, accountants, and auditors. INFORMATION PROTECTION THIS NOTICE IS MADE ON BEHALF OF: Merchants Mutual Insurance Company Merchants Preferred Insurance Company This Privacy Policy applies to products and services provided by us and any of our affiliated companies used primarily for personal, family, or household purposes (not business purposes). We reserve the right to change this Privacy Policy, and any of the policies described above, at any time. The examples contained in this Privacy Policy are illustrations; they are not intended to be all-inclusive. We restrict access to your nonpublic personal financial information. Only Merchants employees and independent service providers who need to know your information in order to provide you with products or services have access to your information. Our employees and independent service providers are instructed to keep your information in a confidential manner. We maintain physical, electronic, and procedural safeguards that comply with federal and state regulations to protect your nonpublic personal financial information. Should your relationship with Merchants Insurance Group end, we will continue to protect your personal information in accordance with the privacy policies outlined in this notice. MU Page 2 of 2

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261 Policy Number Policy Period YOUR HOMEOWNERS POLICY - QUICK REFERENCE DECLARATIONS PAGE Your Name Location of Your Residence Policy Period Coverages Amounts of Insurance Deductible Beginning On Page Beginning On Page AGREEMENT DEFINITIONS 1 1 SECTION II YOUR LIABILITY COVERAGES Personal Liability Medical Payments to Others 23 SECTION I YOUR PROPERTY COVERAGES Property Coverages Loss of Use Additional Coverages Debris Removal Trees, Shrubs and Plants Credit Card PERILS INSURED AGAINST EXCLUSIONS EXCLUSIONS ADDITIONAL COVERAGES Claim Expenses First Aid Expenses Damage to Property of Others CONDITIONS Limit of Liability Duties After "Occurrence" Policy Period CONDITIONS Insurable Interest Duties After Loss Loss Settlement Mortgage Clause 17 SECTION I and SECTION II CONDITIONS Cancellation Non-Renewal 32 PLEASE NOTE: THERE MAY BE STATE AMENDATORY ENDORSEMENTS

262 Policy Number Policy Period AGREEMENT HOMEOWNERS PREMIER RESIDENCE PENNSYLVANIA We will provide the insurance described in this policy in return for the premium and compliance with all applicable provisions of this policy. DEFINITIONS A. In this policy, "you" and "your" refer to the "named insured" shown in the Declarations and the spouse if a resident of the same household. "We", "us" and "our" refer to the Company providing this insurance. B. In addition, certain words and phrases are defined as follows: 1. "Aircraft Liability", "Hovercraft Liability", "Motor Vehicle Liability" and "Watercraft Liability", subject to the provisions in b. below, mean the following: a. Liability for "bodily injury" or "property damage" arising out of the: (1) Ownership of such vehicle or craft by an "insured"; (2) Maintenance, occupancy, operation, use, loading or unloading of such vehicle or craft by any person; (3) Entrustment of such vehicle or craft by an "insured" to any person; (4) Failure to supervise or negligent supervision of any person involving such vehicle or craft by an "insured"; or (5) Vicarious liability, whether or not imposed by law, for the actions of a child or minor involving such vehicle or craft. b. For the purpose of this definition: (1) Aircraft means any contrivance used or designed for flight except model or hobby aircraft not used or designed to carry people or cargo; (2) Hovercraft means a self-propelled motorized ground effect vehicle and includes, but is not limited to, flarecraft and air cushion vehicles; (3) Watercraft means a craft principally designed to be propelled on or in water by wind, engine power or electric motor; and (4) Motor vehicle means a "motor vehicle" as defined in 7. below. 2. "Bodily injury" means bodily harm, sickness or disease, including required care, loss of services and death that results. 3. "Business" means: a. A trade, profession or occupation engaged in on a full-time, part-time or occasional basis; or b. Any other activity engaged in for money or other compensation, except the following: (1) One or more activities, not described in (2) through (4) below, for which no "insured" receives more than $2,000 in total compensation for the 12 months before the beginning of the policy period; (2) Volunteer activities for which no money is received other than payment for expenses incurred to perform the activity; (3) Providing home day care services for which no compensation is received, other than the mutual exchange of such services; or (4) The rendering of home day care services to a relative of an "insured". 4. "Employee" means an employee of an "insured", or an employee leased to an "insured" by a labor leasing firm under an agreement between an "insured" and the labor leasing firm, whose duties are other than those performed by a "residence employee". 5. "Insured" means: a. You and residents of your household who are: (1) Your relatives; or (2) Other persons under the age of 21 and in the care of any person named above; HO 07 PA Page 1 of 33

263 Policy Number Policy Period b. A student enrolled in school full time, as defined by the school, who was a resident of your household before moving out to attend school, provided the student is under the age of: (1) 24 and your relative; or (2) 21 and in your care or the care of a person described in a.(1) above; or c. Under Section II: (1) With respect to animals or watercraft to which this policy applies, any person or organization legally responsible for these animals or watercraft which are owned by you or any person included in a. or b. above. "Insured" does not mean a person or organization using or having custody of these animals or watercraft in the course of any "business" or without consent of the owner; or (2) With respect to a "motor vehicle" to which this policy applies: (a) Persons while engaged in your employ or that of any person included in a. or b. above; or (b) Other persons using the vehicle on an "insured location" with your consent. Under both Sections I and II, when the word an immediately precedes the word "insured", the words an "insured" together mean one or more "insureds". 6. "Insured location" means: a. The "residence premises"; b. The part of other premises, other structures and grounds used by you as a residence; and (1) Which is shown in the Declarations; or (2) Which is acquired by you during the policy period for your use as a residence; c. Any premises used by you in connection with a premises described in a. and b. above; d. Any part of a premises: (1) Not owned by an "insured"; and (2) Where an "insured" is temporarily residing; e. Vacant land, other than farm land, owned by or rented to an "insured"; f. Land owned by or rented to an "insured" on which a one, two, three or four family dwelling is being built as a residence for an "insured"; g. Individual or family cemetery plots or burial vaults of an "insured"; or h. Any part of a premises occasionally rented to an "insured" for other than "business" use. 7. "Motor vehicle" means: a. A self-propelled land or amphibious vehicle; or b. Any trailer or semitrailer which is being carried on, towed by or hitched for towing by a vehicle described in a. above. 8. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions, which results, during the policy period, in: a. "Bodily injury"; or b. "Property damage". 9. "Property damage" means physical injury to, destruction of, or loss of use of tangible property. 10. "Residence employee" means: a. An employee of an "insured", or an employee leased to an "insured" by a labor leasing firm, under an agreement between an "insured" and the labor leasing firm, whose duties are related to the maintenance or use of the "residence premises", including household or domestic services; or b. One who performs similar duties elsewhere not related to the "business" of an "insured". A "residence employee" does not include a temporary employee who is furnished to an "insured" to substitute for a permanent "residence employee" on leave or to meet seasonal or short-term workload conditions. HO 07 PA Page 2 of 33

264 Policy Number Policy Period 11. "Residence premises" means: a. The one family dwelling where you reside; b. The two, three or four family dwelling where you reside in at least one of the family units; or c. That part of any other building where you reside; and which is shown as the "residence premises" in the Declarations. "Residence premises" also includes other structures and grounds at that location. DEDUCTIBLE Unless otherwise noted in this policy, the following deductible provision applies: Subject to the policy limits that apply, we will pay only that part of the total of all loss payable under Section I that exceeds the deductible amount shown in the Declarations. SECTION I - PROPERTY COVERAGES A. Coverage A - Dwelling 1. We cover: a. The dwelling on the "residence premises" shown in the Declarations, including structures attached to the dwelling; and b. Materials and supplies located on or next to the "residence premises" used to construct, alter or repair the dwelling or other structures on the "residence premises". 2. We do not cover land, including land on which the dwelling is located. B. Coverage B - Other Structures 1. We cover other structures on the "residence premises" set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection. 2. We do not cover: a. Land, including land on which the other structures are located; b. Other structures rented or held for rental to any person not a tenant of the dwelling, unless used solely as a private garage; c. Other structures from which any "business" is conducted; or d. Other structures used to store "business" property. However, we do cover a structure that contains "business" property solely owned by an "insured" or a tenant of the dwelling provided that "business" property does not include gaseous or liquid fuel, other than fuel in a permanently installed fuel tank of a vehicle or craft parked or stored in the structure. 3. The limit of liability for this coverage will not be more than 10% of the limit of liability that applies to Coverage A. Use of this coverage does not reduce the Coverage A limit of liability. C. Coverage C - Personal Property 1. Covered Property We cover personal property owned or used by an "insured" while it is anywhere in the world. After a loss and at your request, we will cover personal property owned by: a. Others while the property is on the part of the "residence premises" occupied by an "insured"; or b. A guest or a "residence employee", while the property is in any residence occupied by an "insured". 2. Limit For Property At Other Residences Our limit of liability for personal property usually located at an "insured's" residence, other than the "residence premises", is 10% of the limit of liability for Coverage C, or $1,000, whichever is greater. However, this limitation does not apply to personal property: a. Moved from the "residence premises" because it is being repaired, renovated or rebuilt and is not fit to live in or store property in; or b. In a newly acquired principal residence for 30 days from the time you begin to move the property there. HO 07 PA Page 3 of 33

265 Policy Number Policy Period 3. Special Limits Of Liability The special limit for each category shown below is the total limit for each loss for all property in that category. These special limits do not increase the Coverage C limit of liability. a. $500 on money, bank notes, bullion, gold other than goldware, silver other than silverware, platinum other than platinumware, coins, medals, script, stored value cards and smart cards. b. $5,000 on securities, accounts, deeds, evidences of debt, letters of credit, notes other than bank notes, manuscripts, personal records, passports, tickets and stamps. This dollar limit applies to these categories regardless of the medium (such as paper or computer software) on which the material exists. This limit includes the cost to research, replace or restore the information from the lost or damaged material. c. $3,000 on watercraft of all types, including their trailers, furnishings, equipment and outboard engines or motors. d. $3,000 on trailers or semi-trailers not used with watercraft of all types. e. $7,500 for loss by theft, misplacing or losing, of jewelry, watches, furs, precious and semi-precious stones, but not exceeding $2,500 for any one article. f. $7,500 for loss by theft, misplacing or losing of firearms and related equipment. g. $7,500 for loss by theft, misplacing or losing of silverware, silver-plated ware, goldware, gold-plated ware, platinumware, platinum-plated ware, and pewterware. This includes flatware, hollowware, tea sets, trays and trophies made of or including silver, gold or pewter. h. $5,000 on property, on the "residence premises," used primarily for "business" purposes. i. $2,000 on property, away from the "residence premises," primarily for "business" purposes. However, this limit does not apply to loss to adaptable electronic apparatus as described in Special Limits j. and k. below. j. $2,500 on electronic apparatus and accessories, while in or upon a motor vehicle, but only if the apparatus is equipped to be operated by power from the motor vehicle's electrical system while still capable of being operated by other power sources. Accessories include antennas, tapes, wires, records, discs or other media that can be used with any apparatus described in this item j. k. $2,500 on electronic apparatus and accessories used primarily for business, while away from the residence premises and not in or upon a motor vehicle. The apparatus must be equipped to be operated by power from the motor vehicle's electrical system while still capable of being operated by other power sources. Accessories include antennas; tapes, wires, records, discs or other media; that can be used with any apparatus described in this item k. 4. Property Not Covered We do not cover: a. Articles separately described and specifically insured, regardless of the limit for which they are insured, in this or other insurance; b. Animals, birds or fish; c. "Motor vehicles". (1) This includes: (a) Their accessories, equipment and parts; or (b) Electronic apparatus and accessories designed to be operated solely by power from the electrical system of the "motor vehicle". Accessories include antennas, tapes, wires, records, discs or other media that can be used with any apparatus described above. The exclusion of property described in (a) and (b) above applies only while such property is in or upon the "motor vehicle". HO 07 PA Page 4 of 33

