Contents

Product Information

Discounts – Loss Surcharges

Eligibility

Billing Options

Questions

HO-4 Renters

HO-6 Condo

HO-3 Home

This product is designed to appeal to a broad group of consumers by utilizing the following policy forms:

Policy Forms Offered

Enhanced Home Package

The Enhanced Home Package (EHP) bundles the most popular coverages. You may elect this option rather than selecting each coverage a la carte. The EHP includes the following coverages:

•Additional Replacement Cost Protection (Up to 150%) •Personal Property Replacement Cost •Water Back-up of Sewers and Drains minimum $5000 •Personal Injury Coverage •Special Personal Property (HO-4 and HO6) •Additional Loss Assessment Coverage (HO-3 & HO-6) •Increased Special Limits of Liability •Lock Replacement Coverage * •Reward Coverage •Increased Fire Department Service Charge Coverage * •Increased Credit Card, Forgery, Counterfeit Coverage * •Increased Damage to Property of Others Coverage * No deductible applies

Valuable Items Plus A cross between Blanket Coverage and Scheduled Personal Property Coverage, the Valuable Items Plus Endorsements gives many of the benefits of both. Your customer may elect coverage for jewelry, silverware, fine arts, furs, computers, firearms, cameras, musical instruments, and china/crystal. The minimum and maximum limits vary by item. For example, Jewelry Coverage under the Valuable Items Plus Endorsement is as follows: Class of Property: Jewelry Minimum Limit: $1,000 Maximum Limit: $50,000 Payout Per Item Limit: $20,000 Any item lost or misplaced is not covered unless specifically listed with a description in the declarations. Items valued over $5,000 must include documentation of value (ex: appraisal, current price listing).

Policy Endorsements

Additional Replacement

Cost

Replacement Cost Contents

Increased limits of 125% and 150% are available on Coverage A on the HO-3 product

This endorsement will amend the Personal Property settlement from ACV to Replacement Cost. This can be done by adding Personal Property Replacement Cost Loss Settlement, choosing the Titanium or the Enhanced Home Package.

Policy Endorsements

Changes Coverage C from ‘Named Peril’ to ‘All Risk’. Included with EHP for HO-4 and HO-6

Special Personal Property

Ordinance or Law Coverage may be increased up to 15% of coverage A (HO3)

Ordinance or Law

Loss Assessment

Limits up to $75,000 may be provided for water back-up & sump discharge or overflow.

Water Back-Up & Sump

Discharge or Overflow

Increased limits from $2,000 to $50,000 are available on the HO-3 and HO-6 products.

Policy Endorsements

Provides Personal Property and Liability coverage for a full-time student who was a resident of the named insured’s household before moving to attend school

Student Living Away

Coverage up to $25,000 may be provided for expenses incurred by the insured as a result of the fraudulent use of the insured’s identity by a third party.

Identity Fraud Expense

Residence Held in Trust

For dwellings which the deed to the property is held solely by a trust, the policy may be issued in the name of both the trust and trustee.

Functional Replacement Cost

Functional replacement cost means the amount which it would cost to repair or replace the damaged building with less costly common construction materials and methods. Used when the building method/material may be obsolete or antique. Examples:

Plaster walls may be replaced with sheet rock Slate roof may be replaced with asphalt shingles

The Functional Replacement Cost Endorsement is required on dwellings built prior to 1940 only if ‘Standard’ MSB Replacement Cost (which is the system default) is used. Homes with Functional Replacement Cost do not qualify for Additional Replacement Cost .

