Idaho FlexHome Personal Lines. Product Manual

Transcription

1 Idaho FlexHome Personal Lines Product Manual FlexHome is a registered service mark of QBE Regional Companies (N.A.), Inc. QBE and the links logo are registered service marks of QBE Insurance Group Limited. All coverages underwritten by member companies of QBE. HO-COVER1

2 Idaho Personal Lines - FlexHome General Rules Index Co-Ownership Provision Eligibility FlexHome Value Eligibility FlexHome Plus Eligibility FlexHome Ultra Eligibility FlexHome Condominium Eligibility FlexHome Condominium Ultra Eligibility FlexHome Renters Farming Activities FlexHome Condominium Ultra FlexHome Plus FlexHome Renters and FlexHome Condominium FlexHome Ultra FlexHome Value General Information Insurance to Value Liability All Programs Liability Flex Home Condominium and FlexHome Ultra only Mandatory Coverages Minimum Premium Multiple-Unit Structures Occupancy Other Structures Personal Property Coverage During Construction Policy Limit Adjustment Policy Term Program Limits Qualifying Risks FlexHome Value, FlexHome Plus, FlexHome Ultra Qualifying Risks FlexHome Condominium & FlexHome Condominium Ultra Qualifying Risks FlexHome Renters Secondary or Seasonal Residence Premises Single Building Definition Submission Guidelines for the Applicant Transfer or Assignment Trusts Waiver of Premium Whole Dollar Premium Rule Indicates Revision QBE Regional Companies 08/2013

3 Idaho Personal Lines - FlexHome Rating Features Index Actual Cash Value Roofing Loss Capping Claims Free Discount - All FlexHome Forms Deductibles Distance to Fire Station Homeowners Loss Surcharge Insurance Bureau Score Longevity - All FlexHome Forms Most Common Construction Definitions Multi-Policy Discount Newly Purchased Home Discount Professional Group Discount Protection Information Residential Protection Systems Roof Type Credit / Surcharge Seasonal or Secondary Residence Premises Liability Solid Fuel Burning Appliance / Woodstove Surcharge Updated Home Discount Optional Coverages Property Index Additional Coverage C Special Limits Liability Additional Coverages Section I Additional Insured Residence Premises Additional Interests Residence Premises Assisted Living Care Coverage Course of Construction Coverage A Increased Limits Building Additions and Alterations Coverage C Personal Property Increased Limits Coverage C Special Limits Extended Replacement Cost Flexible Coverages Home and Personal Security Home Computer Coverage Increased Limit on Personal Property in Other Residences Limited Condominium Rental Limited Coverage For Earthquake Loss Assessment Coverage Modified Functional Replacement Cost Other Structures Increased Limits Permitted Incidental Occupancies Residence Premises Personal Property Replacement Cost Pleasure Boat Supplemental Residence Held In Trust Scheduled Personal Property Special Deductible Provision Specific Structures Away from the Residence Premises Structures Rented to Others Residence Premises

4 Idaho Personal Lines - FlexHome Student Away at School Coverage Unit-Owners Rental to Others Water Back Up and Sump Overflow Optional Coverages Liability Index Additional Insured Residence Premises Additional Residence Premises Liability Additional Residence Rented to Others Business Pursuits Farmers Personal Liability Incidental Farming Personal Liability Increased Limits Residence Premises Permitted Incidental Occupancies - Other Residence Premises Permitted Incidental Occupancies Residence Premises Personal Injury Personal Liability and Medical Payments Residence Held In Trust

5 Idaho Personal Lines - FlexHome Scheduled Personal Property Blanket Coverage Bicycles Cameras Coins Coverage Provisions Eligible Property Fine Arts Furs General Information General Rules Golf Equipment Guns Home and Garden Equipment Jewelry Jewelry Broad Pair and Set Jewelry in Vaults Minimum Premium Musical Instruments Physical Aids Silverware Specialty Collections Sporting Equipment Stamps Territory Whole Dollar Premium Watercraft General Rules and Rates Eligibility Liability and Medical Payments Rates Territory Indicates Revision QBE Regional Companies 08/2013

6 Idaho Personal Lines - FlexHome QBE Regional Companies IMPORTANT CONTACT INFORMATION Company Address: QBE Regional Insurance NE 24 th Street Bellevue, WA CLAIMS: Please have the insured immediately report all losses to: Fax number: [email protected] UNDERWRITING Toll Free: Fax (Personal Lines) Billing Services: QBE Toll Free: Fax: [email protected] Please mail payments to: Direct Contact Phone: or QBE Regional Insurance P.O. Box Bellevue, WA

7 Idaho Personal Lines - FlexHome 1 General Rules The General Rules Section applies to all Homeowner programs offered by QBE the Americas. All our homeowners programs provide property and liability coverage using the forms and endorsements specified in this manual. The rules, rates, forms, endorsements and underwriting judgment of the Company govern in all cases not specifically provided for in this manual. Specific program criteria are located under each program heading. Submission Guidelines for the Applicant We are not a market for coverage requests where: The named insured listed on the application is not an individual or individuals; The applicant is a high profile individual (including, but not limited to professional entertainer or athlete, member of the journalistic media, or public officeholder); The applicant is a temporary U.S. resident; or The insured s property is in foreclosure or subject to foreclosure. Occupancy Dwellings are occupied for residential use by individuals or no more than two families. No part of a condominium issued in the FlexHome Condominium Ultra program may be rented or held for rent on a regular basis. Insured Dwellings are unacceptable if: a) The number of families exceeds two; unless mandated by law; b) Unoccupied or vacant; or c) Seasonal/secondary residences unless we also insure the primary residence. A seasonal dwelling is one that is continuously unoccupied for three or more months during any one year period. Insurance to Value All FlexHome Policies are replacement cost policies. We require policies to be written at 100% of replacement cost. Other Structures All other structures on the described premises must meet the same physical standards as the dwelling. This includes farm structures and sheds. Farm structures are only acceptable in FlexHome Plus and FlexHome Value when the risk meets the guidelines for our incidental farm endorsements and that endorsement coverage is purchased. The other structure must be insured for 100% of replacement cost.

8 Idaho Personal Lines - FlexHome 2 General Rules Farming Activities We are not a market for active farms which: Have more than 25 acres at the primary location; Have more than 1000 owned acres at another location that are rented to others for farming activities; or Have more than 2 horses, 25 cattle or other livestock that are owned or boarded. Qualifying Risks - FlexHome Value, FlexHome Plus and FlexHome Ultra We may issue a non-tenant FlexHome Policy to cover: a) The owner-occupant of a dwelling which is used exclusively for private residential purposes and contains not more than two families and with not more than two boarders or roomers per family. b) The purchaser-occupant 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 (FH9441). c) The owner-occupant of a dwelling under construction provided the policy is issued only in the name of the intended owner-occupant. d) The interest of a trust for policy coverage when the occupants are named as the Named Insured. List the name separate on the Declaration. Use Residence Held in Trust endorsement (FH9443). e) The interest of a non-occupant or non-relative trust member for on premises Coverage E Liability and Coverage F Medical Payments to Others. Use Residence Held in Trust endorsement (FH9443). f) To cover a modular home, (not a mobile home), situated on a continuous foundation on premises owned by the insured and taxed as real property and built with conventional construction materials and methods (2 x 4 studding, asphalt shingles, etc.). We may extend the FlexHome Policy to cover the interest of a non-occupant, joint owner for building coverage and premises liability. Use endorsement FH Additional Insured to cover the nonoccupant, joint owner's interest in the building coverage and premises liability.

9 Idaho Personal Lines - FlexHome 3 General Rules Qualifying Risks - FlexHome Renters We may issue a FlexHome Renters Policy to cover: a) The tenant of a dwelling or apartment; or b) The owner-occupant of a dwelling, cooperative unit, or a building containing an apartment, who is not otherwise eligible for a Homeowners Policy. c) Property held by a trust, when the occupant is listed as the Named Insured. List the trust name separately on the Declaration. Use endorsement FH9443, Residence Held in Trust. d) The interest of a non-occupant or non-relative trust member for on premises Coverage E Liability and Coverage F Medical Payments to Others. Use endorsement FH9443, Residence Held in Trust. The residence premises occupied by the insured must be used exclusively for residential purposes and not occupied by more than one additional family or more than two roomers or boarders. Qualifying Risks - Form FlexHome Condominium or FlexHome Condominium Ultra We may issue a Condominium Policy to cover: a) The owner-occupant of a condominium or cooperative unit which is used exclusively for residential purposes and is not occupied by more than one additional family or more than two roomers or boarders. b) A purchaser-occupant who has entered into a long term installment contract for the purchase of the condominium, occupies the condominium, but will not be the sole title-holder until all the terms of the installment contract are satisfied. In this situation, the seller retains title until completion of the payments and in no way acts as a mortgagee. Use endorsement FH9441, Additional Insured to cover the seller's interest in the condominium coverage and premises liability. c) The interest of a trust for policy coverage when the occupants are named as the Named Insured. List the name separate on the Declaration. Use endorsement FH9443, Residence Held in Trust. d) The interest of a non-occupant or non-relative trust member for on premises Coverage E Liability and Coverage F Medical Payments to Others. Use endorsement FH9443, Residence Held in Trust. We may extend the Homeowners Policy to cover the interest of a non-occupant, joint owner for building coverage and premises liability. Use endorsement FH Additional Insured to cover the nonoccupant, joint owner's interest in the building coverage and premises liability.