266 Policy Number Policy Period (2) We do cover "motor vehicles" not required to be registered for use on public roads or property which are: (a) Used solely to service an "insured's" residence; or (b) Designed to assist the handicapped; d. Aircraft meaning any contrivance used or designed for flight including any parts whether or not attached to the aircraft. We do cover model or hobby aircraft not used or designed to carry people or cargo; e. Hovercraft and parts. Hovercraft means a self-propelled motorized ground effect vehicle and includes, but is not limited to, flarecraft and air cushion vehicles; f. Property of roomers, boarders and other tenants, except property of roomers and boarders related to an "insured"; g. Property in an apartment regularly rented or held for rental to others by an "insured", except as provided under E.10. Landlord's Furnishings under Section I - Property Coverages; h. Property rented or held for rental to others off the "residence premises"; i. "Business" data, including such data stored in: (1) Books of account, drawings or other paper records; or (2) Computers and related equipment. We do cover the cost of blank recording or storage media, and of prerecorded computer programs available on the retail market; j. Credit cards, electronic fund transfer cards or access devices used solely for deposit, withdrawal or transfer of funds except as provided in E.6. Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery And Counterfeit Money under Section I - Property Coverages; or k. Water or steam. D. Coverage D - Loss Of Use The limit of liability for Coverage D is the total limit for the coverages in 1. Additional Living Expense, 2. Fair Rental Value and 3. Civil Authority Prohibits Use below. 1. Additional Living Expense If a loss covered under Section I makes that part of the "residence premises" where you reside not fit to live in, we cover any necessary increase in living expenses incurred by you so that your household can maintain its normal standard of living. Payment will be for the shortest time required to repair or replace the damage or, if you permanently relocate, the shortest time required for your household to settle elsewhere. 2. Fair Rental Value If a loss covered under Section I makes that part of the "residence premises" rented to others or held for rental by you not fit to live in, we cover the fair rental value of such premises less any expenses that do not continue while it is not fit to live in. Payment will be for the shortest time required to repair or replace such premises. 3. Civil Authority Prohibits Use If a civil authority prohibits you from use of the "residence premises" as a result of direct damage to neighboring premises by a Peril Insured Against, we cover the loss as provided in 1. Additional Living Expense and 2. Fair Rental Value above for no more than two weeks. 4. Loss Or Expense Not Covered We do not cover loss or expense due to cancellation of a lease or agreement. The periods of time under 1. Additional Living Expense, 2. Fair Rental Value and 3. Civil Authority Prohibits Use above are not limited by expiration of this policy. HO 07 PA Page 5 of 33

267 Policy Number Policy Period E. Additional Coverages 1. Debris Removal a. We will pay your reasonable expense for the removal of: b. (1) Debris of covered property if a Peril Insured Against that applies to the damaged property causes the loss; or (2) Ash, dust or particles from a volcanic eruption that has caused direct loss to a building or property contained in a building. This expense is included in the limit of liability that applies to the damaged property. If the amount to be paid for the actual damage to the property plus the debris removal expense is more than the limit of liability for the damaged property, an additional 5% of that limit is available for debris removal expense. Fallen Trees (1) If the circumstances of a loss meet those specified in (2) below, we will pay your reasonable expense, up to $1,000, for the removal from the "residence premises" of: (a) Your tree(s) felled by the peril of Windstorm or Hail or Weight of Ice, Snow or Sleet; or (b) A neighbor's tree(s) felled by a Peril Insured Against under Coverage C. The $1,000 limit is the most we will pay in any one loss regardless of the number of fallen trees. No more than $500 of this limit will be paid for the removal of any one tree. This coverage is additional insurance. (2) Tree removal coverage as described in b.(1) above applies only if: (a) The tree damages a structure covered under this policy; or (b) Does not damage a covered structure, but: (i) Block(s) a driveway on the "residence premises" which prevent(s) a "motor vehicle", that is registered for use on public roads or property, from entering or leaving the "residence premises"; or (ii) Block(s) a ramp or other fixture designed to assist a handicapped person to enter or leave the dwelling building. (c) Windstorm or Hail or Weight of Ice, Snow or Sleet causes damage to a structure covered under this policy and the Governor declares the area in which the residence premises is located to be a disaster area as a result of such weather conditions. 2. Reasonable Repairs a. We will pay the reasonable cost incurred by you for the necessary measures taken solely to protect covered property that is damaged by a Peril Insured Against from further damage. b. If the measures taken involve repair to other damaged property, we will only pay if that property is covered under this policy and the damage is caused by a Peril Insured Against. This coverage does not: (1) Increase the limit of liability that applies to the covered property; or (2) Relieve you of your duties, in case of a loss to covered property, described in B.4. under Section I - Conditions. 3. Trees, Shrubs And Other Plants We cover trees, shrubs, plants or lawns, on the "residence premises", for loss caused by the following Perils Insured Against: a. Fire or Lightning; b. Explosion; c. Riot or Civil Commotion; d. Aircraft; e. Vehicles not owned or operated by a resident of the "residence premises"; f. Vandalism or Malicious Mischief; or g. Theft. HO 07 PA Page 6 of 33

268 Policy Number Policy Period We will pay up to 5% of the limit of liability that applies to the dwelling for all trees, shrubs, plants or lawns. No more than $1,000 of this limit will be paid for any one tree, shrub or plant. We do not cover property grown for "business" purposes. This coverage is additional insurance. 4. Fire Department Service Charge We will pay up to $1,000 for your liability assumed by contract or agreement for fire department charges incurred when the fire department is called to save or protect covered property from a Peril Insured Against. We do not cover fire department service charges if the property is located within the limits of the city, municipality or protection district furnishing the fire department response. This coverage is additional insurance. No deductible applies to this coverage. 5. Property Removed We insure covered property against direct loss from any cause while being removed from a premises endangered by a Peril Insured Against and for no more than 30 days while removed. This coverage does not change the limit of liability that applies to the property being removed. 6. Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery And Counterfeit Money a. We will pay up to $10,000 for: (1) The legal obligation of an "insured" to pay because of the theft or unauthorized use of credit cards issued to or registered in an "insured's" name; (2) Loss resulting from theft or unauthorized use of an electronic fund transfer card or access device used for deposit, withdrawal or transfer of funds, issued to or registered in an "insured's" name; (3) Loss to an "insured" caused by forgery or alteration of any check or negotiable instrument; and (4) Loss to an "insured" through acceptance in good faith of counterfeit United States or Canadian paper currency. All loss resulting from a series of acts committed by any one person or in which any one person is concerned or implicated is considered to be one loss. This coverage is additional insurance. No deductible applies to this coverage. b. We do not cover: (1) Use of a credit card, electronic fund transfer card or access device: (a) By a resident of your household; (b) By a person who has been entrusted with either type of card or access device; or (c) If an "insured" has not complied with all terms and conditions under which the cards are issued or the devices accessed; or (2) Loss arising out of "business" use or dishonesty of an "insured". c. If the coverage in a. above applies, the following defense provisions also apply: (1) We may investigate and settle any claim or suit that we decide is appropriate. Our duty to defend a claim or suit ends when the amount we pay for the loss equals our limit of liability. (2) If a suit is brought against an "insured" for liability under a.(1) or (2) above, we will provide a defense at our expense by counsel of our choice. (3) We have the option to defend at our expense an "insured" or an "insured's" bank against any suit for the enforcement of payment under a.(3) above. 7. Loss Assessment a. We will pay up to $5,000 for your share of loss assessment charged during the policy period against you, as owner or tenant of the "residence premises", by a corporation or association of property owners. The assessment must be made as a result of direct loss to property, owned by all members collectively, of the type that would be covered by this policy if owned by you, caused by a Peril Insured Against, other than: (1) Earthquake; or (2) Land shock waves or tremors before, during or after a volcanic eruption. HO 07 PA Page 7 of 33

269 Policy Number Policy Period The limit of $1,000 is the most we will pay with respect to any one loss, regardless of the number of assessments. We will only apply one deductible, per unit, to the total amount of any one loss to the property described above, regardless of the number of assessments. b. We do not cover assessments charged against you or a corporation or association of property owners by any governmental body. c. Paragraph P. Policy Period under Section I - Conditions does not apply to this coverage. This coverage is additional insurance. 8. Collapse a. This Additional Coverage applies to property covered under Coverages A and B. With respect to this Additional Coverage: (1) Collapse means an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its current intended purpose. (2) A building or any part of a building that is in danger of falling down or caving in is not considered to be in a state of collapse. (3) A part of a building that is standing is not considered to be in a state of collapse even if it has separated from another part of the building. (4) A building or any part of a building that is standing is not considered to be in a state of collapse even if it shows evidence of cracking, bulging, sagging, bending, leaning, settling, shrinkage or expansion. b. We insure for direct physical loss to covered property involving collapse of a building or any part of a building if the collapse was caused by one or more of the following: (1) The Perils Insured Against under Coverages A and B; (2) Decay that is hidden from view, unless the presence of such decay is known to an "insured" prior to collapse; (3) Insect or vermin damage that is hidden from view, unless the presence of such damage is known to an "insured" prior to collapse; (4) Weight of contents, equipment, animals or people; (5) Weight of rain which collects on a roof; or (6) Use of defective material or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling or renovation. c. Loss to an awning, fence, patio, deck, pavement, swimming pool, underground pipe, flue, drain, cesspool, septic tank, foundation, retaining wall, bulkhead, pier, wharf or dock is not included under b.(2) through (6) above, unless the loss is a direct result of the collapse of a building or any part of a building. d. This coverage does not increase the limit of liability that applies to the damaged covered property. 9. Glass Or Safety Glazing Material a. We cover: (1) The breakage of glass or safety glazing material which is part of a covered building, storm door or storm window; (2) The breakage of glass or safety glazing material which is part of a covered building, storm door or storm window when caused directly by earth movement; and (3) The direct physical loss to covered property caused solely by the pieces, fragments or splinters of broken glass or safety glazing material which is part of a building, storm door or storm window. b. This coverage does not include loss: (1) To covered property which results because the glass or safety glazing material has been broken, except as provided in a.(3) above; or (2) On the "residence premises" if the dwelling has been vacant for more than 60 consecutive days immediately before the loss, except when the breakage results directly from earth movement as provided in a.(2) above. A dwelling being constructed is not considered vacant. c. This coverage does not increase the limit of liability that applies to the damaged property. HO 07 PA Page 8 of 33