Additional Policy Endorsements

•Additional Residence Rented to Others •Assisted Living Care •Building Additions and Alterations – Other Residences •Business Property •Business Pursuits •Credit Card, EFT Card, Forgery and Counterfeit Money •Medical Payments to Others •Motorized Golf Cart Coverage •Other Insured Locations Occupied by the Insured •Other Members of Named Insured Household •Other Structures on Residence Premises Rented to Others •Other Structures Rented to Others •Outboard Motors and Watercraft •Permitted Incidental Occupancies (Residence & Other Residence) •Personal Injury •Personal Property – Other Residences •Rental to Others – Theft Coverage •Replacement Cost Loss Settlement for Non-building Structures •Residence Premises – Basic and Increased Limits/Other Exposures •Residence Employees •Unit Owner’s – Units Regularly Rented to Others •Watercraft Hull

Homeowner Packages Includes Enhanced Home Package

Gold Platinum Titanium Dwelling – Coverage A Perils Insured Against All Risk All Risk All Risk Additional Replacement Cost Optional 125% Cov. A 150% Cov. A

Other Structures – Coverage B Percentage of Dwelling Coverage 10% of Cov. A 10% of Cov. A 10% of Cov. A Perils Insured Against All Risk All Risk All Risk Contents – Coverage C Percentage of Dwelling Coverage 50% of Cov. A 70% of Cov. A 70% of Cov. A Perils Insured Against Named Perils Named Perils All Risk Contents Replacement Cost Optional Included Included Loss of Use – Coverage D Percentage of Dwelling Coverage 30% of Cov. A 30% of Cov. A 30% of Cov. A Personal Liability - Coverage E Limit of Liability $100,000 $300,000 $500,000 Medical Payments to Others - Coverage F Limit of Liability $1,000 $1,000 $5,000 Additional Coverages Lock Replacement Available only with EHP Available only with EHP $250 Ordinance or Law 10% of Cov. A 10% of Cov. A 15% of Cov. A Water Back Up of Sewer and Drains Optional Optional Included Personal Injury Optional Optional Included Identity Fraud Optional Optional Included Special Limits Money, Coins $200 $200 $300 Securities, Stamps $1,500 $1,500 $3,000 Trailers $1,500 $1,500 $3,000 Watercraft $1,500 $1,500 $3,000 Jewelry and Furs $1,500 Stolen $1,500 Stolen $3,000 Stolen Silverware $2,500 Stolen $2,500 Stolen $4,000 Stolen Firearms $2,500 Stolen $2,500 Stolen $3,500 Stolen Home Computer $2,500 $2,500 $3,500 Oriental Rugs $2,000 per article $2,000 per article $3,000 per article

Deductibles

All Perils Deductible All Perils Deductible is a mandatory deductible and ranges from $1,500 to $50,000. ($500 for HO4 & HO6)

Special Windstorm or Hail Deductible Deductible amounts range from 1% to 10% of Coverage A. There may be a minimum windstorm or hail deductible depending on the property location. ($1,500 minimum deductible in zone 1.)

Discounts Applicant must be loss free during the experience period. Only losses of $500+ are considered in the rating.

Loss Free

Discount is applied if a Mercury Home Insurance Policy is issued within 12 months of

the dwelling or condo purchase

Home Buyer

Discount is applied when Mercury Home Insurance policy is purchased in conjunction with a Mercury Auto or Umbrella Policy

Multiple Policy

Discounts, cont.

Discount is available for the following Fire prevention devices:

Fire Extinguisher Smoke Alarm Local Fire Alarm Central Fire Alarm Direct Fire Alarm Partial Sprinkler System Full Sprinkler System A Discount is also available for the following Theft prevention devices:

Dead Bolts Local Burglar Alarm Central Burglar Alarm Direct Burglar Alarm 24-Hour Security Guard

Protective Devices

Loss Surcharge

Surchargable Losses: Payout of $500 or greater Current or previous residence

Non-Surchargable Losses: Closed Without Payment Valuable Items Plus Personal Articles Floater Identify Fraud Workers Compensation Any type of cat loss will affect the premium: Designated serial numbered cat loss Non-designated serial numbered cat loss

HO-6 Condominium HO-4 Renters

Occupancy Requirements

HO-3 Home

The following outlines the occupancy and structure requirements:

Owner Occupied or Owner/Tenant Occupied One or Two Family Dwellings

Secondary, Seasonal, or Additional Dwellings

Tenant Occupied Apartments, Condominiums, Townhouses, Row Homes, Cooperatives, Single Family Dwellings, Multi Family Dwellings, and Retirement Homes Secondary, Seasonal, or Additional Dwellings