10 Idaho Personal Lines - FlexHome 4 General Rules Co-Ownership Provision When co-owners occupy a two-family dwelling, occupying distinct living quarters with separate entrances, we may issue a FlexHome Policy providing the building coverage to only one of the coowner occupants. To this policy, we will add endorsement FH Additional Insured to provide building coverage and premises liability to the other co-owner occupant. We may issue a separate FH0004 to cover the personal property of the second co-owner. Eligibility - FlexHome Ultra FH0005 The dwelling is eligible if: a) It is a owner-occupied, single or two-family dwelling; b) Coverage A is $250,000 or greater and equals 100% of the replacement cost; c) It is a protected risk (protection class 1-8); and d) There are no barns or farm structures. Program Features This policy provides coverage for the dwelling, other structures, personal property and loss of use for most risks of direct physical loss, with certain exceptions. In addition, it also provides the following: Coverage A - Dwelling Replacement Cost on Dwelling up to an additional 50% of the Coverage A amount Coverage B - Other Structures a) Includes 20% of the Coverage A limit for Other Structures b) Replacement Cost on Other Structures Coverage C - Personal Property a) Includes 75% of the Coverage A limit for Personal Property b) Replacement Cost Coverage on Personal Property Coverage D - Loss of Use Includes 75% of the Coverage A limit for Loss of Use Coverage E - Personal Liability Including Personal Injury: $300,000 Coverage F- Medical Payments to Others: $3,000

11 Idaho Personal Lines - FlexHome 5 General Rules Eligibility - FlexHome Condominium Ultra FHC0006 The condominium is eligible if: a) It is a primary, owner-occupied dwelling; b) Coverage C limit is $75,000 or more; c) The protection class is 1-8; d) No part of the condominium is rented or held for rent on a regular basis; e) The condominium is a part of a commercial dwelling which has been refurbished or renovated within the last 25 years and specifically designed for use as condominiums. Coverage requests are subject to all other underwriting criteria. Program Features The FlexHome Condominium Ultra policy covers personal property, building additions and alterations of the unit, and loss of use against loss by risks of direct physical loss, subject to certain exclusions. It also covers the following: Coverage A - Dwelling a) Includes $10,000 for Coverage A Building Additions and Alterations b) Replacement Cost up to an additional 25% of the Coverage A amount. Coverage C - Personal Property Replacement Cost Coverage on Personal Property Coverage D - Loss of Use Includes 75% of the Coverage C Amount Coverage E - Personal Liability Including Personal Injury: $300,000 Coverage F- Medical Payments to Others: $3,000 Condominium Rental We are not a market for coverage requests when the condominium is rented or held for rent on a regular basis. We will consider a condominium which is occasionally rented or held for rent. Occasional rental is defined as a unit which is rented or held for rent for not more than four weeks during any 12- month period. Use endorsement FH9533 Limited Condominium Rental Coverage to provide coverage. See the optional Coverages Property Section for rules and rates. Eligibility FlexHome Plus - FH0003 The dwelling is eligible if: a) It is a owner-occupied, single or two-family dwelling, or an owner occupied home within a multiunit residential structure having no more than four individually owned units per structure; b) Coverage A is $30,000 or more and equals 100% of the replacement cost; and c) The Protection Class is 1-10.

12 Idaho Personal Lines - FlexHome 6 General Rules Program Features This policy provides coverage for a dwelling, other structures, and loss of use for most risks of direct physical loss, with certain exceptions. Personal Property is covered on a named peril basis. In addition, it also provides the following: Coverage A - Dwelling Replacement Cost on Dwelling up to an additional 25% of the Coverage A amount. Coverage B - Other Structures a) Includes 10% of the Coverage A limit for Other Structures b) Replacement Cost on Other Structures Coverage C - Personal Property a) Includes 75% of the Coverage A limit for Personal Property b) Replacement Cost Coverage on Personal Property Coverage D - Loss of Use Includes 50% of the Coverage A limit for Loss of Use Coverage E - Personal Liability Including Personal Injury: $100,000 Coverage F- Medical Payments to Others: $1,000 Eligibility - FlexHome Value - FHL0003 The dwelling is eligible if: It is an owner-occupied, single or two family dwelling, or an owner occupied home within a multiunit residential structure having no more than four individually owned units per structure. Coverage A minimum is $30,000 and equals at least 100% of replacement cost; and The protection class is Program Features This policy provides coverage for a dwelling, other structures, and loss of use for risks of direct physical loss, with certain exceptions. Personal Property is covered on a named peril basis. In addition, it also provides the following: Coverage A - Dwelling Replacement Cost on Dwelling Coverage B - Other Structures Includes 2% of the Coverage A limit for Other Structures Coverage C - Personal Property Includes 30% of the Coverage A limit for Personal Property Coverage D - Loss of Use Includes 30% of the Coverage A limit for Loss of Use Coverage E - Personal Liability: $100,000 Coverage F- Medical Payments to Others: $1,000

13 Idaho Personal Lines - FlexHome 7 General Rules Eligibility - FlexHome Renters - FH0004 The risk is eligible if: a) Coverage C is $20,000 or more; and b) The residence premises has central heating. Program Features Covers personal property, including the insured's interest in building additions and alterations and loss of use, on a named perils basis. Coverage D - Loss of Use Includes 20% of the Coverage C limit for Loss of Use. Coverage E - Personal Liability: $100,000 Coverage F- Medical Payments to Others: $1,000 Eligibility - FlexHome Condominium FH0006 The risk is eligible if: a) Coverage C is $35,000 or more; b) The premises is occupied primarily for dwelling purposes. Program Features The condominium unit-owners policy covers personal property, building additions and alterations of the unit, and loss of use on a named perils basis. It also covers the following: Coverage A - Dwelling Includes $5,000 of Coverage A at no additional charge. Coverage D - Loss of Use Includes 50% of the Coverage C limit for Loss of Use. Coverage E - Personal Liability: $100,000 Coverage F- Medical Payments to Others: $1,000

14 Idaho Personal Lines - FlexHome 8 General Rules Single Building Definition All buildings or sections of buildings that are accessible through unprotected openings shall be considered as a single building. Buildings that are separated by space shall be considered separate buildings. Buildings or sections of buildings which are separated by: a) A six-inch reinforced concrete or an eight-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 described above shall be protected by at least a Class A Fire Door installed in a masonry wall section. Multiple-Unit Structures All units must be used exclusively for dwelling purposes and all other Homeowners eligibility requirements also apply. A dwelling that is covered by a condominium association agreement is not considered a duplex, townhouse, or row house. Duplex A FlexHome Ultra, FlexHome Plus or FlexHome Value policy may be issued for a duplex if it meets both the criteria listed above for Single Family Structures, and the following: a) There are no more than two units per structure; and b) Coverage A is 100% of replacement cost. A duplex is a two unit dwelling structure, used exclusively for residential purposes, which is: a) Wholly-owned by one individual who occupies one unit and rents the non-owner occupied unit; or b) Owned by two separate individuals, each owning and occupying a unit which is 1/2 of the total structure.

15 Idaho Personal Lines - FlexHome 9 General Rules Townhouse or Row House A townhouse or row house is defined as a row of one to four-family dwelling units with each unit being owner-occupied and having exterior exits. The units share common walls and may be arranged in either a row or group. Each unit must be owner-occupied and have its own exterior exits. A FlexHome Plus or FlexHome Value policy may be issued for a townhouse or row house if it meets the criteria listed for Single Family Structures, the definition above, and the following: a) There are no more than four units per structure, and b) Coverage A is 100% of replacement cost, and c) A fire wall between each unit which will hinder the spread of fire. A fire wall is a self-supporting, solid wall, full width and height (including lowest basement) of the building, plus adequate extensions (parapets) beyond any combustible roof or wall, with a fire resistive rating of two hours or more, separating a building into fire divisions. Fire walls will also have the following characteristics: a) Will be constructed of at least eight-inch masonry or six-inch reinforced concrete with no unprotected openings and carry a two hour or better fire resistive rating. b) Must pierce the roof or wall if the roof or wall is combustible or metal. If the roof or wall is masonry (non-combustible), the fire wall must rise to the underside of the roof. c) Must pierce the "overhang" if the structure has a common, combustible, enclosed "overhang" such as a porch, cornice, canopy, or mansard roof. d) Will have, at a minimum, an automatic or self-closing Class A labeled fire door to cover any openings in the fire wall. Program Limits Limits above the maximum binding limits shown may be available subject to favorable underwriting information. Submit details to your underwriter for consideration. FlexHome Ultra FH0005 Minimum Maximum Coverage A - Dwelling Protection Class 1-8 $250,000 $1,500,000 Protection Class 9-10 Ineligible Ineligible Home Under Construction $250,000 $500,000 Seasonal or Secondary Dwellings $250,000 $1,500,000 Coverage B -Other Structures 2% of Cov A 100% of Cov A Coverage C Unscheduled Personal Property 50% of Cov A 100% of Cov A Coverage D - Loss of Use 75% of Cov A 75% of Cov A

16 Idaho Personal Lines - FlexHome 10 General Rules FlexHome Condominium Ultra FHC0006 Minimum Maximum Coverage C Unscheduled Personal Property $75,000 $500,000 Coverage A Building Additions and Alterations Protection Class 1-8 $10,000 $500,000 Protection Class 9-10 Ineligible Ineligible Coverage D - Loss of Use 75% of Cov C Liability - FlexHome Condominium Ultra and FlexHome Ultra only Personal Liability $300,000 $1,000,000 Medical Payments to Others $3,000 $10,000 Unless otherwise stated, Coverage E limits apply on an occurrence basis; Coverage F limits apply on an each person basis. FlexHome Plus FH0003 Minimum Maximum Coverage A - Dwelling Protection Class 1-8 $30,000 $1,500,000 Protection Class 9 $30,000 $500,000 Protection Class 10 $30,000 $500,000 Home Under Construction $30,000 $500,000 Seasonal or Secondary Dwellings $30,000 $1,500,000 Coverage B - Other Structures 2% of Cov A 100% of Cov A Coverage C - Unscheduled Personal Property 50% of Cov A 100% of Cov A Coverage D - Loss of Use 50% of Cov A 50% of Cov A

