MANUFACTURED/MOBILE HOME PROGRAM UNDERWRITING RULES & COVERAGE OPTIONS Underwritten by A Rated Carriers Effective: January 1, 2011 This Underwriting Guide is for informational purposes only. Coverage authorization and/or binding remain totally subject to approval and/or acceptance by RPS Covington. COVINGTON 190 New Camellia Blvd., Covington, LA 70433 Ph: 985.892.7428 Toll Free: 800.256.2171 Fax: 985.892.4282 www.rpsins.com
AT YOUR SERVICE CLAIMS REPORTING All claims are to be reported to First Premium Insurance Group, Inc. Producers are responsible for submitting claims information via First Premium s on-line claim submission system at www.firstpremium.com. To reach the Claims Department directly: First Premium Insurance Group, Inc. 190 New Camellia Blvd. Covington, LA 70433-7812 TELEPHONE: (800) 256-2171 FAX: (800) 299-2171 www.firstpremium.com BINDING First Premium Insurance Group, Inc. does not grant binding authority to any producer. Coverage authorization and/or binding remains totally subject to the approval and/or acceptance by First Premium Insurance Group, Inc. Page 2 of 9
GENERAL INFORMATION IMPORTANT NOTICE: These rules are designed to provide as much guidance as possible concerning our underwriting philosophy. However, it is not possible to anticipate every situation in advance; therefore, we reserve the right to make the final determination of the acceptability of a risk. DISASTER RESTRICTIONS The Company may impose discretionary restrictions during hurricanes, tropical storms, floods, forest fires, or other natural disasters via e-mail, fax, telephone or posting on website. PRODUCERS SHOULD NOT REQUEST COVERAGE UNTIL THEY HAVE VERIFIED THAT NO RESTRICTIONS ARE IN EFFECT. However, temporary suspension of binding is always in effect if any one of the following conditions is present: 1. When a Hurricane is within 400 miles of the location of the proposed risk. 2. When a Tropical Storm is within 200 miles of the location of the proposed risk. 3. During a Tornado watch or warning. During temporary suspension of binding, please adhere to the following: 1. Do not submit any application(s) for binding. 2. Do not submit any endorsements to existing policies for binding. 3. Renewal of expiring policies may be written, provided there is no increase in coverage(s) or lapse between policies. RATES Rates Based on TIV (Total Insured Value), Location and Year of Home POLICY FEE Policy fees are fully earned. SURPLUS LINE TAX Applicable State Surplus Line Tax to be added to all policies. MAXIMUM VALUE TO INSURE $250,000 total per location address, including manufactured home, personal property, adjacent structures, etc. but not including Section II personal liability, premises liability and medical payments. BINDING PROCEDURES First Premium Insurance Group, Inc. does not grant binding authority to any producer. To request a policy: Complete an application via First Rate, First Premium s on-line rating system. If all underwriting criteria are met, a policy may be issued and printed immediately. If all underwriting criteria are not met, the risk may be submitted to First Premium via First Rate for further underwriting. You will receive a response within 24 hours. If the risk is approved: Coverage is bound and the producer may then print the policy. If the risk is declined: Notification will be e-mailed to the requesting producer indicating that coverage is not bound. Page 3 of 9
BINDING RULES 1. All applications must be received via First Rate on or before the requested effective date. 2. Applications may not be backdated. 3. All documentation and photographs must be sent to First Premium within three days of the policy effective date. Sign all documents using DocuSign, (on-line signature) via First Rate. Invoice is provided for immediate payment. Photographs and other documentation may be e-mailed or mailed to First Premium. If mailing via USPS, postmark date must be within three days of policy effective date. 4. Failure to comply will result in cancellation of the policy according to state guidelines. 5. Producers who do not follow these binding rules will be denied access to this program All policies are subject to final underwriting and may be cancelled if all criteria are not met. TIE DOWN REQUIREMENTS Manufactured homes must be tied down to state regulations. INSURANCE TO VALUE The manufactured home, adjacent structures and personal property are to be insured to 100% of their full actual cash value, excluding land value. For assistance in determining the value of the home, check with local dealers, use the N.A.D.A. Manufactured Housing Appraisal Guide, the Boeckh Mobile-Manufactured Housing Cost Guide or other nationally recognized valuation guide. A purchase agreement may be used with underwriters approval if purchased within the last three years. Total losses on the manufactured home are paid at no more than policy limits. SCHEDULED PERSONAL PROPERTY Total value of items to be scheduled may not exceed 30% of the home value or $20,000, whichever is less. Maximum value for any single item is $2,500. A copy of the sales receipt or appraisal must be submitted with the application for each single item, set, or collection valued over $1,000. Each item must have a clearly identifiable description (brand name, color, serial number, etc.) Appraisal may not be older than three (3) years. UNSCHEDULED PERSONAL PROPERTY Applications with requests for unscheduled personal property limits in excess of $20,000 or 70% of the manufactured home value, whichever is greater, must be submitted for approval. The Underwriter may request a personal property