270 Policy Number Policy Period 10. Landlord's Furnishings We will pay up to $2,500 for your appliances, carpeting and other household furnishings, in each apartment on the "residence premises" regularly rented or held for rental to others by an "insured", for loss caused only by the following Perils Insured Against: a. Fire Or Lightning b. Windstorm Or Hail This peril includes loss to watercraft of all types and their trailers, furnishings, equipment, and outboard engines or motors, only while inside a fully enclosed building. This peril does not include loss to the property contained in a building caused by rain, snow, sleet, sand or dust unless the direct force of wind or hail damages the building causing an opening in a roof or wall and the rain, snow, sleet, sand or dust enters through this opening. c. Explosion d. Riot Or Civil Commotion e. Aircraft This peril includes self-propelled missiles and spacecraft. f. Vehicles g. Smoke This peril means sudden and accidental damage from smoke, including the emission or puffback of smoke, soot, fumes or vapors from a boiler, furnace or related equipment. This peril does not include loss caused by smoke from agricultural smudging or industrial operations. h. Vandalism Or Malicious Mischief i. Falling Objects This peril does not include loss to property contained in a building unless the roof or an outside wall of the building is first damaged by a falling object. Damage to the falling object itself is not included. j. Weight Of Ice, Snow Or Sleet This peril means weight of ice, snow or sleet which causes damage to property contained in a building. k. Accidental Discharge Or Overflow Of Water Or Steam (1) This peril means accidental 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. (2) This peril does not include loss: (a) To the system or appliance from which the water or steam escaped; (b) Caused by or resulting from freezing except as provided in m. Freezing below; (c) On the "residence premises" caused by accidental discharge or overflow which occurs off the "residence premises"; or (d) Caused by mold, fungus or wet rot unless hidden within the walls or ceilings or beneath the floors or above the ceilings of a structure. (3) In this peril, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment. l. Sudden And Accidental Tearing Apart, Cracking, Burning Or Bulging This peril means sudden and accidental tearing apart, cracking, burning or bulging of a steam or hot water heating system, an air conditioning or automatic fire protective sprinkler system, or an appliance for heating water. We do not cover loss caused by or resulting from freezing under this peril. HO 07 PA Page 9 of 33

271 Policy Number Policy Period m. Freezing (1) This peril means freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance but only if you have used reasonable care to: (a) Maintain heat in the building; or (b) Shut off the water supply and drain all systems and appliances of water. However, if the building is protected by an automatic fire protective sprinkler system, you must use reasonable care to continue the water supply and maintain heat in the building for coverage to apply. (2) In this peril, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment. n. Sudden And Accidental Damage From Artificially Generated Electrical Current This peril does not include loss to tubes, transistors, electronic components or circuitry that are a part of appliances, fixtures, computers, home entertainment units or other types of electronic apparatus. o. Volcanic Eruption This peril does not include loss caused by earthquake, land shock waves or tremors. This limit is the most we will pay in any one loss regardless of the number of appliances, carpeting or other household furnishings involved in the loss. This coverage does not increase the limit of liability applying to the damaged property. 11. Ordinance Or Law a. You may use up to 10% of the limit of liability that applies to Coverage A for the increased costs you incur due to the enforcement of any ordinance or law which requires or regulates: (1) The construction, demolition, remodeling, renovation or repair of that part of a covered building or other structure damaged by a Peril Insured Against; (2) The demolition and reconstruction of the undamaged part of a covered building or other structure, when that building or other structure must be totally demolished because of damage by a Peril Insured Against to another part of that covered building or other structure; or (3) The remodeling, removal or replacement of the portion of the undamaged part of a covered building or other structure necessary to complete the remodeling, repair or replacement of that part of the covered building or other structure damaged by a Peril Insured Against. b. You may use all or part of this ordinance or law coverage to pay for the increased costs you incur to remove debris resulting from the construction, demolition, remodeling, renovation, repair or replacement of property as stated in a. above. c. We do not cover: (1) The loss in value to any covered building or other structure due to the requirements of any ordinance or law; or (2) The costs to comply with any ordinance or law which requires any "insured" or others, to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants in or on any covered building or other structure. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. This coverage is additional insurance. 12. Grave Markers We will pay up to $5,000 for grave markers, including mausoleums, on or away from the "residence premises" for loss caused by a Peril Insured Against. This coverage does not increase the limits of liability that apply to the damaged covered property. HO 07 PA Page 10 of 33

272 Policy Number Policy Period 13. Lock Replacement We will pay up to $500 for costs you incur in changing the locks on your residence premises when your keys have been stolen. The theft of your keys must be reported to the police for this additional coverage to apply. No deductible applies to this additional coverage. 14. Animals, Birds, and Fish (Section I) We will pay up to $250 for pet animals, birds or fish when the loss is caused by fire, lightning, windstorm, hail, smoke, explosion, riot or falling aircraft. 15. Personal Property Away From The Residence Premises (Section I) We will pay up to $1,000 for damage to your personal property occurring while it is away from your residence premises caused by: Flood (meaning a general and temporary condition of partial or complete inundation of water of normally dry land from (1) overflow of inland or tidal water; (2) unusual and rapid accumulation or runoff of surface waters from any source; (3) mudflow) Earthquake; or Landslide. Section I - Exclusions - A.2.. Earth Movement and A.3. Water Damage do not apply to this Additional Coverage. 16. Fire Extinguisher Recharge (Section I) We will pay your reasonable expense up to $250 for recharge of your owned fire extinguishers used during the policy term to extinguish a fire on your residence premises. The $250 limit is the most we will pay in any policy term. No deductible applies to this coverage. 17. Emergency Living Expense (Section I) If the residence premise is made uninhabitable as the result of a power outage caused by an insured peril, we cover reasonable additional living expense loss. The additional coverages begin 48 hours after the residence premise is made uninhabitable and will Continue for no longer than seven days. 18. Reward Coverage We will pay you an amount that you have incurred in the payment of rewards for information leading to the: return of undamaged, stolen articles; or the arrest and conviction of any person(s) who have stolen articles and/or damaged any of your covered property. The most we will pay under this Additional Coverage is the actual cash value of the stolen article(s) or $250, whichever is less. 19. Waiver of Deductible Unless otherwise provided in an endorsement (such as a windstorm deductible endorsement), in the event of total loss to the residence premises from a covered peril, the deductible will not apply. 20. Refrigerated Property Coverage A. Definitions The following definition is added: "Loss of power" means the complete or partial interruption of electric power due to conditions beyond an "insured's" control. B. Coverage 1. We insure, for up to $1,000, covered property stored in freezers or refrigerators on the "residence premises" for direct loss caused by: a. "Loss of power" to the refrigeration unit. "Loss of power" must be caused by damage to: (1) Generating equipment; or (2) Transmitting equipment; or b. Mechanical failure of the unit which stores the property. HO 07 PA Page 11 of 33

273 Policy Number Policy Period 2. Coverage will apply only if you have maintained the refrigeration unit in proper working condition immediately prior to the loss. 3. This endorsement does not increase the limit of liability for Coverage C. C. Special Deductible The following will replace any other deductible provision in this policy with respect to loss covered under this endorsement: We will pay only that part of the total of all loss payable that exceeds $250. No other deductible applies to this coverage. D. Exception To Power Failure Exclusion The Power Failure exclusion does not apply to this coverage. 21. Water Backup and Sump Discharge or Overflow - Pennsylvania A. Coverage We insure, up to $5,000, for direct physical loss to property covered under Section I caused by water, or waterborne material, which: 1. Backs up through sewers or drains; or 2. Overflows or is discharged from a: a. Sump, sump pump; or b. Related equipment; even if such overflow or discharge results from mechanical breakdown. This coverage does not apply to direct physical loss of the sump pump, or related equipment, which is caused by mechanical breakdown. This coverage does not increase the limits of liability for Coverages A, B, C or D stated in the Declarations. B. Section I - Perils Insured Against With respect to the coverage described in A. above, Paragraph A.2.e.(2) in this policy is deleted and replaced by the following: Latent defect, inherent vice or any quality in property that causes it to damage or destroy itself. C. Special Deductible The following replaces any other deductible provision in this policy with respect to loss covered under this endorsement. We will pay only that part of the total of all loss payable under Section I that exceeds $250. No other deductible applies to this coverage. This deductible does not apply with respect to Coverage D - Loss of Use. D. Exclusion The Water Damage Exclusion is replaced by the following: Water This means: 1. Flood, surface water, waves, including tidal wave and tsunami, tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind, including storm surge; 2. Water which: a. Backs up through sewers or drains; or b. Overflows or is otherwise discharged from a sump, sump pump or related equipment; as a direct or indirect result of flood; 3. Water below the surface of the ground, including water which exerts pressure on, or seeps, leaks or flows through a building, sidewalk, driveway, patio, foundation, swimming pool or other structure; or 4. Waterborne material carried or otherwise moved by any of the water referred to in D.1. through D.3. of this Exclusion. HO 07 PA Page 12 of 33

274 Policy Number Policy Period This Exclusion applies regardless of whether any of the above, in D.1. through D.4., is caused by an act of nature or is otherwise caused. This Exclusion applies to, but is not limited to, escape, overflow or discharge, for any reason, of water or waterborne material from a dam, levee, seawall or any other boundary or containment system. However, direct loss by fire, explosion or theft resulting from any of the above, in D.1. through D.4., is covered. All other provisions of this policy apply. SECTION I - PERILS INSURED AGAINST We insure against risk of direct physical loss to property described in Coverages A, B and C. We do not insure, however, for loss: A. Under Coverages A, B and C: 1. Excluded under Section I - Exclusions; 2. Caused by: a. Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This provision does not apply if you have used reasonable care to: (1) Maintain heat in the building; or (2) Shut off the water supply and drain all systems and appliances of water. However, if the building is protected by an automatic fire protective sprinkler system, you must use reasonable care to continue the water supply and maintain heat in the building for coverage to apply. For purposes of this provision a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment; b. Freezing, thawing, pressure or weight of water or ice, whether driven by wind or not, to a: (1) Fence, pavement, patio or swimming pool; (2) Footing, foundation, bulkhead, wall, or any other structure or device, that supports all or part of a building or other structure; (3) Retaining wall or bulkhead that does not support all or part of a building or other structure; or (4) Pier, wharf or dock; c. Theft in or to a dwelling under construction, or of materials and supplies for use in the construction until the dwelling is finished and occupied; d. Mold, fungus or wet rot. However, we do insure for loss caused by mold, fungus or wet rot that is hidden within the walls or ceilings or beneath the floors or above the ceilings of a structure if such loss results from the accidental discharge or overflow of water or steam from within: (1) A plumbing, heating, air conditioning or automatic fire protective sprinkler system, or a household appliance, on the "residence premises"; or (2) A storm drain, or water, steam or sewer pipes, off the "residence premises". For purposes of this provision, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment; or e. Any of the following: (1) Wear and tear, marring, deterioration; (2) Mechanical breakdown, latent defect, inherent vice, or any quality in property that causes it to damage or destroy itself; (3) Smog, rust or other corrosion, or dry rot; (4) Smoke from agricultural smudging or industrial operations; HO 07 PA Page 13 of 33