17 Idaho Personal Lines - FlexHome 11 General Rules FlexHome Value FHL0003 Minimum Maximum Coverage A Dwelling Protection Class 1-8 $30,000 $350,000 Protection Class 9 $30,000 $350,000 Protection Class 10 $30,000 $350,000 Home Under Construction $30,000 $350,000 Seasonal or Secondary Dwellings $30,000 $350,000 Coverage B - Other Structures 2% of Cov A 50% of Cov A Coverage C Unscheduled Personal Property 30% of Cov A 100% of Cov A Coverage D Loss of Use 30% of Cov A 30% of Cov A FlexHome Renters and FlexHome Condominium Minimum Maximum Coverage C - Unscheduled Personal Prop. HO 0004 $20,000 $500,000 HO 0006 $35,000 $500,000 Coverage D - Loss of Use HO % of Cov. C 20% of Cov. C HO % of Cov. C 50% of Cov. C Liability - All Other Programs Minimum Maximum Coverage E - Personal Liability $100,000 $1,000,000 Coverage F - Medical Payments to Others $1,000 $5,000 (each person) Unless otherwise stated, Coverage E limits apply on an occurrence basis; Coverage F limits apply on an each person basis. Policy Limit Adjustment FlexHome Value, FlexHome Plus or FlexHome Ultra The limits of liability for Coverages A, B, C and D may be increased or decreased at renewal to reflect changes in costs. The adjustment is designed to maintain insurance to value at approximately the same percentage as during the prior policy period. Indicates Revision QBE Regional Companies 08/2013

18 Idaho Personal Lines - FlexHome 12 General Rules Secondary or Seasonal Residence Premises Subject to all other underwriting rules and guidelines, we may issue a FlexHome Value, FlexHome Plus, FlexHome Ultra, FlexHome Condominium or FlexHome Condominium Ultra Policy to cover a secondary or seasonal dwelling. All eligibility rules apply, except that Section II Coverage is not mandatory for the seasonal or secondary dwelling when: a) The same company insures both the primary and seasonal or secondary residence; and b) The policy number of the initial residence is indicated on the policy covering the seasonal or secondary residence. Note: A seasonal dwelling is a dwelling that is continuously unoccupied for three or more consecutive months during any one-year period. This coverage is not available on a secondary or seasonal residence which is held in trust, as only individuals can be named insureds. Trusts We may add the name of a trust to the Homeowners policy when: a) The residence is a one family dwelling used exclusively for residential purposes; Legal title to the dwelling unit is held by the trust; b) The resident of the residence held in trust includes at least one of the following: o The trustee; o The grantor of the trust; or o The beneficiary of the trust. Endorsement FH9443, Residence Held in Trust, will be added to the policy if the dwelling unit is owned by a trust. Refer to the Optional Coverages Liability section or the Optional Coverages Property section for more information. General Information This information applies to all homeowners programs. Cancellation or Reductions in Limits of Liability or Coverages None of the mandatory coverages in the policy may be cancelled unless the entire policy is cancelled. If insurance is cancelled, reduced, or in the event of foreclosure, we will calculate the earned premium on a pro rata basis. If the insured wants the policy cancelled flat, you must submit the cancellation request within 30 days of the date of issuance of the policy.

19 Idaho Personal Lines - FlexHome 13 General Rules Mandatory Coverages It is mandatory that insurance be written for all coverages provided under both Sections I and II of the Homeowners Policy. Section II of the policy requires coverage for the following exposures. When such exposures exist, refer to the rating section of this manual. a) All additional premises where the named insured or spouse maintain a residence other than business or farm properties; b) All residence employees of the named insured or spouse not covered or not required to be covered by workers' compensation insurance; and c) Incidental office, professional, private school or studio occupancies by the insured on residential premises of the named insured. Minimum Premium A minimum premium will be charged for each policy. Personal Property Coverage During the Course of Construction During the course of construction of the insured dwelling, we will extend coverage for loss to the property described in Coverage C - Personal Property while on the residence premises for the peril of theft and while in transit to the residence premises for certain other causes of loss. Refer to Optional Coverages - Property if coverage for a dwelling in the Course of Construction is requested. Policy Term The period is one year and all premiums in the Homeowners section of this manual are annual premiums. Transfer or Assignment For risks other than FlexHome Renters, we do not allow transfer or assignment of the coverage to a new location or new owner. We will cancel the existing policy and require a new, signed application specific to the new owner or new location. The new application must meet the eligibility requirements of the Homeowners Programs as specified in this manual. Subject to our consent, the coverage provided by a FlexHome Renters policy may be transferred to a new location within the state, subject to any necessary premium adjustment, if it meets the eligibility requirements of the Homeowners Program.

20 Idaho Personal Lines - FlexHome 14 General Rules Waiver of Premium When a policy is endorsed subsequent to the inception date, any additional or return premium less than $5.00 may be waived. Whole Dollar Premium Rule All annual premiums shown on the policy declarations and endorsements will be rounded to the nearest whole dollar. A premium of fifty cents ($.50) or more will be rounded to the next higher whole dollar.

21 Idaho Personal Lines - FlexHome 15 Rating Features Our new FlexHome program is designed to accommodate a wide variety of risks, while providing competitive prices and flexible coverage options to meet your customer s needs. We have achieved this goal by expanding pricing segmentation through the use of multivariate modeling and by-peril rating. We have also streamlined product design, eliminating the need for endorsements that solely increase limits of coverage, as well as introduced high value dwelling and condominium products. Profitability is dependent upon adherence to the pricing, eligibility and underwriting guidelines set forth in this manual. Most Common Construction Definitions Frame: exterior wall of wood or other combustible construction, including wood, iron clad, stucco on wood or plaster on combustible supports. Masonry Veneer: exterior wall of combustible construction veneered with brick or stone. 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 (Disregard floors resting directly on the ground). Mixed (Masonry/Frame) Construction: a combination of both frame and masonry construction shall be classed as frame when the exterior walls of frame construction exceed 33 1/3% of the total exterior wall area; otherwise class as masonry. Protection Information We use a software product called ISO Location to determine such items as protection class and feet to a coastal shoreline. a) The protection class indicated applies in a municipality or classified area where a single class of fire protection is available throughout (e.g., 8, 7, 6, etc.). b) In a classified area where two or more classifications are shown (e.g., 6/9), use the first protection class if there is an alternate, creditable water supply which includes: o o An operational fire hydrant/dry hydrant (public or private); A tanker/pumper truck supplied by the responding fire department and capable of supplying 2,500 gallons or more. c) In a classified area where two or more classifications are shown (e.g., 6/9), the classification is determined as follows:

22 Idaho Personal Lines - FlexHome 16 Rating Features Distance To Fire Station Class Five road miles or less with hydrant distance within 1000 feet * Five road miles or less with hydrant distance beyond 1000 feet 9 Over five road miles 10 *First protection class (e.g., 6/9...use Class 6) All other properties are Class 10 Capping We recognize that a large increase in renewal premium can cause significant customer disruption and dissatisfaction. Therefore, we may utilize a process which caps renewal premium changes for policies that would otherwise experience substantial premium adjustments due to the revision in rating structure and/or product design. Capping does not apply to inflation guard, the aging of discounts, new claim activity or coverage changes. These items are calculated outside of the capping process. Capping does apply to endorsements. Capping occurs only during the first policy term after a renewal premium change. Subsequent renewals are rated at the full premium level. Actual Cash Value Roofing Loss Settlement Endorsement - FH9586 This endorsement is used to insure the roofing on a specified structure on an actual cash value basis rather than a replacement cost basis. A discount will be applied to the policy premium. Available on FHL0003 (FlexHome Value), FH0003 (FlexHome Plus) and FH0005 (FlexHome Ultra). Claims Free Discount - All FlexHome Forms The insured may qualify for a claims free discount when they have been free of chargeable claims for 3 or more years. The available credit varies by the number of years the insured has been claim free between 3 and 5 years. This discount is reduced when a loss occurs.

23 Idaho Personal Lines - FlexHome 17 Rating Features Deductibles Section I Coverage, for all perils including windstorm or hail. A $1,000 deductible is used as the default deductible for the FlexHome Value, FlexHome Plus and FlexHome Ultra forms. A $500 deductible is the default for the FlexHome Condo and FlexHome Condo Ultra forms. A $250 deductible is the default for FlexHome Renters. You may choose to adjust the deductible as follows: Optional Basic Deductibles: $250 (FH0004 only) $500 $2,500 $750 $3,500 $1,000 $5,000 $1,500 $7,500 $2,000 $10,000 Additional Policy Deductibles Vacancy Deductible - If at the time of a covered loss the residence premises has been empty of furnishings and contents for more than 90 consecutive days and the insured did not notify the company that it would be vacant, the Section I deductible is increased to 25% of the Coverage A limit shown on the declaration. Homeowner/Auto Deductible - If a covered physical damage loss caused by the same occurrence damages both the home and automobile that we insure, a single deductible will apply to the sum of the covered losses as a whole. This deductible will be the highest of the applicable deductibles.

24 Idaho Personal Lines - FlexHome 18 Rating Features Insurance Bureau Score The company uses an insurance score as a rating element in all FlexHome policies. We will order an insurance bureau score from LexisNexis during the quoting process. An Insurance Bureau Score (IBS) is a numeric score derived from credit history information. This score does not include information based on address, occupation, income, race, color, marital status, age, gender, religion or national origin. This score is not the same as a score used by lending institutions. Be sure to read the disclosure regarding use of consumer reports to the customer during the quote process. While the customer has the right to withhold disclosure of their social security number, we may not be able to confirm their insurance score should they do so. Include the full name, address, date of birth, phone number and social security number when quoting to avoid inaccurate or unavailable information. You will not receive any information contained within a customer s report; however, you will be notified as to whether a report was available. If you receive a message that a report was unavailable, please verify the information was entered correctly. If not correct, please re-submit before proceeding. A score will be obtained for the primary named insured and co-applicant. We will derive a rating factor for both of these scores. The policy will be rated based on the average of these factors. Extraordinary Circumstances: It is not possible to identify items within a credit report that may be impacted by extraordinary life events. Special consideration may be given individually when we have been made aware of such events that may negatively affect an individual s credit report. Disputes: The Fair Credit Reporting Act (FCRA) gives consumers the right to challenge information in their credit report they believe to be inaccurate. An insured may obtain a copy of their report from LexisNexis Consumer Center by calling The insured should review the credit report for accuracy; if it contains errors, they should immediately call LexisNexis to file a dispute. If the information is confirmed to be inaccurate, the credit bureau must promptly correct those errors. Once the insured has received confirmation that the information in the credit report has been altered or corrected (typically 90 days from the point the dispute was filed and the error confirmed); please contact your underwriter and they will re-run a credit score. If the score is better than the existing score, it will be used in rating.

