DWELLING PROPERTIES PROGRAM - Home Page - … · DWELLING PROPERTIES PROGRAM This Manual Contains Final Rates July 2014

DWELLING PROPERTIES

PROGRAM

This Manual Contains Final Rates

July 2014

VIRGINIA PROPERTY INSURANCE ASSOCIATION

Dwelling Rates Page 1 February 2014

Base Rates Fire – Coverage A & C All Forms

Owner Occupied KEY PREMIUMS FP 1

Building Contents Building Contents

M $66 $18 $72 $18F $82 $23 $91 $23M $82 $23 $91 $23F $128 $35 $140 $35M $99 $27 $109 $27F $161 $45 $177 $45


M $96 $27 $50F $119 $33 $63M $119 $33 $63F $185 $51 $97M $143 $40 $75F $233 $65 $122

Territory - All

Protected

Semi-Protected

Unprotected

Unprotected

Protection

Territory - All

Protection

CO

NS

T

Number of Families3 or 4 5 or More

Coverage Coverage

Number of FamiliesCO

NS

T

Protected

Semi-Protected

Coverage Coverage1 2

FP 2


M $88 $24 $97 $24F $110 $31 $121 $31M $110 $31 $121 $31F $171 $47 $188 $47M $132 $37 $145 $37F $215 $60 $236 $60


M $128 $35 $67F $160 $44 $84M $160 $44 $84F $248 $69 $130M $192 $53 $101F $311 $86 $163


NS

T

Protected

Semi-Protected


Unprotected

Protection

Territory - All

Protection

CO

NS

T

Number of Families3 or 4 5 or More

Coverage Coverage

Territory - All

Protected

Semi-Protected

Unprotected

KEY FACTORS Limit of Liability (000’s) Coverage

A

Limit of Liability (000’s) Coverage

C 1 0.430 1 0.253 2 0.460 2 0.336 3 0.490 3 0.419 4 0.520 4 0.502 5 0.550 5 0.585 6 0.580 6 0.668 7 0.610 7 0.751 8 0.640 8 0.834 9 0.670 9 0.917 10 0.700 10 1.000 11 0.730 11 1.083 12 0.760 12 1.166 13 0.790 13 1.249 14 0.820 14 1.332 15 0.850 15 1.415 16 0.880 16 1.498 18 0.940 17 1.581 20 1.000 18 1.664 22 1.030 19 1.747 24 1.060 20 1.830 26 1.090 21 1.913 28 1.120 22 1.996 30 1.150 23 2.079 32 1.180 24 2.162 34 1.210 25 2.245 36 1.240 26 2.328 38 1.270 27 2.411 40 1.300 28 2.494 42 1.330 29 2.577 44 1.360 30 2.660 46 1.390 31 2.743 48 1.420 32 2.826 50 1.450 33 2.909 55 1.525 34 2.992 60 1.600 35 3.075 65 1.675 36 3.158 70 1.750 37 3.241 75 1.825 38 3.324 80 1.900 39 3.407 85 1.975 40 3.490 90 2.050 41 3.573 95 2.125 42 3.656 100 2.200 43 3.739 105 2.275 44 3.822 110 2.350 45 3.905 115 2.425 46 3.988 120 2.500 47 4.071 125 2.575 48 4.154 130 2.650 49 4.237 135 2.725 50 4.320 140 2.800 145 2.875 Each Additional $1,000

.015 Each Additional $1,000

0.083



Base Rates Fire – Coverage A & C All Forms

Non-Owner Occupied

KEY PREMIUMS

FP 1


M $72 $18 $80 $18F $91 $23 $100 $23M $91 $23 $100 $23F $140 $35 $154 $35M $109 $27 $120 $27F $177 $45 $194 $45


M $105 $27 $50F $131 $33 $63M $131 $33 $63F $204 $51 $97M $158 $40 $75F $256 $65 $122


NS

T

Protected

Semi-Protected


3 or 4 5 or MoreCoverage Coverage

Territory - All

Protected

Semi-Protected

Unprotected

Unprotected

Protection

Territory - All

Protection

CO

NS

T

Number of Families

FP 2


M $97 $24 $107 $24F $121 $31 $133 $31M $121 $31 $133 $31F $188 $47 $207 $47M $145 $37 $160 $37F $236 $60 $260 $60


M $141 $35 $67F $176 $44 $84M $176 $44 $84F $272 $69 $130M $211 $53 $101F $343 $86 $163

CO

NS

T

Number of Families


NS

T

Territory - All

Protected

Coverage Coverage

Semi-Protected

Unprotected

Unprotected

Protection

Territory - All

Protection

1 2

3 or 4 5 or More

Protected

Semi-Protected

Coverage Coverage

KEY FACTORS

Limit ofLiability (000’s)

Coverage A

Limit ofLiability (000’s)

Coverage C

1 0.430 1 0.253 2 0.460 2 0.336 3 0.490 3 0.419 4 0.520 4 0.502 5 0.550 5 0.585 6 0.580 6 0.668 7 0.610 7 0.751 8 0.640 8 0.834 9 0.670 9 0.917

10 0.700 10 1.000 11 0.730 11 1.083 12 0.760 12 1.166 13 0.790 13 1.249 14 0.820 14 1.332 15 0.850 15 1.415 16 0.880 16 1.498 18 0.940 17 1.581 20 1.000 18 1.664 22 1.030 19 1.747 24 1.060 20 1.830 26 1.090 21 1.913 28 1.120 22 1.996 30 1.150 23 2.079 32 1.180 24 2.162 34 1.210 25 2.245 36 1.240 26 2.328 38 1.270 27 2.411 40 1.300 28 2.494 42 1.330 29 2.577 44 1.360 30 2.660 46 1.390 31 2.743 48 1.420 32 2.826 50 1.450 33 2.909 55 1.525 34 2.992 60 1.600 35 3.075 65 1.675 36 3.158 70 1.750 37 3.241 75 1.825 38 3.324 80 1.900 39 3.407 85 1.975 40 3.490 90 2.050 41 3.573 95 2.125 42 3.656

100 2.200 43 3.739 105 2.275 44 3.822 110 2.350 45 3.905 115 2.425 46 3.988 120 2.500 47 4.071 125 2.575 48 4.154 130 2.650 49 4.237 135 2.725 50 4.320 140 2.800 145 2.875

Each Additional

$1,000 .015

Each Additional

$1,000 0.083



BASE RATES Extended Coverage-All Forms

Coverages A & C NON-SEASONAL Refer to Rule 4.2.3 for rating seasonal properties. Form FP-2 is not eligible for seasonal or secondary coverage.

FP-1 FP-2 FP-1 FP-205 - 07, 30 - 31, 37 - 41

Inland $15 $36 $2 $7

10, 12, 32 - 36 Seacoast $61 $119 $26 $65

11, 13 Beachfront $401 $643 $118 $229

TerritoryCoverage A Coverage - C

Form

Limit of Liability (000’s)

Coverage A

Limit of Liability (000’s)

CoverageC

1 0.525 1 0.307 2 0.550 2 0.384 3 0.575 3 0.461 4 0.600 4 0.538 5 0.625 5 0.615 6 0.650 6 0.692 7 0.675 7 0.769 8 0.700 8 0.846 9 0.725 9 0.923

10 0.750 10 1.000 11 0.775 11 1.095 12 0.800 12 1.190 13 0.825 13 1.285 14 0.850 14 1.380 15 0.875 15 1.475 16 0.900 16 1.570 18 0.950 17 1.665 20 1.000 18 1.760 22 1.050 19 1.855 24 1.100 20 1.950 26 1.150 21 2.045 28 1.200 22 2.140 30 1.250 23 2.235 32 1.300 24 2.330 34 1.350 25 2.425 36 1.400 26 2.520 38 1.450 27 2.615 40 1.500 28 2.710 42 1.550 29 2.805 44 1.600 30 2.900 46 1.650 31 2.995 48 1.700 32 3.090 50 1.750 33 3.185 55 1.875 34 3.280 60 2.000 35 3.375 65 2.125 36 3.470 70 2.250 37 3.565 75 2.375 38 3.660 80 2.500 39 3.755 85 2.625 40 3.850 90 2.750 41 3.945 95 2.875 42 4.040

100 3.000 43 4.135 105 3.125 44 4.230 110 3.250 45 4.325 115 3.375 46 4.420 120 3.500 47 4.515 125 3.625 48 4.610 130 3.750 49 4.705 135 3.875 50 4.800 140 4.000 145 4.125

Each Additional

$1,000 .025

Each Additional

$1,000 0.095

Dwelling Rating Worksheet

January 2001 Virginia Property Insurance Association AAIS Dwelling Program

Key Premium Rate

Pages 1-3

Increased Limits Factor

Rate Pages 1-3

Initial Premium

Vandalism Credit n/a n/a n/a Rule 7.1 Page 13

Base Premium

Mobile Home Factor 1.00 1.00

Rule 4.2.2 Page 9

Seasonal Factor 1.00 1.00 Rule 4.2.3

Page 9

Fire Resistive Factor

Coverage B

Factor .50

Coverage B

Factor .50 Rule 4.2.5

Page 9

Final Premium

Deductible Factor 1.00 1.00 Rule 5.1 Page 11

X X X X X X

= = = = = =

- - - - - -

= = = = = =

X X X X X X

X X X X X X

X X X X X X

X X X X X X

= = = = = =

Fire Other Perils Fire Other Perils Fire Other Perils

Dwelling Contents Other Structures

VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING PROPERTIES MANUAL

Rev 4.1 Table of Contents - 1 February 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

Rule 1. Eligibility ...................................................................................................................... 1 1.1 Eligible Risks .................................................................................................................. 1 1.2 Incidental Business Activities ......................................................................................... 1 1.3 Ineligible Risks ................................................................................................................ 1

Rule 2. Program Description ................................................................................................... 2 2.1 Policy Forms ................................................................................................................... 2

2.1.1. Required Coverages ............................................................................................... 2 2.1.2. Optional Coverages & Endorsements ..................................................................... 2 2.1.3. Required Endorsements .......................................................................................... 2

2.2 Principal Coverages ....................................................................................................... 2 2.2.1. Coverage A – Residence ........................................................................................ 2 2.2.2. Coverage B -- Related Private Structures ............................................................... 3 2.2.3. Coverage C -- Personal Property ............................................................................ 3 2.2.4. Coverage D -- Additional Living Costs and Fair Rental Value ................................. 3

2.3 Loss Settlement Provisions ............................................................................................ 3 2.3.1. Form FP-1 and Mobile Homes ................................................................................ 3 2.3.2. Forms FP-2 ............................................................................................................. 3

2.4 Perils Insured Against ..................................................................................................... 4 2.4.1. Forms FP-1 and FP-2 .............................................................................................. 4

2.5 Policy Limits .................................................................................................................... 4 2.5.1. Form FP-1 ............................................................................................................... 5 2.5.2. Form FP-2 ............................................................................................................... 5

Rule 3. Policywriting Instructions ............................................................................................. 6 3.1 Inception Time ................................................................................................................ 6 3.2 Policy Term ..................................................................................................................... 6

3.2.1. Annual ..................................................................................................................... 6 3.3 Additional Interests ......................................................................................................... 6 3.5 Coinsurance ................................................................................................................... 6 3.6 Restriction of Coverage .................................................................................................. 6 3.7 Cancellation or Reductions in Limits of Liability or Coverages ....................................... 6 3.8 Contributing Insurance ................................................................................................... 6 3.9 Multiple Locations ........................................................................................................... 6 3.10 Minimum Premium ...................................................................................................... 7 3.11 Waiver of Premium ..................................................................................................... 7



3.12 Premium Rounding ..................................................................................................... 7 3.13 Interpolation ................................................................................................................ 7

Rule 4. Premium Determination .............................................................................................. 8 4.1 Calculation of Premium .................................................................................................. 8 4.2 Special Rating Instructions ............................................................................................. 9

4.2.1. Row Houses and Townhouses ................................................................................ 9 4.2.2. Mobile Homes ......................................................................................................... 9 4.2.3. Seasonal Properties ................................................................................................ 9 4.2.4. Dwellings Under Construction ............................................................................... 10 4.2.5. Fire Resistive Construction ................................................................................... 10

4.3 Change in Limits or Addition of Coverages .................................................................. 10 Rule 5. Deductibles ............................................................................................................... 11

5.1 Flat Deductibles -- All Perils ......................................................................................... 11 5.1.1. Minimum Deductible .............................................................................................. 11

5.2 Windstorm or Hail Deductibles ..................................................................................... 11 5.2.1. Minimum Windstorm or Hail Deductibles............................................................... 12

Rule 6. Premium Modifications .............................................................................................. 13 6.1 Protective Devices ........................................................................................................ 13 6.4 Ordinance or Law ......................................................................................................... 13

6.4.1. Excluding Coverage for Increased Cost to Respond to Pollutants ........................ 13 Rule 7. Coverage Options ..................................................................................................... 15

7.1 Vandalism -- Form FP-1 Only ....................................................................................... 15 7.4 Inflation Guard Coverage -- Coverages A and B .......................................................... 15 7.5 Loss Assessment ......................................................................................................... 15

7.5.1. Without Earthquake ............................................................................................... 15 7.6 Private Structures ......................................................................................................... 15

7.6.2. Specific Structures ................................................................................................ 15 7.6.3. Residential Rental to Others ................................................................................. 16 7.6.4. Incidental Business Activities – Related Private Structure .................................... 16

7.7 Theft Coverage ............................................................................................................. 16 7.7.2. Limited ................................................................................................................... 16 7.7.3. Protective Devices ................................................................................................. 16

7.8 Replacement Value -- Personal and Miscellaneous Property ...................................... 17 7.11 Coverage D - Additional Living Costs and Fair Rental Value ................................... 17



7.11.1. Form FP-1 .......................................................................................................... 17 7.11.2. From FP-2 .......................................................................................................... 17

7.12 Tenant's Improvements -- Forms FP-1 and FP-2 ..................................................... 18 7.17 Condominium Fixtures, Additions, and Alterations -- ................................................ 19

7.17.1. Basic Perils Coverage ....................................................................................... 19 7.17.2. Broad Perils Coverage ....................................................................................... 19 7.17.3. Without Coverage C .......................................................................................... 20

7.19 Certified Terrorism Losses ........................................................................................ 21 Definition 1 -- FIRE PROTECTION DEFINITIONS ............................................................... 23 Definition 2 -- CONSTRUCTION DEFINITIONS................................................................... 23 Definition 3 -- TERRITORIAL DEFINITIONS ........................................................................ 24 Definition 4 -- FIRE PREMIUM GROUP CHART ................................................................. 31


Rev 4.0 Rules - 1 January 2008

Rule 1. ELIGIBILITY 1.1 Eligible Risks

A Dwelling Properties policy may be issued to cover:

a one- to four-family dwelling used for private residential purposes;

a private residential dwelling in a row house or townhouse that contains not more than four family units per fire division;

a mobile home used for private residential purposes that is not self-propelled and is permanently situated at a fixed location;

private structures related to dwellings;

a condominium unit-owner's interest in additions, alterations, structures, installations, and other items; or

personal property located in a one- to four-family dwelling, row house or townhouse, mobile home, related private structure, apartment, condominium unit, or other structure.

1.2 Incidental Business Activities An insured or an occupant of the insured premises may engage in one of the following incidental business activities on the premises without affecting the eligibility status of the risk:

a business or professional office, private school or studio where no more than two people work;

a small service business, such as a barber shop, beauty parlor, dressmaker, tailor, or shoe repair where no more than two people work; or

storage of merchandise up to $10,000 in value.

This rule applies to dwelling and contents coverage only.

1.3 Ineligible Risks A Dwelling Properties policy may not be issued to cover:

farm dwellings and farm properties;

self-propelled mobile homes and mobile homes not permanently situated at a fixed location;

dwellings in row houses or townhouses containing more than four family units per fire division; or

dwellings, mobile homes, related private structures, or condominium units with business occupancies other than the incidental business activities described in this manual.

Refer to the Manual of Operational Procedures filed by the Association with the State Corporation Commission, Bureau of Insurance, for additional guidelines.

Includes copyrighted material from American Insurance Services, Inc., with its permission


Rev 4.1 Rules - 2 July 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

Rule 2. PROGRAM DESCRIPTION This is a general description of the coverage provided by the Dwelling Properties forms. The policy forms state the complete conditions.

2.1 Policy Forms 2.1.1. Required Coverages A Dwelling Properties policy may be issued by using one of the following forms

FP-1 Basic Form

FP-2 Broad Form

2.1.2. Optional Coverages & Endorsements FL-10 Automatic Increase In Insurance (Mandatory with FP-2 Form)

FL-14 Insurance By More Than One Company

FL-16 Incidental Business Activities

FL-216 Premises Alarm or Fire Protection Systems

FL-257 Ordinance or Law

FL-30 Tenant’s Improvements and Betterments

FL-32 Condominium Unit-Owner Additions (Broad)

FL-50 Residential Association Loss Assessment

FL 0405 Windstorm or Hail Deductible

FP DP 00 01 Policies Issued With Restrictions in Coverage

FP FL-31 Condominium Unit-Owner Additions (Basic)

FP FL-35 Limited Theft Coverage

FP-41 Additional Interests

FP FL-55 Replacement Value – Personal & Miscellaneous Property

2.1.3. Required Endorsements Each dwelling policy issued must include the following forms

FL 670 Certified Terrorism Losses

FP FL 4901 Wet Rot, Dry Rot, Bacteria, Fungi or Protists Exclusion

2.2 Principal Coverages Four principal coverages are available under a Dwelling Properties policy.

2.2.1. Coverage A – Residence Coverage A covers the dwelling, additions, built-in components, attached fixtures, and detachable building items. Coverage also applies to appliances, carpets, and window coverings in rental portions of the dwelling. Tools and equipment used to service the premises are covered under Coverage A when the policy does not otherwise include coverage for personal property.



2.2.2. Coverage B -- Related Private Structures Coverage B covers unattached structures related to the dwelling, including their additions, built-in components, fixtures, and detachable building items. Coverage also applies to fences, driveways, sidewalks, and other permanently installed outdoor fixtures.

2.2.3. Coverage C -- Personal Property Coverage C covers household contents and personal property usual to the occupancy of the dwelling as a residence.

2.2.4. Coverage D -- Additional Living Costs and Fair Rental Value Coverage D covers increased living costs and/or loss of rental value that occurs when an insured loss makes a covered location unfit for use. Additional living costs is provided under Form FP-2 only.

2.3 Loss Settlement Provisions 2.3.1. Form FP-1 and Mobile Homes Covered losses are settled on an actual cash value basis.

2.3.2. Forms FP-2 An 80% insurance-to-value requirement triggers replacement cost loss settlement for covered building losses. Other covered losses are settled on an actual cash value basis.



2.4 Perils Insured Against 2.4.1. Forms FP-1 and FP-2

Form FP-1 (Basic Form Fire and Basic Form Fire and Extended Coverage) and form FP-2 (Broad Form) provide coverage for loss caused by the perils indicated below. Form Used: FP-1 FP-1 FP-2 Fire Fire and Broad Extended Perils Covered Coverage Fire or Lightning X X X Explosion X X X Windstorm or Hail X X Riot or Civil Commotion X X Aircraft X X Vehicles X X Smoke X X Volcanic Action X X Sinkhole Collapse X X Vandalism Optional X Burglary Damage X Falling Objects X Weight of Ice, Snow, or Sleet X Accidental Tearing Apart, Burning, or Bulging X Accidental Discharge of Liquids or Steam X Freezing of Plumbing or Heating System X Sudden and Accidental Electrical Damage X

2.5 Policy Limits FP-1 FP-2 Coverage A -- $4,000 $12,000 Residence Minimum Minimum Coverage B -- Related Private 10% of limit 10% of limit Structures on residence on residence Coverage C -- $1,000 $4,000 Personal Property Minimum Minimum Coverage D -- 10% of limit 10% of limit Fair Rental Value on residence on residence Coverage D -- Not 10% of limit Addl. Living Cost Covered on residence



2.5.1. Form FP-1 An FP-1 policy may include Coverage A and/or Coverage C. Each is rated separately. Minimum limits are shown in rule 2.5.

