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EVENT/CLIENT NAME or Confidentiality statement 6/23/2013 7:04 AM New Brand FMT-P2 1

5 .Homeowners Insurance

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Homeowners Policy

Basic Homeowners policy provides coverage for an individuals orfamilys common property and liability exposures, with certainconditions and exclusions attached, in return for the convenience ofsingle premium paid.

ISO 2000 Homeowners (HO) insurance program offers six policies

HO-2 Broad Form (Named Perils Coverage Form Owner Occupation - DOP)

HO-3 Special Form (Open Perils Owner Occupation Higher Coverage - DO)

HO-4 Contents Broad Form (Tenants personal Property on Named Peril basis)

HO-5 Comprehensive Form (Open Perils Owner Occupation Higher Coverage

- DOP)HO-6 Unit-Owners Form (Named Perils Personal Property)

HO-8 Modified Coverage form (Limited Named Perils Basis DOP Valued underFunctions Replacement cost basis)

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Homeowners Insurance Policy Rating

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Homeowners Policy Rating Factors

Base Premium Factorso Location

o Public Protection Class (Ranking of Fire Protection)

o Construction + BCEGS (Frame and Masonry)

o Coverage Amount

o Policy Form

Base Premium Adjustmentso Endorsements

o Unusual Construction Type

o Deductibles

Final Adjustmentso Claim History

o

Credit Score or Insurance Scoreo Package Policy credits

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HO-3

Homeowners Special Form PolicyFor Owner Occupants

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HO-3 Structure

Declarations

Agreement

Definitions

Section I Property

o Property Coverages

o Perils Insured against

o Exclusions

o Conditions

Section II - Liability

o Liability Coverageso Exclusions

o Additional Coverages

o Conditions

Section I and II Conditions

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HO-3 Declarations

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HO-3

Policy holder Residence Address

Scheduled Coverages and Limits

Premium

Section-I Deductible

Deductibles apply to all perils

$250,$500

Catastrophe prone area insurers use higher deductible for specific perils

Dollar amount or Percentage

Policy Period

Forms and endorsements

Mortgage Holder

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HO-3 Agreement & Definitions

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HO-3

Agreement

Definitions

Helps both the insured and insurer Contains words and phrases

that are later referred in the policy

You and Your, We, us, our, Named Insured and Other Insureds

Residence Premises and Insured Location

Deductible

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Residence Premises

and

Insured Location

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Residence Premises and Insured Location

Residence Premises

o 1-to-4 Family Dwelling

o Part of any Building where the named insured resides

o Other structures and ground at the Residence Location

Insured Locationo Residence Premises

o Temporary residence

o Newly acquired residence

o Vacant Land other than farm land, owned by or rented to insuredo An insured land where 1-4 family residence is being constructed

o Individual or family cemetery plots

o Any part of a premises occasionally rented to an insured for non-

business purposes

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Homeowners HO-3 Property Coverages

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HO-3 Section I Property Coverages

Coverage A - Dwelling

Coverage B - Other Structures

Coverage C - Personal Property

Coverage D - Loss of Use

Additional Coverages

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Homeowners HO-3 Property Coverages A and B

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HO-3 Section I Property Coverages A and B

Coverage A - Dwelling

Coverage B - Other Structures

o Covers 10% of the Coverage A Limit for all Structures at the residencePremises

o Limit can be increased by endorsement

o Exclusions

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Exclusions to Other Structures

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Coverage B Exclusions

Rented to Otherso But exclusion does not apply

When Structure is rented to family Member

When Rented as Garage

Where Business activities are performed

o But exclusion does not apply When Structure is used for volunteer activities or Daycare Services

A Business with an earnings less than $2000/yr in the preceding year

Structures with Storage of Business Property

o But exclusion does not apply

When Business Property is used only by insured Other than gaseous or Liquid Fuel

Gaseous or Liquid Fuel in the tank of a vehicle is allowed

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HO-3 Section I Coverage C

Personal Property Coverage

o Covers 50% of the Coverage A Limit

o Limit can be increased by scheduling the limit in Declarations page

o 10% of Coverage C or $ 1000( whichever greater at the secondary Location.Can be increased by endorsement

o Exceptions to 10% Coverage at secondary location

o Special Limits of Liability or Special Sublimits

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HO-3 Section I Coverage C Personal PropertySpecial Sub Limits