inventory. PERSONAL LIABILITY Personal Liability coverage does not apply to bodily injury or property damage caused by or originating from trampolines or any animal, including but not limited to, dogs, horses, cattle, reptiles, insects or vermin owned by, or in the care of, custody or control of the insured, or any member of the insured s family or household. This insurance does not apply to damage caused by, arising out of, or originating from any body of water, whether manmade or otherwise, no matter whether the body of water is owned by, the property of, or in the care of, custody or control of any insured, or any member of the insured's family or household or in the care, custody or control of anyone acting on behalf of the insured or at the direction of the insured. Risks with swimming pools without an approved fence are ineligible for liability coverage. A risk with an approved fence and gate surrounding the swimming pool is eligible for a maximum of $25,000 liability. Photographs are required on all swimming pools. All steps must have proper handrails with slats or guards or liability will be deleted. Page 4 of 9
APPROVED FENCE Fence must be at least 4 feet high with self-locking gate. It must completely surround or enclose pool. Fence must be chain link or of material built to prevent entry by children or other unauthorized persons (i.e., no split rail fence). CANCELLATIONS Minimum earned premium may apply. Policies may not be flat cancelled if coverage has been provided. WHOLE DOLLAR PREMIUM Base premiums are to be rounded to nearest whole dollar. Do not round tax calculations. RELOCATION If the manufactured home is going to be relocated, the Underwriting Department must be notified before the move so that premium and coverage may be adjusted, if necessary. MANUFACTURED HOME REPLACEMENT COST COVERAGE When Manufactured Home Replacement Cost Coverage is purchased, the coverage limit must be 100% of the amount needed to replace the manufactured home with a manufactured home of like kind and quality. Be sure to include the replacement cost value of any attached structures not part of the home as originally manufactured. Not available on manufactured homes over ten (10) years of age. No depreciation shall be applied for repairs. Payment will not exceed value agreed to on the declaration page. PHOTOGRAPHS Two (2) color photographs of opposing views clearly showing front, rear and sides of the manufactured home including all entrances are required, with the exception of new purchases of current year models unless requested by underwriter. Photographs are also required on all adjacent structures. Also, additional photographs may be requested on certain risks. For example, if coverage limits are increased or if the manufactured home has been modified, new photographs may be required. CREDIT REPORTS An applicant s credit history may be a consideration in our underwriting for those applicants who: 1) have experienced a lapse in coverage of more than thirty (30) days during the past year, or 2) have no previous coverage, unless the manufactured home is a new purchase. ADJACENT STRUCTURES Adjacent structures are structures on the insured premises set apart from the manufactured home by clear space. This includes structures connected to the manufactured home by only a fence, utility line or similar connection. This coverage does not apply to land, including land on which the adjacent structures are located. We do not cover adjacent structures when: (a) used in whole or in part for business; or (b) rented or held for rental to any person not a tenant of the home. Barns, farm structures, livestock structures or structures occupied as living quarters are not considered adjacent structures. Photographs are required on all adjacent structures. ATTACHED AND UNATTACHED STRUCTURES Manufactured homes with professionally built attached structures and/or unattached structures equaling the value of the home, as originally manufactured, must be submitted with two (2) opposing photographs clearly showing all sides of each structure. Risks with attached structures (or additions) whose square footage equals or exceeds that of the home, as originally manufactured, are subject to underwriting approval. MODIFIED MANUFACTURED HOMES Manufactured homes which have been substantially modified must be submitted. A detailed description of the modifications along with photographs clearly showing all modifications is required. Page 5 of 9
LARGE LOSSES Applicants who have sustained more than a $1,000 loss from either theft, vandalism, or liability during the past three (3) years or who have ever sustained a fire or flood loss must include a full explanation describing cause and origin of loss and amount of loss. MULTIPLE LOSSES Applicants who have sustained more than two (2) losses during the past three (3) years must include a full explanation describing cause and origin of each loss and amount of each loss. SCHEDULED RENTAL UNITS Coverage for multiple rental units (manufactured homes rented to others for residential purposes) should be scheduled on a single policy. Schedules of more than twenty (20) units or with an aggregate manufactured home value of $200,000 or more are to be submitted. Two (2) photographs of opposing views showing entire risk, front, rear, and sides are required. No commercial occupancy is permitted. SWIMMING POOLS Risks with swimming pools without an approved fence are ineligible for liability coverage. A risk with an approved fence and gate is eligible for a maximum of $25,000 liability. Photographs are required on all swimming pools including fence