275 Policy Number Policy Period (5) Discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by a Peril Insured Against in a. through o. as listed in E.10. Landlord's Furnishings under Section I - Property Coverages. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed; (6) Settling, shrinking, bulging or expansion, including resultant cracking, of bulkheads, pavements, patios, footings, foundations, walls, floors, roofs or ceilings; (7) Birds, vermin, rodents, or insects; or (8) Animals owned or kept by an "insured". Exception To 2.e. Unless the loss is otherwise excluded, we cover loss to property covered under Coverage A, B or C resulting from an accidental discharge or overflow of water or steam from within a: (i) Storm drain, or water, steam or sewer pipe, off the "residence premises"; or (ii) Plumbing, heating, air conditioning or automatic fire protective sprinkler system or household appliance on the "residence premises". This includes the cost to tear out and replace any part of a building, or other structure, on the "residence premises", but only when necessary to repair the system or appliance. However, such tear out and replacement coverage only applies to other structures if the water or steam causes actual damage to a building on the "residence premises". We do not cover loss to the system or appliance from which this water or steam escaped. For purposes of this provision, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, down spout or similar fixtures or equipment. Section I - Exclusion A.3. Water Damage, Paragraphs a. and c. that apply to surface water and water below the surface of the ground do not apply to loss by water covered under d. and e. above. B. Under Coverages A and B: 1. Caused by vandalism and malicious mischief, and any ensuing loss caused by any intentional and wrongful act committed in the course of the vandalism or malicious mischief, if the dwelling has been vacant for more than 60 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant; 2. Involving collapse, other than as provided in E.8. Collapse under Section I - Property Coverages. However, any ensuing loss to property described in Coverages A and B not precluded by any other provision in this policy is covered. C. Under Coverage C caused by: 1. Breakage of eyeglasses, glassware, statuary, marble, bric-a-brac, porcelains and similar fragile articles other than jewelry, watches bronzes, cameras and photographic lenses. However, there is coverage for breakage of the property by or resulting from: a. Fire, lightning, windstorm, hail; b. Smoke, other than smoke from agricultural smudging or industrial operations; c. Explosion, riot, civil commotion; d. Aircraft, vehicles, vandalism and malicious mischief; e. Collapse of a building or any part of a building; f. Water not otherwise excluded; g. Theft or attempted theft; or h. Sudden and accidental tearing apart, cracking, burning or bulging of: (1) A steam or hot water heating system; (2) An air conditioning or automatic fire protective sprinkler system; or (3) An appliance for heating water; HO 07 PA Page 14 of 33

276 Policy Number Policy Period 2. Dampness, of atmosphere or extremes of temperature unless the direct cause of loss is rain, snow, sleet or hail; 3. Refinishing, renovating or repairing property other than watches, jewelry and furs; 4. Collision, other than collision with a land vehicle, sinking, swamping or stranding of watercraft, including their trailers, furnishings equipment and out board engines or motors; 5. Destruction, confiscation or seizure by order of any government or public authority; or 6. Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body. However, any ensuing loss to property described in Coverage C not precluded by any other provision in this policy is covered. SECTION I - EXCLUSIONS A. We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss. These exclusions apply whether or not the loss event results in widespread damage or affects a substantial area. 1. Ordinance Or Law Ordinance Or Law means any ordinance or law: a. Requiring or regulating the construction, demolition, remodeling, renovation or repair of property, including removal of any resulting debris. This Exclusion A.1.a. does not apply to the amount of coverage that may be provided for in E.11. Ordinance Or Law under Section I - Property Coverages; b. The requirements of which result in a loss in value to property; or c. Requiring any "insured" or others to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, pollutants. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed. This Exclusion A.1. applies whether or not the property has been physically damaged. 2. Earth Movement Earth Movement means: a. Earthquake, including land shock waves or tremors before, during or after a volcanic eruption; b. Landslide, mudslide or mudflow; c. Subsidence or sinkhole; or d. Any other earth movement including earth sinking, rising or shifting; caused by or resulting from human or animal forces or any act of nature unless direct loss by fire or explosion ensues and then we will pay only for the ensuing loss. This Exclusion A.2. does not apply to loss by theft. 3. Water Damage Water Damage means: a. Flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind; b. Water or water-borne material which backs up through sewers or drains or which overflows or is discharged from a sump, sump pump or related equipment; or c. Water or water-borne material below the surface of the ground, including water which exerts pressure on or seeps or leaks through a building, sidewalk, driveway, foundation, swimming pool or other structure; caused by or resulting from human or animal forces or any act of nature. Direct loss by fire, explosion or theft resulting from water damage is covered. Water damage to property described in Coverage C away from a premises or location owned, rented, occupied or controlled by an "insured" is covered. Water damage to property described in Coverage C on a premises or location owned, rented, occupied or controlled by an "insured" is excluded even if weather conditions contribute in any way to produce the loss. HO 07 PA Page 15 of 33

277 Policy Number Policy Period 4. Power Failure Power Failure means the failure of power or other utility service if the failure takes place off the "residence premises". But if the failure results in a loss, from a Peril Insured Against on the "residence premises", we will pay for the loss caused by that peril. 5. Neglect Neglect means neglect of an "insured" to use all reasonable means to save and preserve property at and after the time of a loss. 6. War War includes the following and any consequence of any of the following: a. Undeclared war, civil war, insurrection, rebellion or revolution; b. Warlike act by a military force or military personnel; or c. Destruction, seizure or use for a military purpose. Discharge of a nuclear weapon will be deemed a warlike act even if accidental. 7. Nuclear Hazard This Exclusion A.7. pertains to Nuclear Hazard to the extent set forth in M. Nuclear Hazard Clause under Section I - Conditions. 8. Intentional Loss Intentional Loss means any loss arising out of any act an "insured" commits or conspires to commit with the intent to cause a loss. In the event of such loss, no "insured" is entitled to coverage, even "insureds" who did not commit or conspire to commit the act causing the loss. 9. Governmental Action Governmental Action means the destruction, confiscation or seizure of property described in Coverage A, B or C by order of any governmental or public authority. This exclusion does not apply to such acts ordered by any governmental or public authority that are taken at the time of a fire to prevent its spread, if the loss caused by fire would be covered under this policy. B. We do not insure for loss to property described in Coverages A and B caused by any of the following. However, any ensuing loss to property described in Coverages A and B not precluded by any other provision in this policy is covered. 1. Weather conditions. However, this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in A. above to produce the loss. 2. Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body. 3. Faulty, inadequate or defective: a. Planning, zoning, development, surveying, siting; b. Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction; c. Materials used in repair, construction, renovation or remodeling; or d. Maintenance; of part or all of any property whether on or off the "residence premises". HO 07 PA Page 16 of 33

278 Policy Number Policy Period SECTION I - CONDITIONS A. Insurable Interest And Limit Of Liability Even if more than one person has an insurable interest in the property covered, we will not be liable in any one loss: 1. To an "insured" for more than the amount of such "insured's" interest at the time of loss; or 2. For more than the applicable limit of liability. B. Duties After Loss In case of a loss to covered property, we have no duty to provide coverage under this policy if the failure to comply with the following duties is prejudicial to us. These duties must be performed either by you, or an "insured" seeking coverage, or a representative of either: 1. Give prompt notice to us or our agent; 2. Notify the police in case of loss by theft; 3. Notify the credit card or electronic fund transfer card or access device company in case of loss as provided for in E.6. Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery And Counterfeit Money under Section I - Property Coverages; 4. Protect the property from further damage. If repairs to the property are required, you must: a. Make reasonable and necessary repairs to protect the property; and b. Keep an accurate record of repair expenses; 5. Cooperate with us in the investigation of a claim; 6. Prepare an inventory of damaged personal property showing the quantity, description, actual cash value and amount of loss. Attach all bills, receipts and related documents that justify the figures in the inventory; 7. As often as we reasonably require: a. Show the damaged property; b. Provide us with records and documents we request and permit us to make copies; and c. Submit to examination under oath, while not in the presence of another "insured", and sign the same; 8. Send to us, within 60 days after our request, your signed, sworn proof of loss which sets forth, to the best of your knowledge and belief: a. The time and cause of loss; b. The interests of all "insureds" and all others in the property involved and all liens on the property; c. Other insurance which may cover the loss; d. Changes in title or occupancy of the property during the term of the policy; e. Specifications of damaged buildings and detailed repair estimates; f. The inventory of damaged personal property described in 6. above; g. Receipts for additional living expenses incurred and records that support the fair rental value loss; and h. Evidence or affidavit that supports a claim under E.6. Credit Card, Electronic Fund Transfer Card Or Access Device, Forgery And Counterfeit Money under Section I - Property Coverages, stating the amount and cause of loss. C. Loss Settlement In this Condition C., the terms "cost to repair or replace" and "replacement cost" do not include the increased costs incurred to comply with the enforcement of any ordinance or law, except to the extent that coverage for these increased costs are provided in E.11. Ordinance Or Law under Section I - Property Coverages. Covered property losses are settled as follows: 1. Property of the following types: a. Personal property; b. Awnings, carpeting, household appliances, outdoor antennas and outdoor equipment, whether or not attached to buildings; HO 07 PA Page 17 of 33

279 Policy Number Policy Period c. Structures that are not buildings; and d. Grave markers, including mausoleums; at actual cash value at the time of loss but not more than the amount required to repair or replace. 2. Buildings covered under Coverage A or B at replacement cost without deduction for depreciation, subject to the following: a. If, at the time of loss, the amount of insurance in this policy on the damaged building is 80% or more of the full replacement cost of the building immediately before the loss, we will pay the cost to repair or replace, after application of any deductible and without deduction for depreciation, but not more than the least of the following amounts: (1) The limit of liability under this policy that applies to the building; (2) The replacement cost of that part of the building damaged with material of like kind and quality and for like use; or (3) The necessary amount actually spent to repair or replace the damaged building. If the building is rebuilt at a new premises, the cost described in (2) above is limited to the cost which would have been incurred if the building had been built at the original premises. b. If, at the time of loss, the amount of insurance in this policy on the damaged building is less than 80% of the full replacement cost of the building immediately before the loss, we will pay the greater of the following amounts, but not more than the limit of liability under this policy that applies to the building: (1) The actual cash value of that part of the building damaged; or (2) That proportion of the cost to repair or replace, after application of any deductible and without deduction for depreciation, that part of the building damaged, which the total amount of insurance in this policy on the damaged building bears to 80% of the replacement cost of the building. c. To determine the amount of insurance required to equal 80% of the full replacement cost of the building immediately before the loss, do not include the value of: (1) Excavations, footings, foundations, piers, or any other structures or devices that support all or part of the building, which are below the undersurface of the lowest basement floor; (2) Those supports described in (1) above which are below the surface of the ground inside the foundation walls, if there is no basement; and (3) Underground flues, pipes, wiring and drains. d. We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. Once actual repair or replacement is complete, we will settle the loss as noted in 2.a. and b. above. However, if the cost to repair or replace the damage is both: (1) Less than 5% of the amount of insurance in this policy on the building; and (2) Less than $2,500; we will settle the loss as noted in 2.a. and b. above whether or not actual repair or replacement is complete. e. You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss to buildings on an actual cash value basis. You may then make claim for any additional liability according to the provisions of this Condition C. Loss Settlement, provided you notify us of your intent to do so within 180 days after the date of loss. HO 07 PA Page 18 of 33