10% of the Coverage A limit applies to Coverage B and to Coverage D (Fair Rental Value) without an additional charge. No coverage is provided under form FP-1 for Additional Living Costs. Payment of a loss under Coverage B or Coverage D will not reduce the Coverage A limit available for the same loss. Show the Coverage B and Coverage D limits on the declarations.

2.5.2. Form FP-2 An FP-2 policy may include Coverage A and/or Coverage C. Each is rated separately. Minimum limits are determined and filed by the company with the State Corporation Commission, Bureau of Insurance.

10% of the Coverage A limit applies to Coverage B and to Coverage D without an additional charge. Payment of a loss under Coverage B or Coverage D will not reduce the Coverage A limit available for the same loss. Show the Coverage B and Coverage D limits on the declarations.



Rule 3. POLICYWRITING INSTRUCTIONS 3.1 Inception Time

The policy must be issued to take effect at 12:01 A.M. on the inception date.

Indicate the inception time on the declarations.

3.2 Policy Term 3.2.1. Annual Rating information for annual policies is shown in this manual. An annual policy can be extended for successive terms by using a continuation certificate. The premium for each successive term is based on the rating information, rules, forms, and endorsements in effect on the extension date.

3.3 Additional Interests An additional owner's interest in a covered building may be covered without additional charge. That interest shall be shown on the declarations page.

3.4 Reserved for Future Use 3.5 Coinsurance

A coinsurance clause is not required in any policy written under the provisions of this manual.

3.6 Restriction of Coverage If a policy would not be issued because of unusual exposures, the applicant may request a restriction of coverage at no reduction in premium. The request, signed by the applicant, must be referred to the company. Each request must be submitted by the company to the State Corporation Commission, Bureau of Insurance.

Endorsement FP DP 00 01

3.7 Cancellation or Reductions in Limits of Liability or Coverages If the policy is canceled, coverage is removed or the limits are reduced, the amount of any return premium due is calculated on a pro rata basis.

3.8 Contributing Insurance When the Association provides its maximum limits, coverage may be divided between two or more companies. All policies must contain the same deductible. All additional limits and coverages must be divided between the companies.

Endorsement FL -14

3.9 Multiple Locations A single policy can be issued to cover property at different locations in Virginia if the same form and same deductible option apply at each location. Describe each location and show the limits that apply. Use supplemental declarations if necessary. Indicate that the deductible applies "at each location".




3.10 Minimum Premium A minimum annual premium of $250 shall be charged for each location. The minimum premium may include all chargeable endorsements or coverages for Fire and Allied Lines, if written at the inception of the policy.

3.11 Waiver of Premium An additional or return premium of $10 or less due when a policy is endorsed after its inception may be waived, however, return premiums must be refunded at the request of the insured.

3.12 Premium Rounding Each premium shown on the policy and endorsements shall be rounded to the nearest whole dollar. A premium of fifty cents or more shall be rounded to the next highest dollar.

3.13 Interpolation Rating information for a limit that is between two limits shown in this manual can be developed by interpolation.

Example $33,000 desired limit: The nearest increased fire limits shown are $32,000 and $34,000. For $32,000 the key factor is 1.180. For $34,000 the key factor is 1.210. Figure the difference between the two key factors and divide by 20. This provides the factor per $100.

0015.20030.030.180.1210.1

=÷=−

Multiply the factor per $100 time 10, and add to 1.180.

195.1180.1015.015.100015.

=+=×

The key factor for $33,000 in this example is 1.195.



Rev 4.1 Rules - 8 February 2014 Includes copyrighted material from American Insurance Services, Inc., with its permission

Rule 4. PREMIUM DETERMINATION 4.1 Calculation of Premium

Step 1 Determine which of the following apply:

Form of Coverage: FP-1 or FP-2

FP-1 Only: Extended Coverage and Vandalism Perils

Coverage A

Coverage C

Special Rating Instructions (Rule 4.2)

Deductibles (Rule 5)

Premium Modifications (Rule 6)

Coverage Options (Rule 7)

Step 2 Select the Premium Group from the Territorial Definitions Page that reflects the territory, protection, and construction classifications that apply and determine the occupancy classification.

Step 3 If Coverage A applies, use the following steps to determine the premium. (Also follow any special rating instructions described in Rule 4.2.)

A. Select the Coverage A FIRE premium for the policy limit, apply the factor for the deductible option selected from Rule 5.1, and apply any special rating factors from Rule 4.2.

B. Form FP-1 only: If the extended coverage and vandalism perils apply, select the Coverage A OTHER PERILS premium for the territory and policy limit, apply the factor for the all other perils and windstorm or hail deductible combination selected from Rule 5.2, and apply any special rating factors from Rule 4.2. Form FP-1 only: If the extended coverage perils apply but vandalism does not, reduce the OTHER PERILS premium for the territory and policy limit by the vandalism credit (Rule 7.1), apply the factor for the all other perils and windstorm or hail deductible combination selected from Rule 5.2, and apply any special rating factors from Rule 4.2. Form FP-2: Select the Coverage A OTHER PERILS premium for the territory and policy limit, apply the factor for the all other perils and windstorm or hail deductible combination selected from Rule 5.2, and apply any special rating factors from Rule 4.2.

C. The Coverage A premium is the sum of the FIRE and OTHER PERILS premiums determined by following Steps 3A and 3B.



Step 4 If Coverage C applies, use the Coverage C FIRE and OTHER PERILS premiums and follow the process described in Step 3.

Step 5 If any premium modifications apply, adjust the Coverage A and/or Coverage C premiums determined in Steps 3 and 4.

Step 6 If any coverage options apply, add the additional charges to the Coverage A and/or Coverage C premiums determined in Step 5.

Step 7 If both Coverage A and Coverage C apply, the total policy premium is the sum of the premiums determined in Step 6.

4.2 Special Rating Instructions 4.2.1. Row Houses and Townhouses The occupancy classification for eligible row houses and townhouses is determined by the number of family units in the fire division.

4.2.2. Mobile Homes Use the rating information for a frame dwelling of the appropriate number of families and apply the mobile home factors shown below.

Fire Other Perils

Coverage A 2.50 1.50

Coverage C 2.50 1.50

4.2.3. Seasonal Properties A dwelling normally unoccupied for three or more consecutive months during the year is considered seasonal. Apply the seasonal dwelling factors shown below.

Fire Other Perils



A mobile home is also considered seasonal if it is normally unoccupied for three or more consecutive months during the year. Apply the seasonal mobile home factors shown below after the mobile home factors have been applied.

Fire Other Perils





4.2.4. Dwellings Under Construction Use the rating information for nonowner-occupied dwellings.

4.2.5. Fire Resistive Construction Use the rating information for masonry construction and apply the fire resistive construction factors shown below.

Fire Other Perils

Coverage A .65 .65


4.3 Change in Limits or Addition of Coverages Policy limits may be increased or coverages added during the policy term. Compute the additional premium on a pro rata basis using the same forms, endorsements, and rating information in effect when the current policy premiums were calculated.



Rule 5. DEDUCTIBLES 5.1 Flat Deductibles -- All Perils

The policy may be issued with one of the deductible options shown below. Apply the deductible factors shown below.

Deductible Coverage A & C Coverage A & C Amount Fire Other Perils $500 1.00 See Rule 5.2 $1,000 .95 See Rule 5.2 $2,500 .84 See Rule 5.2

The deductible amount is shown on the declarations; no endorsement is needed.

5.1.1. Minimum Deductible The base deductible is $500. The minimum deductible will be based on the combined limit of building and contents coverage for a location. It will be determined from the chart below.

Combined Minimum Values Deductible $1,000 - $100,000 $500 Over $100,000 $1,000

5.2 Higher Windstorm or Hail Deductibles A policy that includes Coverage A will be issued with a deductible applicable to loss caused by windstorm or hail. The windstorm or hail deductible may be higher than the deductible that applies to all other perils. The windstorm or hail deductible must be expressed as a flat dollar amount. The windstorm or hail deductible is applicable to the dwelling and related coverages (Coverages B, C, and any applicable incidental coverages).

The following windstorm or hail deductible options are available:

Flat Amount

$1,000

$2,000

$2,500

$5,000



The policy may be issued with one of the deductible combinations shown below. Apply the deductible factors shown below to adjust the OTHER PERILS premium. These factors are to be used in lieu of the factors shown in Rule 5.1.

Windstorm or Hail Deductible

All Other Perils Deductible $1,000 $2,000 $2,500 $5,000

$500

$1,000

$2,500

1.00 0.85 N/A 0.76

0.96 0.79 N/A 0.71

N/A N/A 0.71 0.65

The windstorm or hail deductible amount will be shown on the declarations.

5.2.1. Minimum Windstorm or Hail Deductibles The base windstorm or hail deductible is $1,000. The minimum windstorm and hail deductible will be based on the combined limit of building and contents coverage for a location. It will be determined from the chart below.

Combined Minimum Windstorm or Hail Values Deductible $1,000 - $100,000 $1,000 Over $100,000 $2,000



Rule 6. PREMIUM MODIFICATIONS 6.1 Protective Devices

The protective device factors shown below may be applied for the installation of the following approved and properly maintained alarm and/or sprinkler systems:

Protective Devices FireCoverage ACentral Station Alarms - Fire 0.92

Central Station Alarms - Smoke 0.92

Fire Department Alarms 0.95

Police Department Alarms 0.95

Local Alarms 0.97

Endorsement FL -216

6.2 Reserved for Future Use 6.3 Reserved for Future Use 6.4 Ordinance or Law

6.4.1. Excluding Coverage for Increased Cost to Respond to Pollutants Coverage can be added for the increased cost that results from the enforcement of a code, ordinance, or law that regulates the use, construction, repair, demolition, or removal of debris of covered property following a covered loss.

Apply the following ordinance or law factors to the premiums for the following coverages when they are provided by the policy:

Fire Other Perils

Excluding Coverage For Increased Cost To Respond To Pollutants 1.20 1.20

-- Coverages A and C;

-- Private structures under Rule 7.6;

-- Increased limits of Tenant's Improvements (FL-1 and FL-2); and

-- Increased limits of Condominium Fixtures, Additions, and Alterations (FL-2).

This coverage does not increase the policy limits; therefore, the increased cost that will result from the enforcement of a code, ordinance, or law must be reflected in the limits for the coverages shown above.

Endorsement FL 0257




6.5 Reserved for Future Use 6.6 Reserved for Future Use 6.7 Reserved for Future Use 6.8 Reserved for Future Use




Rule 7. COVERAGE OPTIONS 7.1 Vandalism -- Form FP-1 Only

Vandalism is an optional coverage under policy form FP-1. Make an entry on the declarations to show that FP-1 coverage applies "with vandalism" or "without vandalism". If coverage for vandalism does not apply, use the credit shown below to reduce the OTHER PERILS premium.

Vandalism Credit $0.08 Per $1,000 of Insurance

7.2 Reserved for Future Use 7.3 Reserved for Future Use 7.4 Inflation Guard Coverage -- Coverages A and B

The Coverage A and B limits can be automatically increased on a quarterly basis. Apply the rating information shown in this manual to all Coverage A and B premiums, including premiums developed under Rule 7.6.

Inflation Guard Fire Other Perils .5% Quarterly Increase

Surcharge-Coverages A And B

.75%

.75%

Endorsement FL-10

7.5 Loss Assessment 7.5.1. Without Earthquake Coverage can be added for loss assessment charged to the insured when collectively owned property is damaged by a peril insured against, other than earthquake. Use the rating information shown below.

Without Earthquake FP1 $7.07 Per $1,000 of Insurance

Without Earthquake FP2 $9.45 Per $1,000 of Insurance

Endorsement FL -50

7.6 Private Structures 7.6.1. Reserved for Future Use 7.6.2. Specific Structures Coverage may be provided for a specific private structure adjacent to a covered dwelling for an additional charge. To be eligible for coverage under this rule, a private structure cannot be:

used for business purposes; or

rented or held for rental to anyone other than a tenant of the residence, except for use solely as a private garage.



Use the Coverage A rating information for a one-family, owner-occupied dwelling in the applicable territory, construction, and protection classification; apply the deductible factors; and apply the Coverage B factors shown below. The perils and deductible option must be the same for all Coverage A and Coverage B structures insured under the same policy.

Form FP-1 Only: If the extended coverage perils apply but vandalism does not, reduce the OTHER PERILS premium by the vandalism credit (Rule 7.1) before applying the deductible and Coverage B factors.

Private Structures Fire Other PerilsCoverage B Factors 0.50 0.50

Describe the structure (Coverage B) on the declarations and show the limit that applies.

7.6.3. Residential Rental to Others Private structures rented to others, or held for rental, for residential purposes can be insured under Coverage A. Use the Coverage A rating information for a nonowner-occupied dwelling in the applicable territory, construction, protection, and occupancy classification and apply the deductible factors. The perils and deductible option must be the same for all Coverage A structures covered by the same policy.

Describe the structure (Coverage A) on the declarations and show the limit that applies.

7.6.4. Incidental Business Activities – Related Private Structure A private structure on the premises with incidental business activities related to the private structure can be covered by endorsement. Use the Coverage A rating information for a one-family, owner-occupied dwelling in the applicable territory, construction, and protection classification and apply the deductible factors. The perils and deductible option must be the same for all Coverage A and Coverage B structures covered by the same policy.

Endorsement FL –16 Incidental Business Activities – Related Private Structure 7.6.5. Reserved for Future Use

7.7 Theft Coverage 7.7.1. Reserved for Future Use 7.7.2. Limited On-premises theft coverage can be added in $1,000 increments to policies that insure personal property in owner-occupied dwellings. The maximum available limit is $5,000. Use the rating information shown below.

Limited On-Premises $26.25 Per $1,000 of Insurance

Endorsement FP FL -35 7.7.3. Protective Devices The protective device factors shown below may be applied to the premium determined for on-premises limited theft coverage when an approved and properly maintained burglar alarm system has been installed.




Protective DevicesPremium Modification

Factors Central Station Alarms - Fire .92

Police Department Alarms .95

Local Alarms .97

Endorsement FL -216

7.8 Replacement Value -- Personal and Miscellaneous Property Personal property and other miscellaneous property can be insured for its replacement value. Increase coverage C fire and other perils premium by 45%.

Endorsement FP FL-55

7.9 Reserved for Future Use 7.10 Reserved for Future Use 7.11 Coverage D - Additional Living Costs and Fair Rental Value

7.11.1. Form FP-1 Additional living costs coverage is not provided by this form. The policy automatically includes coverage for fair rental value. The Coverage D basic limit cannot be increased.

7.11.2. From FP-2 The policy automatically includes coverage for additional living costs and fair rental value. The Coverage D basic limit can be increased for an additional charge. The Coverage D perils must be the same as the Coverage A perils. The additional charge applies only to the amount of insurance in excess of the basic limit.

If the insured premises is a one- to four-family dwelling, calculate the Coverage D charge by using the Coverage A base rating information for the territory, construction, protection, and occupancy classification that applies to the dwelling where the insured resides and apply the Coverage D factors shown below. Do not apply any deductible factors. When the policy includes Coverage A, the Coverage D perils must be the same as the Coverage A perils. If Coverage A does not apply, the Coverage D perils must be the same as the Coverage C perils.

If the insured premises is a five-plus family building, calculate the Coverage D charge by using the Coverage C rating information for the territory, construction, occupancy, and protection classifications that apply to Coverage C and apply the Coverage D factors shown below. The Coverage D perils must be the same as the Coverage C perils.

Show the Coverage D limit on the declarations.




Coverage D Factors Fire Other PerilsOne to Four Family Dwellings 0.40 0.40

Five-Plus Family Buildings 0.30 0.30

7.12 Tenant's Improvements -- Forms FP-1 and FP-2 When form FP-1 or FP-2 is issued to cover a tenant's personal property, incidental coverage for the tenant's interest in permanent fixtures, alterations, decorations, and additions is automatically extended for up to 10% of the Coverage C limit. Loss settlement is on an actual cash value basis. No additional charge applies and no endorsement is needed.

The limit that applies to tenant's improvements can be increased for an additional charge. Use the "Each Add'l $1,000" rating information for the perils and the territory, construction, protection, and occupancy classification that apply to Coverage C and apply the deductible factors. The additional charge applies only to the amount of insurance in excess of 10% of the Coverage C limit.

Endorsement FL-30

7.13 Reserved for Future Use 7.14 Reserved for Future Use 7.15 Reserved for Future Use 7.16 Reserved for Future Use




7.17 Condominium Fixtures, Additions, and Alterations -- 7.17.1. Basic Perils Coverage When policy form FP-1 is issued to a condominium unit-owner to cover the unit contents, 10% of the Coverage C limit is automatically extended to cover the unit-owner's interest in fixtures, additions, alterations, structures, installations, and other building related items. Coverage applies on a basic perils basis. No additional charge applies.

Attach Endorsement FP FL-31 and show the limit that applies (10% of the Coverage C limit) on the declarations as Coverage A -- Condominium Fixtures, Additions, and Alterations.

The 10% limit can be increased for an additional charge. Use the rating information shown below for "Basic Perils -- Increased Limit". The additional charge applies only to the amount of insurance in excess of 10% of the Coverage C limit.

Fire Rates Per $1,000 of Insurance

Frame Masonry

Protected $5.18 $4.14

Semi-Protected $8.03 $5.18

Unprotected $10.10 $6.22

Extended Coverage Rates Per $1,000 of Insurance

Inland $0.25

Seacoast $0.64

Beachfront $2.32

Attach Endorsement FP FL-31 and show the total limit that applies on the declarations as Coverage A -- Condominium Fixtures, Additions, and Alterations.

7.17.2. Broad Perils Coverage When policy form FP-2 is issued to a condominium unit-owner to cover the unit contents, 10% of the Coverage C limit is automatically extended to cover the unit-owner's interest in fixtures, additions, alterations, structures, installations, and other building related items. Coverage applies on a broad perils basis. No additional charge applies.

Attach Endorsement FL-32 and show the limit that applies (10% of the Coverage C limit) on the declarations as Coverage A -- Condominium Fixtures, Additions, and Alterations.

The 10% limit can be increased for an additional charge. Use the rating information shown below for "Broad Perils -- Increased Limit". The additional charge applies only to the amount of insurance in excess of 10% of the Coverage C limit.


Rev 4.1 Definitions - 23 January 2008 Includes copyrighted material from American Insurance Services, Inc., with its permission

Definition 1 -- FIRE PROTECTION DEFINITIONS Protected Building is located within five road miles of a responding fire

department and within 1,000 feet of a fire hydrant.

Partially Protected Building is located within five road miles of a responding fire department, but does not otherwise qualify for Protected status.

Unprotected All others.

Definition 2 -- CONSTRUCTION DEFINITIONS Building or Fire Division One part of an enclosed structure that is separated from

other parts of the structure by space or by masonry walls that are at least eight inches thick and that go through or to the underside of the roof. Any openings through such masonry walls must be protected by fire doors that are approved for installation on fire walls.

Fire Resistive A dwelling with exterior walls, floors, and roof constructed entirely of masonry or noncombustible materials on incombustible supports and having a Fire Resistance Rating of at least one hour.

Frame A dwelling with exterior walls constructed of combustible materials, such as wood, or constructed of incombustible materials on combustible supports.

Masonry A dwelling with exterior walls constructed of brick, concrete block, concrete, tile, or other masonry materials or constructed of incombustible materials on incombustible supports.

Masonry Veneered A dwelling with exterior walls constructed of a combustible material covered with masonry. Dwellings of masonry veneered construction will be classified as masonry for rating purposes.

Mixed Dwellings of mixed frame and masonry construction will be classified as frame for rating purposes if walls of frame construction exceed 33-1/3% of total exterior wall area.