25 Idaho Personal Lines - FlexHome 19 Rating Features Longevity - All FlexHome Forms The discount applies on both new and renewal business based on years with immediate prior carrier and/or QBE. We will grant 3 years of longevity to an insured that has been with his/her prior carrier for 3 or more years. Multi-Policy Discount - All FlexHome Forms If an insured has a FlexHome policy and one of the following: 1) a Personal Auto policy written through a QBE Americas, Inc. company and/or 2) a Commercial Auto policy written through a QBE Americas, Inc. company, and/or 3) an Umbrella policy written through a QBE Americas, Inc company then the Homeowners policy is eligible for a Multi-Policy Discount. Newly Purchased Home Discount - All Forms Except FlexHome Renters Newly purchased homes within the past three years (regardless of year of construction) are eligible for a premium credit. Professional Group Discount A named insured or spouse who is working full time in one of the professional groups listed below maybe eligible for a Professional Group Discount. The discount is automatically applied to the by-peril premium only. The Professional Group Discount is available in all of our programs. A. Eligible Groups 1. Engineering and Architecture Below are examples of qualifying occupations: Architect Engineering Assistant/Technician Aerospace Engineer Management of Engineering Technical Staff Structural Engineer Chemical Engineer Mechanical Engineer Drafter 2. Science Below are examples of qualifying occupations: Biochemist Criminologist Statistician Chemist Mathematician Indicates Revision QBE Regional Companies 08/2013

26 Idaho Personal Lines - FlexHome 20 Rating Features 3. Health Care Below are examples of qualifying occupations: Orthodontist Chiropractor Pharmacist Health Care Administrator Licensed Practical Nurse Medical Doctor/Physician Optometrist Dentist Physician s Assistant Psychiatrist/Psychologist Registered Nurse Medical or Dental Technician 4. Business and Financial Below are examples of qualifying occupations: Accountant/CPA Auditor Financial CEO/CFO/COO (executive) 5 full time employees minimum Claims Adjuster Restaurant Owner Financial Analyst Management of Professional Staff Branch or Regional management Personnel Management Owner of Retail Enterprise Insurance Agent or Broker 5. Legal Below are examples of qualifying occupations: Attorney/Lawyer Judge 6. Technology Below are examples of qualifying occupations: Computer Scientist Designer - Tech/Indust/Engineer Management of Technical Staff Military Officer Network Engineer or Administrator Webmaster/Web Site Designer Project Manager Software Analyst or Engineer Systems Security Technical Writer Urban/Regional Planner Programmer Indicates Revision

27 Idaho Personal Lines - FlexHome 21 Rating Features 7. Education Insured must be a currently employed, full-time, educator, or on the support staff of a public or private K-12 school or accredited college. Below are examples of qualifying occupations: Audiologist Dean School Speech Therapist Principal Professor School Custodian School Psychologist Librarian Teacher School Counselor All eligible insureds must be employees of the educational district or private school. Employees of independent contractors are not eligible. An example is a bus driver employed by Laidlaw Transit or other similar organization. Eligible colleges include accredited public and private four year colleges and community colleges. Also, the staffs of career schools and colleges of technology that are accredited by the Accrediting Commission of Career Schools and Colleges are eligible. Eligibility does not extend to part-time employees, volunteers or home school teachers. Also, staffs of schools not accredited by one of the associations outlined above are not eligible. Examples may include beauty schools, broadcasting schools and Montessori schools. B. Professional Group Discount Eligibility Rules 1. Insured must be employed full-time or is a member in good standing of the profession. 2. The discount applies to both primary and secondary locations of the professional; if insured with us. 3. All current underwriting rules for our Homeowner program apply. There are no special underwriting rules for the Professional Group Discount. 4. Because the discount applies only to the professional s policy, new policies created for other household members are issued without the discount. The discount is not applicable when: a) a member of the household moves away and he or she is issued a separate policy; or b) a new policy for anyone other than the professional is issued. Note: We do not non-renew when an insured is no longer eligible for the discount. Either the discount is removed or a new, non-discounted policy is issued. C. Professional Group Discount Premium Determination 1. All policy forms are eligible to receive the Professional Group Discount. 2. The discount will be applied to the by-peril premium of the policy only. All additional premiums, including endorsements, do not receive the discount. 3. Only one Professional Group Discount may be applied to an individual s policy. Indicates Revision

28 Idaho Personal Lines - FlexHome 22 Rating Features Residential Protection Systems - All FlexHome Forms Premium credits may be allowed for the installation of a burglar alarm, fire alarm or automatic sprinkler system in the dwelling, based on the applicable protection system. These credits apply to the applicable peril premium and not to the total policy premium. Central Station System is a premises alarm connected to an independent security firm monitoring facility. Central Station Fire Alarm and Burglar Alarm Central Station Fire Alarm or Burglar Alarm A Direct System is a premises alarm connected directly to locally responding fire and/or law enforcement units. Fire Alarm that alerts the Fire Department and Burglar Alarm that alerts Police Fire Alarm that alerts the Fire Department or Burglar Alarm that alerts Police Department A Local System is a premises alarm connected to the home but is not connected to any independent security firm or local fire or law enforcement units. Local Fire Alarm and Burglar Alarm within the dwelling Local Fire Alarm or Burglar Alarm within the dwelling Sprinklers: Automatic Sprinkler System with sprinklers in all areas of the dwelling Limited Automatic Sprinkler System (sprinklers not installed in bathrooms, closets, attics, and attached structures) A Protected Community System is one where access to the community or building is monitored at all times using one of the following: Security Guards; Locked Gates; or A perimeter security system using closed circuit TV cameras, motion detection systems Under all types of systems, proper identification is required to access the protected community and visitors are announced at the entrance. Indicates Revision

29 Idaho Personal Lines - FlexHome 23 Rating Features Seasonal or Secondary Residence Premises Liability Liability coverage is not offered for Seasonal or Secondary Residences, and must be extended from the primary residence policy. Refer to General Rules Section - Secondary or Seasonal Residence Premises for definitions and rules, and to Optional Coverages-Liability Section - Additional Residence Premises Liability. Roof Type Credit / Surcharge - FlexHome Value, FlexHome Plus and FlexHome Ultra Roofs surfaced with the following materials are eligible for credits, subject to age of roof and underwriting approval: Slate Tile (Clay, Concrete, Mission, Spanish) Those roof types listed below are subject to a surcharge: Wood Shake or Shingle T-Lock Shingles Those roof types listed below are subject to a surcharge and are not acceptable for new business submissions and are only acceptable on renewal business with underwriting approval Asbestos Diamond Shingles Built Up/ Tar Gravel Rolled Roof/Single Ply Indicates Revision QBE Regional Companies 08/2013

30 Idaho Personal Lines - FlexHome 24 Rating Features Homeowners Loss Surcharge - All FlexHome Forms When the insured/applicant has a loss, occurring within the last 36 months, we will apply a surcharge to the base premium. The Surcharge will apply separately to each insured location. At each renewal, we will re-calculate the loss surcharge for the prior 36 months. The first catastrophe incident, as designated by the Insurance Services Office or QBE Americas Inc., will not besurcharged. We will not amend a policy mid-term to add or delete a loss surcharge. Solid Fuel Burning Appliance / Woodstove Surcharge A surcharge will be applied when the home has an eligible woodstove or other type of solid fuel burning appliance on the premises. This includes, but is not limited to, indoor and outdoor stoves, fireplace inserts and pellet or corn burning devices. Heating devices that share a common flue are ineligible. This includes outdoor burners. This surcharge does not apply to FH0004 (FlexHome Renters) or FH0006 (FlexHome Condo) policies. Indicates Revision QBE Regional Companies 08/2013

31 Idaho Personal Lines - FlexHome 25 Rating Features Updated Home Discounts A home whose electrical, heating, plumbing, or water heater system has been updated since the original year of construction may be eligible for discounts. Each system has its own set of update factors, by-peril, which may qualify for a premium reduction (see chart below): System Years Since Update Minimum Year of Construction By Peril Discount Range Applicable Program Electrical Within last 20 yrs. Pre % FlexHome Value, FlexHome Plus, FlexHome Ultra Heating Within last 8 yrs. Over 10 years ago 1-5% FlexHome Value, FlexHome Plus, FlexHome Ultra Plumbing Within last 20 yrs. Pre % FlexHome Value, FlexHome Plus, FlexHome Ultra Water Heater Within last 10 yrs. Over 10 years ago 1-10% FlexHome Value, FlexHome Plus, FlexHome Ultra FlexHome Condo & Condo Ultra The age of the home must meet the minimum age requirement for a discount. For example, a home constructed in 1985 will not earn a discount for updates to the electrical or plumbing systems. The systems, as originally constructed, are still expected to be safe and functional. Therefore, an update does not lower the likelihood of loss. Water heater and heating system upgrades only earn a credit on homes over 10 years old. The discount is applied by-peril to reflect the loss reduction impact of the update, not the full policy premium. For example, an update to the electrical system earns a discount on the Fire Peril only. The discount reduces slightly over time to reflect the aging of the updated system.