280 Policy Number Policy Period 3. Additional Limits of Liability for Coverages A, B, C, and D. (Applies only when loss to the building insured under Coverage A exceeds the Coverage A limit of liability shown in the declarations.) To the extent that coverage is provided, we agree to amend the present limits of liability in accordance with the following provisions: A. If you have: 1. Allowed us to adjust the Coverage A limit of liability and the premium in accordance with: a. The property evaluations we make; and b. Any increases in inflation; and 2. Notified us, within 30 days of completion, of any improvements, alterations or additions to the building insured under Coverage A which increase the replacement cost of the building by 5% or more; The provisions of this section (Additional Limit of Liability for Coverages A, B, C, and D) will apply after a loss, provided you elect to repair or replace the damaged building. B. If there is a loss to the building insured under Coverage A that exceeds the Coverage A limit of liability shown in the Declarations: 1. We will provide an additional amount of insurance, up to 50% of the Coverage A limit of liability; and 2. We will increase, by the same percentage applied to Coverage A, the limits of liability for Coverages B, C, and D. However, we will do this only if the Coverage A limit of liability is increased under Paragraph B.1. as a result of a Coverage A loss; and 3. We will adjust the policy premium from the time of loss for the remainder of the policy term based on the increased limits of liability; and 4. For the purpose of settling that loss only, Section I - Condition C. Loss Settlement, Paragraph 2. is deleted and replaced by Paragraphs 2., 3., and 4. as follows: 2. Buildings covered under Coverage A or B at replacement cost without deduction for depreciation. We will pay no more than the smallest of the following amounts: a. The replacement cost of that part of the building damaged with material of like kind and quality and for like use; b. The necessary amount actually spent to repair or replace the damaged building; or c. The limit of liability under this policy that applies to the building, increased in accordance with Paragraphs B.1. and B.2. of this endorsement. 3. We will pay no more than the actual cash value of the damage until actual repair or replacement is complete. 4. You may disregard the replacement cost loss settlement provisions and make claim under this policy for loss to buildings on an actual cash value basis. You may then make claim for any additional liability on a replacement cost basis, provided you notify us of your intent to do so within 180 days after the date of loss. 4. Personal Property Replacement Cost Loss Settlement - Pennsylvania A. Eligible Property 1. Covered losses to the following property are settled at replacement cost at the time of the loss: a. Coverage C; and b. If covered in this policy: (1) Awnings, outdoor antennas and outdoor equipment; and (2) Carpeting and household appliances; whether or not attached to buildings. HO 07 PA Page 19 of 33

281 Policy Number Policy Period 2. This method of loss settlement will also apply to the following articles or classes of property if they are separately described and specifically insured in this policy and not subject to agreed value loss settlement: a. Jewelry; b. Furs and garments: (1) Trimmed with fur; or (2) Consisting principally of fur; c. Cameras, projection machines, films and related articles of equipment; d. Musical equipment and related articles of equipment; e. Silverware, silver-plated ware, goldware, gold-plated ware and pewterware, but excluding: (1) Pens or pencils; (2) Flasks; (3) Smoking implements; or (4) Jewelry; and f. Golfer's equipment meaning golf clubs, golf clothing and golf equipment. Personal Property Replacement Cost loss settlement will not apply to other classes of property separately described and specifically insured. B. Ineligible Property Property listed below is not eligible for replacement cost loss settlement. Any loss will be settled at actual cash value at the time of loss but not more than the amount required to repair or replace. 1. Antiques, fine arts, paintings and similar articles of rarity or antiquity which cannot be replaced. 2. Memorabilia, souvenirs, collectors items and similar articles whose age or history contribute to their value. 3. Articles not maintained in good or workable condition. 4. Articles that are outdated or obsolete and are stored or not being used. C. Replacement Cost Loss Settlement Condition The following loss settlement condition applies to all property described in A. above: 1. We will pay no more than the least of the following amounts: 2. a. Replacement cost at the time of loss without deduction for depreciation; b. The full cost of repair at the time of loss; c. The limit of liability that applies to Coverage C, if applicable; d. Any applicable special limits of liability stated in this policy; or e. For loss to any item described in A.2.a. - f. above, the limit of liability that applies to the item. If the cost to repair or replace the property described in A. above is more than $500, we will pay no more than the actual cash value for the loss until the actual repair or replacement is complete. If the actual cash value amount is insufficient to initiate repair or replacement of the lost or damaged property, we will advance to you the amount necessary for you to initiate such repair or replacement and such further amounts necessary to continue the repair or replacement. The amount of loss payment we agree upon for the lost or damaged property will be reduced by any advance payment. The total of all advances and other payments hereunder will not exceed the amount allowed under C.1. Under this loss settlement procedure, the following special provisions apply: a. You shall promptly forward to us evidence of the agreement with the party repairing or replacing the property which shows the cost and estimated completion date of the repaired property or delivery date of the replaced property. HO 07 PA Page 20 of 33

282 Policy Number Policy Period No Other Structures - Coverage B (Section I) - Other structures are defined under Coverage B as structures separated from your dwelling by clear space. If you do not have over $1,000 replacement cost value of such other structures, the amount of insurance shown on the declarations page for Coverage B is added to the amount of insurance shown for your dwelling in Coverage A. The total amount of Coverage A and B will be the amount that applies to Coverage A in the event of a loss. This coverage applies only to forms HO 00 02, HO 00 03, HO 00 05, and HO D. Loss To A Pair Or Set In case of loss to a pair or set we may elect to: 1. Repair or replace any part to restore the pair or set to its value before the loss; or 2. Pay the difference between actual cash value of the property before and after the loss. E. Appraisal If you and we fail to agree on the amount of loss, either may demand an appraisal of the loss. In this event, each party will choose a competent and impartial appraiser within 20 days after receiving a written request from the other. The two appraisers will choose an umpire. If they cannot agree upon an umpire within 15 days, you or we may request that the choice be made by a judge of a court of record in the state where the "residence premises" is located. The appraisers will separately set the amount of loss. If the appraisers submit a written report of an agreement to us, the amount agreed upon will be the amount of loss. If they fail to agree, they will submit their differences to the umpire. A decision agreed to by any two will set the amount of loss. Each party will: b. We will send to you the balance, if any, of the loss payment previously agreed upon when you notify us of the completion of the repairs or the expected delivery date of the replaced property. c. If you do not comply with the above terms at any time, we will pay no more than the actual cash value for the loss. In such case, if the amount we advanced to you is more than the actual cash value, you shall refund the difference to us within 30 days of the date we mail our refund notice to you. You may make a claim for loss on an actual cash value basis and then make claim for any additional liability in accordance with this endorsement provided you notify us of your intent to do so within 180 days after the date of loss. 1. Pay its own appraiser; and 2. Bear the other expenses of the appraisal and umpire equally. F. Other Insurance And Service Agreement If a loss covered by this policy is also covered by: 1. Other insurance, we will pay only the proportion of the loss that the limit of liability that applies under this policy bears to the total amount of insurance covering the loss; or 2. A service agreement, this insurance is excess over any amounts payable under any such agreement. Service agreement means a service plan, property restoration plan, home warranty or other similar service warranty agreement, even if it is characterized as insurance. G. Suit Against Us No action can be brought against us unless there has been full compliance with all of the terms under Section I of this policy and the action is started within two years after the date of loss. H. Our Option We may repair or replace any part of the damaged property with material or property of like kind and quality if we give you written notice of our intention to do so within 15 working days after we receive your signed, sworn proof of loss. I. Loss Payment We will adjust all losses with you. We will pay you unless some other person is named in the policy or is legally entitled to receive payment. Loss will be payable 60 days after we receive your proof of loss and: 1. Reach an agreement with you; 2. There is an entry of a final judgment; or 3. There is a filing of an appraisal award with us. HO 07 PA Page 21 of 33

283 Policy Number Policy Period J. Abandonment Of Property We need not accept any property abandoned by an "insured". K. Mortgage Clause 1. If a mortgagee is named in this policy, any loss payable under Coverage A or B will be paid to the mortgagee and you, as interests appear. If more than one mortgagee is named, the order of payment will be the same as the order of precedence of the mortgages. 2. If we deny your claim, that denial will not apply to a valid claim of the mortgagee, if the mortgagee: a. Notifies us of any change in ownership, occupancy or substantial change in risk of which the mortgagee is aware; b. Pays any premium due under this policy on demand if you have neglected to pay the premium; and c. Submits a signed, sworn statement of loss within 60 days after receiving notice from us of your failure to do so. Paragraphs E. Appraisal, G. Suit Against Us and I. Loss Payment under Section I - Conditions also apply to the mortgagee. 3. If we decide to cancel or not to renew this policy, the mortgagee will be notified at least 10 days before the date cancellation or nonrenewal takes effect. 4. If we pay the mortgagee for any loss and deny payment to you: a. We are subrogated to all the rights of the mortgagee granted under the mortgage on the property; or b. At our option, we may pay to the mortgagee the whole principal on the mortgage plus any accrued interest. In this event, we will receive a full assignment and transfer of the mortgage and all securities held as collateral to the mortgage debt. 5. Subrogation will not impair the right of the mortgagee to recover the full amount of the mortgagee's claim. L. No Benefit To Bailee We will not recognize any assignment or grant any coverage that benefits a person or organization holding, storing or moving property for a fee regardless of any other provision of this policy. M. Nuclear Hazard Clause 1. "Nuclear Hazard" means any nuclear reaction, radiation, or radioactive contamination, all whether controlled or uncontrolled or however caused, or any consequence of any of these. 2. Loss caused by the nuclear hazard will not be considered loss caused by fire, explosion, or smoke, whether these perils are specifically named in or otherwise included within the Perils Insured Against. 3. This policy does not apply under Section I to loss caused directly or indirectly by nuclear hazard, except that direct loss by fire resulting from the nuclear hazard is covered. N. Recovered Property If you or we recover any property for which we have made payment under this policy, you or we will notify the other of the recovery. At your option, the property will be returned to or retained by you or it will become our property. If the recovered property is returned to or retained by you, the loss payment will be adjusted based on the amount you received for the recovered property. O. Volcanic Eruption Period One or more volcanic eruptions that occur within a 72 hour period will be considered as one volcanic eruption. P. Policy Period This policy applies only to loss which occurs during the policy period. Q. Concealment Or Fraud We provide coverage to no "insureds" under this policy if, whether before or after a loss, an "insured" has: 1. Intentionally concealed or misrepresented any material fact or circumstance; 2. Engaged in fraudulent conduct; or 3. Made false statements; relating to this insurance. HO 07 PA Page 22 of 33