Definition 3 -- TERRITORIAL DEFINITIONS Independent City EC Zone Territory Alexandria Inland 139 Bedford Inland 141 Bristol Inland 106 Buena Vista Inland 141 Charlottesville Inland 141 Chesapeake Seacoast 136 Clifton Forge Inland 141 Colonial Heights Inland 105 Covington Inland 141 Danville Inland 105 Emporia Inland 105 Fairfax Inland 140 Falls Church Inland 140 Franklin Inland 105 Fredericksburg Inland 141 Galax Inland 106 Hampton Seacoast 133 Harrisonburg Inland 141 Hopewell Inland 105 Lexington Inland 141 Lynchburg Inland 141



Independent City EC Zone Territory Manassas Inland 140 Manassas Park Inland 140 Martinsville Inland 105 Newport News Seacoast 132 Norfolk Seacoast 135 Norton Inland 107 Petersburg Inland 105 Poquoson Seacoast 134 Portsmouth Seacoast 136 Radford Inland 106 Richmond Inland 130 Roanoke Inland 137 Salem Inland 138 South Boston Inland 105 Staunton Inland 141 Suffolk Seacoast 136 Virginia Beach except Beach Area Seacoast 110 Beach Area Beachfront 111 Waynesboro Inland 141 Williamsburg Inland 141 Winchester Inland 141



All of the following areas are designated as Beach Area in the Independent City of Virginia Beach: Starting northward from the North Carolina border, east of line running along the western shore of Back Bay area to where Hell Point Creek empties into North Bay; thence, along Hell Point Creek to Lake Tecumseh and Redwing Lake; from Redwing Lake along a creek to Lake Christine; thence, along South Surfside Avenue to Dare Drive and north to Lake Wesley; across Rudee Inlet to Atlantic Avenue, extending along Atlantic Avenue to Cape Henry Lighthouse. Also, all islands that are a part of, or east of, the Chesapeake Bay Bridge Tunnel. County EC Zone Territory Accomack except Beach Area Seacoast 112 Beach Area Beachfront 113 Albemarle Inland 141 Allegheny Inland 141 Amelia Inland 105 Amherst Inland 141 Appomattox Inland 105 Arlington Inland 140 Augusta Inland 141 Bath Inland 141 Bedford Inland 141 Bland Inland 107 Botetourt Inland 141 Brunswick Inland 105 Buchanan Inland 107 Buckingham Inland 105 Campbell Inland 105



County EC Zone Territory Caroline Inland 141 Carroll Inland 106 Charles City Inland 141 Charlotte Inland 105 Chesterfield Inland 131 Clarke Inland 141 Craig Inland 141 Culpeper Inland 141 Cumberland Inland 105 Dickenson Inland 107 Dinwiddie Inland 105 Essex Inland 141 Fairfax Inland 140 Fauquier Inland 141 Floyd Inland 106 Fluvanna Inland 141 Franklin Inland 105 Frederick Inland 141 Giles Inland 107 Gloucester Seacoast 134 Goochland Inland 141 Grayson Inland 106



County EC Zone Territory Greene Inland 141 Greensville Inland 105 Halifax Inland 105 Hanover Inland 141 Henrico Inland 131 Henry Inland 105 Highland Inland 141 Isle of Wight Seacoast 136 James City Inland 141 King and Queen Inland 141 King George Inland 141 King William Inland 141 Lancaster Seacoast 134 Lee Inland 107 Loudoun Inland 140 Louisa Inland 141 Lunenburg Inland 105 Madison Inland 141 Mathews Seacoast 134 Mecklenburg Inland 105 Middlesex Seacoast 134 Montgomery Inland 106



County EC Zone Territory Nelson Inland 141 New Kent Inland 141 Northampton except Beach Area Seacoast 112 Beach Area Beachfront 113 Northumberland Seacoast 134 Nottoway Inland 105 Orange Inland 141 Page Inland 141 Patrick Inland 106 Pittsylvania Inland 105 Powhatan Inland 105 Prince Edward Inland 105 Prince George Inland 105 Prince William Inland 140 Pulaski Inland 106 Rappahannock Inland 141 Richmond Inland 141 Roanoke Inland 138 Rockbridge Inland 141 Rockingham Inland 141 Russell Inland 107 Scott Inland 107 Shenandoah Inland 141



County EC Zone Territory Smyth Inland 106 Southampton Inland 105 Spotsylvania Inland 141 Stafford Inland 141 Surry Inland 105 Sussex Inland 105 Tazwell Inland 107 Warren Inland 141 Washington Inland 106 Westmoreland Inland 141 Wise Inland 107 Wythe Inland 106 York Seacoast 134 All of the following areas are designated as Beach Area in the Counties of Accomack and Northampton. The following and similar localities not specifically named, being the marshlands, necks and island east of the Eastern shore Peninsula: Adams Island Hog Island Myrtle Island

Assateague Island Little Cobb Island Parramore Island

Assawaman Island Long Point Island Piney Island

Cedar Island Matomkin Island Ship Shoal Island

Chincoteague Island Mink Island Smith Island

Cobb Island Mockhorn Island Wallops Island

Fisherman Island Morris Island Wreck Island



Definition 4 -- FIRE PREMIUM GROUP CHART Territory Protected Partially Protected Unprotected

Masonry All 4 5 6

Frame All 1 2 3

DWELLING LIABILITY PROGRAM

This Manual Contains Final Rates

July 2014

VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING LIABILITY MANUAL


Rule 1. ELIGIBILITY — PERSONAL COVERAGES 1.1 Personal Liability Coverage

Personal Liability Coverage may be provided for a person maintaining a residence in a one-to-two family owner occupied dwelling. Personal Liability Coverage may also be provided for a resident non-owner maintaining a residence in a located in a one- to four-family dwelling, row house or townhouse, mobile home, related private structure, apartment, condominium unit, or other structure.

Rule 2. PROGRAM DESCRIPTION — PERSONAL COVERAGES 2.1 Mandatory Coverages

The following is a general description of the coverages provided by Form FPGL-1. The coverage parts state the complete conditions.

2.1.1. Coverage L — Liability Coverage L pays on behalf of the insured for damages due to bodily injury or property damage caused by an occurrence arising out of the insured premises or the insured's personal activities.

2.1.2. Coverage M — Medical Payments to Others Coverage M pays medical expenses, incurred by persons who are not insureds, for bodily injury related to the insured premises or the insured's personal activities.

2.2 Limits of Liability The basic limits of liability for each coverage are:

Coverage L — $100,000 Per Occurrence

Coverage M — $1,000 Per Person

$25,000 Per Accident

Rule 3. POLICYWRITING INSTRUCTIONS Unless indicated otherwise, this rule applies to the Personal Liability Coverages.

3.1 Policy Issue — Personal Coverages The Personal Liability Coverages described in this manual must be issued as endorsements to dwelling fire policies.

3.1.1. Reserved for Future Use 3.1.2. Package Policies When Personal Liability Coverage is used as an endorsement to a dwelling fire policy, the policy conditions that address assignment, cancellation, change, inspections and examination of books also govern Personal Liability Coverage.

Fire and Personal Liability Package Fire Policy + FPGL-1


3.2 Reserved for Future Use 3.3 Mandatory Endorsements

A dwelling fire policy may be endorsed to provide liability protection by attaching the following forms. If liability coverage is requested the following forms must be attached to the policy.

FPGL-1 Personal Liability Coverage

In addition to the mandatory forms listed above, the following optional endorsements may be attached along with form FPGL-1

GL-70 Additional Insured

FP DL 00 02 Request for Issuance With Restrictions in Coverage

3.4 Reserved for Future Use 3.5 Reserved for Future Use 3.6 Additional Interests — Personal Liability Coverages

3.6.1. Interests Permitted Personal Liability Coverage may be extended to include the additional interests described below at no additional premium charge. Coverage is limited to the specific insurable interest in the premises.

< A person or organization with an interest in the insured's location, except as specified in 3.6.2.

Endorsement GL-70 Additional Insured 3.6.2. Interests Not Permitted A tenant or lessee may not be included as an Additional Interest under the Personal Coverages.

3.7 Reserved for Future Use 3.8 Cancellation or Reduction in Limits of Liability or Coverages

Mandatory dwelling coverages may not be canceled unless Personal Liability Coverage is canceled.

Coverage must be canceled in accordance with the terms of applicable cancellation provisions. Return premium, if any, is computed on a pro rata basis.

3.9 Restriction of Coverage If a policy would not be issued because of unusual exposures, the applicant may request a restriction of coverage at no reduction in premium. The request, signed by the applicant, must be referred to the company. Each request must be submitted by the company to the State Corporation Commission, Bureau of Insurance.

Endorsement FP DL 00 02

Rev 4.0 Rules - 2 January 2005 Includes copyrighted material from American Insurance Services, Inc., with its permission

VIRGINIA PROPERTY INSURANCE ASSOCIATION DWELLING LIABILITY MANUAL Rule 4. PREMIUM DETERMINATION — PERSONAL LIABILITY

COVERAGES 4.1 Rating Basis

The rating basis shown for each classification described in Rule 5 is used to calculate the premium for the various Personal Liability exposures.

4.2 Required Coverages Coverage is required for the following exposures if they exist:

< All residence premises of the named insured.

4.3 Calculation of Premium The premium is computed as follows:

4.3.1. Use Rule 5 to determine the classifications for all required and optional coverages. Calculate the number of rating bases for each classification.

4.3.2. Use the following table to obtain the rates, at the appropriate limit, for the classifications determined in 4.3.1.

Code Description Premium

701 00 Initial Residence — one family $65

702 00 Additional Charge for a Two Family Dwelling or Two to Four Family Townhouse

$33

4.3.3. Reserved for Future Use 4.3.4. Multiply the rates determined in 4.3.3 by the respective number of rating

bases determined in 4.3.1. The sum of these products is the policy premium.

Rule 5. CLASSIFICATIONS — PERSONAL LIABILITY COVERAGES 5.1 Classifications that apply to Personal Liability

5.1.1. Residences A residence includes incidental garages and stables. Each portion of an additional residence to be insured must be individually rated.

Code No. Rating Basis

700 00 Initial Residence — one family ............................................................ each

701 00 Additional Charge for a Two Family Dwelling or Townhouse per family unit

If two or more persons co-own and occupy separate portions of a two- family dwelling, a single policy may be issued to cover these persons as named insureds. Compute the premium for each portion using Code No. 700 00.

Endorsement GL-70 — Additional Insureds



5.1.2. Reserved for Future Use 5.1.3. Business Activities No coverage will be provided if there are any business pursuits carried on at the insured premises. See the Manual of Operational Procedures for eligibility requirements.


FP-1 (01-08) Page 1 of 11 Ed 2.1 Includes copyrighted material from American Association of Insurance Services, with its permission

FP-1 (01-08) -- READ THIS ENTIRE POLICY CAREFULLY -- Ed 2.1 IT IS A LEGAL CONTRACT BASIC FORM The following Table of Contents shows how the policy is organized. It will help you locate particular sections of the policy.

TABLE OF CONTENTS Page Agreement ....................................................................................................................... 1

Waiver of Small Premiums .............................................................................................. 1

Definitions ........................................................................................................................ 2

Principal Coverages ........................................................................................................ 2

Incidental Coverages....................................................................................................... 4

Perils Insured Against -- Coverages A, B, C, and D........................................................ 5

General Exclusions.......................................................................................................... 6

What You Must Do in Case of Loss................................................................................. 7

How Much We Pay for Loss or Claim.............................................................................. 8

Payment of Loss.............................................................................................................. 9

Policy Conditions ............................................................................................................. 9

Required state endorsements may also be part of this policy. Refer to the Definitions for words that have special meaning. These words are shown in "bold type". AGREEMENT This policy, subject to all of its terms, provides property insurance and other described coverages during the policy period. In return you must pay the required premium. Each of the Principal Coverages described in this policy applies only if a limit is shown on the Declarations for that coverage. WAIVER OF SMALL PREMIUMS When this policy is endorsed subsequent to the effective date, any additional or return premiums of $10.00 or less, will be waived by the Virginia Property Insurance Association. However, if the insured requests a refund, the Association will honor such request.


DEFINITIONS 1. The words you and your mean the person or

persons named on the Declarations and your spouse if a resident of your household. The words we, us, and our mean the company providing this insurance.

2. Business means a trade, profession, or occupation

including farming, all whether full or part time. 3. Credit Card means a card, plate, coupon book, or

other credit device used to obtain money, property, labor, or services on credit. This includes debit cards or fund transfer cards used to deposit, withdraw or transfer funds.

4. Insured Premises means the location shown on the Declarations.

5. Limit means the limit of liability that applies. 6. Motorized Vehicle means a self-propelled land or

amphibious vehicle regardless of method of surface contact.

7. Terms means all provisions, limitations, exclusions,

conditions, and definitions used in this policy.

PRINCIPAL COVERAGES Coverage A -- Residence 1. We cover the residence on the insured premises,

including its additions, built-in components, and attached fixtures. On the insured premises, we also cover:

a. building items that can be detached from the

covered residence, such as screens and storm doors;

b. appliances, carpets, and window coverings in that

part of the residence you rent to others; c. building materials and supplies for use in

construction of or to the residence; and d. if this policy does not provide Coverage C, tools

and equipment used to service the insured premises. This includes motorized vehicles used only to service the insured premises that are not required to be licensed for road use.

2. Coverage A does not cover: a. land, including the land on which the property is

located, underground water or surface water; b. trees, plants, shrubs, and lawns; and c. farm tools, farm equipment, and farm motorized

vehicles. Coverage B -- Related Private Structures 1. We cover related private structures on the insured

premises which are not attached to the residence, including their additions, built-in components, and

attached fixtures. Structures that are connected to the residence by only a fence, a utility line, or a similar connection are not considered attached. On the insured premises, we also cover:

a. fences, driveways, and sidewalks;

b. other permanently installed outdoor fixtures;

c. building materials and supplies for use in construction of or to a related private structure; and

d. building items that can be detached from covered related private structures, such as screens and storm doors.

2. Coverage B does not cover:

a. land, including the land on which the property is located, underground water or surface water;

b. trees, plants, shrubs, and lawns;

c. structures used for business; and

d. structures rented or held for rental. This does not apply to structures:

1) rented or held for rental to a tenant of the covered residence and not used for business by the tenant; or

2) used solely as a private garage. Coverage C -- Personal Property 1. While on the Insured Premises -- This policy

covers personal property, while on the insured premises, which is usual to the occupancy of the dwelling as a residence. The personal property must be owned or used by you or your family members who reside with you.


2. While Away from the Insured Premises -- You

may apply up to 10 percent of the Coverage C limit to cover personal property, while away from the insured premises, which is usual to the occupancy of the dwelling as a residence. The personal property must be owned or used by you, or your family members who reside with you.

3. While in a Newly Acquired Principal Residence

-- We pay for loss to covered personal property in a newly acquired principal residence. The full Coverage C limit applies for 30 days from the date you begin to move. After that, coverage for personal property in a newly acquired principal residence is limited to 10 percent of the Coverage C limit. This coverage does not extend past the date on which the policy expires or the date on which the policy is terminated.

4. Property of Others -- At your option, personal

property owned by a guest or domestic employee is covered while it is in that part of the insured premises occupied by you.

5. Limitations on Certain Property -- The special

limits shown below do not increase the Coverage C limit. The limit for each class is the total limit per occurrence for all items in that class.

a. $200 on money, bank notes, bullion, gold other

than goldware and gold-plated ware, silver other than silverware and silver-plated ware, platinum, coins, and numismatic property.

b. Regardless of their storage medium, $1,000 on

securities, bills, letters of credit, notes other than bank notes, tickets, accounts, deeds, evidence of debt, passports, manuscripts, stamps, and philatelic property.

c. $1,000 on watercraft including their trailers,

furnishings, equipment, and motors. d. Business property, up to the amounts shown

below: 1) while on the insured premises, $2,500 on

business property that pertains to a business actually conducted on the insured premises;

2) $250 while away from the insured premises. e. $1,000 on trailers not otherwise provided for.

6. Personal Property Not Covered -- Coverage C

does not cover: a. land, including the land on which the property is

located, underground water or surface water; b. trees, plants, shrubs, and lawns; c. animals, birds, or fish; d. motorized vehicles. This includes their parts,

equipment, and accessories while in or on a motorized vehicle. We do cover motorized vehicles that are not subject to motor vehicle registration if they are designed and used to assist the handicapped or used only to service the insured premises;

e. aircraft, including their parts and equipment; f. electronic devices, accessories, or antennas for

the transmitting, recording, receiving or reproduction of sound that may be operated from the electrical system of a motorized vehicle, farm equipment, or watercraft while in or on the motorized vehicle, farm equipment, or watercraft. This includes tapes, wires, discs, records, or other media for use with such devices;

g. loss that results from credit cards; or h. farm property. Coverage D -- Fair Rental Value We pay for the fair rental value if the part of the insured premises rented or held for rental to others is made unfit for use by an insured loss. We only pay for the period of time reasonably required to make that part of the insured premises rented or held for rental to others fit for use. Fair rental value is the amount you would have received less the charges and expenses that do not continue while the insured premises is unfit for use. This period of time is not limited by the policy period. We pay your fair rental value for up to two weeks if the premises next to the insured premises is damaged by a peril insured against and you may not, by order of civil authority, use the insured premises. This period of time is not limited by the policy period. We do not pay fair rental value due to the cancellation of a lease or an agreement.


INCIDENTAL COVERAGES This policy provides the following Incidental Coverages. They are subject to all of the terms of the applicable Coverages A, B, or C. They are not extended to farm property. These coverages provide additional insurance unless otherwise stated. 1. Emergency Removal -- We pay for loss to covered

property that is moved to prevent loss by a peril insured against. The property is covered for direct physical loss for up to 30 days. This coverage does not extend past the date on which this policy terminates.

We pay up to a $250 towing charge to move a

covered mobile home that is in danger from a peril insured against.

This coverage does not increase the limits shown

for the property being removed. 2. Debris Removal -- We pay for the cost to remove

the debris of covered property after an insured loss. This includes the cost to remove volcanic ash, dust, or particulate matter that causes direct physical loss to covered property.

We will not pay more for direct loss to property and

debris removal combined than the limit that applies to the damaged property.

We also pay the cost to remove fallen trees which

cause damage to property covered under Coverages A, B, or C if:

a. the falling of the tree is caused by any of the perils insured against; and

b. coverage is not provided elsewhere by this policy.

Regardless of the number of fallen trees, the most we will pay is $500 per occurrence.

3. Trees, Plants, Shrubs, or Lawns -- We pay for loss

to trees, plants, shrubs, or lawns on the insured premises caused by:

a. fire or lightning, explosion, riot or civil commotion,

aircraft;

b. vehicles, if not owned or operated by you or an occupant of the insured premises; or

c. if covered by this policy, vandalism or theft. We do not cover trees, plants, shrubs, or lawns

grown for business. You may apply up to 5 percent of the Coverage A

limit on the insured premises to cover trees, plants, shrubs, or lawns. We do not pay more than $500 for each tree, plant, or shrub. This includes the cost to remove the debris of the covered item.

4. Fire Department Service Charge -- We pay up to

$500 for charges assumed by you under a contract or agreement when a fire department is called to protect covered property from a peril insured against.

5. Tenant's Improvements -- If you are a tenant, we

pay for loss by perils insured against to improvements on the insured premises made or acquired at your expense. These are permanent fixtures, alterations, decorations, and additions.

You may apply up to 10 percent of the Coverage C

limit to cover tenant's improvements. 6. Grave markers -- We pay up to $500 for loss to

grave markers and mausoleums caused by any of the perils insured against.

PERILS INSURED AGAINST -- COVERAGES A, B, C, AND D

We insure against direct physical loss caused by the following perils, unless the loss is excluded under the General Exclusions: 1. Fire or Lightning 2. Explosion Optional Perils -- Extended Coverage -- The following perils (Numbers 3 through 9) are subject to an additional

premium charge and apply only if coverage for Extended Coverage is shown on the Declarations. 3. Windstorm or Hail -- However, we do not pay for

loss: a. to the interior of a building or mobile home, or to

property inside a structure caused by dust, rain, sand, sleet, snow or water, all whether driven by wind or not, which enter through an opening not made by the direct force of wind or hail;


b. to watercraft and their trailers, furnishings,

equipment and motors unless inside a fully enclosed building. (We do cover canoes and rowboats while on the insured premises.); or

c. to outdoor antennas, including their lead-in wiring,

masts and towers; 4. Riot or Civil Commotion 5. Aircraft -- This means direct loss from actual

physical contact of an aircraft with covered property and includes objects falling from aircraft.