32 Idaho Personal Lines - FlexHome 26 Optional Coverages Property Additional Insured Residence Premises - FH9441 The endorsement extends coverage to an additional insured, provided such person has an interest in the insured premises specified in the declarations. Coverage is applicable to: Section I - Dwelling and Other Structures. Section II - Personal Liability and Medical Payments but only with respect to the designated premises. No Charge. Not available on FH0004. Additional Interests Residence Premises - FH9690 This endorsement names other persons or organizations that also have an interest in the residence premises specified in the declarations. The named interests are not granted coverage, but will be notified in the event that we terminate the policy. No Charge. Not available on FH0004. Assisted Living Care Coverage - FH9459 For an additional premium the policy may be endorsed to provide certain coverage for a relative of an insured who resides in an assisted living care facility located in a state that we are licensed to write homeowners business. Coverage includes: a) Loss to personal property of a relative living in the assisted living care facility; b) Increased limits for items such as but not limited to eye wear, contact lens, false teeth and dentures; c) Additional living expenses if the living facility becomes not fit to live in; and d) Bodily injury and property damage to others; excluding facility staff or professionals. This coverage applies only if the person listed: a) Is related to an "insured" by blood, marriage, or adoption; b) Is not a member of your household; and c) Regularly resides in the living care facility listed in the Assisted Living Care Coverage Schedule. Available Limits: Coverage C: $5000 minimum; $50,000 maximum limit. Coverage may be increased in increments of $5000. Coverage E: $100,000; or $300,000 This endorsement provides the following special coverage limits:

33 Idaho Personal Lines - FlexHome 27 Optional Coverages Property Additional Coverage C Special Limits of Liability: a) $1500 for each hearing aid or other similar audio enhancement device; b) $300 for each pair of eyeglasses; c) $250 for all contact lenses; d) $500 for all false teeth or dentures; e) $250 for each medic-alert device; f) $250 for all walking aids and devices such as walkers or canes; and g) $2500 for each wheelchair, motorized scooter, or any other similar device. Coverage D - Loss Of Use: a) Additional Living Expense: $500 per month for no more than 12 consecutive months. b) Civil Authority Prohibits Use: 30 days, up to $50 per day. c) Power Interruption: One Week (after 48 hour waiting period). Special Deductible Provision: $100 for the first loss in any given annual policy period. $250 for subsequent losses in the same annual policy period. Course of Construction - FH9401 Forms FHL0003 and FH0003 and FH0005 may be endorsed to provide coverage for loss of building materials including but not limited to plumbing, heating and lighting fixtures provided the material is or will become part of the permanent dwelling. We provide coverage for materials: a) Located at the residence premises for theft; b) In transit, for loss or damage including but not limited to loss which is caused by fire, lightning, cyclone, tornado; derailment or overturning of vehicles and theft of entire shipping packets; c) In transit by any motor vehicle, motor carrier or vessel used to transport building materials including but not limited to ferries, railroad cars, or barges for stranding, sinking, or collision; all for which the insured becomes legally liable. We will not pay more than $10,000 for each occurrence of any loss. A $100 deductible applies. This coverage applies only while the new dwelling is under construction and is not available for remodeling projects. When a dwelling is in the course of construction, our limit of liability for personal property usually located at a residence other than the residence premium is 100% of the limit of liability for Coverage C. Coverage ceases upon occupancy or when cancelled by the insured. The premium for this coverage is fully earned. Not available on FH0004, FHC0006 and FH0006.

34 Idaho Personal Lines - FlexHome 28 Optional Coverages Property Coverage A Increased Limits (Building Additions and Alterations) - FH0006 and FHC0006 Certain amounts of Coverage for Building Additions and Alterations are included with each condominium policy at no additional charge. Program Coverage A amount included FlexHome Condominium Ultra FHC0006 $10,000 FlexHome Condominium FH0006 $5000 Additional limits may be purchased. Increases to Coverage A must be in increments of $1000. This coverage includes: Alterations, appliances, fixtures and improvements which are part of the building contained within the "residence premises;" Items of real property which pertain exclusively to the "residence premises"; Property which is the insured's insurance responsibility under a condominium agreement; or Structures owned solely by the insured, other than the "residence premises", at the location of the "residence premises". Coverage C Personal Property Increased Limits The Coverage C limit may be increased or decreased from the default limits as follows: Minimum Maximum FlexHome Ultra and Plus 50% of Coverage A 100% of Coverage A FlexHome Value 30% of Coverage A 100% of Coverage A

35 Idaho Personal Lines - FlexHome 29 Optional Coverages Property Extended Replacement Cost FH9615 for FlexHome Value FHL0003 makes total replacement cost an additional 25% of the Coverage A amount. FH9616 for FlexHome Plus FH0003 makes total replacement cost an additional 50% of the Coverage A amount. FH9617 for FlexHome Ultra FH0005 makes total replacement cost an additional 100% of the Coverage A amount. The FlexHome Policy may be endorsed to provide additional amounts of replacement cost coverage, in the event a covered loss to the dwelling exceeds the Coverage A amount. Each policy must meet the following requirements: Written on a Form FHL0003 or FH0003 or FH0005 policy; and Insured to 100% of replacement cost. Extended Replacement Cost coverage is not available if any of the Modified Functional Replacement Cost forms (FH9534, FH9535, FH9536) are selected.

36 Idaho Personal Lines - FlexHome 30 Optional Coverages Property Flexible Coverages A unique feature of the FlexHome program is the ability for our insured s to tailor their insurance coverage by selecting flexible limits of coverage for the items they want to insure without adding more endorsements to their policy. The tables on this and the following pages display the specific amounts of coverage included with each individual program and the available optional limits. FHL0003 FH0003 FH0005 FH0004 FH0006 FHC0006 Coverage C Special Limits FlexHome Value FlexHome Plus FlexHome Ultra FlexHome Renters FlexHome Condominium FlexHome Condominium Ultra Money Securities, Records & Related Watercraft with Trailers Trailers Not used with Watercraft Included $250 $250 $1000 $250 $250 $1000 Options $500 $500 $2500 $500 $500 $2500 $1000 $1000 $5000 $1000 $1000 $5000 $2500 $2500 $2500 $2500 Included $250 $1500 $5000 $1500 $1500 $5000 Options $500 $2500 $7500 $2500 $2500 $7500 $1000 $5000 $10,000 $5000 $5000 $10,000 $2500 $7500 $12,500 $7500 $7500 $12,500 $5000 $10,000 $15,000 $10,000 $10,000 $15,000 Included $500 $1500 $2500 $1500 $1500 $2500 Options $1000 $2500 $5000 $2500 $2500 $5000 $2500 $5000 $7500 $5000 $5000 $7500 $10,000 $10,000 Included $500 $1500 $3000 $1500 $1500 $3000 Options $1000 $2500 $5000 $2500 $2500 $5000 $2500 $5000 $7500 $5000 $5000 $7500 $10,000 $10,000 Included $500 $1500 $5000 $1500 $1500 $5000 Options $1000 $2500 $7500 $2500 $2500 $7500 Jewelry, Furs $2500 $5000 $10,000 $5000 $5000 $10,000 $5000 $7500 $15,000 $7500 $7500 $15,000 $7500 $10,000 $17,500 $10,000 $10,000 $17,500 $10,000 $12,500 $20,000 $12,500 $12,500 $20,000 $15,000 $15,000 $15,000 $17,500 $17,500 $17,500 $20,000 $20,000 $20,000

37 Idaho Personal Lines - FlexHome 31 Optional Coverages Property Coverage C Special Limits FHL0003 FH0003 FH0005 FH0004 FH0006 FHC0006 FlexHome Value FlexHome Plus FlexHome Ultra FlexHome Renters FlexHome Condominium FlexHome Condominium Ultra Included $500 $2500 $5000 $2500 $2500 $5000 Options $1000 $5000 $10,000 $5000 $5000 $10,000 Firearms $2500 $7500 $15,000 $7500 $7500 $15,000 $5000 $10,000 $20,000 $10,000 $10,000 $20,000 $7500 Silverware Business Property - On Premises Included $500 $2500 $5000 $2500 $2500 $5000 Options $1000 $5000 $10,000 $5000 $5000 $10,000 $2500 $7500 $15,000 $7500 $7500 $15,000 $5000 $10,000 $20,000 $10,000 $10,000 $20,000 Included $250 $2500 $10,000 $2500 $2500 $10,000 Options $1000 $5000 $15,000 $5000 $5000 $15,000 $2500 $7500 $20,000 $7500 $7500 $20,000 $5000 $10,000 $25,000 $10,000 $10,000 $25,000 Business Property - Away from Premises Included Options $250 $500 $10,000 $500 $500 $10,000 $500 $1000 $1000 $15,000 $1000 $1000 $15,000 $2500 $2500 $2500 $2500 $5000 $5000 $5000 $5000 Electronic Apparatus - used primarily for personal and while in a motor vehicle Electronic Apparatus - used primarily for business - not in a motor vehicle Included $250 $1500 $1500 $1500 $1500 $1500 Options $1000 $2500 $2500 $2500 $2500 $2500 $2500 $5000 $5000 $5000 $5000 $5000 Included $250 $1500 $1500 $1500 $1500 $1500 Options $1000 $2500 $2500 $2500 $2500 $2500 $2500 $5000 $5000 $5000 $5000 $5000

38 Idaho Personal Lines - FlexHome 32 Optional Coverages Property Additional Coverages Section I FHL0003 FH0003 FH0005 FH0004 FH0006 FHC0006 FlexHome FlexHome FlexHome FlexHome FlexHome FlexHome Condominium Value Plus Ultra Renters Condominium Ultra Fire Department Service Charge Loss Assessment - Residence Premises Landlord Furnishings Ordinance or Law Refrigerated Products Included $1500 $3000 $3000 $3000 $3000 $3000 Options $3000 $5000 $5000 $5000 $5000 $5000 Included $1000 $2500 $5000 $2500 $2500 $5000 Options $2500 $5000 $10,000 $5000 $5000 $10,000 $5000 $10,000 $15,000 $10,000 $10,000 $15,000 $10,000 $15,000 $20,000 $15,000 $15,000 $20,000 $20,000 $25,000 $20,000 $20,000 $25,000 $25,000 $50,000 $25,000 $25,000 $50,000 $50,000 $50,000 $50,000 N/A Not Not Included $2500 $5000 Not Available $5000 Available Available Options $5000 $10,000 $10,000 Included 5% 10% 20% 10% 10% 20% Options 10% 25% 25% 25% 25% 25% 25% 50% 50% 50% 50% 50% Included $250 $500 $2000 $500 $500 $2000 Options $500 $1000 $5000 $1000 $1000 $5000 $1000 $2000 $7500 $2000 $2000 $7500 $2000 $5000 $10,000 $5000 $5000 $10,000 Modified Functional Replacement Cost FH9534 for FlexHome Value FHL0003 FH9535 for FlexHome Plus FH0003 FH9536 for FlexHome Ultra FH0005 This endorsement provides loss settlement on a functional replacement cost basis for the dwelling in the event a covered loss. The dwelling must meet all Homeowner eligibility requirements and be insured to 100% of functional replacement cost. See the endorsement for additional requirements. Not available if any of the Extended Replacement Cost (FH9615, FH9616, FH9617) forms are attached.