284 Policy Number Policy Period R. Loss Payable Clause If the Declarations show a loss payee for certain listed insured personal property, the definition of "insured" is changed to include that loss payee with respect to that property. If we decide to cancel or not renew this policy, that loss payee will be notified in writing. SECTION II - LIABILITY COVERAGES A. Coverage E - Personal Liability If a claim is made or a suit is brought against an "insured" for damages because of "bodily injury" or "property damage" caused by an "occurrence" to which this coverage applies, we will: 1. Pay up to our limit of liability for the damages for which an "insured" is legally liable. Damages include prejudgment interest awarded against an "insured"; and 2. Provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when our limit of liability for the "occurrence" has been exhausted by payment of a judgment or settlement. B. Coverage F - Medical Payments To Others We will pay the necessary medical expenses that are incurred or medically ascertained within three years from the date of an accident causing "bodily injury". Medical expenses means reasonable charges for medical, surgical, x-ray, dental, ambulance, hospital, professional nursing, prosthetic devices and funeral services. This coverage does not apply to you or regular residents of your household except "residence employees". As to others, this coverage applies only: 1. To a person on the "insured location" with the permission of an "insured"; or 2. To a person off the "insured location", if the "bodily injury": a. Arises out of a condition on the "insured location" or the ways immediately adjoining; b. Is caused by the activities of an "insured"; c. Is caused by a "residence employee" in the course of the "residence employee's" employment by an "insured"; or d. Is caused by an animal owned by or in the care of an "insured". SECTION II - EXCLUSIONS A. "Motor Vehicle Liability" 1. Coverages E and F do not apply to any "motor vehicle liability" if, at the time and place of an "occurrence", the involved "motor vehicle": a. Is registered for use on public roads or property; b. Is not registered for use on public roads or property, but such registration is required by a law, or regulation issued by a government agency, for it to be used at the place of the "occurrence"; or c. Is being: (1) Operated in, or practicing for, any prearranged or organized race, speed contest or other competition; (2) Rented to others; (3) Used to carry persons or cargo for a charge; or (4) Used for any "business" purpose except for a motorized golf cart while on a golfing facility. 2. If Exclusion A.1. does not apply, there is still no coverage for "motor vehicle liability" unless the "motor vehicle" is: a. In dead storage on an "insured location"; b. Used solely to service an "insured's" residence; c. Designed to assist the handicapped and, at the time of an "occurrence", it is: (1) Being used to assist a handicapped person; or (2) Parked on an "insured location"; HO 07 PA Page 23 of 33

285 Policy Number Policy Period d. Designed for recreational use off public roads and: (1) Not owned by an "insured"; or (2) Owned by an "insured" provided the "occurrence" takes place on an "insured location" as defined in Definitions B.6.a., b., d., e. or h. ; or e. A motorized golf cart that is owned by an "insured", designed to carry up to 4 persons, not built or modified after manufacture to exceed a speed of 25 miles per hour on level ground and, at the time of an "occurrence", is within the legal boundaries of: (1) A golfing facility and is parked or stored there, or being used by an "insured" to: (a) Play the game of golf or for other recreational or leisure activity allowed by the facility; (b) Travel to or from an area where "motor vehicles" or golf carts are parked or stored; or (c) Cross public roads at designated points to access other parts of the golfing facility; or (2) A private residential community, including its public roads upon which a motorized golf cart can legally travel, which is subject to the authority of a property owners association and contains an "insured's" residence. B. "Watercraft Liability" 1. Coverages E and F do not apply to any "watercraft liability" if, at the time of an "occurrence", the involved watercraft is being: a. Operated in, or practicing for, any prearranged or organized race, speed contest or other competition. This exclusion does not apply to a sailing vessel or a predicted log cruise; b. Rented to others; c. Used to carry persons or cargo for a charge; or d. Used for any "business" purpose. 2. If Exclusion B.1. does not apply, there is still no coverage for "watercraft liability" unless, at the time of the "occurrence", the watercraft: a. Is stored; b. Is a sailing vessel, with or without auxiliary power, that is: (1) Less than 26 feet in overall length; or (2) 26 feet or more in overall length and not owned by or rented to an "insured"; or c. Is not a sailing vessel and is powered by: (1) An inboard or inboard-outdrive engine or motor, including those that power a water jet pump, of: (a) 50 horsepower or less and not owned by an "insured"; or (b) More than 50 horsepower and not owned by or rented to an "insured"; or (c) More than 25 horsepower if the outboard engine or motor is owned by an "insured" who acquired it during the policy period; or (d) More than 25 horsepower if the outboard engine or motor is owned by an "insured" who acquired it before the policy period, but only if: (i) You declare them at policy inception; or (ii) Your intent to insure them is reported to us in writing within 45 days after you acquire them. The coverages in (c) and (d) above apply for the policy period. Horsepower means the maximum power rating assigned to the engine or motor by the manufacturer. C. "Aircraft Liability" This policy does not cover "aircraft liability". D. "Hovercraft Liability" This policy does not cover "hovercraft liability". HO 07 PA Page 24 of 33

286 Policy Number Policy Period E. Coverage E - Personal Liability And Coverage F - Medical Payments To Others Coverages E and F do not apply to the following: 1. Expected Or Intended Injury "Bodily injury" or "property damage" which is expected or intended by an "insured" even if the resulting "bodily injury" or "property damage": a. Is of a different kind, quality or degree than initially expected or intended; or b. Is sustained by a different person, entity, real or personal property, than initially expected or intended. However, this Exclusion E.1. does not apply to "bodily injury" resulting from the use of reasonable force by an "insured" to protect persons or property; 2. "Business" a. "Bodily injury" or "property damage" arising out of or in connection with a "business" conducted from an "insured location" or engaged in by an "insured", whether or not the "business" is owned or operated by an "insured" or employs an "insured". This Exclusion E.2. applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised, owed, or implied to be provided because of the nature of the "business". b. This Exclusion E.2. does not apply to: (1) The rental or holding for rental of an "insured location"; (a) On an occasional basis if used only as a residence; (b) In part for use only as a residence, unless a single family unit is intended for use by the occupying family to lodge more than two roomers or boarders; or (c) In part, as an office, school, studio or private garage; and (2) An "insured" under the age of 21 years involved in a part-time or occasional, self-employed "business" with no employees; 3. Professional Services "Bodily injury" or "property damage" arising out of the rendering of or failure to render professional services; 4. "Insured's" Premises Not An "Insured Location" "Bodily injury" or "property damage" arising out of a premises: a. Owned by an "insured"; b. Rented to an "insured"; or c. Rented to others by an "insured"; that is not an "insured location"; 5. War "Bodily injury" or "property damage" caused directly or indirectly by war, including the following and any consequence of any of the following: a. Undeclared war, civil war, insurrection, rebellion or revolution; b. Warlike act by a military force or military personnel; or c. Destruction, seizure or use for a military purpose. Discharge of a nuclear weapon will be deemed a warlike act even if accidental; 6. Communicable Disease "Bodily injury" or "property damage" which arises out of the transmission of a communicable disease by an "insured"; 7. Sexual Molestation, Corporal Punishment Or Physical Or Mental Abuse "Bodily injury" or "property damage" arising out of sexual molestation, corporal punishment or physical or mental abuse; or HO 07 PA Page 25 of 33

287 Policy Number Policy Period 8. Controlled Substance "Bodily injury" or "property damage" arising out of the use, sale, manufacture, delivery, transfer or possession by any person of a Controlled Substance as defined by the Federal Food and Drug Law at 21 U.S.C.A. Sections 811 and 812. Controlled Substances include but are not limited to cocaine, LSD, marijuana and all narcotic drugs. However, this exclusion does not apply to the legitimate use of prescription drugs by a person following the orders of a licensed physician. Exclusions A. "Motor Vehicle Liability", B. "Watercraft Liability", C. "Aircraft Liability", D. "Hovercraft Liability" and E.4. "Insured's" Premises Not An "Insured Location do not apply to "bodily injury" to a "residence employee" arising out of and in the course of the "residence employee's" employment by an "insured". F. Coverage E - Personal Liability Coverage E does not apply to: 1. Liability: a. For any loss assessment charged against you as a member of an association, corporation or community of property owners, except as provided in D. Loss Assessment under Section II - Additional Coverages; b. Under any contract or agreement entered into by an "insured". However, this exclusion does not apply to written contracts: (1) That directly relate to the ownership, maintenance or use of an "insured location"; or (2) Where the liability of others is assumed by you prior to an "occurrence"; unless excluded in a. above or elsewhere in this policy; 2. "Property damage" to property owned by an "insured". This includes costs or expenses incurred by an "insured" or others to repair, replace, enhance, restore or maintain such property to prevent injury to a person or damage to property of others, whether on or away from an "insured location"; 3. "Property damage" to property rented to, occupied or used by or in the care of an "insured". This exclusion does not apply to "property damage" caused by fire, smoke or explosion; 4. "Bodily injury" to any person eligible to receive any benefits voluntarily provided or required to be provided by an "insured" under any: a. Workers' compensation law; b. Non-occupational disability law; or c. Occupational disease law; 5. "Bodily injury" or "property damage" for which an "insured" under this policy: a. Is also an insured under a nuclear energy liability policy issued by the: (1) Nuclear Energy Liability Insurance Association; (2) Mutual Atomic Energy Liability Underwriters; (3) Nuclear Insurance Association of Canada; b. Would be an insured under such a policy but for the exhaustion of its limit of liability; or 6. "Bodily injury" to you or an "insured" as defined under Definitions 5.a. or b. This exclusion also applies to any claim made or suit brought against you or an "insured": a. To repay; or b. Share damages with; another person who may be obligated to pay damages because of "bodily injury" to an "insured". G. Coverage F - Medical Payments To Others Coverage F does not apply to "bodily injury": 1. To a "residence employee" if the "bodily injury": a. Occurs off the "insured location"; and b. Does not arise out of or in the course of the "residence employee's" employment by an "insured"; HO 07 PA Page 26 of 33

288 Policy Number Policy Period 2. To any person eligible to receive benefits voluntarily provided or required to be provided under any: a. Workers' compensation law; b. Non-occupational disability law; or c. Occupational disease law; 3. From any: a. Nuclear reaction; b. Nuclear radiation; or c. Radioactive contamination; all whether controlled or uncontrolled or however caused; or d. Any consequence of any of these; or 4. To any person, other than a "residence employee" of an "insured", regularly residing on any part of the "insured location". SECTION II - ADDITIONAL COVERAGES We cover the following in addition to the limits of liability: A. Claim Expenses We pay: 1. Expenses we incur and costs taxed against an "insured" in any suit we defend; 2. Premiums on bonds required in a suit we defend, but not for bond amounts more than the Coverage E limit of liability. We need not apply for or furnish any bond; 3. Reasonable expenses incurred by an "insured" at our request, including actual loss of earnings (but not loss of other income) up to $300 per day, for assisting us in the investigation or defense of a claim or suit; 4. Interest on the entire judgment which accrues after entry of the judgment and before we pay or tender, or deposit in court that part of the judgment which does not exceed the limit of liability that applies; and 5. Prejudgment interest awarded against an insured on that part of the judgment we pay. Any prejudgment interest awarded against an insured is subject to the applicable Pennsylvania Rules of Civil Procedure. B. First Aid Expenses We will pay expenses for first aid to others incurred by an "insured" for "bodily injury" covered under this policy. We will not pay for first aid to an "insured". C. Damage To Property Of Others 1. We will pay, at replacement cost, up to $2,000 per "occurrence" for "property damage" to property of others caused by an "insured". 2. We will not pay for "property damage": a. To the extent of any amount recoverable under Section I; b. Caused intentionally by an "insured" who is 13 years of age or older; c. To property owned by an "insured"; d. To property owned by or rented to a tenant of an "insured" or a resident in your household; or e. Arising out of: (1) A "business" engaged in by an "insured"; (2) Any act or omission in connection with a premises owned, rented or controlled by an "insured", other than the "insured location"; or HO 07 PA Page 27 of 33