6. Vehicles -- However, we do not pay for loss to

fences, driveways and walks caused by a vehicle owned or operated by you or an occupant of the insured premises.

7. Sudden and Accidental Damage from Smoke --

However, we do not pay for loss caused by smoke from agricultural smudging or industrial operations.

8. Sinkhole Collapse -- This means loss caused by

sudden settlement or collapse of earth supporting covered property. The earth settlement or collapse must result from subterranean voids created by the

action of water on a limestone or similar rock formation.

However, we do not cover the value of land or the

cost of filling sinkholes. 9. Volcanic Action -- This means: a. airborne volcanic blast or airborne shock waves; b. ash, dust, or particulate matter; or c. lava flow. However, we do not cover removal of ash, dust, or

particulate matter that does not cause direct physical loss to covered property.

Optional Peril -- Vandalism -- This peril (Number 10) is subject to an additional premium charge and applies only if coverage for Vandalism is shown on the Declarations.

10. Vandalism -- However, we do not pay for loss on the insured premises if the residence is vacant for more than 30 days in a row just before the loss. A residence being built is not vacant.

GENERAL EXCLUSIONS We do not pay for loss if one or more of the following exclusions apply to the loss, regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the loss before, at the same time as, or after the excluded causes or events. 1. Civil Authority -- We do not pay for a loss which

results from order of civil authority. We pay for loss which results from acts of a civil

authority to prevent the spread of fire. We do not pay if the fire was caused by an excluded peril.

2. Earth Movement -- We do not pay for loss which

results from earth movement whether the earth movement results from natural or artificial causes.

Earth movement includes but is not limited to: a. earthquake; b. landslide, subsidence, erosion; c. mudflow;

d. earth sinking, rising, shifting, expanding, or contracting. This does not include Sinkhole Collapse as described under Perils Insured Against; or

e. volcanic explosion. Volcanic explosion does not

include Volcanic Action as described under Perils Insured Against.

We do pay for direct loss caused by fire, explosion

(other than a volcanic explosion) and, if covered by this policy, theft resulting from earth movement.

3. Intentional Acts -- We do not provide coverage for

an insured who commits or directs an act with the intent to cause a loss.

4. Neglect -- We do not pay for loss which results from

your neglect to use all reasonable means to save and preserve covered property at and after the time of a loss.

5. Nuclear Hazard -- We do not pay for loss which

results from nuclear reaction, nuclear radiation, or radioactive contamination (whether controlled or


uncontrolled; whether caused by, contributed to or aggravated by a peril insured against and whether caused by natural, accidental, or artificial means). Loss caused by nuclear hazard is not considered loss caused by fire, explosion, or smoke. Direct loss by fire resulting from the nuclear hazard is covered.

6. Ordinance or Law -- We do not pay for loss or

increased cost which results from the enforcement of a code, ordinance, or law which regulates the use, construction, repair, demolition of property, or removal of its debris.

7. Power Disruption -- We do not pay for loss which

results from the disruption of power or other utility service, whether or not it is caused by a peril insured against, if the cause of the disruption is not on the insured premises.

We do pay for direct loss by a peril insured against

which occurs on the insured premises as a result of the disruption of power.

8. War -- We do not pay for loss which results from

declared or undeclared war, civil war, insurrection, rebellion, revolution, warlike act by a military force or military personnel, or destruction, seizure, or use of property for a military purpose. It includes the consequences of these. Discharge of a nuclear weapon is deemed an act of war even if it is accidental.

9. Water Damage -- We do not pay for loss which

results from the following:

a. flood, surface water, waves, tidal water, overflow of a body of water, or spray, all whether driven by wind or not;

b. water which backs up through or overflows from sewers, drains, or sumps; or

c. water below the surface of the ground. This includes water which exerts pressure on, or seeps or leaks through or into a building,

sidewalk, driveway, foundation, swimming pool, or other structure.

We pay for direct loss caused by fire; explosion

(other than a volcanic explosion); and, if covered by this policy, theft resulting from water damage.

10. Weather Conditions -- We do not pay for loss which results from weather conditions that initiate, set in motion, or in any way contribute to losses excluded under the preceding General Exclusions (Numbers 1 through 9).

We do pay for an ensuing loss unless the ensuing

loss itself is excluded.

11. Errors, Omissions, and Defects -- We do not pay for loss which results from one or more of the following:

a. an act, error, or omission (negligent or not)

relating to: 1) land use; 2) the design, specification, construction,

workmanship, or installation of property; 3) planning, zoning, development, surveying,

siting, grading, compaction; or 4) maintenance of property (including land,

structures, or improvements); whether on or off the insured premises; b. a defect, a weakness, the inadequacy, a fault, or

unsoundness in materials used in construction or repair whether on or off the insured premises.

We do pay for an ensuing loss unless the ensuing

loss itself is excluded.

12. Wear and Tear -- We do not pay for loss which results from wear and tear, marring, deterioration, inherent vice, latent defect, mechanical breakdown, rust, wet or dry rot, corrosion, mold, contamination, or smog. We do pay for an ensuing loss unless the ensuing loss itself is excluded.

WHAT YOU MUST DO IN CASE OF LOSS 1. Notice -- In case of a loss, you must give us or your

agent prompt notice (We may request written notice). The notice to us must state: a. your name, the policy number and the time,

place, and the details of the loss; and

b. the names and addresses of all known potential claimants and witnesses.

2. Other Duties -- You must take all reasonable steps

to protect covered property at and after an insured loss to avoid further loss. We will pay the reasonable costs incurred by you for necessary repairs or emergency measures performed solely to protect covered property from further damage by a peril


insured against if a peril insured against has already caused a loss to covered property. You must keep an accurate record of such costs. However, we will not pay for such repairs or emergency measures performed on property which has not been damaged by a peril insured against. This does not increase our limit.

At our request you must: a. give us a signed, sworn proof of loss, within 60

days after our request, that shows: 1) the time, place, and the details of the loss; 2) your interest and the interest of all others in

the property. This includes all mortgages and liens;

3) other policies that may cover the loss; 4) changes in title or use; 5) available plans and specifications of buildings; 6) detailed estimates for repair; and 7) in detail, the quantity, description, cost,

amount of loss, and actual cash value of the

personal property involved in the loss. You must give us copies of all bills, receipts, and related documents to confirm these;

b. submit to examination under oath in matters that

relate to the loss or claim as often as we reasonably request;

c. show the damaged property as often as we

reasonably request; d. show records, including tax returns and bank

records of all canceled checks that relate to the value, loss, and costs, and permit copies to be made of them as often as we reasonably request; and

e. show records that prove loss of rents and show

receipts for additional living costs, and permit copies to be made of them as often as we reasonably request.

HOW MUCH WE PAY FOR LOSS OR CLAIM Loss Settlement Terms -- Subject to the deductible or other limitation that applies, we pay the lesser of: a) the limit that applies; b) your interest in the property; or c) the amount determined under the Actual Cash Value

Terms. 1. Actual Cash Value Terms -- Actual cash value

includes a deduction for depreciation, however caused. The smallest of the following amounts is used in applying the Loss Settlement Terms:

a. the cost to repair or replace the property with

materials of like kind and quality; b. the actual cash value of the property at the time

of loss; or c. (applies only to mobile homes) the difference in

the actual cash value just before the loss and the actual cash value just after the loss.

2. Deductible -- This applies to Coverages A, B, and

C; Debris Removal; Trees, Plants, Shrubs and Lawns; and Tenant's Improvements. It applies to all perils insured against unless otherwise shown.

We pay that part of the loss over the deductible. Not

more than one deductible applies per occurrence. If this policy covers more than one residence, the deductible applies separately to each residence.

3. Loss to a Pair or Set -- If there is loss to an item

which is part of a pair or set, we pay only to replace or repair the item, or we pay the difference in the actual cash value of the pair or set just before the loss and the actual cash value just after the loss.

4. Insurance Under More Than One Coverage -- If

more than one coverage of this policy applies to a loss, we pay no more than the actual loss.

5. Insurance Under More Than One Policy -- If there

is other insurance that applies to the loss, we pay our share of the loss. Our share is that part of the loss that the limit of this policy bears to the total amount of insurance that applies to the loss.

6. Restoration of Limits -- Each loss we pay under

this policy does not reduce the limits available over the policy term.


PAYMENT OF LOSS 1. Your Property -- We adjust each loss with you. We

pay an insured loss within 30 days after an acceptable proof of loss is received and the amount of the loss is agreed to in writing. If you and we do not agree, we pay within 30 days after the filing of an appraisal award with us. Payment is made to you unless a loss payee is named.

2. Fair Rental Value – If the insured premises is unfit

for use for more than one month, covered costs are paid on a monthly basis. You must give us proof of such costs.

3. Damage to Personal Property of Others -- At our

option, an insured loss may be adjusted with and paid:

a. to you on behalf of the owner; or b. to the owner. If we pay the owner, we do not

have to pay you. 4. Our Options -- We may: a. pay the loss in money; or b. rebuild, repair or replace the property. We must

give you notice of our intent to do so within 30 days after we receive an acceptable proof of loss.

We may take all or part of the damaged property at

the agreed or appraised value. Property paid for or replaced by us becomes ours.

POLICY CONDITIONS 1. Abandonment of Property -- You may not abandon

the property to us unless we agree. 2. Appraisal -- If you and we do not agree on the

amount of the loss, the actual cash value of the property or the cost to repair or replace the property, either party may demand that these amounts be determined by appraisal.

If either party makes a written demand for appraisal,

each will select a competent independent appraiser and notify the other of the appraiser's identity within 20 days after the receipt of the written demand. The two appraisers will select a competent, impartial umpire. If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the property is located to select an umpire.

For each building item and each item of personal

property, the appraisers will determine: a. the amount of the loss; b. the actual cash value of the property; and c. the cost to repair or replace the property. Each amount will be stated separately. If the appraisers submit a written report of an

agreement to us, the agreement will establish these amounts. If the appraisers fail to agree within a reasonable time, they will submit only their differences to the umpire. A written agreement by

two of these three will establish the amounts stated above.

Each appraiser will be paid by the party selecting

that appraiser. The compensation of the umpire and other costs of the appraisal will be shared equally by you and us.

If we make the written demand for an appraisal, we

will pay: a. the reasonable and necessary cost for your

appraiser; and b. your share of the cost for the umpire. 3. Assignment -- This policy may not be assigned

without our written consent.

4. Cancellation -- You or your duly constituted attorney-in-fact may cancel this policy by returning the policy to us or by giving us written notice and stating at what future date coverage is to stop.

We may cancel this policy or any of the following applicable endorsements: Personal Liability endorsement or Limited Theft coverage endorsement only for the reasons stated below by letting you know in writing of the date of cancellation takes effect. This cancellation notice may be delivered to you or mailed to you at your mailing address shown in the declarations.

Proof of mailing will be sufficient proof of notice.

When the policy in effect for less than 90 days:


Association may cancel for any reason on ten(10) days written notice to insured and mortgagee on owner occupied dwellings and five (5) days written notice to insured and ten (10) days to mortgagee on other than owner-occupied dwellings.

When policy in effect for more than 90 days:

Notice of Cancellation shall be 30 days except: ten (10) days to insured and mortgagee on owner occupied dwellings and five (5) days to insured and ten (10) days to mortgagee on other than owner-occupied dwellings for the following underwriting standards or conditions.

a. Evidence of owner or occupancy incendiarism;

b. Building in which at least sixty-five (65%) percent of the rental units in the building are vacant or unoccupied and left unprotected against trespass (a rental unit will be deemed to be left unprotected against trespass when an entrance door to such unit [or an exterior door to a hall, stairway, or other common passage leading to such unit], is open, missing, unlocked or unsecured, or when a window in such unit which is accessible to entry is not protected against unauthorized entry);

c. Fire damage exists and the insured has stated, or such time has elapsed as clearly indicates that the damage will not be repaired;

d. Buildings in which following a fire, permanent repairs following satisfactory adjustment of loss have not commenced within sixty (60) days;

e. Property has been abandoned or there has been removal of undamaged salvageable items from the building and the insured can give no reasonable explanation for such removal;

f. Utilities such as electric, gas, or water services have been disconnected and the insured has failed to pay his account for such services within 120 days;

g. Where reliable information exists that there is good cause to believe that the building will be burned for the purpose of collecting the insurance on the property;

h. Conviction or unresolved indictment of a named insured or loss payee or any other person having a financial interest in the property of the crime of arson or a crime involving a purpose to defraud an insurance company;

i. Where the building has been subject to more than two (2) fires, each loss amounting to at least $500 or one (1%) percent of the insurance in force, whichever is greater, in any twelve (12)

month period; or more than three (3) such fires in any twenty-four (24) month period, provided that the cause of such fires is due to conditions which are the responsibility of the owner-named insured;

j. If the policy includes vandalism coverage, where the building has been subject to more than four (4) vandalism losses each loss amounting to at least $500 or one percent (1%) of the insurance in force, whichever is greater, in any twelve (12) month period, or more than six (6) such losses in any twenty-four (24) month period;

k. Non-payment of premium;

l. Buildings which have characteristics of ownership, condition, occupancy or maintenance which are violative of public policy;

m. Buildings which are in danger of collapse because of serious structural conditions, or those buildings which are in such a state of disrepair as to be dilapidated (except buildings actually in the course of repair or reconstruction);

n. Buildings on which, because of their physical condition, there is an outstanding order to vacate, an outstanding demolition order, or which has been declared unsafe in accordance with applicable law;

o. Buildings which become vacant or unoccupied for sixty (60) consecutive days during the policy term (except buildings which have a seasonal occupancy and buildings actually in the course of construction or repair and reconstruction which are properly secured against unauthorized entry).

p. Physical changes in the property which result in the property becoming uninsurable as determined from physical inspection of insured premises.

If the premium has not been paid when due, we will give you notice at least 15 days before cancellation is effective. Otherwise, we will give you notice at least 45 days in advance of cancellation.

Your return premium, if any, will be refunded on a pro rata basis at the time of cancellation or as soon as practical. Payment or tender of the unearned premium is not a condition of cancellation.

5. Reserved for Future Use 6. Change, Modification, or Waiver of Policy Terms

-- A waiver or change of the terms of this policy must be issued by us in writing to be valid. If, in the policy


period, we adopt a revision which broadens coverage without an additional premium, the broadened coverage will apply.

Our request for an appraisal or examination under oath does not waive policy terms.

7. Conformity With Statute -- Terms in conflict with the laws of the state where the insured premises is located are changed to conform to such laws.

8. Death -- On your death, protection on your covered

property passes to:

a. your legal representative; or

b. any other persons having proper, temporary custody of covered property.

9. Inspection -- We may, but are not required to,

inspect your property and operations. Our inspection or resulting advice or report does not warrant that your property or operations are safe or healthful or comply with laws, rules, or regulations.

10. Misrepresentation, Concealment, or Fraud -- We

do not provide coverage if, before or after a loss:

a. an insured has willfully concealed or misrepresented:

1) a material fact or circumstance with respect to this insurance; or

2) an insured's interest herein; or

b. there has been fraud or false swearing by an insured with respect to this insurance or the subject thereof.

11. Mortgage Clause -- This applies only to coverage

on buildings. The word "mortgagee" includes trustee.

a. If a mortgagee is named on the Declarations, a loss payable under Coverages A or B will be paid to the mortgagee and you, as interests appear. If more than one mortgagee is named, the order of payment will be the same as the order of precedence of the mortgages.

If we deny your claim, that denial does not apply to a valid claim of the mortgagee, if the mortgagee has:

1) notified us of change in ownership, occupancy, or substantial change in risk of which the mortgagee became aware;

2) paid the premium due under this policy on demand if you neglected to pay the premium; and

3) submitted a signed, sworn proof of loss within 60 days after receiving notice from us if you failed to do so.

All terms of this policy apply to the mortgagee unless changed by this clause.

b. If we decide to cancel this policy, the mortgagee

will be notified at least 10 days before the date of cancellation takes effect

c. If we pay the mortgagee for a loss and deny

payment to you: 1) we are subrogated, up to the amount we paid

for the loss, to all the rights of the mortgagee granted under the mortgage on the property; or

2) at our option, we may pay to the mortgagee the whole principal on the mortgage plus the accrued interest. In this event, we shall receive a full assignment and transfer of the mortgage and all securities held as collateral to the mortgage debt.

Subrogation shall not impair the right of the

mortgagee to recover the full amount of the mortgagee's claim.

12. No Benefit To Bailee -- Coverage under this policy

will not directly or indirectly benefit those who are paid to assume custody of the covered property.

13. Policy Period -- This policy only covers losses that

occur during the policy period.

14. Recoveries -- This applies if we pay for a loss and lost or damaged property is recovered, or payment is made by those responsible for the loss.

a. You must inform us or we must inform you if

either recovers property or receives payment. b. Proper costs incurred by either party are paid

first. c. You may keep the property. The amount of the

claim paid or a lesser amount to which we agree, must be returned to us.

d. If the claim paid is less than the agreed loss due

to a deductible, or other limiting terms, the recovery is prorated between you and us based on the interest of each in the loss.

15. Safety Glass -- When breakage of glass is covered,

we pay to replace the damaged glass with safety glazing materials if required by code, ordinance or law.


16. Secured Party Coverage -- This applies only to coverage on mobile homes and personal property. This entire clause is void unless the name of a secured party is shown on the Declarations. This clause applies only to the interest of a secured party and does not affect your rights or duties under the policy.

a. If a secured party is named on the Declarations, a

loss payable on property subject to the security interest will be paid to the secured party and you as interests may appear. If there is more than one security interest in the same property, the order of payment will be the same as their order of priority.

If we deny your claim, that denial does not apply

to a valid claim of a secured party if the secured party has:

1) notified us of a change in ownership,

occupancy, or substantial change in risk of which the secured party became aware;



All terms of this policy apply to the secured party

unless changed by this clause. b. If we cancel or do not renew this policy, we will

notify the secured party at least 10 days before the date cancellation or nonrenewal takes effect.

c. If we pay the secured party for a loss and deny payment to you:

1) we are subrogated, up to the amount we paid

for the loss, to all the rights of the secured party granted under the security agreement; or

2) at our option, we may pay the secured party the remaining amount due on the security agreement plus the accrued interest. In this event, we shall receive full assignment of the security agreement and securities held as collateral for the agreement.

However, the secured party's interest is not covered

for your conversion, embezzlement, or secretion of encumbered property in your possession, unless specifically insured against and premium paid for such.

17. Subrogation -- If we pay for a loss, we may require

that you assign to us the right of recovery up to the amount we pay. You may waive your right

to recover, in writing, before a loss occurs, without affecting coverage. If we pay a loss to or for you and you recover from another party for the same loss, you must pay us as stated in Recoveries.

18. Suit Against Us -- No suit may be brought against

us unless all the terms of this policy have been complied with and the suit is brought within two years after the loss.

19. Volcanic Action -- All volcanic action that occurs

within a 72-hour period constitutes a single occurrence.

FP-2 (01-08) -- READ THIS ENTIRE POLICY CAREFULLY -- Ed 2.2 IT IS A LEGAL CONTRACT BROAD FORM

FP-2 (01-08) Page 1 of 12 Ed 2.2

The following Table of Contents shows how the policy is organized. It will help you locate particular sections of the policy.

TABLE OF CONTENTS

AGREEMENT................................................................................................................................................................... 1 WAIVER OF SMALL PREMIUMS.................................................................................................................................... 1 DEFINITIONS................................................................................................................................................................... 2 PRINCIPAL COVERAGES .............................................................................................................................................. 2 INCIDENTAL COVERAGES ............................................................................................................................................ 3 PERILS INSURED AGAINST -- COVERAGES A, B, C, AND D ..................................................................................... 4 GENERAL EXCLUSIONS................................................................................................................................................ 6 WHAT YOU MUST DO IN CASE OF LOSS .................................................................................................................... 7 HOW MUCH WE PAY FOR LOSS OR CLAIM................................................................................................................ 7 PAYMENT OF LOSS ....................................................................................................................................................... 8 POLICY CONDITIONS..................................................................................................................................................... 9

Required state endorsements may also be part of this policy.

Refer to the Definitions for words that have special meaning. These words are shown in "bold type".