39 Idaho Personal Lines - FlexHome 33 Optional Coverages Property Limited Coverage For Earthquake - FH9315 Earthquake coverage is available on all Forms for frame construction. When a home includes masonry veneer construction materials, the home is rated as frame. However, the masonry veneer construction materials are excluded from coverage. All other construction types, including but not limited to masonry, fire resistive, non combustible, solid brick, stone or concrete dwellings are not eligible for earthquake coverage. If an earthquake occurs in Idaho or any adjacent state, no coverage will be added for 72 hours within a 100 mile radius of the epicenter after a quake measuring less than 5.0 on the Richter scale or for 30 days within a 100 mile radius of the epicenter after a quake measuring 5.0 or more on the Richter scale. We may reduce or extend the duration of the moratorium at our discretion. We will notify you of any alteration to the conditions of the initial moratorium. The policy may be endorsed to provide coverage against a loss resulting from the peril of earthquake. This peril will apply to all Section I Coverages at the same limits provided in the policy. Dwelling: The dwelling coverage limit will always be the same as the Coverage A limit. The following are not considered a dwelling: Outbuildings; Appurtenant structures; Swimming pools; Masonry fences and walls not necessary for the structural integrity of the dwelling; Walkways and patios not necessary for regular ingress or egress from the dwelling; Awnings or other patio covers; Decorative or artistic features including plaster if other covering would be more cost-effective; Landscaping; Masonry chimneys. The policy provides replacement of a damaged masonry chimney with a non-masonry, earthquake resistant chimney. Contents: The contents limit will always be the same as the Coverage C limit for Personal Property. Contents coverage does not included coverage for glassware, china, porcelain or ceramic items, artwork or other decorative items. Additional Living Expense: The limit is $5000 to cover expenses while the dwelling remains uninhabitable because of physical loss or damage by earthquake. Deductible: Our deductible for earthquake coverage is 10% of the limit of each coverage and is subject to a $500 minimum. The Earthquake deductible may be increased to 15%, 20% or 25%. Territories: Zones 2,3,4 & 5 are assigned for the state of Idaho. Indicates Revision QBE Regional Companies 08/2013

40 Idaho Personal Lines - FlexHome 34 Optional Coverages Property Home Computer Coverage - FH9314 The Homeowners policy may be endorsed to provide specific coverage on a home computer. Coverage is provided against risks of direct physical loss, with certain exceptions. The endorsement covers computers, peripheral devices, purchased software, and media. No coverage is provided for stored data. Coverage is included in the FH and FHC policies at no charge. Available for FHL0003, FH0003, FH0004 and FH0006 only. Increased Limit on Personal Property in Other Residences - FH9350 The normal limit of 10% of Coverage C may be increased with company underwriting approval. Limited Condominium Rental - FH9533 Provides Section I and Section II coverage for a condominium that is occasionally rented to others. Specifically, the endorsement allows buy back of theft coverage for unscheduled personal property other than money, securities and jewelry. Occasional rental is defined as a unit which is rented or held for rent for not more than four weeks during any 12-month period. Loss Assessment Coverage - Additional Locations - FH9635 The FlexHome policy provides loss assessment for primary locations. Our policies may be endorsed to provide increased limits of loss assessment for additional locations for which the insured may be liable. Coverage may be increased in increments of $5000 up to a maximum of $50,000.

41 Idaho Personal Lines - FlexHome 35 Optional Coverages Property Other Structures Increased Limits - FH9448 The limit of Coverage B Other Structures may be increased or decreased from the default level as follows: Minimum Maximum FlexHome Ultra and Plus 2% of Coverage A 100% of Coverage A FlexHome Value 2% of Coverage A 50% of Coverage A Available on FHL0003, FH0003 and FH0005 Permitted Incidental Occupancies Residence Premises - FH9442 This endorsement provides coverage for an incidental business conducted by an insured on the residence premises. When coverage is extended to cover a permitted incidental occupancy in a detached structure on the residence premises, the premium is determined by adding the following: Premium for increased Other Structure on the residence Premises; and Premium for the liability exposure. Refer to Optional Coverage Liability for rules and rates for the liability exposure.

42 Idaho Personal Lines - FlexHome 36 Optional Coverages Property Personal Property Replacement Cost - FH9650 Under the policy, losses under Coverage C are settled on an actual cash value. Personal Property Replacement Cost coverage extends coverage to include the full cost of repair or replacement without deduction for depreciation. Replacement Cost Contents Coverage is applicable only to Personal Property damaged or destroyed by the perils insured against. The coverage is available for both primary and secondary locations. The Coverage C amount is not automatically increased after a loss occurs. Replacement Cost Contents Coverage also applies to articles or classes of property separately described and specifically insured in this policy, as listed in the Scheduled Personal Property endorsement. Certain types of personal property are not eligible for replacement cost settlement. These types of property are specified in the Personal Property Replacement Cost endorsement and include such items as antiques, fine arts, memorabilia, and articles not maintained in good or workable condition. This coverage is included in FlexHome Plus, FlexHome Ultra, FlexHome Condominium and FlexHome Condominium Ultra policies at no charge. Special Personal Property Coverage FH9115 or FH9731 By adding Special Personal Property Coverage to a FlexHome Plus or FlexHome Condominium Policy, we cover personal property against risks of direct physical loss, subject to certain exclusions. This coverage is included in the FlexHome Ultra and Ultra Condo Programs. It is not available in the FlexHome Value or FlexHome Renters Programs. Pleasure Boat Supplemental - FH9845 This endorsement provides physical damage coverage only. Coverage is available for: Motors, including their equipment; Boats, watercraft, rowboats, canoes, pontoons, sailboats, or other boats; and Equipment and attachments, including boat carriers and trailers, used or designed for use with the above. Coverage is provided on a scheduled basis. *Refer to the Watercraft section of this manual for information regarding eligibility and liability rates.

43 Idaho Personal Lines - FlexHome 37 Optional Coverages Property Residence Held In Trust - FH9443 For an additional premium the Residence Held In Trust endorsement may be added to any FlexHome policy. When real and personal property is held in trust, coverage for the trust and trust members is afforded by this endorsement. The endorsement provides property coverage for the trust for: Coverage A Dwelling; and Coverage B Other Structures The endorsement provides the following coverage for the insured, trust and trust members for: Coverage C Personal Property while the property is on the residence premises Coverage D Loss of Use relative to Additional Living Expenses and Civil Authority Prohibiting Use This coverage applies to trust members when they are not considered the named insured, as defined by the policy and are not related to the insured or do not regularly reside in the residence held in trust. Refer to Optional Coverages Liability for more information relating to on-premises liability coverage for trust members and premium charges. Home and Personal Security - FHB9455 The FlexHome Policies may be endorsed to provide coverage to enhance the security of the insured s property. The Home and Personal Security endorsement provides: $10,000 Credit card, Fund Transfer Card, Forgery and Counterfeit Money for fraudulent or unauthorized use of credit cards, checks or transfer of funds from an bank account; $500 Key and Lock replacement for lost or stolen keys or garage door transmitters; $15,000 Identity Fraud Expense Coverage for expenses incurred by an insured as a direct result of identity fraud first discovered or learned of during the policy period. Coverage is only available on policies with primary occupancy. Additional benefits provided by this coverage include: o ID Theft Help Line. The Help Line will refer the insured to a Case Management designee o who will provide counseling on how to manage: Identity theft, account take over or inquiries arising from the loss or theft of non-public personal information, such as the loss of a credit card, ATM card, checkbook, drivers license or passport. $7500 Theft Reward, for information leading to the arrest and conviction of the person committing the crime; $3000 for the arrest and conviction for any other crime; $1500 Fire Extinguisher Recharge/Replacement, for expenses incurred to replace or recharge a fire extinguisher when used to combat a fire; $1500 Computer Records, to restore computer records when damaged by a covered peril; $7500 Mortgagee Expense, in payments of no more than $500 per month to reimburse the increased monthly mortgage expenses incurred as a result of an increase in interest rate for a loan. $3000 for Mortgage Acquisition Costs. The deductible for Identity Fraud Expense Coverage is $250. No other deductible applies.

44 Idaho Personal Lines - FlexHome 38 Optional Coverages Property Scheduled Personal Property Scheduled Personal Property may be added to the Homeowners Policy. Please refer to the Scheduled Personal Property Section for rules, rates and forms. Specific Structures Away from the Residence Premises - FH9392 The policy may be endorsed to cover specific, scheduled Other Structures away from the residence premises with Company underwriting approval. Available on FHL0003 (FlexHome Value), FH0003 (FlexHome Plus) and FH0005 (FlexHome Ultra). Structures Rented to Others Residence Premises - FH9440 Structures rented for dwelling purposes may be written by charging a premium for both property and liability coverages. Available for one or two family occupancy on FHL0003 (FlexHome Value), FH0003 (FlexHome Plus) and FH0005 (FlexHome Ultra) only. Student Away at School Coverage - FH9527 For an additional premium, coverage may be added for an insured who is a full-time student living away from the residence premises while enrolled in school. Coverage applies to bodily injury, property damage and personal injury for which the student is liable and to covered property usually located at the student s school residence during the student's period of enrollment, whether the student resides in on-campus, school-sponsored housing or in off-campus housing. Available Limits: Coverage C Limit: $5000 minimum $20,000 maximum, in increments of $5000 Coverage E Limit: Matches the Coverage E limit on the primary policy. Special Deductible Provision: $100: Theft of Bicycles & Electronic Equipment (computers, electronic notebooks, TVs, DVD players, sound reproduction equipment). Policy Deductible: Theft of cell phones as well as electronic equipment used primarily to play preprogrammed, commercially available electronic games. $50: Theft of all other covered personal property. No Deductible: For losses caused by other covered perils.