289 Policy Number Policy Period (3) The ownership, maintenance, occupancy, operation, use, loading or unloading of aircraft, hovercraft, watercraft or "motor vehicles". D. Loss Assessment This exclusion e.(3) does not apply to a "motor vehicle" that: (a) Is designed for recreational use off public roads; (b) Is not owned by an "insured"; and (c) At the time of the "occurrence", is not required by law, or regulation issued by a government agency, to have been registered for it to be used on public roads or property. 1. We will pay up to $5,000 for your share of loss assessment charged against you, as owner or tenant of the "residence premises", during the policy period by a corporation or association of property owners, when the assessment is made as a result of: a. "Bodily injury" or "property damage" not excluded from coverage under Section II - Exclusions; or b. Liability for an act of a director, officer or trustee in the capacity as a director, officer or trustee, provided such person: (1) Is elected by the members of a corporation or association of property owners; and (2) Serves without deriving any income from the exercise of duties which are solely on behalf of a corporation or association of property owners. 2. Paragraph I. Policy Period under Section II - Conditions does not apply to this Loss Assessment Coverage. 3. Regardless of the number of assessments, the limit of $5,000 is the most we will pay for loss arising out of: a. One accident, including continuous or repeated exposure to substantially the same general harmful condition; or b. A covered act of a director, officer or trustee. An act involving more than one director, officer or trustee is considered to be a single act. 4. We do not cover assessments charged against you or a corporation or association of property owners by any governmental body. E. Personal Injury Definitions The following definition is added: "Personal injury" means injury arising out of one or more of the following offenses, but only if the offense was committed during the policy period: 1. False arrest, detention or imprisonment, or 2. Malicious prosecution; 3. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; 4. Oral or written publication of material that slanders or libels a person or organization or disparages a person's or organization's goods, products or services; or 5. Oral or written publication of material that violates a person's right of privacy. HO 07 PA Page 28 of 33

290 Policy Number Policy Period SECTION II - LIABILITY COVERAGES A. Coverage E - Personal Liability The following is added to Coverage E - Personal Liability: Personal Injury Coverage If a claim is made or suit is brought against an "insured" for damages resulting from an offense, defined under "personal injury", to which this coverage applies, we will: 1. Pay up to our limit of liability for the damages for which an "insured" is legally liable. Damages include prejudgment interest awarded against an "insured"; and 2. Provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when our limit of liability for the offense has been exhausted by payment of a judgment or settlement. SECTION II - EXCLUSIONS With respect to the coverage provided by this endorsement, Section II - Exclusions is deleted and replaced by the following: This insurance does not apply to Personal Injury: 1. Caused by or at the direction of an "insured" with the knowledge that the act would violate the rights of another and would inflict "personal injury"; 2. Arising out of oral or written publication of material, if done by or at the direction of an "insured" with knowledge of its falsity; 3. Arising out of oral or written publication of material whose first publication took place before the beginning of the policy period; 4. Arising out of a criminal act committed by or at the direction of an "insured"; 5. Arising out of liability assumed by an "insured" under any contract or agreement except any indemnity obligation assumed by an "insured" under a written contract directly relating to the ownership maintenance or use of the premises; 6. Sustained by any person as a result of an offense directly or indirectly related to the employment of this person by an "insured"; 7. Arising out of the "business" conducted from an "insured", whether or not the "business" is owned or operated by an "insured" or employs an "insured". This exclusion applies but is not limited to an act or omission, regardless of its nature or circumstance, involving a service or duty rendered, promised, owed, or implied to be provided because of the nature of the "business". This exclusion does not apply to: a. The rental or holding for rental of an "insured location"; (1) On an occasional basis if used only as a residence; (2) In part for use only as a residence, unless a single family unit is intended for use by the occupying family to lodge more than two roomers or boarders; or (3) In part, as an office, school, studio or private garage; and b. An "insured" under the age of 21 years involved in a part-time or occasional, self-employed "business" with no employees; 8. Arising out of civic or public activities performed for pay by an "insured"; 9. To you or an "insured" as defined under Definition 5.a. or b. This exclusion also applies to any claim made or suit brought against you or an "insured": a. To repay; or b. Share damages with; or another person who may be obligated to pay damages because of the "bodily injury" to an "insured". HO 07 PA Page 29 of 33

291 Policy Number Policy Period SECTION II - ADDITIONAL COVERAGES With respect to the coverage provided by this additional coverage, Paragraph D. Loss Assessment is deleted and replaced by the following: D. Loss Assessment We will pay up to $1000 for your share of loss assessment charged against you, as an owner or tenant of the "residence premises", during the policy period by a corporation or association of property owners, when the assessment is made as a result of "personal injury" not excluded under this endorsement. We do not cover assessments charged against you or a corporation or association of property owners by any governmental body. Regardless of the number of assessments, the limit of $1000 is the most we will pay for loss arising out of "personal injury". SECTION II - CONDITIONS With respect to the coverage provided by this additional coverage, Section II - Condition I. Policy Period does not apply and Conditions A. Limit Of Liability, B. Severability Of Insurance and C. Duties After "Occurrence" are deleted and replaced by the following: A. Limit Of Liability Our total liability under "Personal Injury" Coverage for all damages resulting from any one offense will not be more than the limit of liability shown in the Declarations for Coverage E. This limit is the same regardless of the number of "insureds", claims made or suits brought. B. Severability Of Insurance This insurance applies separately to each "insured". This condition will not increase our limit of liability for any one offense. C. Duties After Offense In the event of a covered offense, you or another "insured" will perform the following duties that apply. We have no duty to provide coverage under this policy if your failure to comply with the following duties is prejudicial to us. You will help us by seeing that these duties are performed: 1. Give written notice to us or our agent as soon as is practical, which sets forth: a. The identity of the policy and "named insured"; b. Reasonably available information on the time, place and circumstances of the offense; and c. Names and addresses of any claimants and witnesses; 2. Cooperate with us in the investigation, settlement or defense of any claim or suit; 3. Promptly forward to us every notice, demand, summons or other process relating to the offense; 4. At our request, help us: a. To make settlement; b. To enforce any right of contribution or indemnity against any person or organization who may be liable to an "insured"; c. With the conduct of suits and attend hearings and trials; and d. To secure and give evidence and obtain the attendance of witnesses; 5. No "insured" shall, except at such "insured's" own cost, voluntarily make payment, assume obligation or incur expense other than for first aid to others at the time of the "personal injury". SECTION II - CONDITIONS A. Limit Of Liability Our total liability under Coverage E for all damages resulting from any one "occurrence" will not be more than the Coverage E limit of liability shown in the Declarations. This limit is the same regardless of the number of "insureds", claims made or persons injured. All "bodily injury" and "property damage" resulting from any one accident or from continuous or repeated exposure to substantially the same general harmful conditions shall be considered to be the result of one "occurrence". HO 07 PA Page 30 of 33

292 Policy Number Policy Period Our total liability under Coverage F for all medical expense payable for "bodily injury" to one person as the result of one accident will not be more than the Coverage F limit of liability shown in the Declarations. B. Severability Of Insurance This insurance applies separately to each "insured". This condition will not increase our limit of liability for any one "occurrence". C. Duties After "Occurrence" In case of an "occurrence", you or another "insured" will perform the following duties that apply. We have no duty to provide coverage under this policy if your failure to comply with the following duties is prejudicial to us. You will help us by seeing that these duties are performed: 1. Give written notice to us or our agent as soon as is practical, which sets forth: a. The identity of the policy and the "named insured" shown in the Declarations; b. Reasonably available information on the time, place and circumstances of the "occurrence"; and c. Names and addresses of any claimants and witnesses; 2. Cooperate with us in the investigation, settlement or defense of any claim or suit; 3. Promptly forward to us every notice, demand, summons or other process relating to the "occurrence"; 4. At our request, help us: a. To make settlement; b. To enforce any right of contribution or indemnity against any person or organization who may be liable to an "insured"; c. With the conduct of suits and attend hearings and trials; and d. To secure and give evidence and obtain the attendance of witnesses; 5. With respect to C. Damage To Property Of Others under Section II - Additional Coverage, submit to us within 60 days after the loss, a sworn statement of loss and show the damaged property, if in an "insured's" control; 6. No "insured" shall, except at such "insured's" own cost, voluntarily make payment, assume obligation or incur expense other than for first aid to others at the time of the "bodily injury". D. Duties Of An Injured Person - Coverage F - Medical Payments To Others 1. The injured person or someone acting for the injured person will: a. Give us written proof of claim, under oath if required, as soon as is practical; and b. Authorize us to obtain copies of medical reports and records. 2. The injured person will submit to a physical exam by a doctor of our choice when and as often as we reasonably require. E. Payment Of Claim - Coverage F - Medical Payments To Others Payment under this coverage is not an admission of liability by an "insured" or us. F. Suit Against Us 1. No action can be brought against us unless there has been full compliance with all of the terms under this Section II. 2. No one will have the right to join us as a party to any action against an "insured". 3. Also, no action with respect to Coverage E can be brought against us until the obligation of such "insured" has been determined by final judgment or agreement signed by us. G. Bankruptcy Of An "Insured" Bankruptcy or insolvency of an "insured" will not relieve us of our obligations under this policy. H. Other Insurance Bankruptcy or insolvency of an "insured" will not relieve us of our obligations under this policy. I. Policy Period This policy applies only to "bodily injury" or "property damage" which occurs during the policy period. HO 07 PA Page 31 of 33

293 Policy Number Policy Period J. Concealment Or Fraud We do not provide coverage to an "insured" who, whether before or after a loss, has: 1. Intentionally concealed or misrepresented any material fact or circumstance; 2. Engaged in fraudulent conduct; or 3. Made false statements; relating to this insurance. SECTIONS I AND II - CONDITIONS A. Liberalization Clause If we make a change which broadens coverage under this edition of our policy without additional premium charge, that change will automatically apply to your insurance as of the date we implement the change in your state, provided that this implementation date falls within 60 days prior to or during the policy period stated in the Declarations. This Liberalization Clause does not apply to changes implemented with a general program revision that includes both broadenings and restrictions in coverage, whether that general program revision is implemented through introduction of: 1. A subsequent edition of this policy; or 2. An amendatory endorsement. B. Waiver Or Change Of Policy Provisions A waiver or change of a provision of this policy must be in writing by us to be valid. Our request for an appraisal or examination will not waive any of our rights. C. Cancellation 1. You may cancel this policy at any time by returning it to us or by letting us know in writing of the date cancellation is to take effect. 2. We may cancel this policy only for the reasons stated below by notifying the insured in writing of the date cancellation takes effect. This cancellation notice may be delivered to or mailed to the insured named in the Declarations at the mailing address shown in the policy or at a forwarding address. Proof of mailing will be sufficient proof of notice. a. When this policy has been in effect for less than 60 days and is not a renewal with us, we may cancel for any reason by notifying the insured named in the Declarations at least 30 days before the cancellation takes effect. b. When this policy has been in effect for 60 days or more, or at any time if it is a renewal with us, we may cancel only for one or more of the following reasons by notifying the "insured" named in the Declarations at least 30 days prior to the proposed cancellation date: (1) This policy was obtained through material misrepresentation, fraudulent statements, omissions or concealment of fact material to the acceptance of the risk or to the hazard assumed by us; (2) There has been a substantial change or increase in hazard in the risk assumed by us subsequent to the date the policy was issued; (3) There is a substantial increase in hazard insured against by reason of willful or negligent acts or omissions by the "insured"; (4) The "insured" has failed to pay the premium by the due date, whether payable to us or to our agent or under any finance or credit plan; or (5) For any other reason approved by the Pennsylvania Insurance Commissioner. This provision shall not apply if the named "insured" has demonstrated by some overt action to us or to our agent that the "insured" wishes the policy to be cancelled. Delivery of such written notice by us to the "insured" named in the Declarations at the mailing address shown in the policy or at forwarding address shall be equivalent to mailing. 3. When this policy is canceled, the premium for the period from the date of cancellation to the expiration date will be refunded pro rata. 4. If the return premium is not refunded with the notice of cancellation or when this policy is returned to us, we will refund it within a reasonable time after the date cancellation takes effect. HO 07 PA Page 32 of 33