AGREEMENT This policy, subject to all of its terms, provides property insurance and other described coverages during the policy period. In return you must pay the required premium. Each of the Principal Coverages described in this policy applies only if a limit is shown on the Declarations for that coverage.

WAIVER OF SMALL PREMIUMS When this policy is endorsed subsequent to the effective date, any additional or return premiums of $10.00 or less, will be waived by the Virginia Property Insurance Association. However, if the insured requests a refund, the Association will honor such request.

FP-2 (01-08) Page 2 of 12 Ed 2.2

DEFINITIONS1. The words you and your mean the person or

persons named on the Declarations and your spouse if a resident of your household. The words we, us, and our mean the company providing this insurance.

2. Business means a trade, profession, or occupation including farming, all whether full or part time.

3. Credit Card means a card, plate, coupon book, or other credit device used to obtain money, property, labor, or services on credit. This includes debit

cards or fund transfer cards used to deposit, withdraw or transfer funds.

4. Insured premises means the location shown on the Declarations.

5. Limit means the limit of liability that applies.

6. Motorized Vehicle means a self-propelled land or amphibious vehicle regardless of method of surface contact.

7. Terms means all provisions, limitations, exclusions, conditions, and definitions used in this policy.

PRINCIPAL COVERAGES

Coverage A -- Residence 1. We cover the residence on the insured premises,

including its additions, built-in components, and attached fixtures. On the insured premises, we also cover:

a. building items that can be detached from the covered residence, such as screens and storm doors;

b. appliances, carpets, and window coverings in that part of the residence you rent to others;

c. building materials and supplies for use in construction of or to the residence; and

d. if this policy does not provide Coverage C, tools and equipment used to service the insured premises. This includes motorized vehicles used only to service the insured premises that are not required to be licensed for road use.

2. Coverage A does not cover:


b. trees, plants, shrubs, and lawns; and

c. farm tools, farm equipment, and farm motorized vehicles.

Coverage B -- Related Private Structures 1. We cover related private structures on the insured

premises which are not attached to the residence, including their additions, built-in components, and attached fixtures. Structures that are connected to the residence by only a fence, a utility line, or a similar connection are not considered attached. On the insured premises, we also cover:

a. fences, driveways, and sidewalks;

b. other permanently installed outdoor fixtures;

c. building materials and supplies for use in construction of or to a related private structure; and

d. building items that can be detached from covered related private structures, such as screens and storm doors.

2. Coverage B does not cover:



c. structures used for business; and

d. structures rented or held for rental. This does not apply to structures:

1) rented or held for rental to a tenant of the covered residence and not used for business by the tenant; or

2) used solely as a private garage.

Coverage C -- Personal Property 1. While on the Insured Premises -- This policy

covers personal property, while on the insured premises, which is usual to the occupancy of the dwelling as a residence. The personal property must be owned or used by you or your family members who reside with you.

2. While Away from the Insured Premises -- You may apply up to 10 percent of the Coverage C limit to cover personal property, while away from the insured premises, which is usual to the occupancy of the dwelling as a residence. The personal property must be owned or used by you, or your family members who reside with you.

3. While in a Newly Acquired Principal Residence -- We pay for loss to covered personal property in a newly acquired principal residence. The full Coverage C limit applies for 30 days from the date you begin to move. After that, coverage for personal

FP-2 (01-08) Page 3 of 12 Ed 2.2

property in a newly acquired principal residence is limited to 10 percent of the Coverage C limit. This coverage does not extend past the date on which the policy expires or the date on which the policy is terminated.

4. Property of Others -- At your option, personal property owned by a guest or domestic employee is covered while it is in that part of the insured premises occupied by you.

5. Limitations on Certain Property -- The special limits shown below do not increase the Coverage C limit. The limit for each class is the total limit per occurrence for all items in that class.

a. $200 on money, bank notes, bullion, gold other than goldware and gold-plated ware, silver other than silverware and silver-plated ware, platinum, coins, and numismatic property.

b. Regardless of their storage medium, $1,000 on securities, bills, letters of credit, notes other than bank notes, tickets, accounts, deeds, evidence of debt, passports, manuscripts, stamps, and philatelic property.

c. $1,000 on watercraft including their trailers, furnishings, equipment, and motors.

d. Business property, up to the amounts shown below:

1) while on the insured premises, $2,500 on business property that pertains to a business actually conducted on the insured premises;

2) $250 while away from the insured premises.

e. $1,000 on trailers not otherwise provided for.

6. Personal Property Not Covered -- Coverage C does not cover:



c. animals, birds, or fish;

d. motorized vehicles. This includes their parts, equipment, and accessories while in or on a motorized vehicle. We do cover motorized vehicles that are not subject to motor vehicle registration if they are designed and used to

assist the handicapped or used only to service the insured premises;

e. aircraft, including their parts and equipment;

f. electronic devices, accessories, or antennas for the transmitting, recording, receiving or reproduction of sound that may be operated from the electrical system of a motorized vehicle, farm equipment, or watercraft while in or on the motorized vehicle, farm equipment, or watercraft. This includes tapes, wires, discs, records, or other media for use with such devices;

g. loss that results from credit cards; or

h. farm property.

Coverage D -- Additional Living Costs and Fair Rental Value We pay the necessary and reasonable increase in living costs you incur to maintain the normal standard of living of your household if the part of the insured premises containing your household is made unfit for use by an insured loss. We pay only for the period of time reasonably required to make that part of the insured premises containing your household fit for use or to settle your household in new quarters, whichever is less. This period of time is not limited by the policy period.

We pay for the fair rental value if the part of the insured premises rented or held for rental to others is made unfit for use by an insured loss. We only pay for the period of time reasonably required to make that part of the insured premises rented or held for rental to others fit for use. Fair rental value is the amount you would have received less the charges and expenses that do not continue while the insured premises is unfit for use. This period of time is not limited by the policy period.

We pay your additional living costs and fair rental value for up to two weeks if the premises next to the insured premises is damaged by a peril insured against and you may not, by order of civil authority, use the insured premises. This period of time is not limited by the policy period.

We do not pay for additional living costs or fair rental value due to the cancellation of a lease or an agreement.

INCIDENTAL COVERAGES

This policy provides the following Incidental Coverages. They are subject to all of the terms of the applicable Coverages A, B, or C. They are not extended to farm property. These coverages provide additional insurance unless otherwise stated.

1. Emergency Removal -- We pay for loss to covered property that is moved to prevent loss by a peril insured against. The property is covered for direct physical loss for up to 30 days. This coverage does not extend past the date on which this policy terminates.

FP-2 (01-08) Page 4 of 12 Ed 2.2

We pay up to a $250 towing charge to move a covered mobile home that is in danger from a peril insured against.

This coverage does not increase the limits shown for the property being removed.

2. Debris Removal -- We pay for the cost to remove the debris of covered property after an insured loss. This includes the cost to remove volcanic ash, dust, or particulate matter that causes direct physical loss to covered property.

We will not pay more for direct loss to property and debris removal combined than the limit that applies to the damaged property.

We also pay the cost to remove fallen trees which cause damage to property covered under Coverages A, B, or C if:

a. the falling of the tree is caused by any of the perils insured against; and

b. coverage is not provided elsewhere by this policy.

Regardless of the number of fallen trees, the most we will pay is $500 per occurrence.

3. Trees, Plants, Shrubs, or Lawns -- We pay for loss to trees, plants, shrubs, or lawns on the insured premises caused by:

a. fire or lightning, explosion, riot or civil commotion, aircraft;

b. collapse of a building;

c. vehicles, if not owned or operated by you or an occupant of the insured premises; or

d. vandalism; burglary damage; or, if covered by this policy, theft.

We do not cover trees, plants, shrubs, or lawns grown for business.

You may apply up to 5 percent of the Coverage A limit on the insured premises to cover trees, plants, shrubs, or lawns. We do not pay more than $500 for each tree, plant, or shrub. This includes the cost to remove the debris of the covered item.

4. Fire Department Service Charge -- We pay up to $500 for charges assumed by you under a contract or agreement when a fire department is called to protect covered property from a peril insured against.

5. Grave Markers -- We pay up to $1,000 for loss to grave markers and mausoleums caused by any of the perils insured against.

6. Glass Breakage -- We cover breakage of glass that is part of an insured structure. We do not pay for loss if the residence is vacant for more than 30 days in a row just before the loss. A residence being built is not vacant. We also pay for loss to covered property which is damaged by the breakage of glass.

This coverage does not increase the limits shown for the property covered.

7. Tenant's Improvements -- If you are a tenant, we pay for loss by perils insured against to improvements on the insured premises made or acquired at your expense. These are permanent fixtures, alterations, decorations, and additions.

You may apply up to 10 percent of the Coverage C limit to cover tenant's improvements.

PERILS INSURED AGAINST -- COVERAGES A, B, C, AND D

We insure against direct physical loss caused by the following perils, unless the loss is excluded under the General Exclusions:

1. Fire or Lightning

2. Explosion

3. Windstorm or Hail -- However, we do not pay for loss:

a. to the interior of a building or mobile home, or to property inside a structure caused by dust, rain, sand, sleet, snow or water, all whether driven by wind or not, which enter through an opening not made by the direct force of wind or hail;

b. To watercraft and their trailers, furnishings, equipment and motors unless inside a fully enclosed building. (We do cover canoes and rowboats while on the insured premises.); or

c. To outdoor antennas, including their lead-in wiring, masts and towers.

4. Riot or Civil Commotion

5. Aircraft

6. Vehicles -- However, we do not pay for loss to fences, driveways and walks caused by a vehicle owned or operated by an occupant of the insured premises.

7. Sudden and Accidental Damage from Smoke -- However, we do not pay for loss caused by smoke from agricultural smudging or industrial operations.

8. Vandalism -- However, we do not pay for loss on the insured premises if the residence is vacant for more than 30 days in a row just before the loss. A residence being built is not vacant.

FP-2 (01-08) Page 5 of 12 Ed 2.2

9. Burglary Damage -- This means damage to covered property caused by burglars. However, we do not pay for loss on the insured premises if the residence is vacant for more than 30 days in a row just before the loss. A residence being built is not vacant.

10. Falling Objects -- However, we do not pay for loss:

a. to the interior of a building, mobile home, structure, or to the property inside, unless the object has first damaged an outside wall or the roof by impact;

b. to outdoor antennas, including their lead-in wiring, masts and towers;

c. to outdoor awnings or canopies including their supports;

d. to fences or to outdoor equipment not permanently installed; or

e. to the object which falls.

11. Weight of Ice, Snow or Sleet which damages a structure or the property inside. However, we do not pay for loss to:

a. outdoor antennas, including their lead-in wiring, masts and towers;

b. outdoor awnings or canopies including their supports;

c. outdoor structures (other than buildings, carports, or mobile homes) such as swimming pools; fences; patios; paved areas; retaining walls; bulkheads; foundations; wharves; docks; and piers; or

d. outdoor equipment not permanently installed.

12. Sudden and Accidental Tearing Apart, Cracking, Burning or Bulging of a heating, air-conditioning or automatic sprinkling system or water heater. However, we do not pay for loss caused by freezing.

13. Accidental Discharge or Overflow of Liquids or Steam from a plumbing, heating, air-conditioning or automatic sprinkling system, water heater or from a domestic appliance. However:

a. We do not pay for loss caused by continuous or repeated seepage or leakage.

b. We do not pay for loss caused by freezing.

c. We do not pay for loss on the insured premises caused by accidental discharge or overflow which comes from off the insured premises.

d. We do not pay for loss if the residence has been vacant for more than 30 days in a row just

before the loss. A residence being built is not vacant.

e. We do not pay for loss to the system, heater or appliance from which the liquid or steam escapes. (We do pay the reasonable cost of removing and replacing only those parts of the structure needed to repair the system, heater or appliance.)

In this peril, a plumbing system does not include a sump, sump pump and related equipment.

14. Freezing of a plumbing, heating, air-conditioning or automatic sprinkling system, water heater or a domestic appliance. However, we do not pay for loss on the insured premises while the residence is vacant or unoccupied or under construction and unoccupied, unless you have taken reasonable care to:

a. maintain heat in the building or mobile home; or

b. shut off the liquid supply and drain the system, domestic appliance or heater.

15. Sudden and Accidental Damage from Artificially Generated Electrical Currents -- However, we do not pay for loss to tubes, transistors and similar electronic components.

16. Sinkhole Collapse -- This means loss caused by sudden settlement or collapse of earth supporting covered property. The earth settlement or collapse must result from subterranean voids created by the action of water on a limestone or similar rock formation.

However, we do not pay for the value of land or the cost of filling sinkholes.

17. Volcanic Action -- This means:

a. airborne volcanic blast or airborne shock waves;

b. ash, dust or particulate matter; or

c. lava flow.

However, we do not cover the removal of ash, dust or particulate matter that does not cause direct physical loss to covered property.

18. Collapse of a Building or a Part of a Building (Collapse does not mean settling, cracking, shrinking, bulging, or expanding.) Unless the damage is directly caused by the collapse of a building, we do not pay for:

a. loss to awnings or canopies and their supports; or

b. loss to swimming pools, retaining walls, fences, septic tanks, piers, wharves, foundations, patios, and paved areas.

We do not pay for loss by collapse that results from an excluded cause or event.

FP-2 (01-08) Page 6 of 12 Ed 2.2

GENERAL EXCLUSIONS

We do not pay for loss if one or more of the following exclusions apply to the loss, regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events act to produce the loss before, at the same time as, or after the excluded causes or events.

1. Civil Authority -- We do not pay for a loss which results from order of civil authority.

We pay for loss which results from acts of a civil authority to prevent the spread of fire. We do not pay if the fire was caused by an excluded peril.

2. Earth Movement -- We do not pay for loss which results from earth movement whether the earth movement results from natural or artificial causes.

Earth movement includes but is not limited to:

a. earthquake;

b. landslide, subsidence, erosion;

c. mudflow;

d. earth sinking, rising, shifting, expanding, or contracting. This does not include Sinkhole Collapse as described under Perils Insured Against; or

e. volcanic explosion. Volcanic explosion does not include Volcanic Action as described under Perils Insured Against.

We do pay for direct loss caused by fire, explosion (other than a volcanic explosion) and, if covered by this policy, theft resulting from earth movement.

We do pay for the breakage of glass that is part of a covered structure resulting from earth movement.

3. Intentional Acts -- We do not provide coverage for an insured who commits or directs an act with the intent to cause a loss.

4. Neglect -- We do not pay for loss which results from your neglect to use all reasonable means to save and preserve covered property at and after the time of a loss.

5. Nuclear Hazard -- We do not pay for loss which results from nuclear reaction, nuclear radiation, or radioactive contamination (whether controlled or uncontrolled; whether caused by, contributed to or aggravated by a peril insured against and whether caused by natural, accidental, or artificial means). Loss caused by nuclear hazard is not considered loss caused by fire, explosion, or smoke. Direct loss by fire resulting from the nuclear hazard is covered.

6. Ordinance or Law -- We do not pay for loss or increased cost which results from the enforcement of a code, ordinance, or law which regulates the use, construction, repair, demolition of property, or removal of its debris.

7. Power Disruption -- We do not pay for loss which results from the disruption of power or other utility service, whether or not it is caused by a peril insured against, if the cause of the disruption is not on the insured premises.

We do pay for direct loss by a peril insured against which occurs on the insured premises as a result of the disruption of power.

8. War -- We do not pay for loss which results from declared or undeclared war, civil war, insurrection, rebellion, revolution, warlike act by a military force or military personnel, or destruction, seizure, or use of property for a military purpose. It includes the consequences of these. Discharge of a nuclear weapon is deemed an act of war even if it is accidental.

9. Water Damage -- We do not pay for loss which results from the following:

a. flood, surface water, waves, tidal water, overflow of a body of water, or spray, all whether driven by wind or not;

b. water which backs up through or overflows from sewers, drains, or sumps; or

c. water below the surface of the ground. This includes water which exerts pressure on, or seeps or leaks through or into a building, sidewalk, driveway, foundation, swimming pool, or other structure.

We pay for direct loss caused by fire; explosion (other than a volcanic explosion); and, if covered by this policy, theft resulting from water damage.

10. Weather Conditions -- We do not pay for loss which results from weather conditions that initiate, set in motion, or in any way contribute to losses excluded under the preceding General Exclusions (Numbers 1 through 9).

We do pay for an ensuing loss unless the ensuing loss itself is excluded.

11. Errors, Omissions, and Defects -- We do not pay for loss which results from one or more of the following:

a. an act, error, or omission (negligent or not) relating to:

1) land use;

FP-2 (01-08) Page 7 of 12 Ed 2.2

2) the design, specification, construction, workmanship, or installation of property;

3) planning, zoning, development, surveying, siting, grading, compaction; or

4) maintenance of property (including land, structures, or improvements);

whether on or off the insured premises;

b. a defect, a weakness, the inadequacy, a fault, or unsoundness in materials used in

construction or repair whether on or off the insured premises.

We do pay for an ensuing loss unless the ensuing loss itself is excluded.

12. Wear and Tear -- We do not pay for loss which results from wear and tear, marring, deterioration, inherent vice, latent defect, mechanical breakdown, rust, wet or dry rot, corrosion, mold, contamination, or smog. We do pay for an ensuing loss unless the ensuing loss itself is excluded.

WHAT YOU MUST DO IN CASE OF LOSS 1. Notice -- In case of a loss, you must give us or

your agent prompt notice (We may request written notice).

The notice to us must state:

a. your name, the policy number and the time, place, and the details of the loss; and

b. the names and addresses of all known potential claimants and witnesses.

2. Other Duties -- You must take all reasonable steps to protect covered property at and after an insured loss to avoid further loss. We will pay the reasonable costs incurred by you for necessary repairs or emergency measures performed solely to protect covered property from further damage by a peril insured against if a peril insured against has already caused a loss to covered property. You must keep an accurate record of such costs. However, we will not pay for such repairs or emergency measures performed on property which has not been damaged by a peril insured against. This does not increase our limit.

At our request you must:

a. give us a signed, sworn proof of loss, within 60 days after our request, that shows:

1) the time, place, and the details of the loss;

2) your interest and the interest of all others in the property. This includes all mortgages and liens;

3) other policies that may cover the loss;

4) changes in title or use;

5) available plans and specifications of buildings;

6) detailed estimates for repair; and

7) in detail, the quantity, description, cost, amount of loss, and actual cash value of the personal property involved in the loss. You must give us copies of all bills, receipts, and related documents to confirm these;

b. submit to examination under oath in matters that relate to the loss or claim as often as we reasonably request;

c. show the damaged property as often as we reasonably request;

d. show records, including tax returns and bank records of all canceled checks that relate to the value, loss, and costs, and permit copies to be made of them as often as we reasonably request; and

e. show records that prove loss of rents and show receipts for additional living costs, and permit copies to be made of them as often as we reasonably request.

HOW MUCH WE PAY FOR LOSS OR CLAIMLoss Settlement Terms -- Subject to the deductible or other limitation that applies, we pay the lesser of:

a) the limit that applies;

b) your interest in the property; or

c) the amount determined under the Replacement Cost Terms or the Actual Cash Value Terms, whichever apply.

1. Replacement Cost Terms

a. The Replacement Cost Terms apply only to buildings covered under Coverages A and B that have a permanent foundation and roof. They do not apply to:

1) mobile homes whether or not on a permanent foundation;

2) window air-conditioners;

3) awnings and canopies;

4) antennas;

FP-2 (01-08) Page 8 of 12 Ed 2.2

5) appliances;

6) carpets;

7) window coverings; and

8) tenant's improvements

b. In determining the replacement cost, do not include the cost of:

1) excavations;

2) brick, stone, or concrete foundations;

3) piers and other supports which are below the surface of the ground inside the foundation walls; and

4) underground flues, pipes, wiring, and drains.

c. When the cost to repair or replace exceeds the lesser of $2,500 or five percent of the limit on the damaged building, we do not pay for more than the actual cash value of the loss until repair or replacement is completed.