surrounding pool. SUPPLEMENTAL HEATING If supplemental heating is not factory installed or equipped, submit a completed questionnaire and photograph. Homemade stoves, wood or coal burning stoves, and stoves which are not professionally installed are ineligible. COMMERCIAL USE Submit with two (2) photographs of opposing views clearly showing entire risk and a complete description of the use. Ineligible for liability coverage. TRUST/ESTATES Applicant must provide legal documents showing ownership. Subject to underwriters approval. UNINSURED RISKS / LAPSED COVERAGE Applicants who have experienced a lapse in coverage of more than thirty (30) days during the past year must provide full explanation of why coverage lapsed. MANUFACTURED HOMES ON POLES OR PILINGS Applicant must submit photographs clearly showing manufactured home, all entrances including steps and handrails, and poles or pilings. INELIGIBLE - DO NOT SUBMIT: Do not submit any of the following. These risks are unacceptable. UNEMPLOYED Applicants who are unemployed, unless retired or on disability. ISOLATED RISKS Manufactured homes not visible from a public roadway. MULTIPLE LIENHOLDERS Risks with more than two lienholders. RIVETED CONSTRUCTION Units with aircraft-type (riveted) construction. Page 6 of 9
INELIGIBLE - DO NOT SUBMIT:, continued Do not submit any of the following. These risks are unacceptable. HOMEMADE DOUBLEWIDES Manufactured homes connected by a common roof (homemade doublewides). DAY CARE Applicants who use their home as a Day Care or to provide child care for non-family members. FARMS Risks with commercial farming activities. FARM BUILDINGS Farm and agricultural buildings or structures are uninsurable. FIREPLACE OR WOOD STOVE Risks with a fireplace or wood stove that was NOT factory equipped or professionally installed. UNUSUAL HAZARDS Manufactured homes exposed to unusual hazards. PRIDE OF OWNERSHIP Manufactured homes which are not well maintained or do not show pride of ownership. KEROSENE HEATERS Manufactured homes heated with portable kerosene heaters. MANUFACTURED HOME PROGRAMS The following are some of the eligibility requirements and the coverages automatically included in the manufactured home programs: PREFERRED MANUFACTURED HOME PROGRAM Manufactured home must be owner occupied as a full-time residence and value must be $5,000 or greater No Isolated Units (See pages 8 & 9 for additional coverages available) Comprehensive Coverage on the manufactured home and adjacent structures Personal Property, Adjacent Structures, Personal Liability and Additional Living Expenses (ALE) as purchased COMMERCIAL MANUFACTURED HOME PROGRAM Manufactured homeowners who use unit for light office, professional or institutional purposes No Isolated Units (See pages 8 & 9 for additional coverages available) Comprehensive Coverage on the manufactured home and adjacent structures Page 7 of 9
SEASONAL MANUFACTURED HOME PROGRAM Seasonal/vacation manufactured homes unoccupied Comprehensive Coverage on the manufactured home for ninety (90) days or more during the year Personal Property, Adjacent Structures & Premises Liability $500 Theft deductible as purchased $1,000 Freeze deductible $1,000 V&MM deductible No Isolated Units RENTAL MANUFACTURED HOME PROGRAM Manufactured homeowners tenant occupied Comprehensive Coverage on the manufactured home $1,000 V&MM deductible and adjacent structures & Premises Liability as (See pages 8 & 9 for additional coverages available) purchased VACANT MANUFACTURED HOME PROGRAM Manufactured vacant homes No V&MM available Basic Coverage on the manufactured home and adjacent structures & Premises Liability as purchased **DEDUCTIBLES** In addition to the deductibles listed above, the following deductibles apply to all programs: $750 All Other Perils, 5%, Wind & Hail with a $1,000 or $2,000 minimum depending on distance from coast and state in which risk is located. See online rating for details. Coast is defined as the ocean shoreline. OPTIONAL COVERAGES All Applications Shall Be Rated On-line. See on-line rating for pricing and availability of wind coverage. ALE (Additonal Living Expense) Available on Preferred Program Only, Maximum Limit Applies Personal Liability Options (Preferred Only) $25,000 $50,000 $100,000 $300,000 Premises Liability Options (Manufactured Homes Rented To Others, Seasonal and Vacant, per Unit) $25,000 $50,000 $100,000 $300,000 Supplemental Heating Page 8 of 9
OPTIONAL COVERAGES, continued Manufactured Home Replacement Cost Not available on homes over ten (10) years of age Not available on Seasonal, Rental Commercial or Vacant units Personal Property Replacement Cost Not available on homes over ten (10) years of age Not available on Seasonal, Rental Commercial or Vacant units Minimum Premium Applies Scheduled Personal Property Jewelry, Furs, Fine Arts, etc. Comprehensive Coverage Not available on Seasonal, Rental Commercial or Vacant units Vacancy Permission Premium is fully earned Available on existing policies with underwriting approval Suspends personal property and additional living expense coverage and V&MM Not available on Seasonal, Rental or Commercial units Occasional Rental Maximum of 180 days in a 365 day period Available on existing policies with underwriting approval Enhancement Endorsement Manufactured home must be located in Protection Class 1-8 Golf Cart Coverage $100 deductible, value of the golf cart is Actual Cash Value Ordinance or Law Coverage Trip Collision Limited to thirty (30) days Premium is fully earned Lender s Interest Protection (Fully Earned) Available only if established financial institution. Page 9 of 9