294 Policy Number Policy Period D. Nonrenewal We will not fail to renew this policy except for one of the reasons referred to in C. Cancellation above. We may refuse to renew for one of the listed reasons by mailing to the "insured" named in the Declarations at the mailing address shown in the policy or at a forwarding address, written notice at least 30 days prior to the expiration date of this policy. This provision does not apply if: 1. We have indicated our willingness to renew and the "insured" has failed to pay the premium by the due date; or 2. The named "insured" has indicated to us or our agent that the "insured" does not wish the policy to be renewed. Delivery of such written notice by us to the "insured" named in the Declarations at the mailing address shown in the policy or at a forwarding address shall be equivalent to mailing. E. Assignment Assignment of this policy will not be valid unless we give our written consent. F. Subrogation An "insured" may waive in writing before a loss all rights of recovery against any person. If not waived, we may require an assignment of rights of recovery for a loss to the extent that payment is made by us. If an assignment is sought, an "insured" must sign and deliver all related papers and cooperate with us. Subrogation does not apply to Coverage F or Paragraph C. Damage To Property Of Others under Section II - Additional Coverages. G. Death If any person named in the Declarations or the spouse, if a resident of the same household, dies, the following apply: 1. We insure the legal representative of the deceased but only with respect to the premises and property of the deceased covered under the policy at the time of death; and 2. Insurance under this policy will continue as provided in a. or b. below, whichever is later: a. For 180 days after your death regardless of the policy period shown in the Declarations, unless your premises and property, covered under the policy at the time of your death, is sold prior to that date; or b. Until the end of the policy period shown in the Declarations, unless your premises and property, covered under the policy at the time of your death, is sold prior to that date. Coverage during the period of time after your death is subject to all the provisions of this policy including payment of any premium due for the policy period shown in the Declarations and any extension of that period; 3. "Insured" includes: a. An insured who is a member of your household at the time of your death, but only while a resident of the "residence premises"; and b. With respect to your property, the person having proper temporary custody of the property until appointment and qualification of a legal representative. HO 07 PA Page 33 of 33

295 Policy Number Policy Period AGREEMENT Service Line Coverage for Premier Residence Policy Only The following additional coverage is added to Section I of the Premier Residence Form. We will provide the insurance described in this endorsement in compliance with all applicable provisions of this policy. The most we will pay for loss, damage or expense under this endorsement arising from any one service line failure is $10,000. DEFINITIONS The following definitions are added: 1. "Covered service line" means underground piping and wiring, including permanent connections, valves or attached devices, as described and limited below. a. A "covered service line" must be one of the following: (1) water piping that connects from the dwelling to a public water supply system or private well system; (2) sewer piping that connects from the dwelling to a public sewer system or private septic system; (3) ground loop piping that connects to a heat pump; or (4) power line that provides electrical service to the dwelling or other structure. b. The covered service line must: (1) be located on the residence premises ; (2) provide a service to the dwelling or other structure, as covered under Coverage A or B; and (3) be owned by you or you must be legally liable for its repair or replacement. c. Covered service line does not include: (1) that part of piping that runs through or under a body of water, including but not limited to, a swimming pool, pond or lake; (2) that part of piping or wiring that runs through or under the dwelling or other structure; (3) piping that delivers water to outdoor property, including but not limited to, sprinklers, irrigation systems, swimming pools, hot tubs and decorative ponds. (4) wiring that provides electricity to outdoor property, including but not limited to, light fixtures and electric fencing; (5) piping or wiring that is not connected and ready for use; or (6) storm water drain piping. 2. Earth movement means: a. earthquake, including land shock waves or tremors before, during or after a volcanic eruption; b. landslide, mudslide or mudflow; c. subsidence or sinkhole collapse; d. tsunami or volcanic action; or e. any other naturally occurring earth movement including earth sinking, rising or shifting. that results in direct physical damage to covered equipment. 3. One service line failure means: If an initial service line failure causes other service line failures, all will be considered one service line failure. All service line failures that are the result of the same event will be considered one service line failure. 4. Service line failure" means a leak, break, tear, rupture, collapse or arcing of a "covered service line." Service line failure does not include blockage or low pressure of a covered service line. MU ú 2009 The Hartford Steam Boiler Inspection and Insurance Company Page 1 of 3

296 Policy Number Policy Period COVERAGES The following coverages are added, subject to the limit provided under the Agreement section of this endorsement: 1. Damages to "Covered Service Line" We will pay for physical damage to your covered service line that is the direct result of a service line failure. 2. Excavation Costs With respect to your covered service line that is damaged as the result of a service line failure, we will pay the necessary and reasonable excavation costs that are required to repair or replace the damaged covered service line. 3. Expediting Expenses With respect to your covered service line that is damaged as the result of a service line failure, we will pay the reasonable extra cost to: a. make temporary repairs; and b. expedite permanent repairs or permanent replacement. 4. Loss of Use Coverage for Additional Living Expense and Fair Rental Value, as defined under Coverage D - Loss of Use, is extended to the coverage provided by this endorsement. 5. Outdoor Property We will pay for your outdoor property, including trees, shrubs, plants, lawns, walkways and driveways, that is damaged as a result of a service line failure or that is damaged during the excavation of your covered service line following a service line failure. EXCLUSIONS 1. If any of the following causes of loss are excluded by your policy, then those exclusions do not apply to this endorsement: a. wear and tear, marring, deterioration or hidden decay; b. rust or other corrosion; c. mechanical breakdown, latent defect or inherent vice; d. weight of equipment, animals or people; e. artificially generated electrical current; or f. freezing. 2. The following exclusions are added: a. We will not pay for loss or damage to: i. septic systems, including leach fields, septic tanks, pumps, motors or piping that runs from the septic tank to the leach fields; ii. water wells, including well pumps or motors; iii. heating and cooling systems, including heat pumps; or iv. irrigation or sprinkler systems. b. We will not pay for loss or damage to a covered service line that is damaged while it is being installed, dismantled or repaired. However, this exclusion shall not apply if a covered service line failure necessitated such installation, dismantling or repair. c. We will not pay for loss or damage caused by any of the following: i. flood, surface water, waves, tides, tidal waves, overflow of any body of water, or their spray, all whether driven by wind or not; or water that backs up or overflows from a sewer, drain or sump; or ii. earth movement, except for earth movement that results from the ground thawing after a freeze. MU ú 2009 The Hartford Steam Boiler Inspection and Insurance Company Page 2 of 3

297 Policy Number Policy Period d. We will not pay to clean up or remove pollutants, hazardous waste or sewage. DEDUCTIBLE Subject to the limit provided under the Agreement section of this endorsement, we will pay only that part of the loss that exceeds $500. No other deductible applies to this coverage. CONDITIONS The following conditions are added: 1. Environmental, Safety and Efficiency Improvements If a covered service line requires replacement due to a service line failure, we will pay your additional cost to replace with materials that are better for the environment, safer or more efficient than the materials being replaced. However, we will not pay more than 125% of what the cost would have been to replace with like kind and quality. This condition does not increase the Limit that applies to this endorsement. 2. Loss Settlement Losses under this endorsement will be settled as follows: a. Our payment for damaged covered property will be the smallest of: (1) The limit of liability that applies to this endorsement; (2) The cost to repair the damaged property; (3) The cost to replace the damaged property on the same premises; or (4) The necessary amount actually spent to repair or replace the damaged property. b. Except as described in Environmental, Safety and Efficiency Improvements above, you are responsible for the extra cost of replacing damaged property with property of a better kind or quality or of a different size or capacity. c. You are responsible for the extra cost to alter or relocate "covered service lines," unless such alteration or relocation is required by law or ordinance. MU ú 2009 The Hartford Steam Boiler Inspection and Insurance Company Page 3 of 3

298 Policy Number Policy Period THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WATER BACK-UP AND SUMP DISCHARGE OR OVERFLOW - PENNSYLVANIA A. Coverage We insure, up to $ *, for direct physical loss to property covered under Section I caused by water, or waterborne material, which: 1. Backs up through sewers or drains; or 2. Overflows or is discharged from a: a. Sump, sump pump; or b. Related equipment; even if such overflow or discharge results from mechanical breakdown. This coverage does not apply to direct physical loss of the sump pump, or related equipment, which is caused by mechanical breakdown. This coverage does not increase the limits of liability for Coverages A, B, C or D stated in the Declarations. B. Section I - Perils Insured Against With respect to the coverage described in A. above, Paragraphs: A.2.c.(6)(b) in Form HO 00 03; A.2.e.(2) in Form HO 00 05; 2.j.(2) in Endorsement HO 05 24; 3.i.(2) in Endorsement HO 17 31; and 2.c.(6)(b) in Endorsement HO 17 32; are deleted and replaced by the following: Latent defect, inherent vice or any quality in property that causes it to damage or destroy itself; C. Special Deductible The following replaces any other deductible provision in this policy with respect to loss covered under this endorsement. We will pay only that part of the total of all loss payable under Section I that exceeds $250. No other deductible applies to this coverage. This deductible does not apply with respect to Coverage D - Loss Of Use. D. Exclusion The Water Damage Exclusion is replaced by the following: Water This means: 1. Flood, surface water, waves, including tidal wave and tsunami, tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind, including storm surge; 2. Water which: a. Backs up through sewers or drains; or b. Overflows or is otherwise discharged from a sump, sump pump or related equipment; as a direct or indirect result of flood; 3. Water below the surface of the ground, including water which exerts pressure on, or seeps, leaks or flows through a building, sidewalk, driveway, patio, foundation, swimming pool or other structure; or 4. Waterborne material carried or otherwise moved by any of the water referred to in D.1. through D.3. of this Exclusion. This Exclusion applies regardless of whether any of the above, in D.1. through D.4., is caused by an act of nature or is otherwise caused. This Exclusion applies to, but is not limited to, escape, overflow or discharge, for any reason, of water or waterborne material from a dam, levee, seawall or any other boundary or containment system. However, direct loss by fire, explosion or theft resulting from any of the above, in D.1. through D.4., is covered. All other provisions of this policy apply. * Refer to the limit shown on the Declarations Page MU ú Insurance Services Office, Inc., 2008 Page 1 of 1