You may make a claim for the actual cash value amount of the loss before repairs are made. A claim for an additional amount payable under these terms must be made within six months of whichever is the latest:

1) the last date on which you received a payment for the actual cash value; or

2) the date of entry of a final order by a court declaring your right to full replacement cost.

d. If the limit on the damaged building is less than 80 percent of its replacement cost at the time of loss, the larger of the following amounts is used in applying the Loss Settlement Terms:

1) the actual cash value at the time of the loss; or

2) that part of the replacement cost of the damaged part which our limit on the building bears to 80 percent of the full current replacement cost of the building.

e. If the limit on the damaged building is at least 80 percent of its replacement cost at the time of loss, the smaller of the following amounts is used in applying the Loss Settlement Terms:

1) the cost to repair or replace the damage on the same premises using materials of like kind and quality; or

2) the amount spent to repair or replace the damage.

2. Actual Cash Value Terms -- Actual cash value includes a deduction for depreciation, however caused.

a. The Actual Cash Value Terms apply to all property not covered under the Replacement Cost Terms.

b. The smallest of the following amounts is used in applying the Loss Settlement Terms:

1) the cost to repair or replace the property with materials of like kind and quality;

2) the actual cash value of the property at the time of loss; or

3) (applies only to mobile homes) the difference in the actual cash value just before the loss and the actual cash value just after the loss.

3. Deductible -- This applies to Coverages A, B, and C; Debris Removal; Trees, Plants, Shrubs and Lawns; Glass Breakage; and Tenant's Improvements. It applies to all perils insured against unless otherwise shown.

We pay that part of the loss over the deductible. Not more than one deductible applies per occurrence. If this policy covers more than one residence, the deductible applies separately to each residence.

4. Loss to a Pair or Set -- If there is loss to an item which is part of a pair or set, we pay only to replace or repair the item, or we pay the difference in the actual cash value of the pair or set just before the loss and the actual cash value just after the loss.

5. Insurance Under More Than One Coverage -- If more than one coverage of this policy applies to a loss, we pay no more than the actual loss.

6. Insurance Under More Than One Policy -- If there is other insurance that applies to the loss, we pay our share of the loss. Our share is that part of the loss that the limit of this policy bears to the total amount of insurance that applies to the loss.

7. Restoration of Limits -- Each loss we pay under this policy does not reduce the limits available over the policy term.

PAYMENT OF LOSS 1. Your Property -- We adjust each loss with you.

We pay an insured loss within 30 days after an acceptable proof of loss is received and the amount of the loss is agreed to in writing. If you and we do not agree, we pay within 30 days after

the filing of an appraisal award with us. Payment is made to you unless a loss payee is named.

2. Additional Living Costs -- If the insured premises is unfit for use for more than one month,

FP-2 (01-08) Page 9 of 12 Ed 2.2

covered costs are paid on a monthly basis. You must give us proof of such costs.

3. Damage to Personal Property of Others -- At our option, an insured loss may be adjusted with and paid:

a. to you on behalf of the owner; or

b. to the owner. If we pay the owner, we do not have to pay you.

4. Our Options -- We may:

a. pay the loss in money; or

b. rebuild, repair or replace the property. We must give you notice of our intent to do so within 30 days after we receive an acceptable proof of loss.

We may take all or part of the damaged property at the agreed or appraised value. Property paid for or replaced by us becomes ours.

POLICY CONDITIONS 1. Abandonment of Property -- You may not

abandon the property to us unless we agree.

2. Appraisal -- If you and we do not agree on the amount of the loss, the actual cash value of the property or the cost to repair or replace the property, either party may demand that these amounts be determined by appraisal.

If either party makes a written demand for appraisal, each will select a competent independent appraiser and notify the other of the appraiser's identity within 20 days after the receipt of the written demand. The two appraisers will select a competent, impartial umpire. If the two appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the property is located to select an umpire.

For each building item and each item of personal property, the appraisers will determine:

a. the amount of the loss;

b. the actual cash value of the property; and

c. the cost to repair or replace the property.

Each amount will be stated separately.

If the appraisers submit a written report of an agreement to us, the agreement will establish these amounts. If the appraisers fail to agree within a reasonable time, they will submit only their differences to the umpire. A written agreement by two of these three will establish the amounts stated above.

Each appraiser will be paid by the party selecting that appraiser. The compensation of the umpire and other costs of the appraisal will be shared equally by you and us.

If we make the written demand for an appraisal, we will pay:

a. the reasonable and necessary cost for your appraiser; and

b. your share of the cost for the umpire.

3. Assignment -- This policy may not be assigned without our written consent.

4. Cancellation -- You or your duly constituted attorney-in-fact may cancel this policy by returning the policy to us or by giving us written notice and stating at what future date coverage is to stop.

We may cancel this policy or any of the following applicable endorsements: Personal Liability endorsement or Limited Theft coverage endorsement only for the reasons stated below by letting you know in writing of the date of cancellation takes effect. This cancellation notice may be delivered to you or mailed to you at your mailing address shown in the declarations.

Proof of mailing will be sufficient proof of notice.

When the policy in effect for less than 90 days:

Association may cancel for any reason on ten(10) days written notice to insured and mortgagee on owner occupied dwellings and five (5) days written notice to insured and ten (10) days to mortgagee on other than owner-occupied dwellings.

When policy in effect for more than 90 days:

Notice of Cancellation shall be 30 days except: ten (10) days to insured and mortgagee on owner occupied dwellings and five (5) days to insured and ten (10) days to mortgagee on other than owner-occupied dwellings for the following underwriting standards or conditions.

a. Evidence of owner or occupancy incendiarism;

b. Building in which at least sixty-five (65%) percent of the rental units in the building are vacant or unoccupied and left unprotected against trespass (a rental unit will be deemed to be left unprotected against trespass when an entrance door to such unit [or an exterior door to a hall, stairway, or other common passage leading to such unit], is open, missing, unlocked or unsecured, or when a window in such unit which is accessible to entry is not protected against unauthorized entry);

FP-2 (01-08) Page 10 of 12 Ed 2.2

c. Fire damage exists and the insured has stated, or such time has elapsed as clearly indicates that the damage will not be repaired;

d. Buildings in which following a fire, permanent repairs following satisfactory adjustment of loss have not commenced within sixty (60) days;

e. Property has been abandoned or there has been removal of undamaged salvageable items from the building and the insured can give no reasonable explanation for such removal;

f. Utilities such as electric, gas, or water services have been disconnected and the insured has failed to pay his account for such services within 120 days;

g. Where reliable information exists that there is good cause to believe that the building will be burned for the purpose of collecting the insurance on the property;

h. Conviction or unresolved indictment of a named insured or loss payee or any other person having a financial interest in the property of the crime of arson or a crime involving a purpose to defraud an insurance company;

i. Where the building has been subject to more than two (2) fires, each loss amounting to at least $500 or one (1%) percent of the insurance in force, whichever is greater, in any twelve (12) month period; or more than three (3) such fires in any twenty-four (24) month period, provided that the cause of such fires is due to conditions which are the responsibility of the owner-named insured;

j. Where the building has been subject to more than four (4) vandalism losses each loss amounting to at least $500 or one percent (1%) of the insurance in force, whichever is greater, in any twelve (12) month periods, or more than six (6) such losses in any twenty-four (24) month periods;

k. Non-payment of premium;

l. Buildings which have characteristics of ownership, condition, occupancy or maintenance which are violative of public policy;

m. Buildings which are in danger of collapse because of serious structural conditions, or those buildings which are in such a state of disrepair as to be dilapidated (except buildings actually in the course of repair or reconstruction);

n. Buildings on which, because of their physical condition, there is an outstanding order to vacate, an outstanding demolition order, or which has been declared unsafe in accordance with applicable law;

o. Buildings which become vacant or unoccupied for sixty (60) consecutive days during the policy term

p. Physical changes in the property which result in the property becoming uninsurable as determined from physical inspection of insured premises.

q. dwellings under construction, renovation or rehabilitation or any structure occupied as other than a primary residence;

If the premium has not been paid when due, we will give you notice at least 15 days before cancellation is effective. Otherwise, we will give you notice at least 45 days in advance of cancellation.

Your return premium, if any, will be refunded on a pro rata basis at the time of cancellation or as soon as practical. Payment or tender of the unearned premium is not a condition of cancellation.

5. Reserved for Future Use

6. Change, Modification, or Waiver of Policy Terms -- A waiver or change of the terms of this policy must be issued by us in writing to be valid. If, in the policy period, we adopt a revision which broadens coverage without an additional premium, the broadened coverage will apply.

Our request for an appraisal or examination under oath does not waive policy terms.

7. Conformity With Statute -- Terms in conflict with the laws of the state where the insured premises is located are changed to conform to such laws.

8. Death -- On your death, protection on your covered property passes to:

a. your legal representative; or

b. any other persons having proper, temporary custody of covered property.

9. Inspection -- We may, but are not required to, inspect your property and operations. Our inspection or resulting advice or report does not warrant that your property or operations are safe or healthful or comply with laws, rules, or regulations.

10. Misrepresentation, Concealment, or Fraud -- We do not provide coverage if, before or after a loss:

a. an insured has willfully concealed or misrepresented:

1) a material fact or circumstance with respect to this insurance; or

2) an insured's interest herein; or

b. there has been fraud or false swearing by an insured with respect to this insurance or the subject thereof.

FP-2 (01-08) Page 11 of 12 Ed 2.2

11. Mortgage Clause -- This applies only to coverage on buildings. The word "mortgagee" includes trustee.

a. If a mortgagee is named on the Declarations, a loss payable under Coverages A or B will be paid to the mortgagee and you, as interests appear. If more than one mortgagee is named, the order of payment will be the same as the order of precedence of the mortgages.

If we deny your claim, that denial does not apply to a valid claim of the mortgagee, if the mortgagee has:

1) notified us of change in ownership, occupancy, or substantial change in risk of which the mortgagee became aware;



All terms of this policy apply to the mortgagee unless changed by this clause.

b. If we decide to cancel this policy, the mortgagee will be notified at least 10 days before the date cancellation takes effect.

c. If we pay the mortgagee for a loss and deny payment to you:

1) we are subrogated, up to the amount we paid for the loss, to all the rights of the mortgagee granted under the mortgage on the property; or

2) at our option, we may pay to the mortgagee the whole principal on the mortgage plus the accrued interest. In this event, we shall receive a full assignment and transfer of the mortgage and all securities held as collateral to the mortgage debt.

Subrogation shall not impair the right of the mortgagee to recover the full amount of the mortgagee's claim.

12. No Benefit To Bailee -- Coverage under this policy will not directly or indirectly benefit those who are paid to assume custody of the covered property.

13. Policy Period -- This policy only covers losses that occur during the policy period.

14. Recoveries -- This applies if we pay for a loss and lost or damaged property is recovered, or payment is made by those responsible for the loss.

a. You must inform us or we must inform you if either recovers property or receives payment.

b. Proper costs incurred by either party are paid first.

c. You may keep the property. The amount of the claim paid or a lesser amount to which we agree, must be returned to us.

d. If the claim paid is less than the agreed loss due to a deductible, or other limiting terms, the recovery is prorated between you and us based on the interest of each in the loss.

15. Safety Glass -- When breakage of glass is covered, we pay to replace the damaged glass with safety glazing materials if required by code, ordinance or law.

16. Secured Party Coverage -- This applies only to coverage on mobile homes and personal property. This entire clause is void unless the name of a secured party is shown on the Declarations. This clause applies only to the interest of a secured party and does not affect your rights or duties under the policy.

a. If a secured party is named on the Declarations, a loss payable on property subject to the security interest will be paid to the secured party and you as interests may appear. If there is more than one security interest in the same property, the order of payment will be the same as their order of priority.

If we deny your claim, that denial does not apply to a valid claim of a secured party if the secured party has:

1) notified us of a change in ownership, occupancy, or substantial change in risk of which the secured party became aware;



All terms of this policy apply to the secured party unless changed by this clause.

b. If we cancel or do not renew this policy, we will notify the secured party at least 10 days before the date cancellation or nonrenewal takes effect.

c. If we pay the secured party for a loss and deny payment to you:

1) we are subrogated, up to the amount we paid for the loss, to all the rights of the secured party granted under the security agreement; or

2) at our option, we may pay the secured party the remaining amount due on the security agreement plus the accrued interest. In this event, we shall receive full assignment of the

FP-2 (01-08) Page 12 of 12 Ed 2.2

security agreement and securities held as collateral for the agreement.

However, the secured party's interest is not covered for your conversion, embezzlement, or secretion of encumbered property in your possession, unless specifically insured against and premium paid for such.

17. Subrogation -- If we pay for a loss, we may require that you assign to us the right of recovery up to the amount we pay. You may waive your right to recover, in writing, before a loss occurs, without affecting coverage. If we pay a loss to or for you and you recover from another party for the same loss, you must pay us as stated in Recoveries.

18. Suit Against Us -- No suit may be brought against us unless all the terms of this policy have been complied with and the suit is brought within two years after the loss.

19. Volcanic Action -- All volcanic action that occurs within a 72-hour period constitutes a single occurrence.

AAIS FL-10 Ed 1.0

AUTOMATIC INCREASE IN INSURANCE

(The information required below may be shown on a separate schedule or supplemental Declarations.) The limits for Coverages A and B will be increased by percent of the amounts shown on the Declarations at the end of each three month period after the effective date. FL-10 Ed 1.0 AAIS

Copyright MCMXCII, American Association of Insurance Services

AAIS FL-14Ed 1.0

FL-14 Ed 1.0 AAIS

Copyright MCMXCII, American Association of Insurance Services

INSURANCE BY MORE THAN ONE COMPANY

(The information required below may be shown on a separate schedule or on the Declarations.)

1. Insurance By More Than One Company is insurance written in your name by more than one company usingthe same type of policy and conditions, whether or not still in force at time of loss.

The total of the limits for all insurance including this policy is:

Coverages Total Limit

A -- Residence $B -- Related Private Structures $C -- Personal Property $D -- Additional Living Costs and Fair Rental $

Value CoverageE -- Farm Personal Property

Scheduled $Blanket $

F -- Farm Structures $

Additional Coverage (Specify) $

2. When we and other companies write insurance for property coverages, our limit is % of the total limit forall insurance covering the same property. We pay this percentage of any loss caused by perils insured against,but not more than the limit stated on the Declarations or any endorsement.

Any special limit or amount of insurance shown in this policy is the limit for all insurance, and we will pay nomore than the above percentage of the special limit or amount of insurance.

3. Under How Much We Pay For Loss or Claim, Insurance Under More Than One Policy does not apply topolicies issued by another company under the terms of this endorsement.

FL-16 Ed 1.0 AAISCopyright MCMXCII, American Association of Insurance Services

AAIS FL-16Ed 1.0

INCIDENTAL BUSINESS ACTIVITIES -- RELATED PRIVATE STRUCTURES


The incidental business activity described below is conducted in the described structure on the insured premises:

(Description of Business)

(Description of Structure)

$ Limit

Under Coverage B -- Related Private Structures, the exclusion that applies to structures used for business doesnot apply to the structure described above. We will pay no more for loss to the described structure than the limitshown in this endorsement.


AAIS FL-216Ed 1.0

PREMISES ALARM OR FIRE PROTECTION SYSTEM

The premium for this policy includes a credit for the installation of a fire alarm, burglar alarm or automatic sprinklersystem approved by us on the insured premises. You agree to maintain said system in working order and to notifyus promptly when the system becomes inoperative or has been removed.

VPIA-02 (Ed. 01-07)

* LOSS SETTLEMENT INFORMATION

If the amount of insurance you carry on Dwellings insured under this policy is 80% or more of their replacement cost, you may be entitled to collect the cost of repair or replacement of the damage to the dwelling, subject to the conditions and limitations detailed in your policy. However, if you do not maintain insurance equal to at least 80% of the replacement cost of the Dwellings covered under your policy, the settlement will be made on a less favorable basis. * Not Applicable to Mobile Homes

ADDITIONAL COVERAGE AVAILABLE The Virginia Property Insurance Association provides a coverage option that can be added to your dwelling policy to cover the increased costs to repair or replace damaged property due to the application of ordinances or laws that regulate construction, repair, or demolition. Ordinance or Law Coverage provides protection when a building is damaged by a covered cause of loss and must be repaired or rebuilt in a more costly manner because the type of construction used when the building was built does not comply with current building codes. Coverage would also be provided when ordinances or laws require the demolition of damaged buildings, including undamaged portions, prior to rebuilding in compliance with current building codes. Contact your Agent if you wish to add or increase this valuable coverage, or if you would like additional information.

AAIS This endorsement changes FL 0257 10 98 the policy Page 1 of 1 -- PLEASE READ THIS CAREFULLY --

ORDINANCE OR LAW

1. Under Definitions, the following is added: "Pollutant" means any solid, liquid, gaseous,

thermal, or radioactive irritant or contaminant, including acids, alkalis, chemicals, fumes, smoke, soot, vapor, and waste. Waste includes materials to be recycled, reclaimed, or reconditioned, as well as disposed of.

2. The following coverage is added:

Ordinance or Law -- "We" pay for the increased cost which results from the enforcement of a code, ordinance, or law which regulates the use, construction, repair, or demolition of property or the removal of its debris following a loss to covered property. The loss must be caused by a peril that applies to the damaged property.

However, "we" do not pay for:

a. any loss in value of property which

results from the enforcement of a code, ordinance, or law; or

b. any loss, cost, or expense which results

from the enforcement of a code, ordinance, or law requiring that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify, neutralize, or in any way respond to or assess the effects of "pollutants".

This coverage does not increase the "limit" shown for the damaged property. "We" will not pay more for direct physical loss to property and the increased cost combined than the "limit" that applies to the damaged property.

3. Under General Exclusions, Ordinance or Law is deleted and replaced by:

Ordinance or Law -- "We" do not pay for:

a. any loss or increased cost which results

from the enforcement of a code, ordinance, or law which regulates the use, construction, repair, or demolition of property or the removal of its debris, except as provided under item 2. of this endorsement;

b. any loss in value of property which

results from the enforcement of a code, ordinance, or law; or

c. any loss, cost, or expense which results

from the enforcement of a code, ordinance, or law requiring that any "insured" or others test for, monitor, clean up, remove, contain, treat, detoxify, neutralize, or in any way respond to or assess the effects of "pollutants".

This applies whether or not there has been

physical damage to covered property. FL 0257 10 98 Copyright, American Association of Insurance Services, 1998


AAIS FL-30Ed 1.0

INCIDENTAL COVERAGES -- HIGHER LIMITS


Under Incidental Coverages, the following limits are increased:

Option* Amount of Increase Total Limit

1 Fire Department Service Charge None $500

2 Tenant's Improvements $ $

* The option that applies may be shown on the Declarations


AAIS FL-32Ed 1.0

CONDOMINIUM UNIT-OWNER ADDITIONS

Coverage A -- Residence --

Under Coverage A -- Residence, item 1 is deleted andreplaced by the following:

1. We cover the following property:

a. fixtures, alterations, decorations, additions,installations, or items of real property that pertainto your condominium unit;

b. structures at the location of the insuredpremises owned solely by you, other than theinsured premises; or

c. property that is your insurance responsibilityunder an agreement with an association orcorporation of property owners.

Coverage D -- Additional LivingCosts and Fair Rental Value --

Coverage D is amended to read that we also pay if theinsured premises is made unfit for its normal use by aloss caused by a peril insured against to a buildingcontaining the insured premises.

How Much We Pay For Loss or Claim --

The replacement cost terms that apply to buildingscovered under Coverages A and B also apply to thecoverage provided by this endorsement.

FL-50 Ed 1.0 AAIS

AAIS FL-50Ed 1.0

RESIDENTIAL ASSOCIATION LOSS ASSESSMENT


$ LIMIT

1. We agree to pay your share of an assessmentmade by your homeowners, condominium, mobile-homeowners or similar residential association andcharged against all of the members of theassociation up to the limit stated above. Coverageapplies only when the assessment results fromdirect loss to the property owned collectively by allassociation members and is caused by a peril (otherthan earthquake) which applies under this policy.

2. Under How Much We Pay for Loss or Claim, theDeductible provision is replaced by the following withrespect to this coverage:

Deductible -- We pay only that part of your shareof the assessment that is over $250 up to the limitshown above. No other deductible applies to thiscoverage.

3. We will not pay more than $1,000 of your assess–ment which results from a deductible in theinsurance purchased by the association.