Owner Occupied or Tenant Occupied Condominiums and Townhouses Secondary, Seasonal, or Additional Dwellings

HO-6 Condominium HO-4 Renters

Replacement Cost

HO-3 Home

Below outlines our Replacement Cost requirements:

Minimum Coverage A $80,000 Maximum Coverage A $1,000,000

Minimum Coverage C and Additions and Alterations $25,000 Maximum Coverage C and Additions and Alterations $500,000

Minimum Coverage A & C $50,000 Maximum Coverage A & C $750,000

High limit applications (e.g. HO-3 of $600k or more) require Underwriting pre-approval. Refer to the “Underwriting Guidelines” for additional information.

Renovations

The Roof must be replaced within the last 20 years and in acceptable condition (exception: slate and tile). Wood shake or wood shingle roofs are unacceptable.

Roof

The Heating System must be updated within the last 50 years and in acceptable, working condition. A central heating system or thermostatically controlled electric heating system is required.

Heating

The Electrical System must be updated within the last 50 years. Electrical

The Plumbing System must be updated within the last 50 years and in acceptable, working order

(i.e. no leaks). Plumbing

Ineligible Exposures

Ineligible Exposures •Mobile and manufactured homes (not including modular) •Log homes •Farming/ranching operations •Underground Fuel Tank Ineligible Residence Status •Dwellings up for sale •Dwellings in the course of construction •Vacant or unoccupied dwellings •Dwellings foreclosed during the past 3 years (exceptions apply) •Dwellings with more than 2 mortgages (exceptions apply) Ineligible Business Exposures Risks with home day care operation on premises

Ineligible Exposures

Unfenced in-ground pool

Free-standing pool slides Skateboard ramps and rails

Bicycle Jumps

Trampolines

Animal or pet that is vicious or has previously bitten or injured, or if any occupant has a dog that is a Wolf Hybrid. Unacceptable breeds Include Akitas, Bull Terriers, Chows, Doberman Pinschers, German Shepherds, Pit Bulls, Presa Canarios, Rottweilers, And Staffordshire Bull Terriers.

Prior Losses

Prior Loss History Requirements Risks with > 1 loss in the past 3 years will not be considered

Risks with > 2 losses in the past 5 years will not be considered Risks with more than1 fire loss, more than 1 water loss, more than 1 wind/hail loss more than 1 liability loss or more than 1 theft loss in the past 5 years will not be considered

Risks with open claims require prior Underwriting approval Losses closed without payment are not included in acceptability

Any existing structural loss at the risk location must be repaired prior to binding.

Installment Options

Full-Payment 100% Down

2-Installment 50% Down

1 @ 50%

1 & 150 Days

4-Installment 25% Down

3 @ 25%

1, 60, 120, & 180 Days

12-Installment 16.7% Down

11 @ 7.6%

Monthly

Mortgagee

Billing

Consumer Web Pay

Credit Card

E-Check Or EFT

Payment Methods

We offer the customer various ways to pay the policy premium:

Inspections

Illinois Home Inspection Program We will inspect 100% of the homes following policy issuance. While the majority of inspections will be exterior only, we may request an interior inspection for higher value and older homes. Please notify your new Mercury policyholders that an inspection will be done. We are currently contracted with Contour.

Aligned Auto

An Aligned Auto product allows Mercury to be more responsive as it is easier to make needed changes and respond to market conditions

-Better product -Segmented Pricing w/many new Discounts: *Multi-Policy *Occupation/Industry (Important to ask this question) *Advance Quote *3 Year Accident & Ticket Free *5 Year Claim Free *Continuous Insurance *Good Payer *Prior Limits of 250/500 or greater

Aligned Auto-continued

• 4-pay option now available • Enhance Credit and Tier Rating (60 Tiers) • Enhanced MVR/CLUE Report ordering

– Chargeability now pre-fills for tickets – MVR/CLUE required at point of sale