45 Idaho Personal Lines - FlexHome 39 Optional Coverages Property Unit-Owners Coverage A Special Coverages - FH9732 The coverage broadens the Section I Perils Insured Against for Coverage A to cover risks against direct physical loss with certain exclusions. Available on FH0006 (FlexHome Condominium) only. Unit-Owners Rental to Others - FH9733 Covers loss by theft of property while the unit is rented to others. Covered property includes unscheduled personal property except money, securities and jewelry. Also provides Section II coverages for the unit-owner while the property is rented. Available on FH0006 (FlexHome Condominium) only. Water Back Up and Sump Overflow - FH9955 Coverage may be provided for loss caused by water which backs up through sewers or drains or which overflows from a sump and which is not caused by the negligence of any insured. All other water damage exclusions still apply. This coverage is not available for risks located in flood hazard areas. Coverage may be added to an existing policy or a renewal. We do not offer Water Backup coverage for homes located in Flood Zones A or V as defined by the National Flood Insurance Program (NFIP). If this endorsement is added after the effective date of the current policy period, we will not pay for otherwise covered loss or damage if it occurs or is in progress within 30 days of the effective date of the addition of this endorsement to your policy. Once this endorsement becomes a part of your policy, if you request a subsequent increase in the limit for the coverage provided, such increase in limit will not be available to pay for covered loss or damage that occurs or is in progress within 30 days of the effective date shown on the Declarations issued for such increase in coverage. During that 30 day period, the applicable limit for covered loss under this endorsement will be the limit that applied prior to the request for the limit increase. Coverage Limits Available: $1000 $2500 $5000 Increments of $5000 up to $95,000 Select the deductible option for this coverage. A Water Back Up deductible must be equal to or higher than the Section I deductible.

46 Idaho Personal Lines - FlexHome 40 Optional Coverages Property Optional Water Back Up Deductibles: $500 $1000 $1500 $2000 $2500 $5000 $7500 $10,000 Mitigation Credits If any of the following water back up and sump overflow mitigation measures are installed, a credit to the water back up premium will apply. Only one of the following mitigation measures may be selected. Mitigation Measures Percent Credit Battery powered sump pump back up 10% Water powered sump pump back up 10% Sump Pump Alarm 5% Definitions: Battery System: A second battery is activated to draw water from the sump pit to the outdoors. Water System: A second float is activated when water rises too high, brings municipal water under pressure through the system to force water into the sump to the outdoors. Alarm system: An Alarm is sounded to let the homeowner know that the sump is non-operational.

47 Idaho Personal Lines - FlexHome 41 Optional Coverages Liability Personal Liability and Medical Payments Coverage E, Personal Liability, covers payment on behalf of any insured for all sums that the insured becomes legally obligated to pay as damages because of bodily injury or property damage arising out of an insured's premises or personal activities. 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. The Limits of Liability and Medical Payments must be uniform for all exposures covered by the policy. All Liability limits are per occurrence. All Medical Payments limits are per each person. Our maximum Coverage E limit is $1,000,000. Our maximum Coverage F limit is $10,000. The FlexHome Value, FlexHome Plus, FlexHome Renters and FlexHome Condominium programs include $100,000 of Coverage E and $1,000 of Coverage F in the basic policy. The FlexHome Ultra and FlexHome Condominium Ultra programs include $300,000 of Coverage E and $3,000 of Coverage F in the basic policy. You may purchase increased limits of liability for an additional premium. Increased Limits Residence Premises Limit of Liability $100,000 (included) $200,000 $300,000 $400,000 $500,000 $1,000,000 Increased Medical Payments Limits $1000 (included) $2000 $3000 $4000 $5000 $10,000 (FlexHome Ultra and FlexHome Condominium Ultra only)

48 Idaho Personal Lines - FlexHome 42 Optional Coverages Liability Additional Insured Residence Premises - FH9441 This endorsement extends coverage to an additional insured, provided such person has an interest in the insured premises specified in the declarations. Coverage is applicable to: Section I Section II Dwelling and Other Structures Personal Liability and Medical Payments but only as respects to the designated premises. No charge, but not available on FH0004. Additional Residence Premises Liability - Occupied by Insured - FH9381 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. Additional Residence Rented to Others - FH9470 The policy may be endorsed to provide coverage when an additional residence is rented to others. Business Pursuits - FH9471 Coverage may be provided for the personal 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. Classifications 1. Clerical Office Employee - An employee whose duties are confined to keeping the books or records or conducting correspondence, engaging wholly in office work where such books, records or correspondence are handled, having no other duty of any nature in or about the employer's premises. This class applies only to persons who are employed exclusively in separate buildings or on separate floors which are separated from all other work space of the employer by structural partitions and within which no work is performed other than clerical office duties. 2. Salesman, Collector or Messenger - Who does not conduct installations, demonstrations or servicing operations. 3. Salesman, Collector or Messenger - Who conducts installations, demonstrations or servicing operations. 4. Teacher - Athletic, laboratory, manual training, physical training or swimming instruction, excluding liability for corporal punishment of pupils. 5. Teacher - Not otherwise classified, excluding liability for corporal punishment of pupils. Note: Teachers - Liability for corporal punishment of pupils is not available. Coverage for occupations not classified above is not available.

49 Idaho Personal Lines - FlexHome 43 Optional Coverages Liability Farmers Personal Liability - FH includes Personal Injury. Use with FH0003, FH0005 and FHC0006, or if Personal Injury selected for FH0003L, FH0004 or FH0006. Farmers Personal Liability - FH9373 Use with FHL0003, FH0004 or FH0006 without Personal Injury. When the insured has a farm away from the residence premises and farming is not the insured's primary occupation, the homeowners policy may be endorsed to provide liability for this exposure. The maximum number of farms we will cover under these endorsements (FH9473 and FH9373) is five. The following may not be covered by this endorsement: Farms where the principal purpose of the farm is: a) To supply commodities for manufacturing or processing by the insured for sale to others, such as creameries and dairies (but not dairy farms). The word "processing" does not apply to the slaughtering and dressing of livestock, or to operations such as bunching vegetables or crating berries. b) To operate freezing or dehydrating plants or poultry factories. c) Farms where the principal purpose of the farm is the raising and using of horses for racing purposes. d) Incorporated farms. Incidental Farming Personal Liability - FH9472 This endorsement covers incidental farming conducted on the residence premises or away from the residence premises at a specified location. It is not applicable if farming operations are for business purposes. Refer dwellings with incidental farming for underwriting consideration.

50 Idaho Personal Lines - FlexHome 44 Optional Coverages Liability Permitted Incidental Occupancies Residence Premises (offices, professional, private school or studio use) - FH9442 We may extend liability for permitted incidental occupancies to a primary residence or an additional residence occupied by the insured, provided that the premises is occupied principally for residential purposes and there is no other business conducted on the premises. The following endorsements cover permitted incidental occupancies including but not limited to: Incidental offices; Professional or private school and studios; and Music, dance or photography or other instructional purposes. On premises liability coverage is permitted provided that the residence premises is: Occupied principally for dwelling purposes; and There is no other business conducted on the premises. No liability coverage is provided in these endorsements for employees of the incidental business described or for corporal punishment to any student. If the permitted incidental occupancy is located in another structure on the residence premises, Coverage B does not apply to that structure. See the Optional Coverage Property Section for rating the property exposure. Permitted Incidental Occupancies - Other Residence - FH9643 This endorsement covers permitted incidental occupancies by the insured in other residences. Personal Injury - FH9482 This endorsement provides coverage for personal injury such as false arrest, libel or invasion of privacy. Personal Injury is included in the FH 0003 (FlexHome Plus), FH 0005 (FlexHome Ultra) and FHC 0006 (FlexHome Condominium Ultra) programs. If purchased, the limit is equal to the current Coverage E limit of the FlexHome policy. Available on FHL0003, FH0004 and FH0006 only.

51 Idaho Personal Lines - FlexHome 45 Optional Coverages Liability Residence Held In Trust - FH9443 For an additional, premium Residence Held In Trust FH9443 may be added to the Homeowner policy. The grantor, beneficiary or trustee may be covered for: Coverage E Personal Liability; and Coverage F Medical Payments to Others only with respect to bodily injury or property damage arising out of the ownership, maintenance or use of the insured location owned by the trust. Coverage is available in all FlexHome programs.

52 Idaho Personal Lines - FlexHome 46 Scheduled Personal Property General Rules The General Rules listed in the Homeowners section also apply to the Scheduled Personal Property coverages described in this section. Coverage for scheduled personal property (inland marine) is only available as an endorsement to homeowners coverage. We do not write mono-line scheduled personal property coverage. Blanket Coverage All scheduled personal property classes may be covered on a blanket basis except: Agreed Value Jewelry; Jewelry Broad Pair and Set Physical Aids (other than Hearing Aids); Specialty collections; and Specialty collections with breakage. The maximum amount we will pay for any one item under blanket coverage is $2500. If coins or stamps are covered on a blanket basis, we will pay no more than $1000 on any unscheduled coin collection and no more than $250 for any one stamp, coin or individual article. Coverage Provisions Coverage for all scheduled classes is all risk coverage against direct physical loss with certain exclusions. These exclusions are: Wear and tear, gradual deterioration or inherent vice; Insects or vermin; War Risks as defined in the War Clause; and Nuclear Hazard as defined in the Nuclear Exclusion Clause. Additional exclusions apply to Coins, Fine Arts and Stamps. Please see those additional exclusions in the specific class description pages.