Includes copyrighted material with permission of American Association of Insurance Services, Inc.

AAIS This endorsement changes the Dwelling Coverage FL 5001 01 07 provided by this policy Page 1 of 1 -- PLEASE READ THIS CAREFULLY --

NAMED STORM WINDSTORM DEDUCTIBLE

(Entries required to complete the Schedule will be shown below or on the Declarations.)

Schedule

Named Storm Windstorm Deductible: $

DEFINITIONS

The following definition is added: "Named Storm" means a storm system that has been declared and named by the National Weather Service. The duration of the "named storm" includes the time period, in Virginia: a. beginning at the time a storm is designated a

"named storm";

b. continuing for the time period during which the "named storm" conditions exist anywhere in Virginia; and

c. ending 72 hours following the termination of the last "named storm" watch or warning issued for any part of Virginia by the National Weather Service.

HOW MUCH WE PAY FOR LOSS OR CLAIM

The following is added to the Deductible provision: Named Storm Windstorm Deductible -- This applies to Principal Property Coverages A, B, and C and all Incidental Property Coverages except Emergency Removal; Fire Department Service Charge; and Grave Markers.

The "named storm" windstorm deductible is the only deductible that applies to loss or damage caused by a "named storm". If a windstorm is not declared to be a "named storm" and there is loss or damage to covered property, the applicable deductible is the deductible that applies to loss due to windstorm. "We" pay only that part of the loss caused directly or indirectly by windstorm that is more than the "named storm" windstorm deductible amount shown in the Schedule above. The deductible applies per occurrence. If this policy covers more than one residence, the deductible applies separately to each residence. The deductible applies regardless of other causes or events that contribute to or aggravate the loss, whether such causes or events occur before, at the same time as, or after the loss caused by a "named storm". All other "terms" of the policy apply. FL 5001 01 07

Copyright, American Association of Insurance Services, Inc., 2015

AAIS This endorsement changes FL 0670 01 15 the policy Page 1 of 2 -- PLEASE READ THIS CAREFULLY --

CERTIFIED TERRORISM LOSS

(The entries required to complete this endorsement will be shown below or on the "declarations".)

SCHEDULE

Certified Terrorism Loss Premium: $ Included

1. With respect to all coverage parts attached to this policy, the reference to words that have special meaning is deleted and replaced by the following:

Refer to Definitions for words and phrases

that have special meaning. These words and phrases are shown in quotation marks or bold type.

2. With respect to any coverage part attached

to this policy that does not define the "term" "declarations", the following definition is added:

"Declarations" means all pages labeled

Declarations, Supplemental Declarations, or Schedules which pertain to this coverage part.

3. The following definitions are added with

respect to all coverage parts attached to this policy.

a. "Certified act of terrorism" means an act

that is certified by the Secretary of the Treasury, in consultation with the Secretary of Homeland Security, and the Attorney General of the United States:

1) to be an act of terrorism; 2) to be a violent act or an act that is

dangerous to human life, property, or infrastructure;

3) to have resulted in damage:

a) within the United States; or b) to an air carrier (as defined in

section 40102 of title 49, United States Code); to a United States flag vessel (or a vessel based principally in the United States, on which United States income tax is paid and whose insurance coverage is subject to regulation in the United States), regardless of where the loss occurs; or at the premises of any United States mission;

4) to have been committed by an

individual or individuals, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion; and

5) to have resulted in insured losses in excess of five million dollars in the aggregate, attributable to all types of insurance subject to the Terrorism Risk Insurance Act, as amended.

b. "Certified terrorism loss" means loss that

results from a "certified act of terrorism". 4. The following provisions are added with

respect to all coverages provided by this policy.

a. The portion of "your" premium that is

attributed to coverage for "certified terrorism loss" is shown in the Schedule above.

AAIS FL 0670 01 15 Page 2 of 2

Copyright, American Association of Insurance Services, Inc., 2015

b. Coverage for "certified terrorism loss", to the extent that such coverage is provided by this policy, will be partially reimbursed by the United States Government, Department of Treasury, under a federal program. Under that program, the United States pays the following percentage of insured losses for "certified terrorism loss" that exceeds the statutorily established deductible that "we" retain: 1) 85%, for insured losses occurring

before January 1, 2016; 2) 84%, for insured losses occurring

during the 2016 calendar year; 3) 83%, for insured losses occurring



during the 2019 calendar year; and 6) 80%, for insured losses occurring on

or after January 1, 2020.

However, if aggregate insured losses attributable to terrorist acts certified under the Terrorism Risk Insurance Act, as amended, exceed one hundred billion dollars in a calendar year (January 1 through December 31), the Treasury will not make any payment for any portion of the amount of such losses that exceeds one hundred billion dollars.

c. If the Secretary of the Treasury determines that the aggregate amount of "certified terrorism loss" has exceeded one hundred billion dollars in a calendar year (January 1 through December 31), and "we" have met "our" insurer deductible under the Terrorism Risk Insurance Act, as amended, "we" will not pay for any portion of "certified terrorism loss" that exceeds one hundred billion dollars. If the "certified terrorism loss" exceeds one hundred billion dollars in a calendar year (January 1 through December 31), losses up to one hundred billion dollars are subject to pro rata allocation in accordance with procedures established by the Secretary of the Treasury under the Terrorism Risk Insurance Act, as amended.

d. The "terms" of this endorsement do not

provide coverage for any loss that would otherwise be excluded by this policy under:

1) exclusions that address war, military

action, or nuclear hazard; or 2) any other exclusion.

e. The absence of any other terrorism

endorsement does not imply coverage for any loss that would otherwise be excluded by this policy under:

1) exclusions that address war, military

action, or nuclear hazard; or 2) any other exclusion.

All other "terms" of the policy apply. FL 0670 01 15

FPFL-55 Ed 1.0 AAIS Copyright MCMXCII, American Association of Insurance Services

AAIS FPFL-55 Effective (08 03) Ed 1.0

REPLACEMENT VALUE 1. We agree to cover the replacement value of the

following covered property: a. Coverage C -- Personal Property; b. window air-conditioners; c. awnings and canopies; d. antennas; e. appliances; f. carpets; and g. window coverings. 2. Definition -- Replacement value means the cost to

repair or replace the property with new property of equivalent kind and quality to the extent practical, without deduction for depreciation.

3. Property Not Covered for Replacement Value --

This endorsement does not apply to the following property:

a. articles of art or rarity or antiques that cannot be

duplicated; b. memorabilia, souvenirs, collector's items or any

similar items whose age or history contribute to their value;

c. items not maintained in good or workable condition; or

d. items that are outdated or obsolete and are

stored or not being used. 4. Our limit -- We pay the lesser of the following

amounts for each covered item: a. the applicable limit; b. an amount not greater than your interest in the

property; c. the replacement value of the property as

defined in this endorsement; d. the amount computed after applying the deduct-

ible or other limitation applying to the loss. 5. When the replacement value for each occurrence is

more than $500, we are not liable for more than the actual cash value of the loss until actual repair or replacement is completed. You may make a claim for the actual cash value amount of the loss before repairs are made or replacement is completed. A claim for any additional amount payable under these terms must be made within six months of whichever is the latest:

a the last date on which you received a payment

for the actual cash value; or b the date of entry of a final order by a court

declaring your right to full replacement cost.

INSURED:POLICY NUMBER: ENDORSEMENT EFFECTIVE DATE:

Request for Issuance of Policy Subject to Restriction in Coverage

The coverage afforded under the policy to which this endorsement is attached is not obtainable by theundersigned Named Insured at standard rates and its issuance is therefore requested subject to thefollowing restriction:

________________________________________________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________(Insert here applicable restriction)

___________________________________________(Signature of Named Insured)

The following endorsement, duplicate copies of which shall be signed by the Named Insured and thecompany, shall be attached to the policy and the daily report:

At the request of the Named Insured, it is agreed that this policy is restricted in the following respects:

________________________________________________________________________________________

________________________________________________________________________________________

________________________________________________________________________________________(Insert here applicable restriction)

___________________________________________________________________ Insurance Company

By _____________________________________________________________________________________(Title)

___________________________________________(Signature of Named Insured)

FP DP 00 01 (10/95)

FP FL-31 (01-01) Ed 1.0

FP-FL-31. (01-01) Ed 1.0

CONDOMINIUM UNIT-OWNER ADDITIONS

Coverage A -- Residence --

Under Coverage A -- Residence, item 1 is deleted andreplaced by the following:

1. We cover the following property:

a. fixtures, alterations, decorations, additions,installations, or items of real property that pertainto your condominium unit;

b. structures at the location of the insuredpremises owned solely by you, other than theinsured premises; or

c. property that is your insurance responsibilityunder an agreement with an association orcorporation of property owners.

Coverage D - Fair Rental Value --

Coverage D is amended to read that we also pay if theinsured premises is made unfit for its normal use by aloss caused by a peril insured against to a buildingcontaining the insured premises.

How Much We Pay For Loss or Claim --

The terms that apply to buildings covered underCoverages A and B also apply to the coverage providedby this endorsement.

FP FL-35 (01-01) -- 1 -- Ed 1.0Includes copyrighted material from AAIS, used with its permission

FP FL-35 (01-01) Ed 1.0LIMITED THEFT COVERAGE


We pay for direct physical loss to property described inthis endorsement caused by the following perils:

1. Theft. This includes attempted theft and loss ofproperty from a known place when it is likely thattheft occurred. Coverage does not includemysterious disappearance. However, we do not payfor:

a. theft by an insured;

b. theft in or to a structure being built, or theft ofmaterials and supplies for use in construction,reconstruction or repair of the structure, until thestructure is finished and occupied; or

c. loss that results from the theft of a credit card orfund transfer cards.

2. Burglary Damage. This means damage to coveredproperty caused by burglars. However, we do notpay for loss on the insured premises if theresidence is vacant or unoccupied for more than 30days in a row just before the loss. A residencebeing built is not vacant.

Covered Property --

1. On-Premises -- We cover personal property, whileon the insured premises, which is usual to theoccupancy of the dwelling as a residence. Theproperty must be owned or used by an insured, orby a domestic employee. This coverage appliesonly if a limit is shown for on-premises coverageand an additional premium is paid.

On-Premises coverage applies to personal property:

a. located on the insured premises; or

b. placed for safekeeping in:

1) a bank;2) a trust or safe deposit company;3) bonded public warehouse.

The On-Premises limit is $____________peroccurrence.

$___________annualaggregate.

This is the most we will pay for any one covered lossand total annual aggregate losses at the insuredpremises.

2. Limitations On Certain Classes of CoveredProperty -- The special limits shown below do not

increase the On-Premises limit. The limit for eachclass is the total limit per occurrence for all items inthat class.

a. $ 500 on watercraft including their trailers,furnishings, equipment, and motors.

b. $ 500 on trailers not otherwise provided for.

c. $1,000 on any device or instrument for thetransmitting, recording, receiving or reproductionof data, sound or pictures, including:(1) Accessories or antennas, or;(2) Tapes, wires, records, discs or other

media for use with any such device orinstrument:

(3) Equipment used for data processingincluding but not limited to computers,monitors, hard drives, modems and otherrelated hardware and any softwareincluding diskettes, cassettes, or CD-ROMfor the programming or operation of suchequipment;

unless otherwise excluded or excepted in thispolicy.

3. Property Not Covered -- We do not cover:

a. loss caused by a tenant, roomer or boarder,members of the tenant’s household, or theiremployees or any property of a tenant, roomer orboarder, members of the tenant’s household ortheir employees;

b. land, including the land on which the property islocated, underground water or surface water;

c. trees, plants, shrubs, and lawns;

d. animals, birds, fish, or insects;

e. motorized vehicles. This includes their parts,equipment, and accessories while in or on amotorized vehicle. We do cover motorizedvehicles that are not subject to motor vehicleregistration if they are designed and used toassist the handicapped or used only to servicethe insured premises;

f. aircraft, including their parts and equipment.Aircraft means any contrivance used or designedfor flight, except model aircraft.

g. electronic devices, accessories, or antennas thatmay be operated from the electrical system of amotorized vehicle, farm equipment, or

FP FL-35 (01-01) -- 2 -- Ed 1.0Includes copyrighted material from AAIS, used with its permission

watercraft while in or on the motorized vehicle,farm equipment, or watercraft. This includesfilms, tapes, wires, discs, records, or other mediafor use with such devices;

h. farm property;

i. money, bank notes, bullion, gold other thangoldware and gold-plated ware, silver other thansilverware and silver-plated ware, platinum,coins, metals and numismatic property;

j. securities, bills, letters of credit, notes other thanbank notes, tickets, accounts, deeds, evidence ofdebt, passports, manuscripts, personal records,sports cards and comic books, stamps, andphilatelic property;

k. business property;

l. jewelry, watches, precious and semipreciousstones, gems, and furs;

m. silverware, goldware, pewterware, and itemsplated with gold or silver; or

n. guns and items related to guns;

o. property held as a sample or for sale or deliveryafter sale;

p. property separately described and specificallyinsured by any other insurance;

q. tools;

Additional Definitions --

1. Insured means you or your family members whoreside with you.

2. Domestic Employee means a person employed byan insured to perform duties that relate to the useand care of the insured premises. This includes aperson who performs duties of a similar natureelsewhere for an insured. This does not include aperson while performing duties in connection withthe business of an insured.

What You Must Do In Case Of Loss

The following paragraph is added:f. notify the police in case of loss by theft.

How Much We Pay For Loss Or ClaimItem 5. Insurance Under More Than One Policy isdeleted with respect to coverage provided by thisendorsement and replaced by the following: If thereis other insurance that applies to the loss, whethercollectible or not, our share is that part of the lossthat the limit of liability applicable under thisendorsement bears to the total amount of insurancethat applies to the loss.

Policy Conditions4. Cancellation - The following paragraphs areadded;

Notice of Cancellation of the Theft coverage part onlyshall be 30 days except: ten (10) days to insured andmortgagee on owner-occupied dwelling and five (5)days to insured and ten (10) days to mortgagee onother than owner-occupied dwelling for the followingunderwriting standards or conditions:

a. any structure which has one or more substandardphysical characteristics, other than P6, asdisplayed on the Declarations Page;

b. any structure occupied as other than a primary non-seasonal residence;

c. more than one (1) covered loss in a three (3) yearperiod;

d. failure to maintain 100% insurance to value;e. failure to protect all exterior windows & doors,

including garages and outbuildings, with alocking device.

b(4) a. When this policy is canceled, the premium forthe period from the date of cancellation to theexpiration date will be refunded prorata.b. If the return premium is not refunded with thenotice of cancellation or when this policy isreturned to us, we will refund it within areasonable time after the date cancellation takeseffect.

All other provisions of this policy apply.

WET ROT, DRY ROT, BACTERIA, FUNGI, OR PROTISTS EXCLUSION AAIS FP GL 49 01 (04 02) This endorsement changes the Personal Liability Coverage provided by this policy -- PLEASE READ THIS CAREFULLY --

FP GL 4901 (04 02) Page 1 of 1 Includes copyrighted material with the permission of American Association of Insurance Services

1. The following provisions are added under

Exclusions That Apply To Coverages L And M.

a. This policy does not apply to:

1) actual or alleged "bodily injury" or "property damage" (or "personal injury", when provided by this policy) that results directly or indirectly from ingestion of, inhalation of, physical contact with, or exposure to:

a) wet rot; dry rot; a bacterium; a

fungus, including but not limited to mildew and mold; or a protist, including but not limited to algae and slime mold; or

b) a chemical, matter, or a compound produced or released by wet rot, dry rot, a bacterium, a fungus, or a protist, including but not limited to toxins, spores, fragments, and metabolites such as microbial volatile organic compounds;

2) any loss, cost, or expense arising out of

any request, demand, or order that any "insured" or others test for, monitor, clean up, remove, contain, treat, detoxify, neutralize, or in any way respond to or assess the effects of:



b) a chemical, matter, or a compound produced or released by wet rot, dry rot, a bacterium, a fungus, or a protist, including but not limited to toxins, spores, fragments, and metabolites such as microbial volatile organic compounds; or

3) any loss, cost, or expense arising out of

any claim or suit by or on behalf of any governmental authority relating to testing for, monitoring, cleaning up, removing, containing, treating, detoxifying, neutralizing, or in any way responding to or assessing the effects of:



b) a chemical, matter, or a compound produced or released by wet rot, dry rot, a bacterium, a fungus, or a protist, including but not limited to toxins, spores, fragments, and metabolites such as microbial volatile organic compounds.

b. However, exclusion 1.a.1) above does not

apply to:

1) "bodily injury" that results from a fungus cultivated or harvested for human consumption or a food-borne or beverage-borne bacterium that causes illness commonly known as food poisoning (Food-borne or beverage-borne bacteria that cause illness commonly known as food poisoning include but are not limited to Staphylococcus aureus, Salmonella, Clostridium perfringens, Campylobacter, Listeria monocytogenes, Vibro parahaemolyticus, Bacillus cereus, and Escherichia coli.); or

2) "bodily injury" to a "farm employee" to the extent that coverage for "bodily injury" to "farm employees" is provided by this policy.

3) "bodily injury" that results from a slip, a fall, or loss of footing that is attributed to the presence of a slippery surface.

2. All other "terms" of the Personal Liability

Coverage or Farm Personal Liability Coverage apply.

— THIS IS A LEGAL CONTRACT —PLEASE READ IT CAREFULLY

FPGL1 (01-01) — 1 — Ed 1.0

FPGL1 (01-01) Ed 1.0

PERSONAL LIABILITY COVERAGE

TABLE OF CONTENTS

Agreement ................................................................................................1

Definitions.................................................................................................2

Principal Personal Liability Coverages

Coverage L — Liability.......................................................................3

Coverage M — Medical Payments To Others.......................................3

Incidental Personal Liability Coverages ........................................................3

Exclusions That Apply To Coverages L and M..............................................5

Additional Exclusions That Apply Only To Coverage L...................................6

Additional Exclusions That Apply Only To Coverage M..................................6

What You Must Do In Case Of Loss............................................................6

How Much We Pay For Loss or Claim.........................................................7

Payment of Loss or Claim ..........................................................................7

Conditions ................................................................................................7

Endorsements may also apply. They are identified on the Declarations page.

Refer to the Definitions for words that have special meanings. These words are shown in "bold type".

AGREEMENT

Subject to all the terms that apply, and in return for your payment of the required premium, we provide PersonalLiability Coverage during the policy period. Each principal coverage described herein applies only if a limit is shownon the Declarations for that coverage.

Policy terms that relate to changes made to the policy; inspections; examination of books; cancellation; andassignment or transfer of rights or duties also apply.

FPGL1 (01-01) — 2 — Ed 1.0

DEFINITIONS

1. The words you and your mean the person orpersons named on the Declarations and yourspouse if a resident of your household. The wordswe, us, and our mean the company providing thisinsurance.

2. Bodily Injury means bodily harm to a person andincludes sickness, disease or death. This alsoincludes required care and loss of services.

Bodily Injury does not mean bodily harm, sickness,disease or death that arises out of:

a. a communicable disease; orb. the actual, alleged or threatened sexual

molestation of a person.

3. Business means a trade, a profession or anoccupation including farming, all whether full or parttime. This includes the rental of property to others. Itdoes not include the occasional rental for residentialpurposes of the part of the insured premisesnormally occupied solely by your household.

Business includes services regularly provided by aninsured for the care of others and for which aninsured is compensated. A mutual exchange of likeservices is not considered compensation.

Business does not include:

a. the incidental activities that are usually performedby minors; or

b. activities that are related to business, but areusually viewed as non-business in nature.

4. Domestic Employee means a person employed byan insured to perform duties that relate to the useand care of the insured premises. This includes aperson who performs duties of a similar natureelsewhere for an insured. This does not include aperson while performing duties in connection with thebusiness of an insured.

5. Insured means:

a. you;b. your relatives if residents of your household;c. persons under the age of 21 in your care or in

the care of your resident relatives;

d. your legal representative, if you die while insuredby this Personal Liability Coverage. This personis an insured only for liability arising out of theinsured premises. An insured at the time ofyour death remains an insured while residing onthe insured premises;

e. persons using or caring for watercraft or animalsowned by an insured to which this insuranceapplies (This does not include persons using orcaring for watercraft or animals in the course ofbusiness or without the owner's consent.);

f. persons in the course of performing domesticduties that relate to the insured premises; and

g. persons in the course of acting as your realestate manager for the insured premises.

