The Boatowners Program is designed to cover the following types of watercraft under 26 feet in length and with a hull value of $75,000 or less:

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1 Boatowners Program Introduction The Unigard Boatowners Program is designed to provide quality insurance for individuals who own pleasure type watercraft, including personal watercraft. Coverage is provided by either a separate Boatowners Policy or a Boatowners Endorsement and Watercraft Liability Endorsement attached to the homeowner policy. The Boatowners Policy provides Section I - Property Coverage and Section II - Watercraft Liability Coverage. Unigard s Boatowners Endorsement provides coverage similar to Section I of the Boatowners Policy and may be attached to a homeowner policy. Watercraft liability coverage may be extended under the homeowner policy by use of the Watercraft Liability Endorsement. The Boatowners Program is designed to cover the following types of watercraft under 26 feet in length and with a hull value of $75,000 or less: Outboard Boats Inboards or inboard-outdrive boats Sailboats The Boatowners Program is also available for personal watercraft. A personal watercraft is a small watercraft, powered by an inboard engine and jet pump mechanism. It can have a capacity of one, two or three riders. As part of our risk selection process, we require all Boatowners policies be supported by either a Unigard Homeowner or Personal Auto policy or an application for one of these coverages accompany the Boatowners application. Eligibility We require the watercraft be registered in the name of an individual or husband and wife. All operators of the watercraft must have driving records reflecting a responsible attitude in the operation of motorized vehicles. The applicant must have at least three years of boating experience and have completed a Power Squadron course when the hull value exceeds $50,000. Watercraft used for business purposes, to carry persons or property for a fee, or used in any official race or speed test are not eligible. Sailboats used occasionally for racing are eligible as are watercraft participating in predicted log cruises. Personal watercraft may not be bound without prior underwriting approval. Revised--May, 2007 California Boatowners Program Page 1

2 Eligibility (Cont d) The following types of watercraft present a greater-than-average exposure and are not eligible for coverage under Unigard s Boatowners Program: 1. Watercraft over 10 years of age (unless pre-approved by underwriting). 2. Watercraft with speeds in excess of 55 miles per hour. 3. Watercraft with motors or engines which exceed the manufacturer s recommended horsepower. 4. Special or unique boats such as swamp boats, motor-driven surfboards, ice boats, hydrofoils, collapsible, inflatable or amphibious boats, and homemade boats or boat kits. 5. Risks which have been cancelled, declined or non-renewed. Section I - Property Coverages Coverage A - Watercraft Covers the insured watercraft, permanently attached equipment, inboard or inboard-outdrive engine, and newly acquired replacement watercraft reported to us within 45 days. Coverage is on a replacement cost basis. Coverage B - Outboard Engines or Motors Covers outboard engines or motors or replacement engines or motors reported to us within 45 days. Portable fuel tanks located on the watercraft are also covered. Coverage C - Trailers Covers a trailer or a replacement reported to us within 45 days. Coverage D - Watercraft Accessories Covers equipment on board for the normal operation and maintenance of the watercraft. Watercraft equipment includes anchors, cushions, electronic equipment, fire extinguishers, horns, life preservers, lights, oars, tarpaulines, and sails. It does not include fishing tackle, water skis, other sports equipment, binoculars, cameras or other personal effects. Additional Coverages 1. Emergency Service Covers emergency service to the insured watercraft, motor or engine and trailer up to $75 per occurrence. 2. Wreck Removal Covers costs to remove, raise or destroy the wreck of an insured watercraft. Limited to 5% of Coverage A or $250, whichever is greater. 3. Reasonable Repairs Covers the cost of reasonable repairs to protect covered property from further loss. Revised--May, 2007 California Boatowners Program Page 2

3 Section II - Liability Coverage E - Watercraft Liability Covers bodily injury and property damage caused by an accident and resulting from the ownership, maintenance, or use of the insured watercraft. Coverage F - Medical Payments Covers medical expenses incurred within three years from the date of an accident causing bodily injury to any person while in, upon, boarding or leaving the insured watercraft. This coverage does not include the insured or regular residents of the household. Watercraft Medical Payments Coverage for Insureds is available as an additional coverage. This includes coverage for injuries to insureds resulting from the operation of or waterskiing from the insured watercraft. This coverage is available for all types of watercraft. Coverages and Limits Watercraft insured under Unigard s Boatowners Program are covered on a replacement cost basis with no deduction for depreciation. We require all boats be in above average condition and insured for their full retail value based on current boat price guides. The maximum limit of liability for Coverage A under the Boatowners Policy or the Boatowners Endorsement is $75,000. Deductibles The minimum Section I Deductible for the Boatowners Policy is $100 for watercraft other than personal watercraft. The minimum deductible for personal watercraft is $250. Higher deductibles are available. Policy Term All policies are issued for a term of one year. Short term policies are not allowed. When the Boatowners Endorsement is attached to a homeowner policy, the policy term must be the same. Minimum Premium The minimum premium for a Boatowners Policy is $50. The minimum does not apply to the Boatowners Endorsement. Cancellation All cancellations will be computed on a pro rata basis. Revised--May, 2007 California Boatowners Program Page 3

4 Boatowners Program Rates Section I - Property Coverages Rates for Section I coverages are developed by selecting the applicable rate based on the deductible amount and then applying that rate to the total amount of insurance for Coverages A, B, C and D combined. Rates shown are for each $100 of insurance. A. Territorial Definitions Territory 1: Entire State of California Deductible Watercraft Other than Personal Watercraft Personal Watercraft Hull Value All Hull Values $5,000 or less $5,001 or more $100 $1.30 Not written $3.20 $ B. Credit and Debit Rating Schedule (Section I Only) The following credits or debits are applied to the premium for Coverages A, B, C and D. Credits and debits are based on the operator s boating education (power squadron, for example) or personal watercraft (such as Jet Smart) education, protective device credits, hull type and fuel type. The maximum credit allowed will be 15%. Credits: 5% - Diesel engine 5% - Watercraft up to 5 years old 5% - Navigational courses or power squadron member 5% - Electronic theft prevention system 5% - Personal watercraft safety course or Jet Smart course 2% - Operable depth finder 10% - All sailboats Debits: 10% - Watercraft years old 15% - Watercraft 16 years and older Note: Watercraft over ten years old are not generally acceptable as new business. For watercraft 6 to 10 years old, charge the base rate. Revised--May, 2007 California Boatowners Program Page 4

5 Section II - Liability Coverages A. Watercraft Liability Coverage, Including Personal Watercraft Limits of Liability Cov. E $100,000 $300,000 $500,000 Exposure Cov. F $1000 $2000 $5000 $1000 $2000 $5000 $1000 $2000 $ Up to 15 feet Horsepower Up to to to to to to 26 feet Horsepower Up to to to to to to or more Note 1: Accumulate total horsepower if two or more engines or motors of the same horsepower are regularly used together with any single watercraft owned by the insured. Note 2: If two or more engines or motors of different horsepower are regularly used together with any single watercraft, charge the liability rate for the motor or engine with the highest horsepower. B. Watercraft Medical Payments Coverage for Insureds The policy may be extended to include Watercraft Medical Payments Coverage for Insureds. This coverage provides protection for members of the insured s family in the event an injury occurs out of the operation of or waterskiing from the insured watercraft. The additional premium is: Limit Of Liability Premium $1,000 $14 $2,000 $19 $5,000 $34 Note: This coverage is available for all types of watercraft. Attach Endorsement Watercraft Medical Payments Coverage for Insureds Revised--May, 2007 California Boatowners Program Page 5

6 This page left intentionally blank. Revised--August, 1996 California Boatowners Program Page 6