53 Idaho Personal Lines - FlexHome 47 Scheduled Personal Property Eligible Property The following classes are for the most common types of scheduled personal property. Coverage may be available for other property types. Please consult your underwriter for approval prior to submission for any class not listed. Property Agreed Value Jewelry Cameras Fine Arts Furs Guns Jewelry Jewelry in Vaults Physical Aids (Other than Hearing Aids) Specialty Collections Sporting Equipment Bicycles Coins Fine Arts (w/breakage) Golf Equipment Home and Garden Equipment Jewelry Broad Pair & Set Musical Instruments Silverware Specialty Collections (w/breakage) Stamps *Refer to the individual class description for coverage information General Information Deductible No deductible applies to scheduled personal property. Minimum Premium The minimum premium for the combined total of scheduled personal property endorsed on a homeowners policy is $10. Territory Scheduled personal property is covered worldwide, except for fine arts. Coverage for fine arts is limited to the United States and Canada.

54 Idaho Personal Lines - FlexHome 48 Scheduled Personal Property Whole Dollar Premium All annual premiums shown on the policy declarations and endorsements are rounded to the nearest whole dollar. A premium of fifty cents ($.50) or more will be rounded to the next higher whole dollar. Agreed Value Jewelry Use Scheduled Personal Property Endorsement - FH9461 Coverage: Eligible property includes jewelry written on an agreed value basis. With agreed value coverage, covered property losses are settled as follows: Total Loss: If the itemized article is totally destroyed or lost, we will pay the amount of coverage shown in the Schedule for that item. Partial Loss: If the itemized article is partially damaged, we will pay either: - To restore the item to its condition just before the loss; or - The difference between its market value before and after the loss. Bicycles Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes all types of bicycles. Ineligible property includes motorized bicycles, motor powered conveyances or vehicles of any kind. Cameras Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes: Cameras, projection machines, and related equipment. Movable sound equipment related to the recording, projection, reproduction and operation of moving pictures. Home video cameras, playback recorders, and related equipment. Miscellaneous property such as films, binoculars, telescopes, microscopes and similar equipment which may be used with cameras or photographic equipment, when insured with such equipment. Ineligible property includes: Television cameras and equipment. Coin or token operated devices. Cameras or other camera property owned by dealers or manufacturers. Aerial cameras or radar cameras.

55 Idaho Personal Lines FlexHome 49 Scheduled Personal Property Coins Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes individually owned coin collections. Ineligible property includes property belonging to dealers or auctioneers. Additional Exclusions: Fading, creasing, denting, scratching, tearing, thinning, transfer of colors, inherent defect, dampness, extremes of temperature, gradual depreciation, or any damage from handling or being worked upon. Disappearance of individual coins or other articles, unless the item is described and scheduled with a specific amount of insurance, or if the item is mounted in a volume and the page to which it is attached is also lost. Loss to property in the custody of transportation companies or shipments by mail other than registered mail. Theft from any unattended automobile, unless being shipped as registered mail. Loss to property which is not an actual part of a coin collection.

56 Idaho Personal Lines FlexHome 50 Scheduled Personal Property Fine Arts Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes private collections of paintings, etchings, pictures, tapestries, art glass windows, and other bona fide works of art (such as valuable rugs, statuary, marbles, bronzes, antique furniture, rare books, antique silver, manuscripts, porcelains, rare glass and bric-a-brac) of rarity, historical value or artistic merit. Private collections are defined as property owned by individuals that are not dealers, auction rooms, museums, art galleries or art institutions ordinarily open to the public. Ineligible property includes: Property owned by dealers, commercial risks, museums, art galleries or art institutions. Property owned by and insured for account of Federal, State, County or Municipal Authorities. Temporary exhibits of property not owned by the applicant/insured. Territory: Fine arts are covered in the United States and Canada only. Additional Exclusions: Damage caused by any repairing, restoration or retouching process. Breakage of art glass windows, glassware, statuary marble, bric-a-brac, porcelains or similar fragile articles. However, breakage caused by fire, lightning, aircraft, windstorm, malicious damage, theft, explosion, earthquake, flood or collision, derailment or overturn of a conveyance is covered. Loss to property on exhibition at fair grounds or premises of national or international expositions. Breakage Coverage This endorsement may be extended to provide breakage coverage for fragile articles for an additional premium. Furs Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes furs, including imitation furs, and garments trimmed in fur or consisting principally of fur. Non-apparel items are not eligible (e.g. bedding, rugs, and animal trophies). The detailed description for a fur should include the type of fur, length, color, origin and value.

57 Idaho Personal Lines FlexHome 51 Scheduled Personal Property Golf Equipment Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes individually owned golf clubs, golf clothing and golf equipment. It also includes other clothing of the applicant/insured while stored in a locker during play and golf balls for loss by fire or by burglary when there are signs of forced entry into the building, room or locker. Guns Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes legally owned guns and related equipment. The description of the guns and accessories should include the name of the manufacturer, the cost, date of purchase and serial or other identifying number. Home and Garden Equipment Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes lawn mowers, garden tractors, trimmers, edgers, lawn vacuums or blowers, snowblowers and unlicensed trailers. Ineligible property includes rakes, shovels, hand held gardening tools, sprinklers and hoses. Jewelry Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes individually owned personal jewelry, defined as articles of personal adornment composed in whole or in part of silver, gold, platinum or other precious metals and alloys, whether or not containing pearls, jewels, precious or semi-precious stones. Ineligible property includes silver, silverware, plated-ware, pewterware, bullion, gold and other precious metals, and unmounted gems.

58 Idaho Personal Lines FlexHome 52 Scheduled Personal Property Jewelry Broad Pair and Set Use Scheduled Personal Property - Jewelry Broad Pair and Set - FH9464 Additional coverage is available for individually scheduled articles of jewelry constituting a pair or set. For the additional premium, we provide broader coverage for jewelry which is incomplete on its own, such as a pair of earrings, and agree to pay for the full value of the pair or set when only part of the pair or set is lost or damaged. This is contingent on the remaining parts of the pair or set being surrendered to us. This coverage is not available on a blanket basis and the coverage amount must equal the individually scheduled article. Jewelry in Vaults Use Scheduled Personal Property - Jewelry In Vaults Coverage - FH9463 Coverage: Eligible property includes jewelry, as defined above, but which is kept in a bank safe or vault. Thirty days is the maximum time that an item may be out of the vault during the policy period. For a premium reduction, the applicant/insured agrees to notify us when the items are removed from the vault and to pay the full applicable jewelry rate for the time the items are removed. Musical Instruments Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes individually owned musical Instruments, sheet music and related equipment when written in conjunction with musical instruments.

59 Idaho Personal Lines FlexHome 53 Scheduled Personal Property Physical Aids (Other Than Hearing Aids) Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes items such as walkers, artificial limbs, wheel chairs, insulin pumps, oxygen tanks, monitors, contact lenses, dentures and eye glasses. Ineligible property includes hearing aids. Silverware Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes individually owned silverware, silver-plated ware, gold ware, gold-plated ware and pewter ware. Ineligible property includes pens, pencils, flasks, smoking implements or accessories or articles of personal adornment. Specialty Collections Use Scheduled Personal Property - Specialty Collections - FH9465 Coverage: Eligible property includes collectibles such as sports cards, dolls, toys, stuffed or mounted animals, trophies, antique duck decoys and campaign and other memorabilia. The value for stuffed or mounted animals is limited to the cost of the taxidermy. Breakage Coverage: This endorsement may be extended to provide breakage coverage for fragile articles for an additional premium. Sporting Equipment Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes sporting equipment such as that used for fishing, skiing and hunting. Ineligible property includes bicycles, golf equipment, guns and their accessories. These items have their own specific classes. Indicates Revision QBE Regional Companies 08/2013

60 Idaho Personal Lines FlexHome 54 Scheduled Personal Property Stamps Use Scheduled Personal Property Endorsement - FH9462 Coverage: Eligible property includes individually owned stamp collections. Ineligible property includes property belonging to dealers or auctioneers. Additional Exclusions: Fading, creasing, denting, scratching, tearing, thinning, transfer of colors, inherent defect, dampness, extremes of temperature, gradual depreciation, or any damage from handling or being worked upon. Disappearance of individual stamps or other articles unless the item is described and scheduled with a specific amount of insurance, or if the item is mounted in a volume and the page to which it is attached is also lost. Loss to property in the custody of transportation companies, or shipments by mail other than registered mail. Theft from any unattended automobile, unless being shipped as registered mail. Loss to property which is not an actual part of a stamp collection.

61 Idaho Personal Lines FlexHome 55 Watercraft General Rules and Rates Watercraft may be endorsed to the Homeowners policy subject to the rules listed below. Liability coverages reference Coverage E as Bodily Injury/Property Damage and Coverage F as Medical Payments. Eligibility The policy can be endorsed to provide coverage for watercraft, including Section I - Property Coverage and Section II - Watercraft Liability Coverage. The Watercraft 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; and Sailboats. Coverage 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. 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. Applicant must have at least three years of boating experience and completed a Power Squadron course when the hull value exceeds $50,000. On an individual basis, the underwriter may mandate these requirements for boats valued at $50,000 or less, depending on the characteristics of the risk. 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.

62 Idaho Personal Lines FlexHome 56 Watercraft General Rules and Rates Territory This coverage applies to accidents and losses that occur within the Continental United States and Canada, excluding Alaska and Hawaii. Liability and Medical Payments Rates Watercraft liability is provided for outboards, motor engine or combination of outboard engines or motors up to 50 horsepower and sailboats less than 26 feet in overall length. Watercraft - FH9475 The following limits are available for watercraft liability. We are not a market for boats over 26 feet in length. For all other boats, coverage is not permitted under the FlexHome policy. The premium applicable in the state in which the insured's residence premises is located shall apply except that if the insured owns another premises where the insured maintains a residence and operates a boat principally from such other premises, the premiums applicable in the state where the latter premises is located shall apply. Each Outboard Motor, Inboard or Inboard/Outdrive motor combinations, sailboats or personal watercraft Available Limits: $100,000 (Not available in Ultra Programs) $200,000 (Not available in Ultra Programs) $300,000 $400,000 $500,000 $1,000,000 Increased Medical Payments Limits Available Limits: $1000 (Not available in Ultra Programs) $2000 (Not available in Ultra Programs) $3000 $4000 $5000 $10,000 (Ultra Programs Only) Note: Where two or more outboards are regularly used in connection with any single watercraft owned by the insured, the horsepower of all such outboards shall be accumulated for rating.