Each of the above is a separate insured, but thisdoes not increase our limit.

6. Insured Premises means:

a. the one to four family dwelling shown on theDeclarations. This includes structures or parts ofbuildings where you reside;

b. all other premises shown on the Declarations;c. all vacant land owned by or rented to an insured.

This includes land where a residence is beingbuilt for the use of an insured. This does notinclude farm land;

d. that part of a residence, acquired by you duringthe policy period, and to be used by you;

e. your cemetery lots and your burial vaults orthose of your resident relatives;

f. that part of a premises not owned by an insuredif it is temporarily used as a residence by aninsured;

g. all premises used by you in connection withyour residence;

h. all access ways adjoining the insured premises;and

i. that part of premises occasionally rented to aninsured for other than business purposes.

7. Limit means the limit of liability that applies.

8. Motorized Vehicle means a self-propelled land oramphibious vehicle regardless of method of surfacecontact. This includes parts and equipment.

This does not include vehicles that are designed andused to assist the handicapped and are not requiredto be licensed for road use.

FPGL1 (01-01) — 3 — Ed 1.0

9. Motor Vehicle means a motorized vehicle, atrailer or a semi-trailer, and all attached machinery orequipment, if:

a. it is subject to motor vehicle registration; orb. it is designed for use on public roads.

10. Occurrence means an accident. This includes lossfrom repeated exposure to similar conditions.

11. Pollutant means any solid, liquid, gaseous, thermalor radioactive irritant or contaminant, including acids,alkalis, chemicals, fumes, smoke, soot, vapor orwaste. Waste includes materials to be disposed of,recycled, reconditioned or reclaimed.

12. Property Damage means physical injury to tangibleproperty. This includes the loss of use.

13. Recreational Motor Vehicle means a motorizedvehicle, a trailer, or attached equipment that isdesigned or is used for leisure time activities, andwhich is not a motor vehicle.

14. Terms means all provisions, limitations, exclusions,and definitions used in this Personal LiabilityCoverage.

PRINCIPAL PERSONAL LIABILITYCOVERAGES

Coverage L — Liability — We pay, up to our limit, allsums for which an insured is liable by law because ofbodily injury or property damage caused by anoccurrence to which this coverage applies. We willdefend a suit seeking damages if the suit resulted frombodily injury or property damage not excluded underthis coverage. We may make investigations and settleclaims or suits that we decide are appropriate. We donot have to provide a defense after we have paid anamount equal to our limit as a result of a judgment orwritten settlement.

Coverage M — Medical Payments To Others — Wepay the necessary medical expenses if they areincurred or medically determined within three years fromthe date of an accident causing covered bodily injury.Medical expenses means the reasonable charges formedical, surgical, x-ray, dental, ambulance, hospital,professional nursing, funeral services, prosthetic devicesand eyeglasses, including contact lenses. This appliesonly to:

1. a person on the insured premises with thepermission of an insured; and

2. a person away from the insured premises if thebodily injury:

a. is a result of a condition on an insuredpremises;

b. is caused by an activity of an insured;c. is caused by a person in the course of performing

duties as a domestic employee;d. is caused by an animal owned by or in the care

of an insured; ore. is sustained by a domestic employee and

arises out of and in the course of employment.

INCIDENTAL PERSONAL LIABILITYCOVERAGES

These coverages are subject to all the terms ofCoverages L and M. Except for Claims and DefenseCost and First Aid Expense, they do not increase thelimit stated for the Principal Personal LiabilityCoverages.

1. Damage To Property Of Others — Regardless ofan insured's legal liability, we pay for property ofothers damaged by an insured, or we repair orreplace the property, to the extent practical, withproperty of like kind and quality. Our limit for thiscoverage is $500 per occurrence.

The exclusions that apply to Coverages L and M donot apply to this coverage. However, we do not payfor damage to property:

a. owned by an insured, or owned by, rented to orleased to another resident of your household orthe tenant of an insured;

FPGL1 (01-01) — 4 — Ed 1.0

b. caused intentionally by an insured who hasattained the age of 13; or

c. resulting in whole or in part from:

1) activities related to a business of an insured;2) premises owned, rented or controlled by an

insured, other than an insured premises; or3) the ownership, operation, maintenance, use,

occupancy, renting, loaning, entrusting,supervision, loading or unloading ofmotorized vehicles, aircraft or watercraft.We do pay for property damage tomotorized vehicles not subject to motorvehicle registration and not owned by aninsured if the motorized vehicle is usedonly to service the premises or if it isdesigned for recreational use off public roads.

2. Contracts And Agreements — We pay fordamages for bodily injury or property damageresulting from liability assumed by an insured undera written contract made before the loss. The losscausing the bodily injury or property damagemust have occurred during the policy period. Thiscoverage does not apply to a contract in connectionwith business activities of an insured.

3. Claims And Defense Cost — If we defend a suit,we pay:

a. the costs taxed to an insured;b. the costs incurred by us;c. the actual loss of earnings by an insured for time

spent away from work at our request (We pay upto $50 per day.);

d. the necessary costs incurred by you at ourrequest;

e. the interest which accrues after the entry of ajudgment, but ending when we tender or pay upto our limit;

f. the premiums on appeal bonds or bonds for therelease of attachments up to our limit (We arenot required to apply for or furnish bonds.);

g. the premiums up to $500 per bail bond required ofan insured because of an accident or a trafficlaw violation arising out of the use of a vehicle towhich this Personal Liability Coverage applies(We are not required to apply for or furnishbonds.); and

h. prejudgment interest awarded against an insuredon that part of the judgment we pay. If we offerto pay the limit, we will not pay any prejudgmentinterest based on that period of time after theoffer.

4. First Aid Expense — We pay the expensesincurred by an insured for first aid to persons, otherthan insureds, for covered bodily injury.

5. Motorized Vehicles — We pay for the bodily

injury or the property damage which:

a. occurs on the insured premises and is a resultof the ownership, maintenance, use, loading orunloading of:

1) a motorized vehicle if it is not subject tomotor vehicle registration because of itstype or use; or

2) a recreational motor vehicle;

b. results from:

1) a golf cart while used for golfing purposes;2) a utility, boat, camp or mobile home trailer,

except when the trailer is carried on, is towedby or is attached to a motor vehicle or arecreational motor vehicle; or

3) a motorized vehicle which is designed onlyfor use off public roads and which is usedmainly to service the insured premises;

c. results from an insured's use of a recreationalmotor vehicle which is not owned by aninsured.

6. Watercraft —

a. We pay for the bodily injury or the propertydamage which results from the maintenance,use, loading or unloading of:

1) a watercraft while it is on the insuredpremises;

2) a watercraft which is not owned by or rentedto an insured if the loss is a result of theactivities of an insured;

3) a watercraft which is owned by or is rented toan insured and which is powered by inboardor inboard/outboard motors which total 50horsepower or less;

4) a sailing vessel with or without auxiliary powerwhich is owned by or is rented to an insuredand is less than 26 feet in length; or

5) a watercraft which is powered by outboardmotors which total 25 horsepower or less.

FPGL1 (01-01) — 5 — Ed 1.0

b.We pay for the bodily injury or the propertydamage which results from the maintenance,use, loading or unloading of a watercraft that ispowered by outboard motors which total morethan 25 horsepower, if:

1) the motors are listed on the Declarations;2) the motors are acquired by an insured during

the policy period and a request for coverage ismade within 45 days after they are acquired;or

3) the motors are not owned by an insured.

7. Business — We pay for the bodily injury or theproperty damage which results from:

a. the rental of that part of the insured premisesthat is usually occupied by you as a residence;

b. the rental of other parts of the insured premisesfor use as a residence (No family unit mayinclude more than two roomers or boarders.); or

c. the rental of a part of the insured premises foruse as a school, studio, office or private garage.

EXCLUSIONS THAT APPLY TOCOVERAGES L AND M

Personal Liability Coverage does not apply to bodilyinjury or property damage which results directly orindirectly from:

1. war (This includes undeclared war, civil war,insurrection, rebellion, revolution, warlike act by amilitary force or military personnel, or destruction,seizure or use of property for a military purpose.Discharge of a nuclear weapon is deemed a warlikeact even if accidental.);

2. the ownership, operation, maintenance, use,occupancy, renting, loaning, entrusting, supervision,loading or unloading of aircraft, except for bodilyinjury to a person while performing duties as adomestic employee (This exclusion does not applyto model airplanes.);

3. the ownership, operation, maintenance, use,occupancy, renting, loaning, entrusting, supervision,loading or unloading of

motorized vehicles or watercraft

owned or operated by or rented or loaned to aninsured. We do pay:

a. for bodily injury to a person in the course ofperforming duties as a domestic employee; or

b. if coverage is provided by an Incidental MotorizedVehicle or Watercraft Coverage;

4. the use of a motorized vehicle in, or in the practiceor the preparation for, racing, speed, pulling orpushing, demolition or stunt activities or contests;

5. liability imposed by law on an insured for the use ofa motorized vehicle, aircraft or watercraft, except ifcoverage is provided for by an Incidental MotorizedVehicle or Watercraft Coverage;

6. the rendering of or the failing to render a professionalservice;

7. activities related to the business of an insured;

8. premises that are owned, rented or controlled by aninsured and that are not the insured premises. Wedo pay for bodily injury to a person in the course ofperforming duties as a domestic employee;

9. an intentional act of an insured or an act done atthe direction of an insured;

10. an occurrence for which an insured is also aninsured under a nuclear energy liability policy orwould be an insured but for the exhaustion of itslimits (A nuclear energy liability policy is a policyissued by the Nuclear Energy Liability InsuranceAssociation, Mutual Atomic Energy LiabilityUnderwriters, Nuclear Insurance Association ofCanada or their successors.); or

11. the discharge, dispersal, release or the escape ofpollutants into or upon land, water or air, except ifsuch discharge, dispersal, release or escape issudden and accidental. However, this exclusiondoes not apply to bodily injury or propertydamage that arises from the heat, smoke or fumesof hostile fire on the insured premises. Hostile fireis a fire that becomes uncontrollable or breaks outfrom where it was intended to be.

FPGL1 (01-01) — 6 — Ed 1.0

12. a. actual or alleged bodily injury that resultsdirectly or indirectly from the ingestion,inhalation or absorption of lead in any form;

b. actual or alleged property damage that resultsdirectly or indirectly for any form of lead;

c. any loss, cost or expense arising out of anyrequest, demand or order that any Insured orothers test for, monitor, clean up, remove,contain, treat, detoxify or neutralize or in anyway respond to or assess the effects of lead;or

d. any loss, cost or expense arising out of anyclaim or suit by or on behalf of anygovernmental authority for damages resultingfrom testing for, monitoring, cleaning up,removing containing, treating, detoxifying orneutralizing or in any way responding to orassessing the effects of lead.

ADDITIONAL EXCLUSIONS THAT APPLY ONLY TOCOVERAGE L

Coverage L does not apply to:

1. bodily injury to you, and if residents of yourhousehold, your relatives, and persons under theage of 21 in your care or in the care of your residentrelatives;

2. liability assumed under a contract or an agreement,except as provided for by Incidental Contracts andAgreements Coverage;

3. damage to property owned by an insured;

4. damage to property that is rented to, occupied by,used by, or in the care of an insured, except forproperty damage caused by fire, smoke orexplosion;

5. sickness, disease or death of a domesticemployee unless a written notice is received by uswithin 36 months after the end of the policy period inwhich the injury occurred; or

6. bodily injury to a person, including a domesticemployee, if the insured has a workers'compensation policy covering the injury or if benefitsare payable or are required to be provided by aninsured under a workers' compensation, non-occupational disability, occupational disease or likelaw.

ADDITIONAL EXCLUSIONS THAT APPLY ONLY TOCOVERAGE M

Coverage M does not apply to bodily injury to:

1. an insured or other person who resides on theinsured premises, except a domestic employee;

2. a person who is on the insured premises becausea business is conducted or professional services arerendered on the insured premises; or

3. a person, including a domestic employee, if aworkers' compensation policy covers the injury orif benefits are provided under a workers'compensation, non-occupational disability,occupational disease or like law.

WHAT YOU MUST DO IN CASE OF LOSS

1. Notice — In the case of an occurrence (or if aninsured becomes aware of anything that indicatesthat there might be a claim under this PersonalLiability Coverage), the insured must promptly giveus or our agent notice (in writing if requested).

The notice must state:

a. the name of the insured; the policy number; andthe time, place, and the details of theoccurrence; and

b. the names and the addresses of all knownpotential claimants and witnesses.

2. Cooperation — The insured must cooperate withus in performing all acts required by this PersonalLiability Coverage.

3. Volunteer Payments — An insured must notmake payments, pay or offer rewards or assumeobligations or other costs except at the insured'sown cost. This does not apply to costs that areallowed by this Personal Liability Coverage.

4. Other Duties — Liability Coverage — In case ofan occurrence which might result in a claim, theinsured must promptly give us copies of all legalpapers, demands and notices that relate to theoccurrence or claim.

At our request, the insured must help us:

a. to settle a claim;b. to conduct suits (This includes being at trials and

hearings);c. to enforce the right of recovery or indemnification

against all parties who may be liable to aninsured for the injury or damage;

d. in the securing of and giving of evidence; ande. in obtaining the attendance of all witnesses.

5. Other Duties — Medical Payments To Others

FPGL1 (01-01) — 7 — Ed 1.0

Coverage — In case of a loss the injured person orsomeone acting on behalf of that person must:

a. give us written proof of claim (under oath if werequest) as soon as practical; and

b. authorize us to get copies of medical records.

The injured person must submit to physical examsby doctors chosen by us when and as often as wemay require.

HOW MUCH WE PAY FOR LOSS OR CLAIM

1. Coverage L — Liability — The limit shown on theDeclarations for Coverage L is the most we pay forloss for each occurrence. This applies regardless ofthe number of:

a. persons insured under this Personal LiabilityCoverage;

b. parties who sustain injury or damage; orc. claims made or suits brought.

2. Coverage M — Medical Payments To Others —The limit shown on the Declarations per person forCoverage M is the most we pay for all medicalexpenses payable for bodily injury to one personas the result of one accident.

When a limit is shown on the Declarations peraccident for Coverage M, that limit is the most wepay for any one accident.

The payment of a claim under Coverage M does notmean we admit we are liable under Coverage L.

3. Insurance Under More Than One Coverage — Ifmore than one coverage applies to a loss, we payno more than the actual loss.

4. Coverage L — Insurance Under More Than OnePolicy — (This does not apply to Coverage M –Medical Payments to Others).

If there is other insurance which applies to a loss, wepay only that part of the loss that the applicable limit ofliability under this policy bears to the total amount ofinsurance covering the loss.

If the master policy of a condominium associationapplies to a covered loss, this insurance is excessover the insurance under such master policy.

If a loss arises out of the ownership, maintenance,use, loading or unloading of a motorized vehicle orwatercraft to which this policy applies, this insurance

does not apply until the limits of all other policiescovering this loss have been exhausted.

PAYMENT OF LOSS OR CLAIM

A person who has secured a judgment against aninsured for an insured loss or has liability establishedby a written agreement between the claimant, aninsured and us is entitled to recover under thisPersonal Liability Coverage to the extent of coverageprovided.

CONDITIONS

1. Bankruptcy Of An Insured — Bankruptcy orinsolvency of an insured does not relieve us of ourobligations under this Personal Liability Coverage.

2. Conformity With Statute — Terms in conflict withthe laws of the state where the premises describedon the Declarations is located are changed toconform to such laws.

3. Misrepresentation, Concealment Or Fraud —This Personal Liability Coverage is void if, before orafter a loss:

a. an insured has willfully concealed ormisrepresented:

1) a material fact or circumstances with respectto this insurance; or

2) an insured's interest herein.

b. there has been fraud or false swearing by aninsured with respect to this insurance or thesubject thereof.

4. Subrogation — If we pay for a loss, we mayrequire that the insured assign to us the right ofrecovery up to the amount we pay. We are notliable for a loss if, after the loss, an insuredimpairs our right to recover against others. Youmay waive your right to recover, in writing, beforea loss occurs, without voiding coverage.

Subrogation does not apply to Coverage M —Medical Payments to Others or to Damage toProperty of Others under the Incidental PersonalLiability Coverages.

5. Suit Against Us — No suit may be brought againstus unless:

a. all the terms of this Personal Liability Coverage

FPGL1 (01-01) — 8 — Ed 1.0

have been complied with; andb. the amount of an insured's liability has been

fixed by:

1) a final judgment against an insured which isthe result of a trial; or

2) a written agreement of the insured, theclaimant and us.

No person has a right under this Personal LiabilityCoverage to join us or implead us in actions that arebrought to fix the liability of an insured.

6. Assignment - This policy may not be assignedwithout our written consent.

7. Cancellation - Notice of Cancellation shall be 30days except; ten (10) days to insured andmortgagee on owner-occupied dwellings and five (5)days to insured and ten (10) days to mortgagee onother than owner-occupied dwellings for thefollowing underwriting standards or conditions:

a. any insured structure is used for businesspurposes;

b. any animal owned by any person insured underthis policy, or any animal located at any locationinsured under this policy, has ever bitten,attached, or harmed any individual;

c. any structure insured under this policy is used toprovide child care services;

d. more than two (2) liability losses in a three (3)year period;

e. any structure found to be other than a one (1) ortwo (2) family owner occupied dwelling.

Your return premium, if any, will be calculated on apro rata basis and will be refunded at the time ofcancellation or as soon as practical. Payment ortender of the unearned premium is not a condition ofcancellation.

8. Change, Modification or waiver of Policy Terms- A waiver or change of the terms of this policy mustbe issued by us in writing to be valid. If in the policyperiod, we adopt a revision which broadens coveragewithout an additional premium, the broadenedcoverage will apply.

If this policy has no expiration date, we maysubstitute or we may add, at each anniversary date,forms that are then authorized for use.

9. Inspections - We have the right, but are notobligated, to inspect your property and operations. This inspection may be made by us or may be madeon our behalf. An inspection or its resulting adviceor report does not warrant that your property oroperations are safe, healthful or in compliance withlaws, rules or regulations. Inspections or reports arefor our benefit only.

10. Examination of Books and Records - Wemay examine and audit your books and records thatrelate to this policy during the policy period andwithin three years after the policy has expired.

GL-70 (01-01) Ed 1.1

GL-70 (01-01) Ed 1.1

ADDITIONAL INSURED


Name and Address of Person or Organization:

Location of Premises:

Interest:

The definition of insured includes theperson or organization named above as theinterest appears.

Coverage applies only with respect to thepremises shown above. This includes the

necessary and incidental operations of thepremises.

Coverage does not apply to bodily injury toan employee arising out of or in the courseof employment by an insured.

REQUEST FOR ISSUANCE OF LIABILITY ENDORSEMENT WITHRESTRICTIONS IN COVERAGE

POLICY NUMBER: DWELLINGINSURED: FP DL 00 02 01 99THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

This endorsement effective_______________________,the effective hour being the same as that designated in thepolicy to which this endorsement is attached, forms a part ofthe policy listed above.

YOUR POLICY CHANGED AS FOLLOWS:It is hereby requested that in consideration of yourcontinuing my policy at this time the following agreement ismade:

This company shall not be liable under COVERAGE L -PERSONAL LIABILITY, COVERAGE M -MEDICAL PAYMENTS TO OTHERS ORADDITIONAL COVERAGES of this policy for loss ordamage caused by, resulting from, contributed to oraggravated by,

Description of animal(s) excluded:

Owned by, or in the care of, custody or control of theinsured, or any member of the insured's family orhousehold.

This agreement also applies to any reinstatement orrenewal of this policy.

All other terms and conditions of this policy remainunchanged.

Date: Signed: (Insured)

Date: Signed: (Producer)FP DL 00 02 01 99 Copyright, Virginia Property Insurance Association, 1999 Page 1 of 1

Documents

DWELLING PROPERTIES PROGRAM - Home Page - … · DWELLING PROPERTIES PROGRAM This Manual Contains Final Rates July 2014