200 - Money and precious metals

1500 - Securities, Documents, Records and Stamps

1500 - water Crafts, Trailers

1500 - Theft of Jewellery and Furs

2500 - Theft of Firearms

2500 - Theft of gold ware, Silverware,Platinumware, pewter ware

500 - For on the residence Premises used primarily for business

Purposes

500 - For property away from the residence Premises used for business

Purposes

1500 - For electronic apparatus and equipment to be operated by

Power from Motor Vehicle while in or upon vehicle

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HO-3 Section I Coverage D Loss of Use

Loss of Use Coverage

o Covers 30% of the Coverage A Limit

o Limit can be increased by scheduling the limit in Declarations page

o Additional Living Expenses

Fair Rental value

Loss of use due to Civil authority

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HO-3 Section I Property Additional Coverages

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HO-3 Section I Additional Coverages

Debris Removal ( 5 % - In excess over the Coverage Limit of A,B,C)

Reasonable Repairs

Trees, shrubs, and Other Plants ( 5% of Cov A and not more than

$500 for any one tree, plant )

Fire Department Service Charge ( $ 500)

Property removed

Credit Card, electronic Fund transfer card or access device and

Counterfeit Money ( $ 500)

Loss Assessment( $ 1000)

Collapse

Breakage of Glass

Landlords furnishings ( $ 2500)

Ordinance or Law

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HO-3 section I Property Perils Covered against

Coverages A and B Special Form

Coverage C Covered on Named Perils

Coverage D and Additional Coverages Perils not listed out

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HO-3 Coverage A and B Exclusions

Section 1 Exclusions

Collapse

Freezing of Plumbing, Heating, Air Conditioning or sprinkler system or ahouse hold appliance

Theft of construction materials

Vandalism

Mold, Fungus or wet rot

Natural Deterioration

Smoke from agricultural smudging or Industrial Operations

Pollutants

Settling of the DwellingAnimals

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HO-3 Coverage C Named Perils

Fire or Lightning

Windstorm or Hail

Explosion

Riot or Civil Commotion

Aircraft

Vehicles

Smoke

Vandalism

Theft

Falling objects

Weight of Ice, snow or sleet

Accidental discharge of water

Sudden or accidental tearing apart, cracks, burning or bulging

Freezing

Volcanic erruption

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HO-3 Section 1 Exclusions

Ordinance or Law

Earth Movement

Water Damage

Power Failure

Neglect

War

Nuclear Hazard

Intentional Loss

Governmental Action

Perils Excluded for Coverages A and B only

Weather Conditions

Acts or Decisions

Faulty Workmanship

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HO-3 Coverages A &B Loss Settlements

Coverages A and B Loss Settlement

o Replacement Cost

o ACV

o Coinsurance

Case A: Limit Of Insurance is 80% or more of Replacement Cost

Replacement Cost up to limit of Coverage

Case B: Limit Of Insurance is less than 80% of Replacement Cost

Greater of

ACV

or( Limit of Insurance * Replacement Cost of the Loss/ 0.8 ) * Replacement Cost

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HO-3 Coverage C Loss Settlement

Coverages C Loss settlement

Loss is Settled on the lesser of

ACV

or

Repair or Replacement Cost

Loss to a pair or Set

o Replacement Cost of the Missing Pair

o Difference between the ACV of Pair and ACV of the Remaining Single Item

Appraisal

Other Insurance

Other Insurance and Service agreement

Law Suit against Insurer

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HO-3 Policy Loss Settlement

Insurers Option

Loss Payment Abandonment of the Property

Mortgage Clause

No Benefit to Bailee

Nuclear Hazard

Recovered Property Volcanic Eruption Period

Policy Period

Concealment/ Mis Represenation or Fraud

Loss Payable Clause

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HO-3 Section I - Conditions

Insurable Interest and Limit of Liability

Your Duties after Losso Give Prompt Notice of the Loss

o Notify Police

o Inform Credit Card, Electronic Fund Transfer card Company

o Prevent Further Damage

o Cooperate with the Insurero Prepare an inventory of Loss Items and verify loss

o Sign a sworn Proof of Loss